Geely said preparing land for China Volvo factory

Geely Holdings Group is brewing the purchase of a land lot in Beijing e-Town Top-ranked Industrial New City, aiming at China-based Volvo car production, according to an executive of the Chinese automaker.

Presently, Geely Holding is one of the bidders for the Volvo car business, which is under the aegis of Ford Motor Company. Though the negotiation about the asset acquisition is still ongoing, the Chinese firm has eyed several places as the choices for the location of a China-based Volvo car factory, said another of its executives, adding that some local governments were willing to support the project via cash or land.

Earlier reports said that the factory might be established in Guangdong Province's Dongguan City or Shanxi Province. But as for the purchase of the Beijing land lot, local regulators have not been informed of the deal.

In addition, Geely Holding is the only Chinese company with the National Development and Reformation Commission's approval for buying the Volvo car division.