Geely still in talks with Ford on Volvo acquisition

Ford Motor Co and China's Geely Automobile Holdings Ltd are still in negotiation over the acquisition of Volvo and there is no new progress, according to CEO Allan Mulally, the official Xinhua News Agency reported.

Mulally made the remarks at the opening ceremony of Ford's new plant in Chongqing, Southwest China.

He also noted that Volvo is a good brand and Ford decided to sell it as it aims to shift its main focus on developing the Ford brand.

On Sep. 14, Geely said its parent, Geely Holding Group, may team up with a state-owned investment company on the possible bid of Ford's Volvo unit.

Last week, the Hong Kong-listed auto maker said in a statement that it would raise HK$2.59 billion by issuing convertible bonds and warrants to GS Capital Partners VI Fund L.P, an affiliate of Goldman Sachs Group Inc. Proceeds from the issuance will be used to fund capital expenditure and potential acquisitions, as well as for general working capital,

Hangzhou-based Geely sold 185,000 vehicles in the first eight months of the year, representing a year-on-year growth of 35%. It aims to sell 250,000 vehicles in 2009.