Geely, Ford Volvo talks falter on intellectual property

Geely Holding Group Co.'s 10-month effort to buy Volvo from Ford Motor Co. may fall apart within days as the companies struggle to agree on intellectual property rights, two people familiar with the talks said.

Geely and Ford officials are meeting in London this week to try to resolve the U.S. automaker's concerns about sharing technology and future product plans, said the people, who asked not to be identified because the negotiations are private. Without an accord, Ford may opt to keep the Swedish unit, where losses are narrowing and sales are improving, the people said.

Ford, the only major U.S. automaker to avoid bankruptcy, put Volvo on the block in December as it shed overseas luxury lines to focus on its namesake brand. Geely, China's biggest private automaker, is offering about $2 billion, less than a third what Ford paid a decade ago, people familiar with the talks have said.

"Volvo is completely integrated into Ford's product development strategy, and Ford should be concerned about where its vehicle architectures will end up," said Michael Robinet, a CSM Worldwide analyst in Northville, Michigan. "This is akin to selling a room on your house. You can't separate it easily."

Any buyer would gain insight into Ford's future products, which will still share Volvo technology and mechanical vehicle designs, the people said. Ford wants assurances that Geely will keep new-model blueprints secret, the people said.

Volvo Improving

Without those guarantees, Dearborn, Michigan-based Ford is prepared to put off plans to sell Volvo because the unit's prospects are improving and it might command a better price when the economy recovers, the people said.