Geely denies high expenses for acquiring Volvo

Geely Holding Group does not agree with the saying that it needs USD 1.4 billion for the revival of Volvo.

On March 11, 2010, a foreign media report said that Geely would spend at least USD 1.4 billion on Volvo's product R&D, marketing, production and distribution in 2011, quoting the words of Glenn Magnusson, head of the latter's managers' union.

Actually, there have been rampant talks about the acquisition price of Volvo by Geely in recent days. On Wednesday, another foreign media report claimed that it would cost Geely SEK 15 billion or USD 2.1 billion to acquire Volvo from Ford Motor Company.

Glenn Magnusson also expressed his dissatisfaction about the financial power of Geely. As to that, a top executive of the Chinese party reiterates that the they are not in shortage of money.

Chinese financial institutions and local governments have agreed to provide capitals for Geely. In exchange, they will lure the settlement of the local production of Volvo.

The reported signing of the acquisition agreement has been postponed to the end of March. As promised by Ford and Geely, they will ink the agreement in the first quarter and complete the transaction in the second quarter.