Geely, Ford on track to sign Volvo deal by end of Q1

Chinese auto maker Zhejiang Geely Holding's plan to acquire Ford Motor Co's Volvo brand remains unchanged, and a sale and purchase agreement will be signed by the end of this quarter, Reuters reported.

Spokesmen for Ford and Geely said the deal will be completed in the second quarter of this year.

The statement was made in response to a Chinese media report that Geely's purchase plan faced financing and technology hurdles, Reuters reported.

Citing sources familiar with the matter, China Daily had said that the two companies have yet to reach a definitive agreement due to unsolved obstacles and uncertainties.

The English-language newspaper also doubted whether Geely would be able to secure the necessary US$1.4 billion to develop and market Volvo cars after the deal.

Zhejiang Geely, parent of Hong Kong-listed Geely Automobile Holdings Ltd, said it aimed to finish the US$2-billion acquisition by May, China Knowledge reported earlier.