Automakers Geely, Ford may pen Volvo deal today

Zhejiang Geely Holding Group appeared set to sign a binding deal Sunday to buy Sweden's Volvo Cars from Ford Motor Co., in a coup for the ambitious Chinese automaker, and also a challenge.

Geely earlier had said it expected to reach a final agreement on the deal by the end of March. Chinese Vice President Xi Jinping is visiting Sweden, and a signing ceremony could be timed to coincide with his visit.

Xi was due to visit Goteborg, Sweden, where Volvo is headquartered, on Sunday, the official Xinhua News Agency reported. No more specific details of Xi's schedule were available.

Ford, which purchased the Swedish car maker in 1999 for $6.45 million, has said it expects the deal to be finished by the end of the first quarter.

The long-awaited acquisition would represent a coup for Geely, an independent automaker that has gradually built its business with little government support and has been striving to upgrade its brand image.

Headed by prominent entrepreneur Li Shufu, the company has long coveted a stronger foothold in Europe. The company earlier had been rumored to be bidding for Opel and Saab.

Geely officials were not available for comment over the weekend, and the company had not issued any official statements. The most recent notice on its Web site was an article featuring a meeting between Li and Chinese President Hu Jintao -- the ultimate symbol of the company's arrival as a major player.

Volvo spokesman Per-Ake Froberg said Friday that the deal could be reached on Sunday, "but it's not set in stone yet."

He declined to comment on the price. Analysts have estimated the deal at about $2 billion.

Ford has been trying to sell Volvo since late 2008 to focus on its core Ford, Lincoln and Mercury brands.

As Western automakers unload unprofitable assets, they are finding keen buyers in Asia.