Geely Gets Entangled in Ford's IP Rights

Chinese carmaker Geely is once again making the headlines with their relentless attempt to take over Swedish carmaker Volvo, This time, it's not good news for the Chinese, as reports began surfacing that Geely can't get its head around intellectual property rights.

According to a source close to the matter speaking for Reuters, Geely is so far unable to meet Ford's concerns regarding the use of its proprietary technology and possible plans for future Volvo vehicles.

"I'm not at all surprised that intellectual property rights would be a roadblock in the Volvo sale as IPR has always been an issue in China," Boni Sa, analyst at CSM Worldwide told Reuters.

Ford has been planning to sell Volvo for the better part of the year, with Geely being the only rumored strong bidder for the brand. However, the lengthy sale process may go on for some time now, if a suitable new owner isn't found.

"We have been consistently stating that this process will take some time to unfold, and that is still the case," a Ford spokesman was quoted as saying by the source. Volvo denied any comments on the matter, through the voice of Maria Bohlin, spokeswoman for the carmaker: "Our response is, like always, that we cannot comment on the sales process."

Rumors say Geely will invest some $2 billion in the Swedish unit and also has plans for the construction of a new plant in China. A team of Chinese engineers is also said to plan a trip to Sweden, to learn from their local counterparts.