Volvo - Geely Sale Talks Move to Sweden

Talks between Ford and Geely are making progress so Chinese manufacturer's officials traveled to Sweden this week to discuss the terms of the deal. The Chinese group will meet in Gothenburg and Stockholm with Ford and Volvo representatives, as well as with union leaders and government officials.

Autonews notes that one of the biggest issues in the talks is the intellectual property rights as Ford is afraid that it might lose some technologies as part of the sale. But according to voices close to the matter, Geely and Volvo have already reached an agreement over the licensed technologies - Volvo will still hold the rights but Geely will be allowed to employ them on various models to be launched after the deal closure.

Ford and Geely representatives denied to comment on the reports.

The US-based manufacturer Ford, still in control of Volvo, announced last month that Geely is indeed its preferred bidder for the Swedish brand's sale. The company refused, however, to provide more details on the negotiations.

“Ford’s objective in our discussions with Geely is to secure an agreement that is in the best interests of all the parties,” said Lewis Booth, Ford Motor Company executive vice president and chief financial officer. “Any prospective sale would have to ensure that Volvo has the resources, including the capital investment, necessary to further strengthen the business and build its global franchise, while enabling Ford to continue to focus on and implement our core ONE Ford strategy."

It is believed that Geely wants to offer around $2 billion for Volvo, with post-acquisition plans including a new Chinese plant and several models to be launched into its domestic market.