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Almost Official: Geely Buys Volvo

After months of uncertainty, Volvo is close to finding its new owner. Fortunately, or unfortunately depending on your point of view on the matter, the Swedish manufacturer, often regarded as one of the safest carmakers, is likely to step under the patronage of Chinese buyers, just like GM's brand HUMMER. This time it's Geely the one close to a deal, with the guys over at auto.sohu.com claiming officials of the Chinese manufacturer and Ford have reached an agreement.

Details are obviously uncertain at this point, but it appears that Geely, who recently made the headlines with the release of the Phantom clone called GE, is close to becoming the new Volvo owner. Under the terms of the deal, a part of Volvo's production will be transfered to a Dongguan city in Guangdong which is likely to host the production of the fist Volvo under Geely's ownership. The aforementioned source says the XC90 SUV might be the first to get Geely's touch.

Before receiving the final signing, Geely must still provide a detailed plan for Volvo's future. Nevertheless, the Chinese company has already received the support of the Dongying government, which means the Chinese side would give the green light easier in case the deal indeed goes through. Additionally, the local officials could inject more money into Geely in order to build a new production facility in the region.

It's still unknown how much money Geely wants to pay for Volvo but it appears the Chinese company will invest around $10 billion to bring the Swedish company back to profitability and build and sell its models both inside and outside of China and Sweden.

Official details are expected to be rolled out soon so keep an eye on the news.
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About the author: Bogdan Popa
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Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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