Geely Buys Site for Chinese Volvo Factory

Even if the Geely - Volvo deal is still in doubt due to a number of reasons, the Chinese buyer seems to be sure that the Swedish brand will step under its very own umbrella. Geely Holdings Group is getting ready to purchase a land lot in Beijing e-Town top-ranked Industrial New City that will be used for the construction of a new assembly plant to handle Volvo cars production in China.

The report published by gasgoo.com is a clear indication that Geely is currently in advanced talks with Volvo, in spite of recent rumors that Ford wants to delay the sale of the Swedish unit.

It appears that Geely had several options when it comes to the site for the future Volvo plant in China, with some voices hinting that it could be based in Guangdong Province's Dongguan City or in the Shanxi Province.

But as we said, Geely is still not sure that it will indeed purchase Opel. After repeatedly denying rumors that it wants to purchase the Swedish manufacturer, Geely submitted a takeover proposal in which it mentioned it would invest around $2 billion to help the company survive the crisis. Additionally, Geely said it would bring a team of Chinese engineers to collaborate on several projects, but specific details are yet to be unveiled.

Recently, sources familiar with the matter claimed Ford wants to delay the process until General Motors sells Opel in order to invite the losing suitor into bidding for Volvo. This way, Ford is looking to obtain more money on Volvo as Geely is reportedly the only company interesting in buying the brand.