Geely Out for Shopping, Buys Zhongyu

Geely Automobile, the Chinese company that will most likely take control of Volvo, went out for shopping once again, this time purchasing Zhongyu Automotive, a company whose main focus is the production of special vehicles. Although they are considered a small automobile producer, Zhongyu actually builds up to 100,000 vehicles per year and is currently involved in a partnership with Mercedes-Benz.

The terms of the deal are yet to be disclosed at this point but Geely will thus get access to a new production facility in Wuhan plus to other new technologies, such as MPV platforms.

Otherwise, Geely is still working on closing the deal with Ford. It was initially believed that the Chinese entity and Volvo's current owner would reach an agreement in February, but it seems like the deadline has been extended to March due to negotiations stalling on financing and details in the signing of documents.

The two signed a deal in December and both of them were expecting to close the deal in the first quarter of 2010.

"Ford Motor confirmed today that all substantive commercial terms relating to the potential sale of Volvo Car Corporation have been settled between Ford and Zhejiang Geely Holding Group Company Limited," Ford's official announcement read in December.

"While some work still remains to be completed before signing – including final documentation, financing and government approvals – Ford and Geely anticipate that a definitive sale agreement will be signed in the first quarter of 2010, with closing of the sale likely to occur in the second quarter 2010, subject to appropriate regulatory approvals."