Zhejiang Geely Holdings, the initiator of the Geely-Volvo acquisition, said that the long awaited agreement has not been signed yet but the takeover will proceed according to the company’s plan, as Reuters reports.
The Chinese company was supposed to sign the contract last month but, according to the company’s chairman, Li Shufu, an official agreement has not been signed yet.
"We haven't reached a final agreement so far," Li was quoted as saying by Reuters. "Everything is moving as planned." Li added.
According to an earlier statement of Volvo’s CEO, Stephen Odell, the two companies are expecting to complete the sale during the first quarter of the current year, so the deal should reach its final point soon. The transaction is estimated to reach a value of approximately $2 billion.
In another statement, Odell said that Volvo expects its sales on the Chinese market to surge after the acquisition is completed. For the time being, the carmaker’s Swedish Torslanda plant is working at a reduced capacity, due to the lack of demand.
Geely plans to double Volvo’s annual production through a complex development plan that includes the building of a new production site - this would be based in Beijing. The business scheme’s aim is to bring Volvo to the break even point by next year.
Even though the deal has not been finalized, Volvo-related rumors have already surfaced: these show that, once the Swedish carmaker becomes one of Geely’s assets, a model from the Volvo line-up might become the Chinese authorities’s official car, enhancing the company’s image in the country.
The Chinese company was supposed to sign the contract last month but, according to the company’s chairman, Li Shufu, an official agreement has not been signed yet.
"We haven't reached a final agreement so far," Li was quoted as saying by Reuters. "Everything is moving as planned." Li added.
According to an earlier statement of Volvo’s CEO, Stephen Odell, the two companies are expecting to complete the sale during the first quarter of the current year, so the deal should reach its final point soon. The transaction is estimated to reach a value of approximately $2 billion.
In another statement, Odell said that Volvo expects its sales on the Chinese market to surge after the acquisition is completed. For the time being, the carmaker’s Swedish Torslanda plant is working at a reduced capacity, due to the lack of demand.
Geely plans to double Volvo’s annual production through a complex development plan that includes the building of a new production site - this would be based in Beijing. The business scheme’s aim is to bring Volvo to the break even point by next year.
Even though the deal has not been finalized, Volvo-related rumors have already surfaced: these show that, once the Swedish carmaker becomes one of Geely’s assets, a model from the Volvo line-up might become the Chinese authorities’s official car, enhancing the company’s image in the country.
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