Volvo Still Up for Grabs Despite Geely Agreement

Although we all believed that Volvo is 99 percent sold, it appears that Ford is also willing to listen to other offers it might receive from various interested parties around the world. At least, this is what Volvo CEO Stephen Odell told the Dagens Industri newspaper, claiming that Ford would negotiate with any other bidder if it submits an offer.

"I know that Ford is open to talking with others," he told the newspaper according to Reuters. "Those who say that the door is closed can go to Ford and talk with them whenever they want."

On the other hand, Odell said that negotiations between Geely and Ford are going as initially planned and, if everything goes well, a deal should be signed in the first quarter.

"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," Ford said in a statement back in December.

Up until now, the two companies haven't released the terms of the deal but, if we go the rumor way, the Chinese guys are planning to boost Volvo's sales to 2 million units per year in the next 4 to 5 years. In order to reach this goal, the company would expand its Chinese operations, with some models to be manufactured locally in a new factory that would be built after the acquisition is completed.