Geely, Ford to sign Volvo deal by February 14

• Source: Global Times
• [11:28 January 29 2010]
• Comments

Geely Holding Group and Ford Motor plan to sign the deal for Volvo by February 14, the start of Chinese New Year or Spring Festival, according to Bloomberg yesterday, citing three sources familiar with the negotiations.

The Chinese automaker is expected to pay less than $2 billion for Ford’s Volvo unit which it bought in 1999 for $6.5 billion.

Geely spokesman for the Volvo deal Yuan Xiaolin wasn’t reachable by cell phone to confirm the date and price of the deal.

One of the sources told Bloomberg that the negotiators are still working out details on how long Ford will supply engines and other components to Volvo.

Reuters reported that Geely Holdings plans to complete the deal by May, and then pull the Swedish brand out of the red by 2011.

The deal also needs approval from the Chinese government.

Agencies and Shi Jierui contributed to this story