Geely still hopes to sign deal with Ford by March 31

• Source: Global Times
• [15:27 March 22 2010]
• Comments

By Shi Jierui

Geely still hopes to complete the deal with Ford Motor to acquire Volvo by signing the sales and purchase agreement by the end of March and complete the deal in the second quarter, Geely's PR Director Yang Xueliang told the Global Times Monday.

Geely Chairman Li Shufu said March 18 that the company hit a snag due to problems at Ford, and Yang said he wasn't clear about the specific issues.

Li said the talks to buy Volvo were changing constantly and the negotiation process is very tough. He confirmed that the company previously had difficulties with financing, but it has been resolved already. Li didn't want to talk about the revival of Volvo under Chinese management before the deal was reached.

Li also said the company would consider building a plant for Volvo, probably in Beijing or Tianjin.

However, in response to Li, Ford's CEO Alan Mulally said, "We are making progress on the negotiations."

The Chinese automaker had aimed to complete the purchase of Volvo for up to $2 billion by May.