Geely claims Volvo intellectual rights deal

• Source: Global Times
• [14:17 November 30 2009]
• Comments

China's Zhejiang Geely Holding Group has reached a deal with Ford Motor Co. on intellectual-property rights in its bid for Volvo, Geely spokesman Yuan Xiaolin said Friday.

Through the ongoing talks to acquire Volvo, Geely would own the intellectual-property rights to Volvo's key technologies, including those related to safety and the environment, according to the Chinese automaker.

Geely also confirmed that the company remains the preferred bidder to buy Volvo.

As for capital for the bid, Yuan said that Geely has made full preparations for it, but did not elaborate on the amount.

This is the first time for Geely to speak about the process of the bid publicly.

Yuan pointed out that although the auto market has been hit by the financial crisis, with Volvo's world-class technology, great brand power, added with the huge demand for luxury cars in developed countries and emerging markets, Geely is optimistic about its prospects of this bid.

Geely can bring a lot of benefits to the deal, he added. One of the important advantages that the company can bring is its deep understanding of the Asian market, especially the Chinese market, which has great potential.

Volvo's brands advantage, added with Geely's understanding of the Chinese market will push the company to better explore the market's potential, Yuan said.