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Should Geely receive the green right to purchase Volvo from Ford Motor Company, it will also receive the right to use technologies developed by Volvo in its own vehicles.
That bonus comes from the fact that Volvo will retain the rights to its technological developments, as opposed to leaving patents and other designs with Ford. Unlike the nixed Opel sale, there seems to be little concern over intellectual property in the Volvo transaction.
According to Reuters, a Geely-owned Volvo will retain existing manufacturing and engineering facilities, as well as its dealership network and labor agreements.
“Geely’s proposal is in line with the best interest of Volvo,” said Yuan Xiaolin, a spokesman from Geeley Automotive Holdings.
Presently, Geely is simply the preferred bidder in the Volvo sale, but talks appear to be progressing in a steady manner. Geely’s bid for Volvo is estimated to be in the neighborhood of $2 billion, significantly less than what Ford paid for the company back in 1999 (that transaction was valued at $6.45 billion).
Source: Reuters
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