Report: Geely Signs Preliminary deal to buy Volvo

Reports suggest Ford might have found a buyer for its Swedish Volvo brand in the form of Chinese automaker Geely.

According to Chinese media reports, Geely has reached a preliminary agreement with Ford to buy Volvo. The reports also suggest that Geely will build a new Volvo model in China’s Guangzhou Province as part of the deal. Speculation suggests that Geely would initially introduce the XC90 in China and investmore than$10 billion in Volvo globally.

However, Volvo and Ford have denied the reports, and released a statement reading: “An announcement related to the sale of Volvo Car Corp. would only come from Ford Motor Company.”

The statement went on: “As of today, neither Ford Motor Company nor Volvo Car Corporation in Sweden has made any announcement regarding the sale of Volvo. Reports of such a sale by any media outlet are speculative and, therefore, are not accurate.”

The Chinese media, though, are citing a government source as having confirmed the agreement. The source says the official confirmation will only be released once details have been finalized.

Earlier, we reported that China’s BAIC was interested in buying Volvo and had toured its headquarters in Sweden.

Source: Autocar