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Geely edges closer to acquiring Volvo Volvo looks set to fall into Chinese hands, after it emerged that Geely is the sole bidder for the Swedish carmaker, currently owned by Ford 02 Sep 2009 | Foreign News: China Viewed : 341 times http://www.sgcarmart.com/news/article.php?AID=2526 Several anonymous sources has reported that Geely has signed a letter of intent to purchase Volvo from Ford, and revealed that Geely and Ford were still ironing out the details of the deal, including the transfer of technology, Volvo's marketing and market position and possibly layoffs. If successful, Geely hopes to start producing Volvo cars in a new factory in the Guangdong Province of China and will also invest US$10 billion in building the Volvo brand. The first model to be designed and engineered under the new ownership is expected to be the next XC90 SUV, due in 2011. Previous reports suggested that Chinese automakers Dongfeng Motor Group, Beijing Auto and Chongqing Changan Automobile Co, as well as a European consortium, were among the final bidders, but it appears that Geely is the sole remaining party interested in the troubled Swedish carmaker. The Swedish government has announced that it will offer US$572 million in loan guarantees to entice any company to takeover Volvo, and the acquisition could be seen as a coup for Geely, who could stand to benefit from Volvo