According to Chin's Oriental Morning Post, the Chinese government has given permission for Chery to purchase the Volvo brand from Ford. Neither side has confirmed the report, but Chery head Yin Tongyao has stated that a Volvo acquisition has not been ruled out.
In addition to Chery, Chin's Dongfeng Motor Group and Chongqing Changan are also rumored to be interested in purchasing Volvo.
Although nothing is set in stone at this point, a Chinese purchase of Volvo seems to make sense. Volvo is best known for its safety, with most Chinese automakers known for the complete opposite. A Volvo purchase could go a long way in changing that reputation and would also provide a platform for U.S. sales.
Ford hasn't publicly announced a price for Volvo, but is believed to be seeking about $6 billion.