Although previous reports indicated Ford ’s plan to sell its Volvo brand to Geely was progressing as scheduled, a new report suggests the deal has hit a bump in the road. Geely’s chairman has revealed his company’s plan to acquire Volvo has “hit a snag.”
While Li Shufu – chairman of Zhejiang Geely Holding Group – wouldn’t elaborate on the snag, the executive confirmed there could be a problem with the deal. Moreover, Shufu says the problem is on Ford’s side of the court.
“If the deal fails, the problem is not on our side,” Shufu said. “We have not violated any part of the agreement.”
It remains to be seen what is causing the hiccup, but it doesn’t appear to involve Geely’s financing or regulatory requirements. While yet to be confirmed, technology sharing seems like the most likely reason for the holdup.
Despite the snag, Geely says it is still planning to close the Volvo deal by the end of the second quarter.
References
1. ‘Geely says talks…’ view
