After nearly a year of Ford trying to find a buyer for its Swedish-based Volvo brand, reports now claim that Zhejiang Geely Holding Group has set its goal of purchasing the automaker by February 2010.
According to an anonymous source, “It is expected to be done before Chinese New Year, and then Geely will quickly launch integration.”
Chinese New Year begins on February 14.
According to a source that spoke with Reuters, the German-based Roland Berger Strategy Consultants firm has been hired by Geely to complete a 100-day internal review – complete with restructuring plans for Geely operations. According to the source, the focus of the report will be on Geely branded vehicles in its home Chinese market.
In addition to hiring the Rolan Berger firm, Geely has also hired Deloitte Touche Tohmatsu to help with the possible post-acquisition transition for Volvo . Deloitte Touche Tohmatsu will be responsible for developing a cohesive marketing and sales plan for the Chinese market to include the Volvo brand, as well as network distribution, logistics and joint global operations, a source said.
At this time it appears as if Ford has selected Geely as the preferred buyer for Volvo, with the deal estimated to be worth $1.8 billion.
“The Volvo deal sees no more hurdles, ” another source told Reuters.
According to the deal, Geely will obtain full control of all technologies developed by Volvo. Volvo will also continue to have access to Ford technologies crucial to future Volvo model development.
