August 6, 2009

Geely said to be pursuing Volvo

Sources close to the deal making said Chinese automaker Geely Automotive Holding is assembling a bid to purchase Volvo Cars from Ford Motor Co.

The bid for the Swedish car company will include a consortium of interests, including an undisclosed investor from Sweden, The Local reported Thursday.

Former Volvo Chairman Pehr Gyllenhammar is assisting British investment bank Rothschild to help Geely present its case as a viable bidder, the newspaper said.

The plan includes building up market share in Europe and China, the newspaper said.

News reports in June that Geely Automotive Holdings would bid on Volvo were denied by Ford, Volvo and Geely.

The new offer includes Ford holding onto a minority share of the company, the sources said.