Volvo sold to Chinese carmaker

A deal between China's Zhejiang Geely Holding and US auto giant Ford on the sale of Ford's Swedish brand Volvo to the Chinese company is imminent, Swedish media reported yesterday.

"China's Geely purchase of Volvo could be completed later today," said a report on Swedish public television SVT, adding that negotiations between the two parties were ongoing in London.

Quoting unidentified sources in China close to Geely, the network said details on the takeover would, however, only be issued early next year.

The Chinese company "has already selected a person who would be CEO for Volvo in China after the takeover," SVT reported.

It added that Geely's choice had previously worked for Beijing Automotive Industry Holding Co. (BAIC), which this month agreed to buy the intellectual property rights for some assets of General Motors' Swedish unit Saab.

Sweden's newspaper of reference Dagens Nyheter also said Ford and Geely could soon agree on the sale of the premium Swedish nameplate.

"DN's sources also estimate a deal could be impending," it said.

Volvo Cars was founded in the western Swedish city of Gothenburg in 1927 and counts some 22,000 employees worldwide, around 16,000 of whom work in Sweden.

Ford, the number two US carmaker, announced a year ago it wanted to sell the premium Swedish nameplate, which it fully acquired in a $6.4 billion deal in 1999.

The US company picked Geely in October as preferred bidder for Volvo.

Geely last month said it had reached an agreement with Ford to own the intellectual property rights on Volvo's key technologies, including those related to safety and the environment.