Geely On Its Way To Buy Volvo Unit (F)

Zhejiang Geely Holdings has announced its negotiations with Ford (NYSE: F) for the purchase of its Volvo unit are on track. However, it stated that they yet have to reach a formal deal. Geely Chairman Li Shufu said, “We haven't reached a final agreement so far… Everything is moving as planned." Geely is China’s largest privately owned car manufacturing company.

According to the Chinese company, it has already obtained regulatory approvals required for finalizing the deal. Last month, Sichuan Tengzhong Heavy Industrial Machinery Co. had failed to secure required approval for acquiring GM’s Hummer brand. Geely is planning to double Volvo’s annual global production by 2011. The company will start a new production factory in Beijing.