Chinese manufacturer Geely is inching its way to take over Volvo from Ford and a report in the Wall Street Journal is saying that in fact, it has emerged as the leading contender. Geely’s bid is estimated to be worth $2.5 billion, a bid that Ford and outsiders consider much higher than was expected for Volvo.
In the past few years, Volvo was reported to have lost more than $1bn. While it seems that the proposal is too good to be true, there is one sticking point. Geely is asking to take on only Volvo’s assets, such as its safety technology and factories. Geely does not want to be involved in any post-Ford restructuring process, taking on pension debt or unwanted inventory.
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