Geely ma chaussure shox kes official offer for Ford's Volvo unit

Sep. 1, 2009 (China Knowledge) - Geely Automobile Holidngs<0175>, a major domestic auto maker in China, has submitted an official offer for Ford Motor Co's Volvo unit, according to sources, the Shanghai Daily reported Tuesday.

Swedish business daily Dagens Industri reported that Geely is the only auto maker among potential buyers that has made an official bid for the money-losing Volvo.

Ford Motor announced its plan to sell Volvo last December. The company plans to sell at around US$2.53 billion to US$3.16 billion. Geely is expected to spend around US$1.97 billion for a majority stake in the car maker, according to sources.

The Chinese auto maker would not merge the two companies, but rather would run Volvo independently, and would set up a plant in Dongguan in Guangdong Province and Tianjin to produce the Volvo XC90, according to an earlier report from China Knowledge.

China Knowledge Newswires contacted Geely by phone, but the company representative declined to comment on the matter.

Privately-owned Geely sold 101,171 vehicles in the first five months of this year, 57.8% more than in the same period of last year.