Cars

Geely may complete Volvo purchase next week

(Agencies)
Updated: 2010-07-29 11:14

China's Geely could complete its landmark purchase of the Swedish car brand Volvo from Ford Motor Co as soon as next week, a source familiar with knowledge of the matter said.

The purchase of Volvo by Geely, the world's 27th largest automaker, represents the biggest acquisition of a brand from an established automaker by a Chinese company.

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The addition of Volvo also will catapult Geely into a prominent position in China's burgeoning auto market, now the world's largest.

The source could not be named because the discussions are private.

Ford, which posted a $2.6 billion second quarter profit, has said the automaker remained on track to complete the sale of Volvo in the third quarter.

Volvo is the last brand remaining from Ford's former premier auto group. Ford previously sold the Jaguar, Land Rover and Aston Martin brands to narrow its focus. In June, Ford also announced plans to wind-down its Mercury brand.