Zhejiang Geely Holding Group Co. chairman Li Shufu says he continues to expect to complete Geely’s effort to acquire Ford Motor Co.’s unprofitable Volvo unit but indicated that talks have hit a snag because of unspecified problems at Ford.
"The situation is changing constantly… and the process of the negotiation is very tough," Li said as he sat for a break between speeches at Beijing Geely University. "We will put in as much effort as we can. I hope the deal can be done."
The apparent delay in the Geely-Ford talks over Volvo follows the collapse of a deal by General Motors Co. last month to sell its Hummer brand to a Chinese manufacturer, Sichuan Tengzhong Heavy Industrial Machinery. Beijing Automotive Industry Holdings Co. also was rejected by GM last year as a final bidder of the US automaker’s Adam Opel European unit. According to people involved in those talks, GM didn’t pick Beijing Auto because it didn’t want to create a future competitor in China, which surpassed the US last year to become the world’s biggest market.
(Source: The Wall Street Journal Online)