Ford is unlikely to sign a deal selling Volvo Car to Zhejiang Geely Holding Group by the end of this week as planned, Bloomberg News has learned.
Citing people familiar with the negotiations, the news agency said negotiations had snagged on financing and details in the documents.
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Ford chief financial officer Lewis Booth did not come to London for a planned signing last weekend, however both parties still expect the deal to be signed by 31 March and completed by 30 June.
They had been aiming, though, for a fast-track signing by 14 February, the Lunar New Year, a holiday in China. Geely is expected to pay almost US$2 bn for Volvo, which Ford acquired in 1999 for $6.5 bn.
Bloomberg’s sources said Ford and Geely had been working out details on how long the US automaker would supply engines and other components to the Swedish unit. Volvo also supplies diesel engines for Ford’s European models. Several Ford and Volvo models share mechanical foundations.
A Geely spokesman told Bloomberg: “There are various areas of documentation still being worked out. The process remains on track and the intention remains to have it signed by the end of the first quarter.”
A Ford spokesman added: “[The] goal is to have a definitive sales agreement signed in the first quarter and a completed deal by the end of the second quarter.”
Ford put Volvo up for sale in late 2008 as it shed European luxury lines to concentrate on the blue oval brand.
