Geely boss: Ford at fault for problems in securing Volvo sale

Talks between Geely Automobile (0175.HK) and Ford Motor (F.NYSE) over Geely’s bid for Volvo have run into trouble due to unspecified problems at Ford, according to the chairman of the Chinese firm’s parent company. Li Shufu, who heads Zhejiang Geely Holding Group, said he still expected the sale to go through but warned that the situation is changing constantly and, should the deal fail, it would not be Geely’s fault, the Wall Street Journal reported. A Ford spokesman said that the company still expects to finalize the sale in the first quarter of 2010. Geely, one of China’s largest privately owned carmakers, has agreed to pay around US$2 billion for Volvo through a combination of cash, bank loans and a small amount of investor funding. Li said that Geely ran into financing problems at one point after a number of investors withdrew from the deal. It wasn’t difficult to find replacement capital, he added.