Geely leads the bidding for Volvo

Chinese auto maker Geely has emerged as the leading contender to acquire Sweden’s Volvo from Ford, the Wall Street Journal reported, citing unnamed sources. Ford is in the process of analyzing a recent Geely bid to acquire 100% of Volvo’s shares for about US$2.5 billion, the sources said. The offer is higher than Ford or industry watchers had expected for a brand that has lost more than US$1 billion over recent years. Geely and other Chinese firms are eyeing Volvo for its strong brand name and technology while its dealership network would allow deeper penetration into US and European markets. Geely recently received a US$245 million investment from Goldman Sachs Group’s private-equity firm.