Geely denies 1.4 billion to revive Volvo

　　Recently, there are so many speculations about the funds required for Geely to purchase Volvo and financial status of Geely. Yesterday, one piece of news came that Volvo said the acquisition will Geely cost at least 1.4 billion. However, senior executives of Geely responded it is a trade secret never to be disclosed, but expressed that the calculation of Volvo trade union is incredible.

　　“The claim of Volvo trade union can not represent the administration of Volvo.” Yesterday one insider in charge of the negotiations of acquisition issues told the reporter the exact capitals and details are internal confidential can not be disclosed. But he disagreed with the number 1.4 billion U.S. dollars. “I do not know how they can get such a figure.”

　　Also yesterday, some foreign medias reported Glenn Magnusson, a official of Volvo trade union and board member said that after the acquisition, Zhejiang Geely Holding Group may have to spend at least 1.4 billion U.S. dollars to revive Volvo, “as for next year’s products R & D, marketing, production and distribution, 1.4 billion U.S. dollars is definitely the minimum speculation, the actual funds may be twice the number.”

　　In fact, recently there have been always speculations how much Geely will spend in purchasing Volvo. Just Wednesday this week, another foreign media had reported affirmatively, “Geely will be charged about 15 billion kronor (2.1 billion U.S. dollars) to buy Ford’s Volvo brand.” Geely did not respond to it.

　　The seniors of Volvo trade union also expressed dissatisfaction with current financial situation of Geely. Despondently, the above insides of Geely answered, “It is certain that Geely is not short of funds.” It is reported that China’s financial institutions and the Government has provided funding support to help they finish the acquisition as Geely agree to settle their new plants right in that region.

　　The time of contract has been postponed from before the Spring Festival to the end of this month. Mentioning this, the insider played a joke, “You media have always helped us do time arrangement.” In fact, according to the commitment between Ford and Geely, the contract will be signed in the first quarter of this year while the eventual completion of the deal is secluded in the second quarter, which is absolutely the only accurate timetable.

　　（Translator: Yalong/Jessie）

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　　http://auto.sohu.com/20100312/n270764400.shtml