Report: Geely will need $1.4B to keep Volvo going

Geely may still be on track to purchase the Volvo brand from Ford, but the Chinese automaker could be struggling to source the necessary capital to keep the Swedish brand up and running once the transaction is complete.

According to sources familiar with the situation, Geely will need "an absolute minimum" of $1.4 billion following the acquisition of Volvo in order to continue future vehicle development, support marketing functions and fund production and distribution operation. The $1.4 billion would be in addition to $2 billion Geely is expected to pay for the Volvo brand.

"We still want [Geely] to show us that they have the financial strength," Volvo union head Glenn Magnusson said. "We haven't seen anything yet and we are not satisfied."

The exact health of the Geely-Volvo deal remains unknown, but inside sources say the deal could be pushed through by the end of the month. The future of Volvo going forward, though, still appears to be on shaky ground.

References
1. 'Geely May Need...' view