China's Geely Holding Group said Friday it was having a "detailed and in-depth" discussion with Ford on acquiring Volvo and the negotiation over relevant terms and contracts was going smoothly. "Both sides reached agreement over the issue of intellectual property rights (IPRs) involved in the acquisition," said Geely's spokesman Yuan Xiaolin.

Yuan said it was agreed that the Swedish company would retain ownership of its key technologies and IPRs after a sale by Ford, and the Chinese carmaker would obtain the ownership of Volvo's key technologies and IPRs through acquiring Volvo. Yuan said Ford confirmed it had picked Geely as the preferred bidder for the U.S. company's Volvo Unit on October 28.

Geely were announced in March as the successful buyer of Drivetrain Systems International. For those not familiar with DSI, they are one of the worlds largest gearbox manufacturers, and already produce six speed automatic gearboxes for use in RWD, and AWD vehicles for Ford, Chrysler, and Ssangyong. According to media reports, DSI are researching 8 speed transmissions, as well as CVT and double clutch technology.

In February 2009, DSI entered bankrupty protection, and as a result Ford of Australia where affected by the slow down in production of gearboxes. The plan for DSI now is to expand their international operations, and further enter the Chinese marketplace as a supplier to other Chinese manufacturers other than Geely.

Geely’s purchase of DSI will no doubt give them a fantastic lead over their domestic competition, and will lift them further on the international stage, especially when coupled to their upcoming 2009/2010 models.

Source: Xinhua

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