Volvo plus most of its intellectual properties were assessed to be at $1.8 billion. Ford will be paid $200 million in the form of a note and the rest of the deal will come in as cash. Ford is still expected to collaborate with Volvo in some areas of the operation to ensure that there will be a smooth transition. The carmaker will also still supply vehicle components, stampings, and powertrains for Volvo as agreed. Volvo will also still have access to the information technology of Ford and its engineering support.

Portions of the intellectual properties which were co-developed with its former parent company can be used by third parties like Geely under sublicenses. Most likely the new owner will make use of the safety technology, forced induction for the engine, and dual clutch system.

How Geely will affect the future lineup of Volvo is still uncertain. For now the brand has just revealed its 2010 XC60 and the facelifted C70 convertible. The new S60 sedan is set to be rolled out before the end of 2010.

Under the helm of the Chinese company, insiders hinted that Volvo will be launching more luxurious and bigger units in the next few years while aiming to hit a million units in sales in the next five years. The current figures show that Volvo manages to sell around 400,000 cars annually across the globe.

It might be a very ambitious goal but we should not discount that Volvo will have access to the Chinese market through Geely which can translate to 200,000 more units sold in its first year of takeover.

Geely might also move some production of Volvo in its factory in Guangdong Province.

The talks are expected to be done by this week before the elections in the region. If the loan will push through, experts are assuming restrictions on where the cash can be used. The loan guarantee is aimed at helping specifically the plant in Flanders.

The primary concern of the Flemish government is to preserve the employment of the workers. The business plan presented by Volvo will be studied under this light plus the possibilities of Volvo being acquired by other parties. The Premier will only agree to the loan if he can get long term commitments from Volvo and understand its long term plans.

Volvo sees the negotiations with the Swedish government turning bleak after Ford reviewed the position of Volvo and sees its future as uncertain. Recently, the car maker was able to avail of a $275 million loan from the European Investment Bank but it still needs more help to stay afloat.

There are reports that there are five companies which expressed their interest to buy Volvo and a decision as to whom the company will go can be reached as early as July. Some speculate that Chinese car makers can benefit with the research and development, and safety technology that Volvo has in place.

Ford acquired Volvo in 1999 for $6.45 billion but the value of the company now is registered at $2.4 billion.

According the Shenzhen News in China, unnamed yet reliable sources inside the Chinese government have leaked that Geely has written and signed the purchase letter for Volvo. Geely and Ford are still going over the final details of the purchase, emphasizing on the turnover of the technology, the brand’s existing marketing strategies and positioning, layoffs, and Geely’s plan to kick off Volvo’s production in a brand new factory in Guangdong Province.

According to the ongoing deal, the first Chinese Volvo’s full design will be designed solely by Geely—the new-generation XC90to come out in 2011. Moreover, Geely will invest almost $10 billion to help build and strength the brand.

Having Volvo on its belt will greatly benefit the Chinese automaker, particularly the Swedish carmaker’s technological research. During the past few years, Chinese cars have had a bad reputation for safely. With Volvo’s existing good reputation when it comes to safety, Geely will get a great advantage.

In 1999, American automaker Ford Motor Company paid $6.45 billion to acquire Volvo. However, the brand’s price tag has sunk to $2.4 billion. With the shaky state of the automobile industry and the faltering economy, the final price for Volvo might be lower than $2.4 billion.

The move is considered by Ford amid the weakening of the auto industry and global economy. The company is looking to boost its finances for operations and aims to partake in the $9 billion aid from the US government.

Volvo was considered the top caliber vehicle for safety last January of 2008. Ford is counting on the confidence of the market on the Volvo brand to attract bidders.

Any heavy discount will be favorable to the buyer but will not be ideal for Ford. The choices may also be among Chinese car producers, business groups arranged by the Swedish government, or by buy out companies.

The Renault group of France has clearly stated that they are not interested in Volvo. Same is true for Korea based Hyundai.

SAIC from China declined to comment but are seen by experts as a potential bidder. Another buyer from the Far East is the Dong Feng Motor Group.

Buyout firms may struggle to raise the funds to initiate the buyout. European car makers are unlikely to make a move to acquire Volvo.

If no industrial offers will push through, the Swedish government may form a group of investors to salvage Volvo in order to protect 17616 local jobs.

Ford is struggling to return to profits with recorded lost of $24 billion since 2005. The Volvo brand experienced a 24% drop in sales during the 2008 Q3 and widened its pretax losses.