Geely said Volvo's existing plants, engineering centers and dealership network would remain unchanged if it acquired Gothenburg-based Volvo.

It also emphasized that the Swedish car maker would retain some intellectual property rights, a move that was widely believed to be a deal-breaker.

Some analysts, including Zhang Xin from Guotai Jun'an Securities, said there were still challenges for Geely to make good use of technology before turning any profits.

Ford and Geely have not disclosed the price for Volvo, but reports said the deal may cost Geely about US$2 billion, less than a third of the US$6.45 billion Ford paid for Volvo in 1999.