File photo: Geely group, one of China's main independent automakers, is considering bidding for Ford Motor co.'s Volvo cars unit in alliance with an unnamed investment partner. [CFP]

Geely is reportedly seeking US$1 billion in loans from Chinese banks to finance the deal.

If the deal goes through, it will be the biggest overseas acquisition in China's automotive industry.

Geely is considering construction of a plant in China to domestically produce Volvo vehicles.

Geely's bid has received tentative government support.

Ministry of Commerce spokesman Yao Jian said earlier, referring to Geely, that overseas acquisition was a good way to obtain advanced technology and management expertise.