Financial Soultions: Goldman Sachs looking to buy into Chinese auto maker.

Sept. 21, 2009 - PRLog -- Financial Soultions has learned that an investment arm of Goldman Sachs is in negotiations with Chinese automotive manufacturer Geely Automotive, which has been connected with both Volvo and Opel, to buy around $250 million of the businesses convertible bonds and warrants.

"The two sides have basically agreed on the investment in Geely already, but have yet to work out some technical details," a source with direct knowledge of the deal has told a predominant news agency.

Geely said earlier this month that its parent company was looking at a tender for Ford's Swedish car brand Volvo with a local government-backed investment firm.

A successful agreement would enhance Geely's profile and give it access to Volvo technologies which would be a welcome aid to upgrading its vehicles.

Financial Soultions has also heard that the parent company has also approached Magna International, a Canadian based auto parts manufacturer regarding a prospective production partnership on Opel. General Motors approved an agreement earlier to sell a 55 percent venture in car maker Opel to a group led by Magna.

Geely, Financial Soultions understands is likely to  use the proceeds from a Goldman deal to increase its production capability,  including adding 150,000 units annually in the central province of Hunan, which at present can  produce 50,000 units.

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