MUNICH -- Zhejiang Geely Holding Group has agreed with Ford Motor Co. on intellectual property rights issues in its bid for Volvo, a Europe-based Geely spokesman said.
The agreement helps the companies remove a major barrier in their bid to complete the sale of Volvo from Ford to the Chinese automaker.
If the sale goes through, Geely will take control of all technologies developed exclusively by Volvo, the spokesman said. As part of the agreement, Volvo will continue to have access to any Ford technologies that are crucial to the future development of the brand, including those relating to safety and environmental protection. Geely will not have access or any ownership rights to those Ford technologies, the spokesman added.
Zhejiang Geely Holding Group, the parent of Geely Automobile Holdings, was named by Ford as a preferred bidder for its money-losing Swedish car unit last month.
Intellectual property rights have been seen as a key issue hindering Chinese carmakers from taking over struggling overseas automakers.
China's Beijing Auto cited intellectual property as the reason behind its failure to reach a deal with General Motors Co. over its Opel unit in July.
A number of Chinese carmaker are keen to break into foreign markets and are aggressively developing their own brands while moving beyond traditional offerings in the small, low-priced car segment into more upmarket vehicles.
Reuters contributed to this report