A report from China claims that Ford has sold Volvo Cars to Chinese automaker Geely. It says the agreement includes plans to build a new Volvo model in China. Volvo is denying such reports though.

Has Volvo found a Chinese suitor? That is the story currently breaking. According to a few media reports, most of them coming from China itself, Ford has reached an agreement with Geely of China to sell Volvo Cars to that company.

Reports, which cite a Chinese government source, say Geely plans to start production of a new Volvo car in China's Guangzhou Province after introducing the XC90 SUV to the country. They go on to say Geely is prepared to invest up to US$10 billion in Volvo's global operations.

But Volvo denies that such an announcement exists. "An announcement related to the sale of Volvo Car Corp. would only come from Ford Motor Company," it said in a statement. "As of today, neither Ford Motor Company nor Volvo Car Corporation in Sweden has made any announcement regarding the sale of Volvo. Reports of such a sale by any media outlet are speculative and, therefore, are not accurate."


Gallery: Geely Reach Agreement to Buy Volvo - Report