A private equity fund managed by Goldman Sachs has plans to invest as much as $250 million in Geely Automobile, as per a media report.
Hong Kong-listed Geely Automobile is the arm of Chinese auto-manufacturer Geely Holding Group.
The deal could free up capital for Geely Automobile's parent company to make a bid for Ford Motor's Volvo unit.
Geely Automobile confirmed earlier that its parent company was bidding for Volvo.
Neither Goldman Sachs nor Geely officials could be contacted for comments.