Goldman unit to invest $250 million in Chinese carmaker

The private equity arm of investment banking firm Goldman Sachs is to invest $250 million in ChinaÔÇÖs Geely Automotive.  Hong Kong-listed Geely, ChinaÔÇÖs largest privately owned carmaker, is reportedly planning to spend the money on trebling production at its flagship facility in the centrally-located province of Hunan, from 50,000 to 150,000 units per annum.  Goldman Sachs Capital PartnersÔÇÖ investment will equate to around 15 per cent of Geely, which is headquartered in Hangzhou and valued at around $1.6 billion.  Goldman is seeking between two and three times return on its investment. Chinese automotive companies have been growing rapidly of late, with ambitions to expand internationally and become world leaders in their industry. Overseas investment firms have been keen to back them, betting on their imminent success. Geely is currently working with UK-based firm Manganese Bronze to make and sell LondonÔÇÖs iconic black cabs in China. It is also considering a bid for FordÔÇÖs Swedish car brand Volvo, together with a government-backed investor.  GoldmanÔÇÖs investment would make capital available for┬áa deal┬áon Volvo┬áto take place, but Geely has so far denied that the two transactions are in any way related.  Geely is also said to be in talks with CanadaÔÇÖs Magna about a possible production partnership on its European brand Opel. General Motors agreed earlier this month to sell a 55 percent stake in Opel to a group led by Magna, a deal which is expected to be finalized next month. Founded in 1986, Geely originally made refrigerators, before expanding into motorbikes and then cars. Since 2006 it has been under the leadership of Frank Zhao, who joined Geely from the Detroit-based automaker now known as Chrysler Group. New York City-based Goldman Sachs Capital Partners has 140 employees and total assets of $39.9 billion across seven funds. * ┬á┬á┬á┬á┬á┬á┬á*┬á┬á┬á┬á┬á┬á┬á *