SHANGHAI/HONG KONG (Reuters) - An investment arm of Goldman Sachs Group <GS.N> is in talks with China's biggest privately-owned car maker Geely Automotive <0175.HK> to buy about $250 million of the company's convertible bonds, two sources said.
Geely, whose parent is eyeing Ford's <F.N> Swedish car brand Volvo, aimed to use the proceeds to boost its carmaking capacity, a source close to the Chinese car maker told Reuters on Monday.
Geely plans to use the proceeds to add new car and parts plants and to buy auto-related assets from its parent, Geely Holding Group Co, said the source.
Geely and Goldman officials declined to comment.
(Reporting by Fany Yan and Alison Leung; Editing by Chris Lewis)