Geely, Goldman in $250 mln conv bond deal talks: sources

An investment arm of Goldman Sachs Group 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 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)