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Ford favors Geely for Volvo deal

0 CommentsPrint E-mail CCTV, October 30, 2009
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Ford Motor has named Geely of China as the preferred bidder for its Swedish unit Volvo. The possible sale price has not been disclosed.

The announcement moves the long-running sale of Volvo, which began last December, closer to a conclusion.

Ford and privately owned Geely did not disclose a price, but media reports have put it close to 2 billion US dollars. 10 years ago, Ford paid 6.45 billion for Volvo.

Ford says it will engage in "detailed and focused" negotiations, but there was no specific timeline to conclude. Ford will not retain a stake.

Lewis Booth, Chief Financial Officer of Ford Motor said "The reason we're working with Geely is we believe they have the potential to be a very good owner of Volvo. They made it very clear to me in our private discussions. And I'm very please that they also talked about it very openly in their press release today."

But it could be months before a final agreement. Ford named Tata Motors as preferred bidder for Jaguar and Land Rover, in January 2008 and reached a final accord in March of that year.

Hangzhou-based Geely says its proposal, financed by Chinese banks, would "enshrine management independence" at Volvo, while allowing the Swedish carmaker to source components and tap into sales networks in China.

 

Ford favors Geely for Volvo deal
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