Ford Motor Company announced early this morning that China’s Zhejiang Geely Holding Group Co. Ltd., better known simply as Geely, is its preferred bidder for Swedish luxury car manufacturer Volvo . Ford hasn’t announced any terms over the deal and says that it will enter “more detailed and focused negotiations” with Geely before making a final decision.
Ford has quietly attempted to jettison its foreign units over the last two years. Aston Martin , Jaguar and Land Rover all found new buyers, while Ford has significantly reduced its stake in Mazda . Only Volvo, which was more deeply integrated into Ford’s product planning, struggled to find a buyer.
“ Ford ’s objective in our discussions with Geely is to secure an agreement that is in the best interests of all the parties,†Lewis Booth, Ford’s CFO, said in a statement.
“Any prospective sale would have to ensure that Volvo has the resources, including the capital investment, necessary to further strengthen the business and build its global franchise, while enabling Ford to continue to focus on and implement our core ONE Ford strategy.”
Ford says that it would continue to cooperate with Volvo and its new owners in “several areas” after the sale would be completed, but it did not specify the extent of that planned cooperation. The Michigan automaker does not intend to continue holding a stake in Volvo after the sale’s completion.
“Ford fully understands the iconic Swedish nature of the Volvo brand and the responsibility we have as Volvo’s custodian to its employees, local communities and other key stakeholders,” John Fleming, chairman of Ford of Europe and Volvo Cars, said.
“Any sale also would need to take into account the significant connections between Ford and Volvo in terms of continuing component supply, engineering and manufacturing.â€
