Dearborn, Michigan – Ford has confirmed that a consortium led by Zhejiang Geely Group Holding Company is its preferred bidder in the ongoing discussions concerning a possible sale of Volvo Car Corporation.
Ford said that while it will be engaging in more detailed and focused negotiations with Geely, no final decisions have been made.
“Ford’s objective in our discussions with Geely is to secure an agreement that is in the best interests of all the parties,” said Lewis Booth, Ford executive vice-president and CFO. “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 said it believes Geely has the potential to be a responsible future owner of Volvo and to take the business forward while preserving the brand’s core values and independence, but much work needs to be done and there is no specific timeline to conclude the discussions. While Ford would continue to cooperate with Volvo in several areas after a possible sale, it said it does not intend to retain a shareholding.
“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,” said John Fleming, chairman of Ford of Europe and Volvo Cars. “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.”