Ford named Chinese automaker Geely Holding Co. as its preferred bidder for Volvo.
“Ford believes Geely has the potential to be a responsible future owner of Volvo and to take the business forward while preserving its core values and the independence of the Swedish brand,” said Ford Chief Financial Officer Lewis Booth in a statement.
FoMoCo announced it will step up negotiations with Geely, though it’s still far too early to say any deal will be complete any time soon. Ford said it will have “detailed and focused” negotiations with Geely, but no final decisions have been made.
Volvo has been on the block since December but it could still be months before any deal is finalized.
Part of the hold-up on any sale is how closely tied Volvo is to Ford’s operations. Ford says it does not intend to hold onto a share of Volvo but is open to continue collaborating with the Swedish brand after any sale.
No financial terms were disclosed, though reports have them pegged closer to $2 billion, much less than the $6.45 billion Ford spent to acquire Volvo in 1999.
[Source: Automotive News]