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Ford picks Geely as Volvo frontrunner
FORD named Zhejiang Geely Holding Group as preferred bidder for its loss-making Swedish unit Volvo in what could lead to the biggest overseas acquisition by China’s fast-growing auto sector.
Ford and privately owned Geely did not disclose a possible sale price for Volvo but it is thought to be closer to $2bn (£1.3bn) than the $6.45bn Ford paid for Volvo in 1999.
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.
This sale is complicated because Volvo is closely woven into Ford’s wider operations, undertaking much of the group’s safety work.