Ford Confirms: Geely Favorite to Buy Volvo

After months of rumors, Ford has just confirmed that Geely is its preferred bidder for Volvo Cars, meaning that the Chinese company is now in pole-position to take over the Swedish unit. Details of the dealer are yet to be disclosed but Ford claims negotiations continue and more information might surface soon.

“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 Motor Company executive vice president and chief financial officer. “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 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. But there is much work that needs to be completed in the more substantive discussions that are agreed to take place. We have no specific timeline to conclude the discussions.”

Ford however revealed that in case Geely manages to complete the takeover, the US-based manufacturer won't retain a shareholding in Volvo even if it still plans to collaborate with the Swedish carmaker on a number of projects.

“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.”

“Volvo’s management team welcomes today’s announcement as a positive step forward,” Volvo CEO Stephen Odell said. “At Volvo, we are continuing to keep our attention firmly fixed on engineering and building great Volvo cars, to reduce our cost base and to return the business to sustainable profitability at the earliest possible opportunity.”