Former Ford Director to Submit Volvo Bid

Volvo is becoming more attractive for companies that are looking at ways to expand their global operations. After Ford confirmed that Geely is its preferred bidder, a former director of the US-based manufacturer will submit a takeover proposal next week, Reuters noted in a report.

The ex-Ford director is leading an US consortium called Crown but will also be financially supported by Swedish investors, the source added citing an article by the Dagens Industri.

Ford last month confirmed that Chinese carmaker Geely is favorite to purchase Volvo but denied to offer details on the current state of negotiations. It is believed that Geely wants to offer $2 billion for Volvo, with after-acquisitions plans including a new Chinese plant plus several new models to be launched in the domestic market.

“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."

The two companies are still negotiating on a number of terms, with initial reports claiming that both Geely and Ford are aiming to close the deal by December 31.

“Volvo’s management team welcomes today’s announcement as a positive step forward,”
Volvo CEO Stephen Odell said in October. “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.”
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About the author: Bogdan Popa
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Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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