As we all know Volvo is under the hammer for the last few months. And Ford Motor Company is on the way of hunting a suitable bidder for its European luxury brand Volvo that Ford acquired for $6.4 billion in 1999.
Ford has revealed that China’s Zhejiang Geely Group Holding Co. Ltd. is its preferred bidder for its Swedish car subsidiary Volvo. Geely is famous for making the cheapest cars in China, but of late it has been moving towards appealing to more affluent customers.
The American car major said it would enter “detailed and focused” negotiations with Geely, although no final decision about Volvo’s future had been taken.
Last month Geely announced that it was intending to make an offer 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 independence. Although Ford said it would not retain a shareholding after any sale, it said it would continue to co-operate with Volvo “in several areas”. These would include component supply, engineering and manufacturing.
Volvo was part of Fords’ Premier Automotive Group. Premier Automotive Group was formed in 1999 and comprised of Aston Martin, Jaguar Land Rover brands. Last year, Ford sold Jaguar and Land Rover to Tata Motors and it sold Aston Martin to a UK-led investment consortium in 2007.
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