Geely Group named as preferred bidder for Volvo

Oct. 29, 2009 (China Knowledge) - U.S.-based Ford Motors announced on Wednesday that a consortium led by Zhejiang Geely Group Holdings Co is its preferred bidder for the Swedish unit Volvo Car Corp.
 
The Chinese auto maker welcomed the decision and said it is in detailed discussion with Ford on the bid. Reportedly, several Chinese banks have agreed to provide financing support to Geely Group.
 
"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 Lewis Booth, executive vice president and CFO of Ford Motor. However, Ford has no specific timeline to conclude the discussions.

Ford Motor decided to sell the money-losing European unit in late 2008. Earlier media reports said Geely Auto had offered to buy over 51% stake in Volvo for around US$1.94 billion.

Geely Automobile Holdings Ltd<0175>, the listed unit of Zhejiang Geely  Group Holdings, said it is not involved in the bid and it is not providing financing for the deal. However, it didn't rule out the possibility to cooperate with Volvo if its parent wins the bid, sources reported.