Ford has named Chinese car maker Geely as its preferred bidder for Volvo.
However, it could be months before a definitive agreement is signed because detailed agreements on a range of issues including intellectual property remain to be resolved.
A Ford insider stressed to Autocar that the naming of Geely is only the beginning of the negotiation process, and has quelled speculation that a deal could be completed by the end of the year.
"There's no timeline pinned down," he said. "We are still concentrating on getting the right agreement, rather than trying to conclude an agreement.
"What today's announcement means is that we think Geely has the potential to be a responsible owner of Volvo, which means respecting its position and being able to add capital investment to grow and develop that position."
Lewis Booth, Ford Motor Company executive vice-president and chief financial officer, said in a statment, “Ford’s objective in our discussions with Geely is to secure an agreement that is in the best interests of all the parties.
“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.
“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.”
While Ford would continue to co-operate with Volvo in several areas after a possible sale, it said it does not intend to retain a shareholding in Volvo.
Ford has declined to comment on whether it is also continuing negotiations with other potential buyers of Volvo.
A Geely spokesman was unavailable for comment.
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Re: Geely set to buy Volvo
Had a GPZ900 when Police had Rover SD1s and Granada 2.8is. When the Senator 24v became the chariot of plod's choice it had to be treated with respect. Then came the Rover 825 (happy days) before the 850 T5 (EEK). Was on a ZZR 600 when the Volvo nearly caught me (had to ride the wheels off it to get away). To leave the story at that would be to encourage irresponsible riding. The story ended two weeks later with me suffering serious head, spinal and internal injuries as a result of a motorcycle accident (my fault ofcourse). I was in hospital for weeks and took months to recover fully. Whilst in hospital I was visited by the crew of the very Volvo I had legged it from. They told me they had a good idea who they were chasing at the time and were very confident I would be either caught commiting another offence or dead within a month. Rode more responsibly for a while then gave up bikes when forced to do so by my wife.
Re: Geely set to buy Volvo
Depends on the agreemant, but all those 5-pot turbocharged engines came from Volvo, and in both petrol and diesel trim these are space-age engines compared to anything the Chinese have. And there is quality control, percieved quality measurements, design, or even such stuff as experienced automotive managers and organisational values - the list id long. Hell a lot of things to learn, in my opinion.
Right now I would not bet how this will end up, but a strong Volvo is Geely's interest on the long run, and they will have the money.
But seeing the better than expected results (of both Ford and Volvo), I think Ford should consider this twice...
Re: Geely set to buy Volvo
The only thing I have to say to these funny Swedes is:
Beggars can't be choosers
The whole Swedish automotive industry is a sorry sight and SAAB/Konigsegg combination will not last more than a couple of model cycles.
Get off your high horse and face the reality. There is nothing worth copying/taking at Volvo apart from its automotive safety R&D team. To the uninitiated, Volvo's technical expertise has largely been hollowed out by Ford in the years past. There is nothing substantial in the current Volvos that did not come from FoMoCo. To me, a previous Volvo owner, the day Volvo died was when they stopped making the 240-series.
The Swedish taxpayers should be glad that Geely is at least poking a stick at Volvo to see if Volvo is worth the hassle. Geely just wants to use Volvo to help catapult itself into Europe and to help with designing future Geelys to comply with European safety standards, that's all. Nothing else in Volvo appeals to the Chinese.
I find the cries of existing component suppliers to Volvo to be laughable (Swedish humour perhaps?), they say they are worried that their technologies maybe copied by the Chinese.......ummmmmmmm. Those very mediocre technologies either came from FoMoCo or is mediocre that can be bought off the shelf from the Americans, Canadians, Germans, or Japanese. Just dont cry and beg the Chinese to stay when they stop buying from you lot!