Geely has reached an agreement with Ford on the issue of Volvo’s intellectual property rights, according to a company spokesman.
The European-abased spokesman told Reuters that the major obstacle in Geely’s takeover of Volvo from Ford had now been overcome. Ford has declared Geely as its preferred bidder for the Swedish firm.
The spokesman said if the deal is completed, then Geely will have ownership of all technologies exclusively developed by Volvo.
Ford will be allowed access to any technologies which are crucial to the feature of its business, including safety and environmental features.
The agreement won’t apply the other way around, however, as Geely will not be allowed access or have any rights to any similar technology developed by Ford.
When Ford announced Geely as its preferred bidder for Volvo last month, Ford’s chief financial officer Lewis Booth highlighted the importance of reaching an agreement that was acceptable for both parties.
“Ford’s objective in our discussions with Geely is to secure an agreement that is in the best interests of all the parties,” he said.
“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 discussion.”