Ford: Chinese group Geely "preferred bidder" for Volvo (Roundup)

Oct 28, 2009, 14:48 GMT

Stockholm - Chinese group Geely is the 'preferred bidder' for Volvo Cars the Swedish subsidiary of Ford, the US automotive giant said Wednesday.

Ford's statement issued at its US headquarters in Dearborn, Michigan, confirmed speculation that Geely was the frontrunner in the possible sale of Volvo Cars but said no final decisions were made.

Ford, which bought Volvo Cars in 1999, earlier this year said it wants to sell the carmaker that has its main base in Sweden's west coast city Gothenburg.

Geely said in a separate statement that it aimed to keep production, research and development in Gothenburg.

At a news conference in Gothenburg, Ford chief financial officer Lewis Booth declined to mention the price.

Booth added that 'it was hard to put a relative priority on the price versus all the other aspects.

'The most important thing is one that we are comfortable with the future of Volvo, and second that we are comfortable with our working relationship with any potential owner of Volvo,' he said.

Volvo Cars chief executive Stephen Odell said 'Ford has stood by us in a number of ways.

'From a Volvo perspective I can say Ford have acted as a responsible owner and I absolutely believe they will act as a responsible seller,' Odell said.

Booth said there would be no changes in management for the time being, and that Ford had no plans to keep a part of Volvo.

Stefan Lofven, head of the IF Metall union that comprises the Swedish Industrial Workers' and the Swedish Metal Workers' Union, welcomed that the 'process had moved another step.'

The local section of IF Metall at Volvo Cars said they hoped to meet with Geely representatives to get insights in their business plan, a spokesman said.

Union representatives at Volvo Cars have earlier expressed doubts about Geely as an owner, citing that the Chinese group lacked experience.