George S. May Business Blog

Ford Motor Co: Geely is the leading bidder

In a press release from Ford Motor Co., the world’s fourth-largest automaker announced that Geely has emerged as a front runner. Ford has had Volvo on the market for some time now, beginning last year when it began to unravel its global empire.

Aston Martin went to Kuwaiti financiers, Jaguar and Land Rover to Tata (India), and now it seems very possible that China’s emergence in the world of car design and marketing will get a very helpful boost.

WSJ: Ford Motor Co. (F) confirmed it has selected a group led by China’s Zhejiang Geely Group Holdings Co. as the preferred bidder for its luxury Volvo brand.

The Wall Street Journal, citing a senior Geely executive, reported shortly before Ford’s statement that the group had been tapped for Volvo, which Ford officially put on the block in December. The Journal reported a month ago that Ford was in the midst of analyzing a bid by Geely to acquire Volvo for about $2.5 billion.

Ford and the Geely group will enter “more detailed and focused negotiations,” but the auto maker noted that “no final decision has been made.”

Chief Financial Officer Lewis Booth 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, while enabling Ford to continue to focus on and implement our core ONE Ford strategy.”

Ford has been streamlining its brands to focus on its namesake, Lincoln and Mercury lines. The company has sold its Land Rover and Jaguar brands in the past two years. Volvo lost $231 million in the second quarter. Ford will report third-quarter results Monday.

Its shares closed Tuesday at $7.33. The stock has more than tripled this year as the company has been performed much better in the U.S. this year on the sales front than its major rivals.

The proposed sale will help close a more than 18-month process by the auto maker to sell the last brand in its former Premier Auto Group.

Last year, the company sold its Land Rover and Jaguar brands to Tata Motors.

Ford Chief Executive Officer Alan Mulally is anxious to close out the sale as he works to focus the company on improving the Ford brand image worldwide.

Related posts:

1. Ford’s January numbers deceivingly impressive The Wall Street Journal reports that Ford’s sales did very very well last month, despite all of the negative news Americans have gotten surrounding retail....


2. Ford dumps $450 million more into converting Michigan Assembly Plant Ford has made public its plans to throw $450 million at Michigan Assembly Plant and its electric vehicle plan, set to begin in Michigan in...


3. Jaguar Land Rover CEO David Smith departs Jaguar Land Rover CEO David Smith has left the British carmaker. A spokesman for the company would not elaborate as to why, all we know...


4. Ford and UAW reach a tentative deal Pending upon approval from factory-level union chiefs, Ford Motor Co. and the UAW have finally come to a labor agreement.  Highlights from the agreement include...


5. Ford’s (Safety) Probe This model year will not be remembered as the year of great automobile safety. In fact, this has been on of the worst years in...