Geely among Volvo suitors, Ford confirms talks

Shanghai, March 27 (Gasgoo.com) Ford Motor has held talks with several potential buyers interested in its money-losing Swedish unit Volvo Cars, China Business News said today. Among the Volvo bidders are China's Geely Auto and a Europe-based consortium of investors, according to sources.

"Ford has contact with a number of parties that are interested in Volvo's future," Ford spokesman John Gardiner told the Associated Press on Wednesday. "We are having preliminary discussions determining the interest." Gardiner said he was pleased with the "number and quality" of the potential buyers. "These are ongoing talks that could lead to a sale," he said.

Bloomberg, citing people familiar with the discussions, has reported that Ford may get $1 billion to $2 billion for Volvo Cars, less than a third of what it paid 10 years ago. Ford paid $6.45 billion in 1999 for Volvo, which lost $1.5billion last year and is laying off about one-fifth of its staff because of sharply lower sales.

Discussions are furthest along with Geely Auto, who contacted Ford more than a year ago. Ford also has approached other Chinese automakers such as Chery Auto, Dongfeng Motor, and Changan Auto (who has a joint venture Ford). They expressed preliminary interest in Volvo.

Yin Tongyao, chairman of Chery Auto, said last week that his company was interested in buying a foreign car brand such as Volvo, but that it was unwilling to "fight" other Chinese carmakers.

With most western carmakers avoiding acquisitions to conserve cash, China's nascent carmakers are among the only likely bidders for Saab and Volvo.