Ford, Geely making progress toward Volvo sale

Ford Motor Co. is making progress toward a sale of its Volvo unit to Zhejiang Geely Holding Group Co. as they resolve issues such as protection of intellectual property, a person familiar with the talks said.

Directors of Dearborn, Michigan-based Ford were recently briefed on progress toward completing the sale to China's Geely, said the person, who asked not to be identified revealing internal discussions. Ford named Geely as its "preferred bidder" on Oct. 28.

Ford, the only major U.S. automaker to avoid bankruptcy, put Volvo on the block a year ago to finish shedding overseas luxury lines to focus on its namesake brand. The company sold Aston Martin in 2007 and Jaguar and Land Rover in 2008.

"We're working with Geely toward an agreement that is in the best interests of all parties," John Gardiner, a spokesman for Ford, said in a telephone interview. "No final decision has been made."

Geely Automobile Holding Ltd., China's second-largest non- state-owned automaker, is the listed unit of Li Shufu's Geely Group. Zhejiang Geely Holding Group Co., 90 percent owned by Li and 10 percent owned by his son, is the ultimate holding company for the group. Yuan Xiaolin, a spokesman for the holding company, wasn't immediately available to comment.

Other suitors are still interested in the Swedish premium brand known for passenger safety. Its U.S. sales have declined 18 percent through November this year, in line with other European brands, according to researcher Autodata Corp., based in Woodcliff Lake, N.J.

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