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HANGZHOU, China -- Ford Motor Co.'s has named Zhejiang Geely Holding Group Co. Ltd., a privately-owned Chinese automotive company, as the preferred bidder for Volvo Car Corp.
Geely, having built one of the fastest-growing automotive car companies in China, will now embark on further detailed discussions with Ford, paving the way for a potential acquisition of Volvo that will ensure management independence at the famous Swedish brand.
The announcement follows extensive talks between Geely and Ford. Under the proposed transaction, supported by Chinese banks, Volvo's existing production and R&D facilities, union agreements and dealer networks would be maintained, while Geely would enhance Volvo's access to sales networks and sourcing opportunities in the important Chinese market. The strategy would be led by an independent Volvo management, headquartered in Gothenburg, Sweden.
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