Geely "preferred bidder for Volvo"

Ford Motor Co. said Wednesday it picked Zhejiang Geely Holding Group
Co. Ltd.'s as its preferred bidder to buy its Volvo unit. Terms of
Geely's bid were not disclosed but estimates for a transaction price
are in the US$2-billion range.
"Ford believes Geely has the
potential to be a responsible future owner of Volvo and to take the
business forward while preserving its core values and the independence
of the Swedish brand," Ford Chief financial officer Lewis Booth said in
a statement. "But there is much work that needs to be completed."

However, unlike previous acquisitions by Chinese companies of
Western automotive assets like SAIC's purchase of the Rover brand, a
deal for Volvo isn't about buying off-the-shelf technology for a cheap
price. And some analysts say Geely may be biting off more than it can
chew.
"I'm somewhat stunned to be honest that Ford are even
entertaining it," said Paul Newton, a London-based analyst for IHS
Global Insight. "If [Geely] was a larger concern with a bit more
international experience, I'd say that ‘Yeah, it could well be a
positive thing for the Chinese companies.' But Geely I'm not so sure.
They don't have a joint venture. They don't have any alliances with
anyone. And they're buying a very complex, subtle, European premium
brand that is struggling."