Chinese company Zhejiang Geely Holding Group Company Ltd has emerged as the leading contender to take over Ford’s iconic Swedish brand, Volvo.

Ford announced that a consortium led by the company is its preferred bidder and that it will engage in more detailed and focused negotiations with Geely in the near future – no final decisions have yet been made.

The objective of the discussions, according to Ford’s executive vice president and chief financial officer Lewis Booth, is to secure an agreement in the best interests of all parties. He states that any sale would have to ensure that Volvo has the resources to strengthen the business and build its franchise.

According to Booth, Ford believes Geely has the potential to be a responsible future owner of Volvo and that it will preserve its core values and its independence. However, much work is still required and further discussions are necessary. There is no timeline for the discussions.

Ford would continue to co-operate with Volvo after a potential sale but does not intend to retain any shareholding. Ford has also outlined that it will maintain appropriate communications with key stakeholders including Volvo employees and the Swedish government during the process.