Less than five bidders remain for Volvo, sale to be announced by June

Sources familiar with the matter said that Ford could announce the sale of Volvo by the end of this month or next. The two people that did not want to be identified said that less than five bidders remain for the Swedish brand and that China’s Geely Automobile Holdings is one of them.

Geely is also reported to be in the first round of bidders for GM’s Saab brand.

Ford has been trying to sell Volvo since December as it looks to reduce costs and raise cash in a global economic slowdown. Volvo posted a loss of $736 in the fourth quarter of 2008 and has lost $255 million in the first quarter of 2009.

Ford bought Volvo in 1999 for $6.45 billion.

– By: Omar Rana

Source: Reuters