China's Geely Automobile on Wednesday has been confirmed as preferred bidder in the ongoing discussions concerning the possible sale of Volvo Car Corporation.

Ford said while it would be engaging in more detailed and focused negotiations with Geely, no final decisions have been made, reported the Swedish news agency TT.

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. "We have no specific timeline to conclude the discussions," a statement of Ford was quoted as saying by TT.

It also pointed out that Ford would continue to cooperate with Volvo in several areas after a possible sale. Ford said it does not intend to retain a shareholding in Volvo.

"Ford's objective in our discussions with Geely is to secure an agreement that is in the best interests of all the parties," Lewis Booth, executive vice president and chief financial officer of Ford Motor Company, said in the statement.

"Any prospective sale would have to ensure that Volvo has the resources, including the capital investment, necessary to further strengthen the business and build its global franchise, while enabling Ford to continue to focus on and implement our core ONE Ford strategy," Booth added.

"Volvo's management team welcomes today's announcement as a positive step forward," Volvo CEO Stephen Odell said.

"At Volvo, we are continuing to keep our attention firmly fixed on engineering and building great Volvo cars, to reduce our cost base and to return the business to sustainable profitability at the earliest possible opportunity," he added.