Ford Motor Co.'s plans for the sale of Volvo are progressing, CEO Alan Mulally said on Friday.
Ford has not said who it is talking with about Volvo but China's Geely Automotive has said its parent company wants to buy the Swedish brand.
Mulally was speaking in Chongqing, China, at a ground-breaking ceremony for a new 150,000-unit factory that will boost Ford's production capacity in the country to 600,000 by 2012.
When asked about Ford's plans for the sale Volvo, Mulally said: "We are progressing with our conversation with potential buyers." He declined to name any potential buyers.
The Wall Street Journal reported Friday that Ford is analyzing a recent Geely bid to acquire 100 percent of Volvo for about $2.5 billion, citing people familiar with the matter.
The newspaper said Geely has emerged as the leading contender to acquire Volvo from Ford.
Ford said in December 2008 it was considering selling its money-losing Volvo unit as part of a strategic review of the business as it continues efforts to turnaround its own fortunes.
Reuters contributed to this report