Ford denies discussing sale of Volvo
Earlier this month we brought you a rumor that BMW was in talks with Ford to buy Volvo. Then just this week the rumor popped up again, in a Swedish newspaper. Now Ford comes out to officially quash the story, saying, "Ford Motor Company is not in discussions with BMW or any other company regarding an interest in the Volvo Car Corporation."
That should take care of it, right? Well, not with everyone. Reuters quotes several industry analysts saying such a sell wouldn't surprise them. Ford could make a load of much-needed money by getting rid of Volvo, and one analyst said he would expect Ford to look at all serious offers.
A Merrill Lynch analyst told Reuters Ford might get as much as $8 billion for Volvo, if, of course, it were for sale.
We've already stated our thoughts on BMW buying Volvo, but with the sale of Chrysler to a private equity group, could Volvo be the next Cerberus target? A Chrysler/Volvo team could be the halo marque the automaker needs, and Chrysler could also benefit from Volvo's safety first image.
Such a matchup might also mean a Magnum-based Volvo wagon. Interesting.
Thanks for the tip, SobeSVT!
[Source: Reuters via Yahoo]
Reader Comments (Page 1 of 1)
pd 8:07AM (5/30/2007)
Autocar reporting that BMW also looked into buying Alfa Romeo. Guess they are serious about expanding.
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Hamud 8:13AM (5/30/2007)
Selling Volvo would be the dumbest thing Ford could do now... Analyst only look at the money, but Ford needs more than money...
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C. McFeeny 8:25AM (5/30/2007)
Ford selling Volvo is as likely as Ford selling its stake in Mazda. Volvo technology is so completely integrated into Ford's platforms that they could not afford the licensing fees if they were to sell it to another entity.
I do like the idea of a Volvo/Chrysler tie up more than a BMW/Volvo tie up.
However, neither is going to happen.
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Steven T. 9:41AM (5/30/2007)
A Magnum-based Volvo wagon? Um, why?
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Jay Evans 10:14AM (5/30/2007)
Why would anybody buy Volvo? Basically all they could use was the name.
Like C. McFeeny mentioned, there is so much platform cross breading between Volvo, Mazda and Ford that it would be nearly impossible to distill out a pure Volvo for years.
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Sobesvt 10:34AM (5/30/2007)
Ford future product development is to related with Volvo's. The fact that some analysts wouldn't find such deal surprising doesn't make it so (although I understand Reuter's need to sell news wires). I would find such deal extremely dumb and I do find it very unlikely.
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Mal Fuller 11:16AM (5/30/2007)
"I do like the idea of a Volvo/Chrysler tie up more than a BMW/Volvo tie up.", says blogger Chris.
What a wretched notion, although "tie up" is a good choice of words. At least Ford hasn't ruined Volvo the way Chrysler's been ruined by the so-called merger of equals between themselves and Mercedes. Whatever these affiliations are labeled, the result is mediocre at best.
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Dave 12:30PM (5/30/2007)
I believe the alliance between Renault and Nissan is much better than "mediocre".
bmoredlj 11:53AM (5/30/2007)
I never liked the idea of Volvo sharing platforms with Ford or vice versa, just as I dislike Saab sharing platforms with other GM models. While making financial sense, it dilutes both brands.
Even if it takes five years to happen, a Volvo devoid of Ford rubbish is a better Volvo, just like a Saab devoid of TrailBlazer rubbish is a better Saab.
IMHO both Swedish companies built far superior vehicles in the past when they were indie automakers. Even if QC wasn't as good, they were certainly more unique.
Ford and GM should concentrate on continuing to improve their domestic lineups and keep their noses out of niche brands.
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Bryan 12:27PM (5/30/2007)
Did anyone really believe this was going to happen anyways? Not me! Its a no-brainer!
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Mal Fuller 1:38PM (5/30/2007)
In my country, the United States, Renault has retreated twice from our shores. Therefore, "much better than mediocre" goes overboard when describing Renault, from my perspective.
Jonathan Hicks 2:48PM (5/30/2007)
Ford should not sell Volvo. Period.
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Dan 3:59PM (5/30/2007)
Volvo and Saab enthusiasts who like to talk about how much better their favorite nameplates would be without a corporate parent are deluding themselves. Neither Volvo nor Saab could sustain the sales volume necessary to support their own engineering staff. The onus of safety regulations, emissions regulations, homologation standards, etc., are just too much to bear without being shared among a much larger group of vehicles. Had it not sold the division, I suspect Volvo AG would not have stayed in the passenger car market for terribly long.
While I think GM has done a poor job of managing the Saab brand, I think Ford has done pretty well with Volvo. The new S80 is certainly an improvement over the previous model, which was completed prior to Ford's takeover. The XC90 wouldn't have existed at all without Ford's resources coming into play. And let's not forget that the pre-Ford S40 was a thinly-disguised Mitsubishi.
In the final math, Volvo has done a lot for Ford, and Ford has done quite a bit for Volvo.
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Stéphane Dumas 6:29PM (5/30/2007)
I'm agree Dan and some others French bloggers at http://www.leblogauto.com/?p=9534&cp=2 ponder the real intentions of BMW and Autocar mentionned then BMW had an eye on Alfa-Romeo as well. Does BMW wants to be the GM of Bavaria?
GENERALMOTORSMAN4LIFE 6:09PM (5/30/2007)
Ford is very deceptive in denying talks of the Volvo sell. Much like they closed the Taurus plant here in Georgia siting that they would no longer build the Taurus-then after the last person exited the plant and company, they decide , Hey, let's build the Taurus again! It is no secret that Ford is hemorraging in sales so they have to sell something. They have even sold Ford Motor Credit and real estate for the cash eventhough the Ford family isn't hurting for cash not in the least! There is nothing else in the Ford car lineup that anyone would want. Take Land Rover for example-these trucks have very costly reliability issues that have become even more complicated with Ford specific drivetrain underpinnings-so essentially your getting a 75,000 Land Rover with a Explorer/Expedition engine and tranny. BMW already owned Land Rover at one time, so they've been down that road and it would be too costly for them to again rework the Ford drivetrain out of Land Rover so Volvo is all that is left that would be appealing. Volvo still has a unique body style to their lineup which at least is a good base for BMW to install their drivetrain and suspension into and make Volvo an awesome vehicle. If BMW does buy Volvo I would strongly consider purchasing one but not until after BMW switches the vehicles to the BMW drivetrain/suspension.
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SobeSVT 8:58PM (5/30/2007)
GENERALMOTORSMAN4LIFE, check your facts and next time you may avoid making an ass of yourself, again. Ford hasn't sold Ford Credit, as a matter of fact it was GM who sold a big chunck of GMAC. And this is just the begining of the factual errors of your incomprehensible diatribe. The rest is just too messy to try to make sense of, and quite frankly a funny read for anyone remotely interested in the auto industry.
Incidentally, it is GM who made a joke of Saab with versions of Subarus, Epsilon cars and the mediocre Trailblazer. The only Ford part you will find on a Volvo is the universally acclaimed C1 platform in the S40, V50 and C30, three cars that GM can only dream of.
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Ronald 5:04PM (6/01/2007)
@Sobe SVT,
you yourself is an ass just for saying GM can only dream of the ford focus, i mean S40. Screw that pile of cow dung. That car is a joke. The A3 just eats it up. not to mention the biggest competition to it is the S60 itself (which is older than rocks and dirt). See there! so ford is the one that is making a fool of Ovlov. Yes, Saab has HAD horrible management. But if you dont know your recent car news, Saab has a new manager, and yes, they ARE on the move. We are progressing fast, trying to catch up to our rivals. When the 9-3 came on the scene in 2003, saab gained serious note from its rivals. (Not to mention surprising Volvo. Then they thought they were smart and dropped the S40 in '04. What a blunder of a car compared to the 9-3.). the 9-5 was and still is competitive, especially when it hit in '99, and a good buy, since they wont move off the lot without heavy discounts (BECAUSE OF NO ADVERITISING OR EVENTS to attract human beings...). And yes, i do like the redesign. Many dont. I would pick it any day over volvo's weak V6 S80 or the pricey FORD/Yamaha V8 S80.
But to wrap things up, Saab used to be underdeveloped, until recently, the general is beginning to become serious, starting with the facelifted 9-3. It looks badass and sexy. Something A BOXY OVLOV can only dream of.
oh and p.s. Its not like volvo has WONDERFUL management either. just look at their sales history compared to profits. Ovlov profits is dropping and sales are rising. Maybe Ovlov should invest in an ACCOUNTANT. Obviously they are spending more than they are making. Pass THAT message on to FoMoCo Ovlov division.
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