• Sep 20, 2007
The rumors of Ford unloading Volvo have come to a standstill over the last couple of months, which is no surprise considering how valuable the square safety brand is to the livelihood of FoMoCo. The idea that a Swedish consortium might be interested in taking Volvo off of Ford's hands has already been floated, but one company heralding from the automaker's homeland isn't interested.
The rumor that Volvo AB, a Swedish truck maker, might be interested in purchasing its car-based namesake has officially been quashed. The firm's CEO, Leif Johansson, admitted that his company is "concerned and interested in what happens to Volvo cars," but the firm doesn't have the capitol nor the intention of buying the brand. Pity really, since Johansson wouldn't even need to get the company business cards changed if he did decide to absorb Volvo cars.

[Source: Detroit News]


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    • 1 Second Ago
  • 8 Comments
      • 7 Years Ago
      Mercury as a brand is dead from what I've heard. Short of a drastic new product direction (that still hasn't been decided even if it IS coming), it will be gone by 2012.

      The real reason for considering the sale? Volvo is a distraction from the Ford brand. The reason to spin it off is to share costs of the development with a company outside your corporate balance sheet - spreading risk where currently you absorb most of the risk (shared with Mazda from time to time) and allowing you to focus on developing just ONE of each body type on a platform. No badge-engieering on a platform - just a single sedan body on C1, for example.

      However, Volvo's engineering and manufacturing operations is very tightly tied with Ford's. Further, its brand was mortgaged as part of Ford's build up of cash. Spinning off the brand would require a huge amount of capital for that reason alone. Given this, there is some speculation that Ford will not, in fact, spin off Volvo unless they got a deal too good to be true. Separating the two companies would be exremely difficult and a distraction in and of itself.

      So, it could be that in a few years we will have Ford-Lincoln-Volvo, maybe Ford-Lincoln. But whatever it is, Ford is doing the right things to align its brands and product strategy appropriately while streamlining engineering and manufacturing processes to get out higher-quality products faster. The biggest question left open is balance sheet, and we won't find out how that's really shaping up until at least 2009 and won't even have a preview if the UAW doesn't approve a VEBA.
      • 7 Years Ago
      It's a totally different world when making trucks for professional drivers to making cars for the general public. Mac & the Freightliner group are the only ones to be affiliated with car makers and then, by a distance..
      • 7 Years Ago
      If I had the money I'd buy Volvo.

      Ford is making a mistake getting rid of this company.
      • 7 Years Ago
      I still don't entirely understand why Ford is so eager to get rid of Volvo. Volvo seems to have been a major development asset for Ford as they have shared lots of platforms. In fact, when was the last time Ford developed a platform independently from Volvo or Mazda (besides a truck platform)? Why would they want to dump an arm of them that's actually be sort of successful?
      • 7 Years Ago
      Volvo cars is for sale because Ford is trying to revive its homebrands of Ford, Mercury, and Lincoln. Ford needs to focus only on the Ford brand onyl and Volvo, Jag, and Rover needs to be divested in order ot do this. Ford will divest Volvo but it will maintain a stake in Volvo Cars like it has in Mazda. Who ever buys Volvo will have to buy the majority of the company and will own Volvo, but Ford will have the minority share in the company to provide volvo with that extra car company to back them along the way in product diversity and platform sharing.

      Now about AB Volvo not buying back Volvo Cars. This is quite true and I never saw them to buy back Volvo Cars as they have no intentions of being in the car market again on industrial products. However as the CEO has stated AB Volvo is very much so concerned over who will buy the Car comapany as they will have to give that firm the rights to use the Volvo name on passenger vehicles. Ab Volvo also controls and has the final say over who Ford will sell Volvo Car Corp off too, this is one of the many reasons why the sale of Volvo Car Corp is not that simple as in the case with Jaguar and Land Rover.

      The most likely buyer for Volvo Car Corp will be the Swedish consortium of investors. The Wallenberg Family that owns Investor AB will buy Volvo Cars to make them Swedish owned again. The pride of Volvo is very high and rich in Swedish heritage, and knowning that a Swedish Family is and has the controlling intrest of such a prestigious Swedish brand is paramount. The Wallenbergs will own Volvo Cars just like the Quatar Family owns BMW of Germany. Sweden only has two automotive makers and both are currently owned by Americans. The brands have become Americanized in a sense, but Volvo is still the most Swedish of the two. The Wallenberg Family has already generated over half the asking price of Volvo Cars on their own, and the rest of the funds to purchase the majority share will be obtained through the Swedish stock exchange and Investor AB. With the Wallenbergs owning Volvo Cars, components and parts will shift from Ford to private companies of their choice again. The amount of integration between Ford and Volvo will dramatically decline also. Only ties Vovlo and Ford will have is in the production of platforms generally to cut down on product costs.

      Finally AB Volvo, Volvo Cars managmenet, Volvo employees, Ford, and the Swedes alike will all welcome the take over of Volvo Cars by the Wallenbergs. Managment on all sides have already agreed on a Swedish takeover for new ownership by the end of the year. So now its just a matter of time to get paper work in order and signing of sales agreements.. Good luck to Volvo Cars on their new owners ( The Wallenbergs of investor AB). Volvo will do well in any event and will be supported by their die hard Volvo drivers. Volvo is an excellent luxury brand. Volvo. For Life.
      Swedish pride.
        • 7 Years Ago
        You speak as though the deal is all but done, which I'm pretty sure isn't the case. Is this just your wishful thinking or do you actually have some credible source to back your claim?
        • 7 Years Ago
        yeah man what you said
      • 7 Years Ago
      If Ford dumps Volvo and keeps Mercury, they deserve to go under.