• Jan 18, 2008
The Business in the UK is speculating that, despite comments to the contrary, Ford is planning to auction off Volvo as soon as its deal to unload Jaguar and Land Rover to Indian automaker Tata is done. The summer sales event that would see the last of Ford's Premiere Auto Group sold off is expected to fetch Ford around $6 billion, which is just a smidge less than the $6.45 billion the automaker paid for the Swedish brand back in 1999. Unfortunately, despite a much improved product line-up, Volvo hasn't made a cent of profit under Ford's stewardship.
We're a bit leary of this claim that Volvo is headed for the auction block so soon, as Ford has intertwined its own platforms with those of Volvo to such an extent that selling off the automaker would involve extremely complicated deals to ensure that products planned for the near future that happen to share components are not interrupted. So far, only this one media outlet is reporting the story, with no other news organizations having stepped forward to corroborate its claims. Thanks for the tip, David!

[Source: The Business]


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  • 29 Comments
      • 7 Years Ago
      I actually sell Volvos, I havent heard a thing of Volvo being sold (except through this site a few times). To be totally honest I am not quite sure it would happen. First the ovbious, Volvo and Fords platforms. Heck even the mazda platforms are all based off the same thing. Secondly Ford has sunk a huge steak with Volvo by designing their platforms together, I would think they would have gone a different direction if a sale loomed in the distance.

      Last but not least Volvo is making a huge turnaround. It may take some time to see but from the inside they are cutting things, and changing the way they work from the inside. With the new "R-Design" and the XC60 on the herizon Volvo is turning around. But im sure you all knew that.

      P.S. Pardon the spelling, never was good, and I cant really spell check right now.
        • 7 Years Ago
        You should try Firefox. Spell check all day long.
      • 7 Years Ago
      Volvo will not be sold to the Chinese, the Koreans, the three headed dog from hell, Carlos Ghosn, BMW or any other German company.

      Ford's goal is to raise as much cash as possible but keep control of as much of Vovlo as possible to continue platform development and sharing as it can. Therefore, they will turn to the Wallenburg family to finance a management lead buy-out of the company, probably a 80/20 or 75/25 percent split. It's a win-win-win for everyone.
      • 7 Years Ago
      Tata Volvo.
      • 7 Years Ago
      Volvo is going to be for sale again for now. You know if you think back on the big meeting that was held in Sweden a few weeks back when Ford told Volvo that they need to move up market, and they need to improve synergies and developments, also that Ford will allow Volvo to be more stand alone. I now personally think that Ford was given indirect hints to a possible sale. I know that whom ever buys Volvo will not be another automaker. The buyer of Volvo Cars will possibly be an Equity firm that is not affiliated with another car company. So one sure bidder right now and more than likely the next owner is Swedish investment firm Investor AB. Ford will not sell off the entire brand, it will keep a minority in Volvo , sort of like Mazda. i just hoe that this time whom ever owns Volvo if they are really for sale, Volvo will get to be a Swedish brand again, not Swede American, or what ever. Lets sit back and see how this unfolds.....................................
      • 7 Years Ago
      Tricky. Volvo and Ford are hip-deep in a platform-sharing quagmire. Anyone that buys Volvo is going to need to sort that out (basically, Ford needs to drop the Taurus and Volvo needs to axe the 30/40/50) or risk some complexity.

      I don't know who'd buy them, and I wince at it being a Chinese buyer or a vulture capitalist like Ceberus. I used to hope Saab would be spun off at the same time and the two companies merged into one, with Volvo taking the high and soft and Saab the low and sporty.
        • 7 Years Ago
        Even the S80 and V70 share the same platform as the Ford Mondeo
      Larry
      • 7 Years Ago
      Any other biology majors here who simply CANNOT stop calling that car a "VOLVOX?" Or, jokingly, two or more are "Volvoces?" LOL
        • 7 Years Ago
        @Larry
        How about the gynecologists out there? What does Volvo sound like to you?
        Larry
        • 7 Years Ago
        @Larry
        Seoul.......Fun reply, but, I just don't get it? What is a Groinecologist? (hehehehe, thanks, Archie Bunker and Norman Lear!) So is Volvo a brand of eye shadow? A brand of lipstick? A douche? "Summer's Volvo?"
      • 7 Years Ago
      One thing holds true about Ford you can always expect them to do the opposite of what they say, so when they said recently that Volvo wasn't For Sale that meant yes it is.
      • 7 Years Ago
      I could've sworn volvo turned quite a few profits, it's just the rest of PAG (JAGUAR) ate them up and as a whole VJLR never made anything.
      • 7 Years Ago
      Will Ford sell Volvo? That is one of the easiest questions in the world to answer>let me show:
      1.Has Ford mortgaged it entire company-logo and all? YES
      2.Has Ford been bankrupt for the past several years? YES
      3.Has Ford lost production and market share for many years in the US? YES
      4.Has Ford consistently sold off its assets? YES
      5.Does Ford need cash? desperately YES
      6.Will Ford/must Ford sell Volvo? The answer is most obvious
        • 7 Years Ago
        Best thing would be:
        Keep Ford of Europe and keep Volvo!
        Give away Ford US for one dollar - problem solved...
        Anything else is having a sick man playing doctor for the healthy!
      • 7 Years Ago
      No one's big enough to buy Volvo unless it's an outside investment firm. If they sold it, it would probably be a 80/20 or so ownership thing, with the promise of tech sharing, like how they sold Aston Martin. Mulally is too smart to sell off a tech generator like Volvo. Unless of course, Mulally is a total idiot.

      That said, Ford will not sell Volvo outright.
      • 7 Years Ago
      "Unfortunately, despite a much improved product line-up, Volvo hasn't made a cent of profit under Ford's stewardship."

      Has the article writer been living under a rock? Volvo has been the only part of PAG, heck of all of Ford, which *has* been making profits?
        • 7 Years Ago
        Mazda is also very profitable.

        Which brings up the possibility that if Volvo goes, Mazda will be the only foreign Ford-owned mark left. Seeing as Mazda basically gets Ford Europe's good stuff (Mazda3=Euro Focus, Mazda6=Mondeo), I dunno if it would be good or bad for mazda to get sold. Then again, Ford also gets the Edge from mazda's CX-7 and the Fusion from the Mazda6, so maybe there's too much cross-breeding there to break up that ownership.
        • 7 Years Ago
        yep ^^^

        volvo's the only part of PAG that has ever turned a profit.
      • 7 Years Ago
      Even if Ford was thinking of selling Volvo, which I don't think they would, I don't see how an investor could buy it. The product lines are too connected and Ford wouldn't just let the new owners change everything up. Just like Jag and LR(the only reason Tata is buying is to bring their quality up), Ford might be selling the names away but for at least a while they will be making money off the parts until the new owners come out with COMPLETELY new products which is costly. It's sad to say but Ford is making the right move. Losing the sales numbers that will drop them farther behind Toyota and GM yet making money without all the R&D spending(this is what killed it for Ford).

      What people are wrong about is Ford didn't make the PAG like the cheaper Ford brand. They tried to put money into it and make different parts for PAG and use some of these parts and techs for Ford products. In the end spending double even triple in R&D without an equal return just doesn't cut it for any company(Daimler).

      Aston Martin is different only in that they share little to no parts with Fords.

      Mazda will never be sold. Too big of a money maker for Ford in Japan.

      Ford needs money and I can't believe I'm saying it but this is the best way to do it. I like domestics and imports and don't want either to fail(jobs are at risk).
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