Ford discusses selling Volvo with Renault, again
As Ford reportedly prepares to offload Volvo and dismantle the last remaining vestiges of its once proud Premier Automotive Group, reports indicate that discussions were, once again, held with Renault.
The French automaker was tipped as a potential buyer when Jaguar was on the table, expressing interest in acquiring a luxury brand (and evidently forgetting it had Infiniti up its sleeve). Along with Chinese automakers, Renault has reportedly been in on-again, off-again discussions with Ford over the sale of Volvo as well, though Ford insists that its Swedish subsidiary is not for sale.
[Source: Automotive News - subs. req'd]
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Reader Comments (Page 1 of 1)
Jim 7:22PM (6/30/2008)
While time will only tell; I can't see Ford shedding Volvo. At this point, they share way too much in terms of platforms and Ford's CAN architecture was aligned very closely with Volvo as well.
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dave 7:36PM (6/30/2008)
Ford can well survive selling off Volvo. They need to return to the basics and rebuild their everyman car image. Henry Senior had it right when he dcided to build a car his workers could afford.
My thoughts would be a Ford Festiva, Focus, Fusion and Mustang. Lincoln Primere and Continental. Make Mercury into the performance division. No badge engineered cars among them.
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Alex 8:10PM (6/30/2008)
If I were Mullaly, after offloading Volvo I would kill off Lincoln and Mercury...
Let Ford Co be just one worldwide brand - Ford. They're quite successful in Europe with being just one brand.
volvfan88 7:37PM (6/30/2008)
I am almost 100% sure that Ford will sell Volvo before the end of the decade. Volvo will definetly not be sold to another large auto company because Ford will maintain minority shares in Volvo. Renault would ahve been one of the companies intrested in Volvo in the past, but as I can see now only an investment group or equity firm will be able to purchase Volvo from Ford now.
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Alex 8:01PM (6/30/2008)
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The 1980's Revolvo idea resurrected!!
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Could be good. Also, will probably integrate with Nissan support network here in the States.
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SPG 11:39PM (6/30/2008)
Renault still makes cars that are different, quirky, and unlike any other.
I feel that Renault would be a good parent company to Volvo because they never changed who they are, and could make Volvo return to what they once were.
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Ken Stamper 12:39AM (7/01/2008)
Renault and Volvo also have some natural product synergies- In Europe Renault uses vehicle safety as a major marketing point. I could really see this happening.
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Landy 1:07AM (7/01/2008)
It will be the same game as with Jaguar/Land Rover:
Announcing a hundred times that Volvo is not for sale - and than selling it. Ford is addicted to cash injections like a junkie to heroin...
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garth 10:43AM (7/01/2008)
This would give Renault access to the American car market and the larger size car market in Europe.
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Richard S. 11:35AM (7/01/2008)
Carlos Ghosn probably wants another CEO title, how about CEO of Volvo Cars to add to his Renault and Nissan's titles.
Joke aside, how would this fit with Renault? Living in the States I am not so acquainted as to how Renault's car are positioned vis-a-vis Volvo's offerings. Would they complement or compete in the line-up? Would Volvo end up competing with Infiniti, which Nissan wants to expand in Europe? What is Volvo anyway? It used to be a maker of family cars in Sweden, who was forced to go upmarket as its cars became more expensive due to higher Swedish wages and overall more upmarket Scandinanvian market.
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nooneknows 12:40PM (7/01/2008)
Volvo makes premium cars. Renault is good in making midsize cars (like Megane, B segment) and minivans (Scenic, Espace), Renault also has C segment car - Laguna, however it is not very popular in Europe and it doesn't belong to premium segment.
In the last few years Renault improved quality of their cars a lot, however they are still to weak to compete against Audi, BMW and Mercedes's cars. Renault tried to make D segment car - Vel Satis, but it wasn't a success. The car was very well made and equipped, however Renault image is not good enough to build successful expensive car.