Filed under: Ford, Volvo, Earnings/Financials
Volvo not interested in buying back Volvo Cars from Ford
The Volvo Group, successfully spun off ball bearing company SKF in 1927, no longer has much to do with the Volvo brand of cars. While it does build large commercial vehicles, the automotive unit was sold to Ford all the way back in 1999, and the only real ties the two corporations share is joint-ownership of the Volvo logo and trademark. Unfortunately, things haven't really been all that rosy for the Swedish brand since it was purchased by the Blue Oval. Despite its lack of involvement, Volvo Group doesn't like to see its old auto division in such sorry shape and is reportedly willing to help... up to a point. The Swedish company will not purchase Volvo Cars back from Ford, but would consider funding various joint projects and becoming part of a consortium of owners. The Volvo Group also opposes calls for the Swedish government's intervention. Some have suggested that both Volvo and Saab should be operated as state-owned brands. Says Volvo chairman of the board Finn Johnsson, "The state knows nothing about the car industry..." If Ford isn't able to keep it up and the Swedish gov't minds its own business, where does that leave Volvo? Johnsson suggests that Renault might be a good fit for potential owner of the brand. Ghosn, are you listening?
[Source: AF via Google]
Reader Comments (Page 1 of 2)
K.C. 4:00PM (11/30/2008)
Please, not Renault.
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Retroqqq 4:25PM (11/30/2008)
why not ?
K.C. 5:08PM (11/30/2008)
Know anyone who loves their Renault ?
Chaz 5:55PM (11/30/2008)
I could def see (continued) happy synergies in trucks, I wouldn't count out the cars.
Don't forget how many great Volvos were powered by PRV engines. Not to mention, I could see Carlos doing a much better job with the Volvo brand than Ford has. No more of this high end French labeled sedan nonsense, with Megane/Laguna shoppers going up to S60/S80s instead of ze Germans. I mean who even remembers the Safrane?
Hike15 4:28PM (11/30/2008)
Renault volvo's would be the safest cars ever
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K.C. 5:59PM (11/30/2008)
Because they'd be parked more often than not.
Gardiner Westbound 4:33PM (11/30/2008)
Volvo quality, reliability and durability plummeted after Ford took over.
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SGV 5:28PM (11/30/2008)
Baseless BS
Chaz 5:51PM (11/30/2008)
While empirical evidence suggests their quality levels have not wavered tremendously since the acquisition, I will agree that there's been something of a decline in the sort of iron-clad feeling any given 200 or 700 series car had.
It's sort of like Mercedes, except not as big a drop, and MB at least put in the good effort and made the cars break down a lot more too.
happy_penguin 2:27PM (12/01/2008)
I don't know if this is true or not but I do know that Ford saved Jaguar from it's atrocious quality problems.
ebm14 4:43PM (11/30/2008)
The reason behind this is that Volvo uses one of Ford's facilities in good old Belgium. If Volvo was to buy back all their shares they would be left with one less plant and forced to pay their highly paid Swedish workers
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Swede 4:47PM (11/30/2008)
I think you're confusing Gent and Genk.
ebm14 5:37PM (11/30/2008)
they are made at Gent (Ford facility where Volvo's are made).
volvfan88 10:18PM (11/30/2008)
u are really mistaken, volvo ghent belgium plant was built by AB Volvo group for the Volvo Cars unit back in the 60's or so. Check your facts first please, Ford has its own Genk plant in Belgium.
N 5:15PM (11/30/2008)
Oh God!
Why Renault?! Who could suggest such a thing.
Everyone knows what happened when Volvo Cars used parts from the Renault parts bin the last time... the Renault 5 Speed gearbox in the old Volvo S40, the terrible Renault V6 (also found in the DeLorean), and the other crappy Renault engines found in vehicles such as the Volvo 340...
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Chaz 5:56PM (11/30/2008)
Come on, the Lotus Esprit had a Renault trans too and...um, nevermind that.
But I still say the PRV V6 was just misunderstood.
Sandy 6:24PM (11/30/2008)
Go to a Volvo Dealership. Pick up an S80 brochure.
Read about the car, and then you will know why I would buy one over any BMW or Benz.
The slow selling, little known S80 Premier Elite delivers 311 horsepower V-8, with a 5-speed electronic Auto Tranny and All Wheel Drive. The car has luxury items not found in any car, until you arrive at Bentley & R.R.
The interior if simply fantastic!! The options are unique.
Performance, speed, luxury and refinement al in one strong solid car.
Carpeting? Mouton Wool. Hard wear areas? Leather! Fold down the rear seat center armrest. Behind it is a 'Fridge that will hold 2 6-packs soda / beer OR two 2-litre bottles OR 2 bottles of wine.
Up on the rear package shelf, a hidden compartment. It holds 4 Swedish crystal stemware glass'es for tyour wine, nestled into a velvet-lined hidden compartment.
Navgation, Sync, Stereo CD Cassette MP3 - anything you can name is there....Eighty Thou? Nope
Seventy Thou? Nope
PUT everything optional on her, and you can't take her past $61,700.
Park her with the moonroof open. Should it start to rain, the moisture sensor on the leading edge of the panel will sense it and close your roof for you, and re-check the locking system.
As you can tell - iwas totally blowen away by this car (that my friend bought).
Go and ask to see an S80 Premier Elite AWD.
You too will forget the three German cars !
(....and THAT'S before you drive the thing !)
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RWD fan 6:51PM (11/30/2008)
How long have you been in Volvo's employ?
Are they bringing DRIVe over? Yeah, I didn't think so.
As a former P1800, 245, and 164 owner, they don't build 'em like they used to.
Sandy 8:27AM (12/01/2008)
I don't know about ?DRIVE? I thought it was "I-Drive" but i really do not know.
I was (like many) not very into Volvo. I was more of a Caddy, Buick, Imperial, Chrysler guy. I got a job at a Volvo dealer, and slowly began to take notice of the quality and manufacturing excellence of them. But....still there was "Something lacking" - that something was visual luxury.
When the S80 was introduced, it was like a breath of fresh air. In the following years, 2000 onward, the car "Wowed" me. The 2008 is perfection. I am not buying one because I came from a Lincoln-Mercury dealership and hacve an 11,000 mile 6 year old Town Car. But, next car will be an S80.
No car is as strong as they used to be. Weight reduction, 'ya know - for those oh so holy competitive MPG numbers.
A 1958 Impala weighs 41% more than a 2008 S80 !
happy_penguin 2:30PM (12/01/2008)
"I was more of a Caddy, Buick, Imperial, Chrysler guy."
I thought you were a girl, "Sandy".
Sorry. :D