Ford in further talks with Shanghai Auto to sell Volvo

The UK's Sunday Mail is reporting that Ford has returned to Shanghai Automotive Industry Corp. (SAIC) to make another pitch to sell Volvo. As we told you back in June, SAIC is one of the leading contenders to snap up Volvo. Although Ford had long maintained the Swedish automaker was not for sale, it recently admitted it was entertaining offers for the firm. Having paid $6.4 billion for Volvo back in 1999, it is believed that Ford is now seeking around $6 billion for the company. That's a lot of renminbi.

Like the rest of the industry, Volvo is struggling in today's market with third-quarter sales down 24 percent. It has cut thousands of jobs and has even sought assistance from the Swedish government. Besides SAIC, Hyundai Motor Co. is still believed to be in the hunt for Volvo, as well as the Swedish government itself, although that seems unlikely.

If SAIC does end up in Chinese hands, it won't be their first experience building Volvos. The Chinese-market-only, long-wheelbase S80L is already being built at the CFMA Chongqing plant in China, but that is a unique partnership for now and it is unclear how the sale of Volvo to SAIC would affect that arrangement.

[Source: The Sunday Mail]

Reader Comments (Page 1 of 2)








Autoblog Podcast #152: Paukert Enhanced!

Chris Paukert joins the usual crew of Chris, Sam, and Dan, summarily classing up the joint.

 
 

Featured Galleries

  • 2011 Buick Regal Live Unveiling
  • BMW Concept 6
  • Zenvo ST1 Details
  • SEMA 2009: HPP Daytona Challenger
  • LA Design Challenge 2009 Competitors
  • SEMA 2009: 1962 Chevrolet Corvette C1-RS
  • SEMA 2009: Bigfoot
  • SEMA 2009: Black Bison Toyota Alphard
  • Ford's Inflatable Seat Belts
  • 2011 Porsche Boxster Spyder
  • Shelby Turbocharged Mustang
  • Jetta TDI Cup Street Edition

AOL Autos

Find Your Next Car

Autoblog Video


Autoblog Green

Daily Finance

Download Squad

Engadget

Joystiq

Autoblog Spanish

Switched.com

FanHouse

Asylum