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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]

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    • 1 Second Ago
      • 6 Years Ago
      This will be a turning point for Chinese companies. With Volvo's safety record being transferred to Chinese companies, they shall soon begin an invasion of EU and USA.

      Bye bye domestics.
        • 6 Years Ago
        Ummm... what?
        Okay, You need to realize that the US isn't the only economy there is. Surely the US economy has rippling effects on virtually every economy in the world, but just to give an example, exports to the US account for only about 20% of Chinese exports, and exports themselves are less than 40% of China's GDP. So while that's a big chunk, that still leaves quite a bit of the Chinese economy that is not directly linked to trade with the United States.

        ...And what strong dollar? Up until it stabilized few months ago, the US dollar's value was dropping like a rock! You might pick up a New York Times before you make silly baseless comments like that.

        And I'm not even going to address that Russia comment...
        • 6 Years Ago
        While I'm not into Domestic (except for vette and cts), I hate to say it, if they go down they other countries will go down too! Ha! Take that China!

        China, Japan, Australia, and many other countries will be screwed!!

        So if we are in a recession and 3 million people is out of a job, our dollars will go down. Our purchasing power goes down. We ain't buying any more of foreign widgets (most from China and Japan). Then they will get screw too!! Muhahaha MAD (mutual assured destructions!!).

        GO ahead and invade us!! We don't have the money to buy your expensive Vulva hahahaha. That's what you get for being a global market and depending on our mighty strong dollar currency!!

        Oh wait, damn... those Russian will take over S. America with Hugo Chavez >_>;;

        • 6 Years Ago
        Sarcasm doesn't work so well. I know the dollar is going down so hence, the comment about the other countries market will take a beating or the purchasing power of the dollar. I was merely pointing out that other countries depend upon our stronger dollar to drive their economy LIKE THE NIKKEI or JAPAN. BUT since our dollar tank they're screwed.

        Aside from trading if USA tank how are we going to pay China back? Magic beans? 20% eh?

        The point I was trying to make was Affalterbach comment of China invading USA with volvo after the big-3 die out. It ain't going happen because our purchasing power... You know what whatever. I don't care this is stupid if you didn't connect the dot from my sarcasm and my post with the original post then it all fine.
      • 6 Years Ago
      Well, you guys now need to learn how to live with with Indian and Chinese in this world. You don't like it?

      Volvo--> China,
      Jagua and Land Rover--> India
      • 6 Years Ago
      Ugh. Being sold to the Chinese is a fate worse than death. Sad to see a company that built some damn good cars go that way.
      • 6 Years Ago
      Well at least it is better than those Chinese clones.
      • 6 Years Ago
      What's all that bad opinions about China? They just went to the Space a month ago, and they plan soon to go to the moon and really prove it's possible not like Nasa did with they fake ass video! I think Volvo with the ownership of the Chinese will be cheaper to buy and also be much improved! China is already kicking our butts in technology and economy, so why not sell the Volvo to them?
      • 6 Years Ago
      I'm just a little confused with the image... we're talking China right? The don't use Yen.
        • 6 Years Ago
        I'm pretty sure it says Yuan, not Yen. Although the character should go AFTER the number, not before it.
      • 6 Years Ago
      Everybody talks about buying companies but more often that not when the deal is done some (not all) of the best employees have already jumped ship simply because they could afford (financially or professionally) to do it.
      When BMW or Ford bought Land Rover a lot less people than expected bailed out because they were being acquired by "first rate or blue chip" manufacturers.
      On the other hand when SAIC both MG Rover everyone bailed out and never came back because of the (perceived?) reputation of SAIC. Result? The latest MG or Roewe is nothing to write home about in terms of product or sales volume.
      The point I am trying to make is that people in this business, at this level in the game are paramount and more important than the factories, blueprints, trademark, etc...
      SAIC could end up paying a lot of money for Volvo, but without the people that made it what it is today, it will actually be worth less, much less.
      As for Tata and JLR, I wish them all the best. The problem is not so much with India vs. UK; it is more a case of BMW and/or Ford typecasting J and/or LR into a strategy, role, and identity, product lineup that no longer fits the existing business model or company structure.
      • 6 Years Ago
      Well, I suppose I could consider selling Volvo to the Chinese revenge for Sweden letting ABBA loose on the world.
      • 6 Years Ago
      No comment, the Irony in this is too funny lol
      • 6 Years Ago

      Just imagine, if this sale goes through, a brand famous for safety will be owned by a country known for some of the most unsafe cars in the world. Hope Sweden will nationalize Volvo instead.
        • 6 Years Ago
        I find it ridiculous that people keep making these stupid claims about how if SAIC buys Volvo they'll suddenly have safer cars, etc.
        First off, SAIC *ALREADY* has access to both GM and VW technology since they build their friggin' cars in China. On top of that they also own both MG and Rover's intellectual property (but not the Rover brand).
        Plus their own Roewe 550 sedan is supposed to be a 5-star Euro NCAP crash test rated vehicle, so it's not like they're having problems designing safe cars.

        Personally I don't even think acquiring Volvo makes all that much sense for SAIC since they already own quite a few brands at this point.

        And anyways, the Indians own Aston Martin and Land Rover, so what's with the idiotic paranoia about the Chinese owning Volvo? Volvo's not even an American brand so it's already under foreign ownership so it's not like it's some huge ego breaker for the Swedes.
      • 6 Years Ago
      Dumping Volvo may be a political necessity for Ford at this juncture. While Ford has benefitted from Volvo's safety technology, Ford's ownership of Volvo has not always been best for both companies.

      Ford has become overreliant on rehashing Volvo platforms. The worst example of this is the failed "D3" platform. D3 Fords, such as the Ford Five Hundred/Taurus, Freestyle/Taurus X, and Mercury Montego/Sable have been market flops. They were unable to accept Ford's designed-for-FWD Modular V8 (back when larger engines were in vogue) and earned a justified reputation for stodginess. Even the lauded 3.5 Duratec wasn't enough to rehabilitate their bland, "corrective shoe" market image. Huge advances by Honda, Nissan and Toyota in the U.S. market occurred during the "failed watch" of the D3s. The D3s were the wrong cars at the wrong time.

      Had FoMoCo used a better, more exciting European formula (BMW comes to mind), perhaps things would have been different. Instead, all Ford really proved was that Americans don't want Volvos, even if reskinned as Fords.

      Some would argue that Volvo's reputation has become tarnished under Ford. That is probably not fair because Volvo was ill-suited to independently compete for a larger share of the "Euro-sedan" market against the cutthroat Japanese and Germans.

      • 6 Years Ago
      Good thing the Chinese use yen, according to the picture.
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