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Volvo and Mercedes-Benz have been known for decades as automotive safety pioneers, sharing between them the bulk of new innovations in the field. These days, however, automakers are as as concerned about their financial security as they are with occupant safety. With the latter in mind, reports indicate that Mercedes parent company Daimler has decided against buying Volvo from Ford.
Amidst slumping sales and a troubled future, reports surfaced a month ago that Ford was looking for a buyer for the last remnant of its ill-fated Premier Auto Group, after Land Rover, Jaguar and Aston Martin were all sold off to Asian investors. Ford bought the Swedish automaker from the Volvo group for $6.45 billion back in 1999, and is looking to offload it for $6 billion today. Unfortunately for FoMoCo, nobody seems to have the cash. The Volvo group has rejected the possibility of buying its car division back, the Swedish government isn't interested, BMW reportedly considered the prospect but ultimately rejected it, and now Daimler, which has had its fill of acquisition deals with Detroit, has passed as well. At this point, Chinese automakers like Shanghai (SAIC) and Geely, as well as Korean automaker Hyundai seem like the only tenable prospective buyers left.

[Source: Economic Times]

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    • 1 Second Ago
      • 6 Years Ago
      What about Porsche buying Volvo? They seem to be flush with cash, what with being the most profitable auto company in the world and all.
        • 6 Years Ago
        Porsche VW would be my bet!! Volvo teamin up with Skoda!
      • 6 Years Ago
      They would have ruined Volvo anyway.
      • 6 Years Ago
      No one is going to pay $6 billion for Volvo. Not the Chinese, not the Koreans. know that FoMoCo needs the cash but they are in a better position than GM or Chrysler and are getting funds from US Tax payers. The sad thing is that the Volvo guys I met where as much "Ford people" as the Lincoln or Mercury guys. Being sold must really hurt them.
        • 6 Years Ago
        Why not just take some of the bailout money and try to get by thru the first 6-7 months of 2009. By that time the economy will improve.

        Once the car market improves Volvo will become far more valuable, as long as ford continues to invest in technology. Also there's no better car on earth to be outfitted with that new hybrid system Ford has in Fusion to be in one of Volvo's wagons.
      • 6 Years Ago
      No offense to any volvo owners but they really need to go bankrupt and start over. They have nothing outstanding. Everything they do subaru or toyota do cheaper and BMW or Cadillac can do luxury better. They have failed to progress with the times. Not that they are bad cars, just that there is always something in there class better for about the same $$ or slightly less luxury but everything else as good for much less $$. Once again I dont want to offend anyone, but volvo hasent had its game face on for about a decade.
      • 6 Years Ago
      Good news for Ford. This was a win-win. If they could actually find someone willing to pay $6 Billion in this economy that would have been a win. Realistically they will get to keep Volvo because nobody will pay that for it. Putting it up for sale got them the bailout from the Swedish government and keeps congress from using not selling Volvo against them if they decide to get a bailout loan someday. Plus they get to keep Volvo. All wins.
      • 6 Years Ago
      Good for Seems Volvo they Dodged the Daimler Bullet.
      • 6 Years Ago
      If the Chinese do buy Volvo, I doubt it will be SAIC. With the mess on their hands with Ssangyong, Roewe and MG, It'll be a miracle if they can continue to operate without collapsing completely.
      • 6 Years Ago
      After Chrysler they are getting gun shy?
        • 6 Years Ago
        I don't know if Daimler is gun shy, but we should be. They ruined Chrysler. I don't want them to run Volvo
      • 6 Years Ago
      That's "Good for Volvo, they've Dodged the Daimler Bullet."

      Sorry for the double post.
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