Ford to seek Volvo buyer next month
Emerging reports indicate that Ford is moving ahead with the sale of Volvo Cars with a determined push to find a new buyer around the middle of February. Although it's undoubtedly a bad time to be selling, Ford needs the cash on hand and a streamlined corporate structure in order to weather the current storm without going into debt.As was previously suggested, Chinese automakers – including Shanghai (SAIC), Chery and Guangzhou – are looking like the most likely buyers for the Swedish automaker. Although details have not been made public over which prospective buyers Ford is approaching, industry analysts note that most European automakers would have an issue with overlap, while Indian auto giant Tata has enough on its plate with Jaguar and Land Rover.
[Source: Detroit News]
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Reader Comments (Page 1 of 2)
firstplace 4:43PM (1/26/2009)
sell off the wankers brand. good idea.
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Matt 5:44PM (1/26/2009)
Then Lincoln and Mercury should get the ax too...
homunculus 4:45PM (1/26/2009)
i wish subaru and volvo joined forces. it would be the automotive crosby, stills, nash and young for professors, liberals, lesbians, etc.
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Sea Urchin 5:04PM (1/26/2009)
Nothing liberal about WRX STI
Randy 11:54PM (1/26/2009)
That was witty!
Your name though. Is Homu french for Homo?
Vijay 12:58PM (1/28/2009)
I've been saying this for the last five years. If Ford has to sell Volvo, Subaru is the best option. As Volvo has moved upmarket between 1990 and now, Subaru fills the niche Volvo used to fill in the 70s and 80s - reliable family car with a sort of eco-progressive edge.
I don't know enough about Chinese firms, but Volvo's environmental focus would likely pose some problems, as compared to the industry generally in China.
A Volvo fanboy myself, I can heartily support a Subaru-Volvo merger. Subaru can be the VW to Volvo's Audi. Then Volvo does not need to worry as much about trying to find the entry-level car (S40/V50), and Subaru can take advantage of Volvo's reputation.
Considering their similar US market shares, it would be a merger of equals. With Subaru's parent behind it, there is more financial stability. Moreover, they have complimentary (as in, different, but not-incompatible) engineering methods. This would mean Volvo and Subaru can crib from each other.
The only problem continues to be the engineering integration of Volvo and Ford platforms.
stealthebeatles 4:49PM (1/26/2009)
Volvo has lost its way.
This parting will be better for both Ford and Volvo.
Unless, of course, Volvo is sold to a Chinese firm.
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Jonathan 8:02PM (1/26/2009)
I strongly disagree Volvo has lost its way. The C30, XC60, and S80 are all very compelling products. And the S60 concept looks better than any BMW or Mercedes. ANY.
chambo622 4:51PM (1/26/2009)
Too bad, Volvo has been a good company. I've owned them for years and they are great to drive and last forever. Hopefully they can maintain quality under a Chinese brand.
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clevershark 4:52PM (1/26/2009)
Sell Volvo to the Chinese? Isn't that like the Romans salting Carthage before leaving it?..
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firstplace 5:10PM (1/26/2009)
I dont thinks so if ford is Rome then Volvo initially did better because of roman influence, Carthage was only sacked because Hannibal invaded Rome.
DJ 5:07PM (1/26/2009)
The Chinese will not or for that matter CANNOT purchase Volvo without the Swedish government giving it's permission and that is NOT going to happen. Ford's purchase of Volvo had many strings attached and those strings are still attached.
What will happen is that a buyout group, possibly including BMW, Volvo AB (sure, publicly they say otherwise, but the gov't may force their hand) and private equity, with backing of the government will be formed. I expect Ford to keep a 30% stake for engineering and platform development purposes.
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zoldfulu 5:11PM (1/26/2009)
If Ford will do that it is ready to go down. The Volvo palette is PERFECTLY aligned to the European Ford models. Only the leaving S60 and the XC90 does not have a Ford basis. So volvo will not survive a minute wihtout Ford technology. As much as Ford will suffer as well, as fewer car use their technological platform. Its simple economies of scale... Not to mention handong over valuable technology to a competitor. Imagine what would have happened if Ford would have sold its right arm to the japanese in the 80's... That is just plain stupid, If a new president wil allow this he will be responsible for ruining its own car industry...
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Vincenzo 5:22PM (1/26/2009)
Sweden is a Socialist country. Don't expect any miracles from it.
Nobody wants to study and work there anymore.
Of 4 million people at the working age, 1 million don't work and live on welfare. Other 2 million work for the government.
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Swede 5:37PM (1/26/2009)
You might want to tell our conservative goverment that they are socialists. And your numbers are wrong, 1 500 353 people work within the goverment, public sector or other state owned enterprises. We are Swedish, we know our statistics.
2 476 645 people work for privately owned enterprises.
Burned.
Frank 6:19PM (1/26/2009)
That ratio then still sucks, although it's not as bad as the previous posters numbers.
David 9:02PM (1/26/2009)
Yikes.....
retsel 5:22PM (1/26/2009)
Ford has raped Volvo for all of its tech and ideas for the next 20 years. Look at the new Taurus it is full of Volvo tech...
and with Ford design language back on track... they dont need entry level luxo brands...
I am a 31 year old and i am serious thinking about getting the 2010 fusion for my GF if she acts right...
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firstplace 5:35PM (1/26/2009)
mighty progressive of you.
retsel 5:58PM (1/26/2009)
its a joke...
i want to get her a car... and i will "point" her in that direction...
and if by progressive u mean.. i like progress then thanks... :)