• Dec 3, 2009
Just about a month ago, news hit the interwebs that Chinese automaker Geely officially became Ford's preferred bidder for Volvo once concerns over intellectual property were sorted out. Today, though, we're hearing that Crown, a consortium led by former Ford director Michael Dingman, former Ford and Chrysler LLC executive Shamel Rushwin and ex-Volvo CEO Roger Holtback, is gaining momentum in its bid for the Swedish automaker after submitting a revised proposal.

If reports from The Wall Street Journal and Reuters are accurate, Crown's new bid is "on par" with Geely's $1.8 billion offer and is backed by both Swedish and Chinese investors and banks. Not surprisingly, Ford has yet to comment on the speculation, though it has said that talks with Geely are already at an advanced stage. Stay tuned.

[Sources: The Wall Street Journal; Reuters]


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  • 30 Comments
      • 5 Years Ago
      A U.S. consortium backed by Chinese and Swedish banks? How is this an American consortium?
        • 5 Years Ago
        It's the new, new, new economy. The Chinese own everything except for what InBev owns.
        • 5 Years Ago
        The word you are missing is "backed"
      • 5 Years Ago
      Woo ha!
      • 5 Years Ago
      Selling Volvo made sense a year ago when Ford's market capitalization was under $10 billion and falling. But today Ford's market cap is nearly $30 billion. Why sell Volvo for less than $2 billion today? Is Volvo worth only 1/15 the value of Ford/L-M?
      • 5 Years Ago
      This is very very promising news.
      • 5 Years Ago
      Yikes, all this talk is making me a little nervous. I just bought a S40 after tons of research and comparisons to other cars, it was their Safe & Sound deal that won me...I didn't look at who was buying the damn Volvo company...At least the US consortium has some leadership that may actually know what to do in this market...and how to maintain my car over the next 5 years/60K miles!!

      ..I think Volvos are grea.t and Ford is stupid for selling them.
      • 5 Years Ago
      Sounds great. Do they want Saab too?
        • 5 Years Ago
        I have the same feeling with you manicbidder, if the alleged Chinese investor contributes 90% of money then it's hardly a US consortium at all.
        • 5 Years Ago
        Holiday special - buy one, get one free!
        • 5 Years Ago
        I wonder which company is the mystery Chinese company of the consortium. And how is it a U.S. consortium if it seems to involve Americans, Swedes, and the Chinese. The consortium might have Americans lined up to help run Volvo once acquired but it sounds like the bulk of the money is coming from elsewhere.
        • 5 Years Ago
        lol, this worked great for chrsyler, i'm sure it'll work great for volvo to. what struggling carmakers need is backing from investors looking to extract the maximum amount of profit over a few years than dump them.

        /sarcasm

        Oh well, at least crown's fronting people with actual experience.

        bye volvo, it's been nice knowing you.
        • 5 Years Ago
        I wonder which company is the mystery Chinese company of the consortium. And how is it a U.S. consortium if it seems to involve Americans, Swedes, and the Chinese. The consortium might have Americans lined up to help run Volvo once acquired but it sounds like the bulk of the money is coming from elsewhere.
      • 5 Years Ago
      Perhaps it would be best if they kept Volvo.
      • 5 Years Ago
      Price too high for Magna? I thought they were gung-ho to own an auto company. Any auto company.
      • 5 Years Ago
      So Ford bought Volvo 10 years ago for $6.5 BILLION and now they are probably going to get a 1/4 of that money back - and that doesn't even include all the money they spent on modernizing them.

      It is estimated that a new car costs about $1 Billion to design, engineer and bring to market. Imagine the number of brand new, thoroughly modern cars Ford could have come out with in that time frame if they had spent that money on their own cars and not trying to buy up the world.
        • 5 Years Ago
        @ Hazdaz You're joking, right?

        The C1, D3/P2, EUCD, and EUCD2 platforms are all built on Volvo under-pinnings. Ford's $6Bln investment in Volvo was capitalized through the modernization of Ford's platforms (which Volvo was doing on its own when Ford bought them). Ford has become more reliable, more safe, more environmentally-friendly, and has the most nimble global car development platform of any US automaker. Mostly thanks to Volvo engineering.

        Ford selling Volvo is absurd, not because it's a wasted investment, but because it was such a valuable source of engineering prowess.
        • 5 Years Ago
        @ Hadaz the Current Taurus platform is not originally a SUV platform. The P2 chassis that became Ford's D3 platform debuted on the S80 in 1999 and the S80 is a sedan. The S60 also used that platform as did the V70 and XC70. It wasn't used for a SUV till 2003 for the XC90.
        • 5 Years Ago
        Indeed. Mercury & Lincoln cars might actually be interesting, and the Crown Vic might have been replaced this decade.
        • 5 Years Ago
        @ Paul

        I don't believe that for a second. $6.5 Billion buys a HELL of a lot of technology that could/should have been developed in-house. You develop it in-house and you are use that knowledge to improve upon it in the future - you let someone else develop the technology and you'll always be dependent on them for updates.

        Is Ford currently using some Volvo platforms and tech right now? Sure, but much of it was never intended to be used the way it was designed and Ford's cars are the worse for it. Case in point - the enormousness of the new Taurus which uses a modified Volvo SUV platform.

        Now don't get me wrong, I am not trying to knock on Volvo. Of all the ridiculous companies Ford bought over the last decade, Volvo was definitely the best one, but I for one am sick of seeing these mergers and acquisitions that stroke some CEO's ego and make a few people exceedingly wealthy, but end up hurting the companies involved more than if they were independent.
      • 5 Years Ago
      among the benz wagon and 930 in my fleet, the one that impresses me most is my over 200k '96 850! solid construction,outstanding paint job,lots of greenhouse visibility and smooth 5 cylinder [of porsche design] engine and lots of useable rear seat and trunk space that sits outside as a result of the other two garagers. decent handling,excellent brakes and cheap replacement tire size make it a true pleasure to own....runs and runs and runs on regular grade fuel too!
      • 5 Years Ago
      USA! USA! USA!. Go team!
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