Autoblog

Volvo sale to Geely to close next week?

Zach Bowman — Thu, 29 Jul 2010 16:31:00 EST

Filed under: China, Europe, Volvo, Earnings/Financials, Luxury

Volvo may finally part ways with Ford by the end of next week. The Detroit Free Press reports that the Blue Oval is aiming to close its $1.8 billion sale of the Swedish automaker to Geely in as little as 10 days, though Ford has merely said that its goal is to hand over the Volvo reigns by the end of the third quarter of this year. The move to send Volvo packing is part of Ford CEO Alan Mulally's strategy to slim the company down to focus on its core brands - a scheme that seems to be working so far.

In the meantime, Volvo managed to turn a profit of $53 million before taxes in the second quarter of this year. The news is a big leap from the same time last year - in the second quarter of 2009, the brand lost a heady $237 million. Ford's sale of Volvo seems to have been on glacial pace, partly due to the number of government agencies in the U.S., Europe and China that were needed to sign off on the deal. By the time the ink dries on the last document, Geely will have secured the largest overseas acquisition of any Chinese automaker so far.

[Source: The Detroit Free Press]

Volvo sale to Geely to close next week? originally appeared on Autoblog on Thu, 29 Jul 2010 16:31:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Ford finalizes deal to sell Volvo to Geely for $1.8 billion

Sam Abuelsamid — Sun, 28 Mar 2010 09:55:00 EST

Filed under: Ford, Volvo, Geely

At press conference in Gothenburg, Sweden today, Ford executive vice president Lewis Booth and Geely chairman Li Shufu announced that the companies have reached a final deal to sell Volvo to the Chinese automaker. The final purchase price is $1.8 billion, which includes some of Volvo's intellectual property and its other physical assets.

Volvo will be 100-percent owned by Geely, and Ford will not retain any equity stake. Because of the component sharing between existing Volvo vehicles and Ford models, Ford has agreed to continue supplying powertrains, stampings and other systems to Volvo for an undisclosed transition period. Perhaps the most difficult aspect of this deal is the intellectual property situation. Volvo will be granted licenses to use some Ford-owned technology and will have the ability to sub-license some technology to third parties, including Geely.

Li committed to keeping the Volvo brand separate from Geely while expanding its global reach, particularly in China. Li also stated that Volvo would maintain a manufacturing footprint in Sweden.

The sale is expected to close in the third quarter of this year, pending regulatory approvals. Unlike the aborted sale of Hummer, the Chinese government will likely approve this deal since Geely is already in the car business. The official press release is included after the jump.

[Source: Ford]

Continue reading Ford finalizes deal to sell Volvo to Geely for $1.8 billion

Ford finalizes deal to sell Volvo to Geely for $1.8 billion originally appeared on Autoblog on Sun, 28 Mar 2010 09:55:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Report: Geely may need to come up with $1.4B to fix damaged Volvo after purchase

Chris Shunk — Fri, 12 Mar 2010 10:28:00 EST

Filed under: Ford, Volvo, UAW/Unions, Geely

It's going to cost up to $2 billion for Zhejiang Geely Holding Group Co. to take ownership of Volvo, but according to a new report out of BusinessWeek, that lofty figure is just the cost of entry. Volvo union members and the board have apparently told the Chinese automaker that it will need at least $1.4 billion to repair the storied Swedish automaker.

Union head Glenn Magnusson reportedly says the money will be needed for the next year's product development, marketing, production and distribution. Magnusson tells BW that Geely has yet to demonstrate that it has the financials to sustain Volvo, adding "we haven't seen anything yet and we're not satisfied."

Further, Volvo board member Magnus Sundemo feels $1.4 billion may be a little low, adding that Geely will need to invest "at least as much as they're paying to buy us." One reason Volvo insiders feel the company will need plenty of cash is to satisfy Geely's desire to build up Volvo in China, with the goal of assembling 200,000 vehicles per year in The Land of the Great Wall.

Ford Motor Company and Geely, who have been in talks seemingly forever, are looking to get a deal done by the end of March. Regulatory filings are expected to draw out the process of officially handing over ownership of the Swedish automaker to June 30 at the earliest.

[Source: BusinessWeek]

Report: Geely may need to come up with $1.4B to fix damaged Volvo after purchase originally appeared on Autoblog on Fri, 12 Mar 2010 10:28:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Rumormill: Ford to sell Volvo to Geely for 1.8 billion on Feb. 8

Jonny Lieberman — Tue, 26 Jan 2010 16:31:00 EST

Filed under: China, Europe, Volvo, Rumormill, Geely

See you in Shanghai - click above for high-res image gallery

With all the Saab hullabaloo clogging up the virtual pipes as of late seems that folks have been neglecting the fate of the other fancy Swedish brand purchased by a pipe-dreamin', pie in the sky American car maker whose coffers were overflowing with SUV money. That's right, Ford purchased Volvo in 1999 for $6.45 billion dollars. Many scratched their heads at the time, as Mercury and/or Lincoln certainly could have used a $6 billion infusion. Also, both Mercury and Lincoln compete with Volvo, on paper at least. But, just like General Motors purchased Saab, Ford had their Swedish brand.

In retrospect, probably not the best idea ever hatched.

Proof? Rumor has it that Ford is inking in the details of a sale of Volvo to China's Geely Holding Group Co. for $1.8 billion by February 8. That's a nearly $4.7 billion bath on Ford's part in just eleven years. But here's the thing: according to the same rumor, Ford might let Volvo go to Geely for as little as $1.6 billion. There's a bunch of legal mumbo jumbo still to be worked out (this agreement runs out after one year, that regulatory board must approve X in a timely fashion) but it's looking more and more that Volvo is about to become a Chinese company. We'll keep you posted.

Gallery: Frankfurt 2009: 2010 Volvo C30

[Source: Trading Markets]

Rumormill: Ford to sell Volvo to Geely for 1.8 billion on Feb. 8 originally appeared on Autoblog on Tue, 26 Jan 2010 16:31:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Autoblog Podcast #159 - Reilly Brennan from AOL Autos comes by the podcast clubhouse

Dan Roth — Tue, 29 Dec 2009 16:21:00 EST

Filed under: Podcasts, Hybrid, China, Cadillac, Ford, GM, Toyota, Volvo, Geely

Click above for the Autoblog Podcast in iTunes, RSS or listen now!

For this week between holidays, Reilly Brennan from AOL Autos stops by our clubhouse to join Chris, Sam, and Dan for Episode #159 of the Autoblog Podcast. While it's a question-centric podcast this week, we touch on a few news items before hitting a bunch of your emails. An in-depth chat about the Ford Mustang's new 5.0-liter V8 starts us off, before we turn to an equally pithy chat about Toyota's hybrid braking system concerns, and we briefly consider what Volvo's pending sale to Geely might mean. From there on out, it's listener-interaction central, and we break the two-hour barrier this week as a holiday treat(?) for everyone.

As ever, for exceptional quality 'casts, our colleagues at Joystiq and Engadget do fine work. Let us know what you think of our podcast by dropping us an email at Podcast at Autoblog dot com, reviewing the show in iTunes, filling out our survey, or even leaving us a voicemail on our Google Voice line 734-288-8POD (734-288-8763). Thanks for listening!

Continue reading Autoblog Podcast #159 - Reilly Brennan from AOL Autos comes by the podcast clubhouse

Autoblog Podcast #159 - Reilly Brennan from AOL Autos comes by the podcast clubhouse originally appeared on Autoblog on Tue, 29 Dec 2009 16:21:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

BREAKING: Ford says it has come to terms with Geely on Volvo sale

Chris Shunk — Wed, 23 Dec 2009 09:33:00 EST

Filed under: China, Ford, Volvo

Ford Motor Company has just announced that all major terms relating to the sale of Volvo have been settled between Ford and Zhejiang Geely Holding Group Company Limited. That doesn't mean that all the Ts have been crossed on the deal, but it does indicate that Geely has met all of Ford's terms for the sale to be complete. Ford has issued a press release stating that a definitive sale agreement will be signed in the first quarter of 2010, while the final sale won't take place until Q2.

Earlier in the month, former Volvo executives sent a letter to Ford Chairman Bill Ford, Jr. voicing their concern that Geely doesn't have the necessary resources to support Volvo. Not so, according to Ford's press release. The Blue Oval states "the prospective sale would ensure Volvo has the resources, including the capital investment, necessary to further strengthen the business and build its global franchise." And even though Ford will likely soon be handing over the keys to Volvo to a Chinese automaker, the company still intends to work closely with the Swedish automaker post-sale. That makes sense considering the fact that all Volvo products share platforms and components with Ford-branded cars and crossovers.

The sale will also go far in achieving Ford's goal of divesting itself of its non-core assets so the Dearborn, MI-based automaker can concentrate on matters closer to the Blue Oval's heart. Follow the jump to study Ford's brief press release. Thanks to everyone for the tips!

[Source: Ford]

Continue reading BREAKING: Ford says it has come to terms with Geely on Volvo sale

BREAKING: Ford says it has come to terms with Geely on Volvo sale originally appeared on Autoblog on Wed, 23 Dec 2009 09:33:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

REPORT: Former Volvo directors and politicians fear sale to BAIC

Chris Shunk — Mon, 14 Dec 2009 08:59:00 EST

Filed under: China, Ford, Volvo

Back in October, Ford anointed China's Geely Holding Group as its preferred bidder for Swedish Automaker Volvo. The move made perfect sense for Ford, simply because Geely was offering money and the recent happenings in the auto industry proved that, beyond the shadow of a doubt, you can never have too much money. But it should come as a surprise of nobody that there is a significant delegation of past and present members of Volvo management that aren't all that thrilled with being engulfed by an up and coming Chinese company.

Sweden news site The Local is reporting that eight former Volvo directors have collaborated on a letter to Ford Chairman Bill Ford Jr. asking the Blue Oval to reconsider a sale to Geely. The letter reportedly states that Geely doesn't have the technical competence to keep the Swedish automaker going. The letter also allegedly stated that Volvo is concerned about technical details being leaked to Geely -- a situation Ford likely wouldn't be too happy with.

While past Volvo directors appear to be very concerned about the prospect of Geely taking over the company, current Volvo management is speaking out in favor of the deal. That's probably a good idea considering the real possibility that the Chinese automaker could soon be the masters of the current management's future with the safety-oriented automaker. Politicians are getting in on the debate as well, as democrats are reportedly likening ceding control of Volvo to Geely to selling the company to China and to Communism.

[Source: The Local | Image: Olivier MorinN/Getty/AFP]

REPORT: Former Volvo directors and politicians fear sale to BAIC originally appeared on Autoblog on Mon, 14 Dec 2009 08:59:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

REPORT: Even while pursuing Volvo, Geely again mulling bid for Saab?

Chris Shunk — Mon, 07 Dec 2009 13:58:00 EST

Filed under: Saab, Earnings/Financials, Rumormill, Geely

Just about every time an automaker decides to sell one of its brands, Chinese automaker Geely comes up as one of the potential suitors. Geely executive Lawrence Ang has reportedly told Automotive News that the reason Geely has been present at a lot of negotiating tables is because it wants to grow in part through acquisitions. And while the Chinese automaker has yet to finalize any big-ticket buys, it appears to be the front-runner for Ford's Volvo unit.

Earlier in the year, Geely looked into purchasing the Saab brand, but talks reportedly broke down after Koenigsegg presented what appeared to be the winning bid. But now that Koenigsegg has dropped out of the Saab sweepstakes, the door is open again for Geely. Is the Chinese automaker interested? Ang reportedly gave reporters at a shareholder event the ambiguous "who knows?" as an answer, but he also acknowledged that the company is investigating buying opportunities which have presented themselves during the automotive industry downturns in Europe and the States. Geely is also reportedly interested in purchasing parts and engines, which could be possible if General Motors decides to disband Saab if an adequate bid doesn't present itself by year-end.

While Geely appears to be close to purchasing Volvo and is perhaps in a good position to pick up Saab for a song, the automaker is also looking to increase its presence in its home market. Automotive News is reporting that Geely will increase spending by up to 43% in hopes of increasing sales from 300,000 in 2009 to over 400,000 next year.

[Source: Automotive News - subs req'd | Image: AFP/Getty]

REPORT: Even while pursuing Volvo, Geely again mulling bid for Saab? originally appeared on Autoblog on Mon, 07 Dec 2009 13:58:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Ford officially confirms China's Geely as preferred bidder for Volvo

Sam Abuelsamid — Wed, 28 Oct 2009 12:58:00 EST

Filed under: China, Ford, Volvo, Geely

Volvo S60 concept - click above for high-res image gallery

It's been rumored for months Chinese automaker Geely had the best shot at picking up the Volvo brand from Ford, and today, Dearborn has finally confirmed it. Geely was named as the preferred bidder this morning and the Blue Oval is proceeding with negotiations. However, this is not going to be an easy deal to close. Ford doesn't want to keep any stake in the Swedish company, although it does hope to continue some product cooperation.

In spite of the lack of shareholding, Ford doesn't want Volvo to wither on the vine and wants whoever buys it to have the resources to make it a going concern - unlike what happened when BMW dumped Rover. Perhaps the toughest nut to crack will be intellectual property concerns. Any time a sale like this happens, the seller is be concerned about leaving too much information lying around, and that concern is understandably amplified when dealing with an up-and-coming Chinese company. There is no word on when a deal might be closed, so in the meantime, busy yourself with the official release after the jump.

Gallery: Detroit 2009: Volvo S60 Concept

[Source: Ford]

Continue reading Ford officially confirms China's Geely as preferred bidder for Volvo

Ford officially confirms China's Geely as preferred bidder for Volvo originally appeared on Autoblog on Wed, 28 Oct 2009 12:58:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

REPORT: Geely's plans to buy Volvo from Ford unravelling over intellectual property concerns?

Chris Shunk — Fri, 23 Oct 2009 16:00:00 EST

Filed under: Ford, Volvo, Earnings/Financials, Geely

Ford has been trying to offload the Volvo brand since December of 2008, but after years of rumors and speculation those 10 months feel more like a decade. China's Geely has been speculated as the number-one bidder for the Blue Oval's Swedish luxury brand, but a report by Bloomberg asserts that the long-awaited accord could be shelved due to concerns over Ford's intellectual property.

Because Volvo is so tightly integrated into Ford's product development, any buyer of the safety-minded car maker would have inside knowledge of the Blue Oval's future product plans and access to its latest and greatest technology. The buyer would also have direct access to Ford's vehicle architectures, since so many are shared between itself and Volvo. If Geely does in fact purchase Volvo, those platforms, which pass both European and U.S. crash test standards with flying colors, it could give China's largest automaker a better chance of entering the coveted U.S. market. And helping Chinese automakers enter the States probably isn't at the top of the list of things Ford wants to do right now.

U.S. and European automakers have had their hands full in attempting to curb China's lax intellectual property rules. Some vehicles built by Chinese automakers and sold in the land of the Great Wall are nothing more than carbon copies of vehicles from American., Japanese and European automakers... save for a new logo. Ford is also dealing with the case of Xiang Dong Yu, an ex Ford engineer who stole 4,000 sensitive and confidential documents from the Dearborn, MI-based automaker. The sticky-fingered engineer reportedly pilfered the documents in an effort to get a job at Shanghai Automotive but he was instead hired by Bejing Automotive.

The other issue Ford could be facing is the bargain-basement price tag Volvo is rumored to be offered at due to years of recessing sales volume and mounting losses. Ford purchased Volvo in 1999 for over $6 billion, but sources familiar with the brand's sale estimate that the Swedish automaker could now fetch as little as $2 billion. While that sum is nothing to sneeze at, Ford could be better off waiting until the automotive market heats back up gain. The new XC60 crossover has helped curb Volvo's sales woes here in the U.S. to the point that the Swedish Automaker realized a 16% sales climb versus last September. Next year's intro redesigned S60 coupled with several mid-cycle face lifts could continue to help Volvo's short-term prospects.

[Source: Bloomberg | Photo: Sven Nackstrand/AFP/Getty Images]

REPORT: Geely's plans to buy Volvo from Ford unravelling over intellectual property concerns? originally appeared on Autoblog on Fri, 23 Oct 2009 16:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

REPORT: American-led consortium to bid against Geely for Volvo

Sam Abuelsamid — Mon, 05 Oct 2009 09:58:00 EST

Filed under: Technology, Ford, Volvo, Geely

With General Motors and Ford both trying to divest themselves of underperforming operations that aren't core to their U.S.-based businesses, the automakers are finding things tougher than simply locating someone willing to write a check. As automakers have rationalized their operations, they have done a lot of platform and technology sharing among the brands under their umbrellas, making extracting individual marques a difficult business. Because automakers around the world are struggling, finding buyers is even more problematic, and the world's most willing bidders seem to be in places like China and Russia - locales where respect for intellectual property rights is dubious.

The Beijing Automotive Industry Holding Co. bid for Opel was killed because of such concerns. Magna's bid has faced similar worries because much of the financing is coming from Russia.

The lead bidder for Ford's Volvo unit is currently Chinese automaker Geely, but Ford is apparently having second thoughts because it doesn't want to share too much of its technology with the potential buyer. A second potential purchaser has entered the picture, a U.S.-based group with backing from several private equity funds. The Crown consortium has reportedly offered less up-front money than Geely but made similar investment commitments to the Swedish brand. If things don't work out with Geely, Ford could turn to the American group, but no one is talking publicly right now.

[Source: Financial Times]

REPORT: American-led consortium to bid against Geely for Volvo originally appeared on Autoblog on Mon, 05 Oct 2009 09:58:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

REPORT: Chinese government approves of Chery's bid to purchase Volvo

Frank Filipponio — Fri, 06 Mar 2009 17:57:00 EST

Filed under: China, Government/Legal, Volvo, Chery, Rumormill

If, like us, you've been following the Volvo saga pretty closely, you'll remember that several Chinese companies are considered to be among the top bidders for the Swedish automaker when Ford officially opens the bidding. Although Geely has said they aren't interested, that didn't rule out other Chinese outfits.

Well, today we have word via Chinese news reports that Chery, for one, has been given the greenlight to enter the Volvo lottery by the Chinese government. Other interested parties are rumored to be Dongfeng Motor Group and Chongqing Changan Automobile Co, along with a "European constellation," whatever that means.

Ford is looking to recoup the bulk of its initial $6.45 billion investment when it sells Volvo, so that might put it out of Chery's league. But who knows? Chery Auto just got a 10 billion yuan ($1.47 billion) loan to help it grow globally and was also given a line of credit by the bank, so only time will tell.

[Source: Gasgoo]

REPORT: Chinese government approves of Chery's bid to purchase Volvo originally appeared on Autoblog on Fri, 06 Mar 2009 17:57:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Bids for Volvo expected around Easter, Chinese and Euro concerns reportedly in the running

Chris Shunk — Thu, 26 Feb 2009 08:28:00 EST

Filed under: Ford, Volvo

Volvo has been struggling for a while now, and recently the Swedish automaker shed 6,000 jobs to stem the tide of red ink. To make matters more interesting, Volvo could soon be working with a new owner. Swedish newspaper Dagens Industri is quoting unnamed sources as saying Ford could rid itself of Volvo by Easter weekend. The interested parties are rumored to be Dongfeng Motor Group and Chongqing Changan Automobile Co, along with a "European constellation," whatever that means.

Ford originally purchased Volvo in 1999 for $6.45 billion, but many industry analysts are predicting the Blue Oval won't get that much money in a sale during a global recession. The move would still bring Ford some desperately needed financial relief to help the 105-year-old automaker weather the recession. For the near term, Volvo is still losing money by the bucket, and it's working with the European Investment Bank to obtain a $568 million loan that would be backed by the Swedish government.

[Source: Automotive News - Sub. Req.]

Bids for Volvo expected around Easter, Chinese and Euro concerns reportedly in the running originally appeared on Autoblog on Thu, 26 Feb 2009 08:28:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

REPORT: Geely denies plans to buy Volvo

Jeremy Korzeniewski — Thu, 05 Feb 2009 13:26:00 EST

Filed under: China, Volvo, Earnings/Financials

Of the many suitors who have reportedly had at least a passing interest in acquiring the Volvo brand from Ford Motor Company, the Volvo Group, BMW and Daimler have all publicly decided to pass on the opportunity. Many believe that a Chinese automaker will step up to the plate and purchase the Swedish brand known for safety, but now Geely has withdrawn its name from the proceedings with the statement, "We don't have plans to buy Volvo as some media have reported." Well, fine then.

With Geely dropping out, SAIC remains a possible Chinese suitor along with Changan Automobile Group, Dongfeng Motor Group and Chery Automobile, all of which have said that they are monitoring the situation, whatever that means. Renault has recently emerged as a possible bidder as well. Ford is rumored to be looking to get about $6 billion for Volvo, which is just about what the Blue Oval paid for it in 1999.

[Source: Automotive News - sub. req'd]

REPORT: Geely denies plans to buy Volvo originally appeared on Autoblog on Thu, 05 Feb 2009 13:26:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Ford holding talks with Renault regarding Volvo sale?

Chris Shunk — Mon, 02 Feb 2009 08:01:00 EST

Filed under: Ford, Volvo, Renault

At this point, Ford's sale of Volvo appears imminent. The only question now is who wants to take the Swedish automaker off the Blue Oval's hands. Last week we told you of a possible sale as early as mid-February, and now Reuters is reporting that the buyer could be Renault. The two automakers allegedly got together in the fall to discuss the outright purchase of Volvo and now, the two have apparently resumed talks.

Volvo and Renault almost combined back in 1993, but management and stockholders at the Swedish automaker were against the merger. Fast forward to 2009, and Volvo is coming off a $1.5 billion loss for 2008, and Ford is draining cash by the bucket. Renault could find a bargain-basement Volvo as a nice fit, considering that it just recently canceled plans to produce a new large car. Volvo's Ford-based large car lineup could slot nicely in Renault's offerings, saving big Euros on development. Some are speculating that Renault, which owns 44% of Nissan, would have Volvo all to itself, though we're sure some sharing between the three automakers is bound to happen if the deal goes down.

[Source: AutoCar]

Ford holding talks with Renault regarding Volvo sale? originally appeared on Autoblog on Mon, 02 Feb 2009 08:01:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Geely reportedly interested in Volvo Cars

Jeremy Korzeniewski — Thu, 18 Dec 2008 09:01:00 EST

Filed under: China, Volvo, Earnings/Financials

We already know that Ford has placed Volvo on the auction block and is actively shopping its Swedish brand to at least one Chinese automaker. New rumors indicate that there may be more players in China with more than a passing interest in taking the brand off the Blue Oval's hands. If SAIC doesn't bite at Ford's $6 billion asking price, Geely has emerged as a possible bidder and officials from the Chinese automaker have reportedly made the trip all the way to Volvo's headquarters in Gothenburg, Sweden, to discuss a possible sale with Ford.

So, what potential roadblocks stand in the way of a Chinese automaker snatching Volvo from the throes of bankruptcy? According to Autocar, one sticking point is that Ford does not want Volvo platforms being used by other automakers. A good deal of Ford products share their underpinnings with Volvo sedans and Ford is concerned that its intellectual property could end up in the wrong hands.

[Source: Autocar]

Geely reportedly interested in Volvo Cars originally appeared on Autoblog on Thu, 18 Dec 2008 09:01:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Ford wants $6 billion for Volvo

Michael Harley — Thu, 04 Dec 2008 13:01:00 EST

Filed under: Europe, Ford, Volvo

Ford bought Volvo for $6.4 billion back in 1999. Now, a decade later, unconfirmed reports say the automaker is asking nearly the same amount -- $6 billion -- for the Swedish brand.

Ford may sell Volvo to demonstrate active steps to cut costs (a critical move as Mulally is in Washington asking Congress for financial assistance as you read this). Although it's a buyer's market, Volvo isn't exactly the hottest catch. Like everyone else, the automaker is struggling in today's market as reported sales in the third-quarter were down 24%. Volvo has cut thousands of jobs, and has even been in recent talks with the Swedish government about financial support. Potential buyers of Volvo include SAIC Motor Corp., China's largest automaker, and Hyundai Motor Co., from South Korea. Another option would be for the Swedish government to become the temporary owner until a suitable industrial buyer is found, but we think that has the same chance as the Detroit 3 being federalized.

[Source: Bloomberg]

Ford wants $6 billion for Volvo originally appeared on Autoblog on Thu, 04 Dec 2008 13:01:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Volvo to BMW rumor pops up yet again

Jeremy Korzeniewski — Mon, 27 Oct 2008 08:01:00 EST

Filed under: Hirings/Firings/Layoffs, BMW, Volvo, Rumormill

Another day, another rumor of the sale of Volvo's automobile operations. Of course, Ford is the current owner of the Swedish maker of shapely bricks, and the Blue Oval could definitely use the money as it tries to regains its shaky footing in its home market. A sale of Volvo has been spoken of for the last few years, and industry talk has seemed to pick up steam as Ford unloaded the other automakers that used to make up its now defunct Premium Auto Group. BMW has been mentioned as a possible suitor for Volvo in the past and its name has popped up yet again. At some point, we have to wonder if there's some truth to these rumors, despite the fact the both automakers have continued to deny the possible sale. Still, it wouldn't seem to be the ideal fit, as Volvo's reputation of building safe but somewhat dowdy vehicles clashes with BMW's sporty intentions.

[Source: Times Online]

Volvo to BMW rumor pops up yet again originally appeared on Autoblog on Mon, 27 Oct 2008 08:01:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Volvo still wants to compete with the Germans, despite rumors of sale

Dan Roth — Mon, 07 Jul 2008 11:33:00 EST

Filed under: Trends, Etc., Volvo

Ford says Volvo's not for sale, and the Blue Oval would be smart to hold on to its remaining vestige of the Premier Auto Group as long as it can, especially since engineering and platforms have become so entwined with Dearborn's product line. For its part, Volvo is angling to take on the high end Germans. Volvos have long been premium products, having built a reputation on exceptional durability, meticulous engineering, and of course, safety. Try as it might, however, Volvo has a hard time competing head on with BMW, Audi and Mercedes. The cachet of the Swedish automaker is diminished compared to the Germans, and dynamically, Volvos tend to get schooled hard despite being good, capable drivers when taken alone.

Operations chief Steven Armstrong tells Automotive News that Volvo is looking to be mentioned in the same breath as its intended targets, even as losses mount and layoffs ensue. Volvos already occupy the same pricing arena as the premium Germans, but that's partly due to a weak dollar and transport costs. The possibility of building its cars in the United States might bring prices down and allow better developed performance versions, versus the outclassed R models of the past. Also hurtful is the model range's appetite for fuel -- we've gotten mileage in the teens from some Volvos in the Autoblog Garage. Armstrong says that the fuel economy issue will be addressed soon as technologies like start-stop, energy recovery from braking, and further down the road, hybrid powertrains are brought to market. Green is a good way for Volvo to go, given the Scandinavian proclivity for low-impact, gentler consumption. What it all means is that soon, we may see a kinder, gentler, meaner, faster Volvo product lineup -- possibly managed by Russian, Chinese, or Swedish owners.

[Source: Automotive News - sub req.]

Volvo still wants to compete with the Germans, despite rumors of sale originally appeared on Autoblog on Mon, 07 Jul 2008 11:33:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Ford to make fewer Volvos, possibly in prep for sale

Jonathon Ramsey — Tue, 20 May 2008 10:58:00 EST

Filed under: Plants/Manufacturing, Ford, Volvo, Earnings/Financials

Volvo, once the success story in Ford's Premier Automotive Group, has hit choppy waters. And according to Wall Street Journal insiders, Ford is preparing to treat the Swedish automaker the same way it did the English ones: slap some floaties on it and keep the brand bobbing long enough to sell it.

Volvo made $94 million in profit in Q1 of 2007, but lost $151 million in Q1 of this year. In total, over the past two years, the once smiling Swede has lost $1.7 billion, part of which is due to exchange rates, and another is due to selling fewer cars. To combat the decline, Volvo is shedding up to a third of its work force at one European plant, and cutting back on production at another. As you would suspect, both of those plants make the largest vehicles in Volvo's lineup.

A couple of weeks ago, Ford was intriguingly -- or deceitfully -- still in "Volvo's not for sale" mode. Now it appears that Mulally has admitted to some Ford execs that Volvo is about to wear the "Needs a Caring Home" sign. Jerry York, the right hand man of Kirk Kerkorian, maintains that Volvo will probably be sold in 18 months. The way things look now, we'd be surprised if it took that long.

[Source: Wall Street Journal via Yahoo!]

Ford to make fewer Volvos, possibly in prep for sale originally appeared on Autoblog on Tue, 20 May 2008 10:58:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments