The last remaining piece of Ford ’s Premier Automotive Group could be sold to another automaker or investor as soon as this summer, according to a new report. Ford sold Aston Martin last year and is in the final stages of selling Jaguar and Land Rover . The new report indicates Ford is “determined” to sell Volvo in the very near future.
Citing senior banking sources, U.K. magazines The Business claims Ford will put Volvo up for auction in the next six months. HSBC, Goldman Sachs or Morgan Stanley could manage the deal, and several possible suitors have already been named by insiders. Apparently, Ripplewood Holdings and Cerberus — the investment firm that now owns Chrysler — are said to be interested.
In 2007, there was speculation BMW might acquire Volvo or Alfa Romeo as a front-wheel-drive partner to MINI . BMW later decided neither company would be a good match, so it’s very unlikely BMW will be a part of the bidding for Volvo, if it goes ahead this year.
The report speculates that Ford will begin the bidding for Volvo at $6 billion, $450 million short of what the Detroit automaker paid for the Swedish brand back in 1999.
Not long ago, Ford executives suggested the company planned to hold onto Volvo in the interim. While Ford has never denied plans to sell Volvo, Ford CEO Alan Mulally has indicated that the brand needs some restructuring. “Our plan now is not to sell Volvo but to improve its cost structure and brand positioning. I think we can do substantially better than where we are today,†Mulally said.
Ford has yet to comment on the new report.
