Earlier this year, BMW seriously mulled launching a takeover bid for Volvo , according to a new report. The German automaker went as far as requesting a complete breakdown of Volvo’s financial situation, according to the U.K.’s Autocar magazine.
It’s not known if BMW scrapped plans for the bid, or if it is still considering making an offer to Ford for the company. Given Volvo integral role at Ford in terms of safety and platforms, it’s likely Ford would expect a hefty sum for the Swedish firm.
BMW is said to be seeking a brand to pair with Mini in order to increase profitability. BMW could theoretically share front-wheel-drive platforms between small to midsize Volvo and Mini vehicles. Sources to the magazine said BMW considered acquiring Alfa Romeo –another front-wheel-drive specialist — before looking at Volvo.
The proposal is based around the idea that Mini sales of 250,000 to 270,000 cars per year is not enough for long-term profitability. A combined 500,000 Volvos and Minis built on similar underpinnings, however, would ensure profitability.
The Volvo S40, V50, C70, and C30 could all share a platform with a large five-door Mini and Mini SUV, the report said. Volvo’s larger luxury vehicles could be switched to rear-wheel-drive BMW platforms.
BMW bought the Rover brand in 1994 and was forced to sell it six years later due to massive losses. Ford, which owns Volvo, bought the Land Rover component of Rover from BMW.
