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Report: Ford in “desperate attempt” to sell Volvo… Possibly to China

12/08/2008, 1:30 AM

By Nick Aziz

The sale of Volvo to another company has become a condition of Ford receiving federal loans from the U.S. government, according to a new report. As such, Ford is said to be in a “desperate attempt to sell its prestigious Volvo brand,” according to the U.K.’s Daily Mail.

“The sale of Volvo has become part of the conditions of Government assistance,” IHS Global Insight analyst Aaron Bragman told the newspaper.

A unnamed source told the Mail the price for the Swedish automaker has “dropped considerably since seeking a sale in the summer.” China’s Shanghai Automotive Industry Corporation is said to be strongly considering an acquisition at the new low price point.

Other potential bidders purportedly include India’s Tata Motors, China’s Dongfeng Motor Group, Hyundai, and U.S. private equity firm Texas Pacific Group.

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12/08, 2:42 AM

posted by:

AnonymousCoward

Incredible how companies like GM and Ford can be so mismanaged…

12/08, 3:31 AM

posted by:

LDMAN

Would not it be cheaper to simply buy Ford in the long run? Volvo is so integrated with FoMoCo that whoever ends up buying it will have to buy engines and component from Ford for the next 8 to 10 years.
SAIC is not doing a stellar job with whatever is left from Rover, and I hope that they are big enough to realize that buying Volvo will for them be a proverbial case of biting off more that they chew.
Case in point Tata Motors and Jaguar Land Rover.
Most of the PAG brands are cursed. I would steer clear of Volvo.

12/08, 5:51 AM

posted by:

SlowCarsFast

A Hyundai-owned Volvo would be rather interesting. I have yet to see how well their Genesis line is doing in the North American market, but my gut reaction is that, no matter how many ponies it has underhood, people will tend to choose brand prestige over specs. I suspect the Genesis will flop, and if Hyundai wants any stake in the premium market, they’d best start with an established name. Volvo is irreversibly Swedish, even with its Ford guts, and I think they’d have no problem weathering any Korea-wariness there might still be in the auto market.

12/08, 9:05 AM

posted by:

howsmydriving

If the Volvo nameplate would disappear, I would again believe in God.

12/08, 9:07 AM

posted by:

J2D

I feel that selling Volvo is a bad idea, Ford would be better off getting rid of Mercury instead. What volvo really needs is a styling change with a new direction other than what’s being used now, which IMO is showing it’s age.

12/08, 11:32 AM

posted by:

HoosierHero

lol Volvo has been losing money for years. Who the hell cares who buys them?? Ford will do well to dump them while they can. Then they can focus on the #1 market in the world (the U.S.).

12/08, 11:50 AM

posted by:

Lariat Luxury Locomotive Liner No.3

Culturally, and historically, it is always a loss to sell-off your manufacturing to another country when its core resides in its country of origin.

12/08, 12:12 PM

posted by:

gugy

With the Chinese quality control reputation, if this becomes true, Volvo will get even worse than what they are today. I see a very painful death to Volvo.

12/08, 2:33 PM

posted by:

whodat

It is amazing how uninformed posters to a automotive site realy are. 1) Ford and GM are mismanaged. While the sudden change in consumer tastes has inproportionatly affected the domestic automakers, Ford for one had just as many fuel efficient vehicles as Toyota on a line by line comparison (excluding Prius). True in the 90’s and early 2000’s domestics relied too much on trucks and SUV’s, however that is what the public wanted to buy. In fact, Toyota spent billions in developing the Tundra and the new plant in Texas to build it, right before the bottom dropped out of the market. So is Toyota mis-managed too?
2) Sell Mercury – Mercury is not a truely stand alone brand. Every model is variation of a Ford branded vehicle. Not much market value if you are trying to buy a company, no plant or equipement either. While Ford and Volvo share some architecture, the brands could still be split and Volvo has it’s own manufacturing facilities. 3) Volvo has been loosing money. While Ford did not traditionally publish model line profits, Volvo was the bright star in the PAG group. You must be thinking of Jag/Land Rover in the money loosing statement.

12/08, 4:53 PM

posted by:

sharpie

When the ship is taking on water, you’ve gotta throw everything overboard to stay afloat. Volvo is next. Sigh!

12/08, 10:35 PM

posted by:

elviososa

I would hate to see volvo leaves Ford……but that’s might be the only choice that Ford has now.

12/09, 12:14 AM

posted by:

acura_el2000

Why can’t the owner of IKEA buy them? I’m sure they have the capital, and I personally would like to see some of that quirky Swedish innovation stay with Volvo.

 
 
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