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Discussion Starter · #1 ·
Didn't see this anywhere this morning...sorry if it's a repost.

SOURCE: Automotive News

Report: Ford talks with Chinese to sell Volvo
Volvo says it will cut 2,000 jobs

John Revill
Automotive News
June 25, 2008 - 8:36 am ET

Ford Motor is in negotiations with a Chinese company to sell its Volvo cars division, the online edition of Dagens Industri reported.

A Russian investor is also believed to be interested in acquiring the division, the report said.

The Chinese company involved in talks is Shanghai Automotive Industry Corp., sources told Automotive News Europe today.

A Ford spokesman said: "We have been consistently saying since the end of last year that Volvo is not for sale. We are focused on improving Volvo's business results."

Ford's new major shareholder Kirk Kerkorian, with a 6.49 percent holding, has stated he would like to see the cash strapped U.S. automotive giant divest itself of Volvo which it acquired for 50 billion Swedish crowns in 1999.

Ford's CEO Alan Mulally began a strategic review around a year ago with the sale of Volvo thought to be among his goals. However the company has denied this.

A number of automotive companies have been connected with a purchase of Volvo over the last year, including Germany's BMW and Japan's Mazda.

The Volvo brand has shown good growth over the last few years and has a revamped model line-up. Analysts believe Ford is holding out for a good market price.
MORE HERE
 

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Discussion Starter · #2 · (Edited)
I wouldn't have thought that the Chinese or Russians would be in the running for Volvo - though they arguably have the capital to invest in them. I know that PSA was interested in them, as well as Renault for awhile.

However, I know that the Swedes were interested in reacquiring the brand - I wonder if this is something they'd still want to reacquire?
A number of automotive companies have been connected with a purchase of Volvo over the last year, including Germany's BMW and Japan's Mazda.
Does that make sense?

Ford would actually have sold one division to another division? They'd still have Volvo on the books through their 35% stake in Mazda Corp, no?
 

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In some ways it would make sense to sell it to Mazda. They would reduce their share of the ownership by selling most of the division to the rest of the Mazda shareholders and they would still have access to Volvo technology and platform sharing. Mazda also shares a platform with Volvo. Isn't the Euro Focus, Mazda 3 and Volvo S40 on the same chassis?
 

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You know, if I had a penny for all of the speculation and rumors I could buy Volvo myself!
 

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Discussion Starter · #5 ·
More on this from LeftLaneNews.com

SOURCE: LeftLaneNews.com

Although General Motors has been fairly candid about the future of its Hummer brand, Ford continues to maintain that its Mercury and Volvo divisions are here to stay, even in the face of mounting evidence to the contrary. Ford’s suppliers have already hinted that the Mercury brand is on life support and a new report indicates that Volvo might already have one foot out the door.

According to Automotive News, Ford is currently in talks with China’s Shanghai Automotive Industry Corp. to sell off the Volvo brand. Additionally, Dagens Industri reports that Ford is also in talks with a Russian investor who wishes to acquire the Volvo brand.
MORE HERE

Interesting if true - a GM partner in China looking to buy Volvo from FoMoCo? Are they hoping it will compliment Roewe and MG (now that Nanjing is technically part of SAIC)? How would such a move halt an Austin revival as Nanjing wanted pre-merger?
 

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I think Ford should keep Volvo and get rid of Mercury. The company should be Ford, Mazda, Lincoln, Volvo. Volvo has the technology that is in most of Ford's vehicles now..
 

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bad move Ford.. you NEED Volvo... you don't need Merc... what a bunch of brainiacs running our auto industry!

They'll run them right into the ground at this rate. You cannot, and I repeat, cannot shrink your way to profitability!!!!! There has to be a paradigm shift at some point within the company and run right out of business.
 

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bad move Ford.. you NEED Volvo... you don't need Merc... what a bunch of brainiacs running our auto industry!
Ford is not selling Volvo because they want to. Ford is selling Volvo because they have to.

Volvo has value (Mercury doesn't) and Ford needs cash NOW. It is sad, but simple.

As a Volvo owner I'm happy that Volvo will survive. It's a solid brand. I can only hope Ford will survive.:(
 

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This is a bad move IMO. Volvo is about the best thing Ford has going for it right now. Jaguar, Land Rover and Aston Amrtin were all dead weight to Ford (even if the Astons are the best looking and coolest cars out there) but Volvo is ripe with technologu and innovation and has a great and solid reputation that Ford has managed to crap up in the decade that Ford has had them.
 

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Do not freakin' sell Volvo!:brick
 

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If they get rid of Volvo, then who is Ford going to jack platforms from. Soon the ones they have now is going to get old and they will need new Volvo platforms. If they sell Volvo, then I will probably never consider buying a Ford. They make a lotttttttt of mistakes.
 

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I'd love to see Volvo go away. Ford didn't need it in '99 and they sure as heck don't need it now. GM and Ford both need to get back to the basics. Stop playing with ex-Scandinavian cars and build real American cars. Volvo has been crappy ever since they eighty-sixed RWD. Those are the cars that built its reputation.
 

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The whole concept of buying your way to prestige when you don't have the money to keep your existing brands competitive (Mercury) was mistaken from the beginning. It makes sense for no-name Chinese companies perhaps, but not for Detroit's automakers. Ford and GM needed instead to build their own brands up like Toyota-Lexus. Cadillac and Lincoln could have served just as well as platforms for such continuous improvement; they both had the history (if you forget about a couple of decades in-between).

It also speaks to a certain derision and contempt for American luxury brands from Nasser that he didn't think it possible to take Lincoln in the direction that Cadillac is now firmly set in.

Sell it.
 

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Ford will sell Volvo for the right price.

Volvo uses Ford platforms.

Ford already has all Volvo's intellectual property, and can continue to use it after a sale.

Ford does not NEED Volvo, but if the price is too low, it won't be worth the PITA of seperating the two.
 

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Chinese, Russians, Mafia, Yakuza, Bill Gates and some guy in van down by the river are all interested parties. Anyone got $6 billion burning a hole in their pocket?

I think Ford should just close all the Volvo facilities in Sweden, except for the exclusive retreat, and move all the production and some of the staff to the US. Then Volvo will be competitive and boo-koo profitable. We could create a Swedish Enclave somewhere in rural Michigan to placate the Swedes who made the trip over (only women under 30, lol).
 

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If they get rid of Volvo, then who is Ford going to jack platforms from. Soon the ones they have now is going to get old and they will need new Volvo platforms. If they sell Volvo, then I will probably never consider buying a Ford. They make a lotttttttt of mistakes.
Remember, Ford and GM are merging (see other post), surplus platforms available.
 

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If they get rid of Volvo, then who is Ford going to jack platforms from. Soon the ones they have now is going to get old and they will need new Volvo platforms. If they sell Volvo, then I will probably never consider buying a Ford. They make a lotttttttt of mistakes.
How about with the money Ford is blowing on covering Volvo's losses they just make their own platforms.
 

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this will be a bad move , what they need to do is build the cars they plan to sell here in the states build them here because whats hurting Volvo is that about 25% of their global sales are from the US and then when you have to export the cars here to the US the exchange between the Krona and the dollar hurts them just like bringing Euro Fords to the US or why VW and BMW loose some millions here in the states, so my plan calls for make one of the plants flexible enough to build the C30,S40,V50 and the C70 in the same line of the 2010 focus
 

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I think Ford should keep Volvo and get rid of Mercury. The company should be Ford, Mazda, Lincoln, Volvo. Volvo has the technology that is in most of Ford's vehicles now..
Mercury is a dead duck. Ford is fooling themselves if they intend to revive Mercury.

Volvo is a solid brand, with a solid reputation.

It would be dumb to sell Volvo.
 
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