Posted on January 8th, 2009 in Corporate, Ford, History, Volvo | No Comments »
Ford is looking to sell the Swedish brand Volvo which it acquired in 1999. The tag is at $6 billion which is close to how much Volvo was acquired. Ford is using the expert advice of JPMorgan Chase & Co.
The move is considered by Ford amid the weakening of the auto industry and global economy. The company is looking to boost its finances for operations and aims to partake in the $9 billion aid from the US government.
Volvo was considered the top caliber vehicle for safety last January of 2008. Ford is counting on the confidence of the market on the Volvo brand to attract bidders.
Any heavy discount will be favorable to the buyer but will not be ideal for Ford. The choices may also be among Chinese car producers, business groups arranged by the Swedish government, or by buy out companies.
The Renault group of France has clearly stated that they are not interested in Volvo. Same is true for Korea based Hyundai.
SAIC from China declined to comment but are seen by experts as a potential bidder. Another buyer from the Far East is the Dong Feng Motor Group.