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Ford tells employees of possible buyer for Volvo

By Matt Brogan |

Ford has told employees of a possible buyer for Volvo in a message from its strategic communications branch today.

Ford’s European division said it had been involved in “detailed discussions with potential buyers” and although it failed to name those parties specifically or place a time-frame on a sale date, it did indicate that the talks were indeed positive.

“We’ve had contact with a number of parties who’ve expressed interest concerning the future of Volvo. Ford’s been pleased with the number and quality of those parties,” John Gardiner, Ford’s European director of strategic communications said. “We’ve had preliminary discussions to determine the level of interest in the Volvo business that they have and we’re now talking in more detail to those parties about the future for Volvo.”

Sources close to the negotiations have indicated Ford could receive between US$1 billion to US$2 billion for Volvo, a considerable loss after acquiring the Swedish manufacturer for US$6.4 billion only 10 years ago. It has also been estimated that any final decision could take up to six months to complete.

Gardiner said the process could lead to a sale of the business but no final decision had been taken and negotiations would take “some time” though declined to identify the parties.


 
  • http://skyline The Salesman’s got SOUL

    Wouldn’t it be great if the character Gold Member from the Austin Powers movie bought Volvo? Every new car comes with a spank and a pancake. Another huge loss for Ford. Not a great ROI. I wounder if Mr. Rantan Tata is on the list of buyers?

  • http://skyline The Salesman’s says Yeah Baby

    For those of you who haven’t seen the movie i say that because the Volvo symbol is the same (minus the name Volvo) as the necklace he wore in the movie. Yes i have seen it to many times

  • Pious

    Dunno if you were joking about Tata given his recent brinksmanship and financial issues, but it would make sense. There is some part sharing between Jag and Volvo, and volvo is a market not targeted by Jag (Jag want to keep it more exclusive *sniff*). Land rover gets left out, though, with XC volvos all competing directly.

  • http://skyline The Salesman’s says Yeah Baby

    Pious,
    As a great Roman military leader once said “We either expand or die” Rantan Tata obviously knows this.
    So no i wasn’t joking. If you have ever played monopoly you would know that you should buy everything you can as soon as you can so you have the most power. Ford is having a fire sale, every thing must go at cost or below, the problem with that is they are loosing more and more “power” with every asset they sell. Shifting into survival mode might not completely kill them but they will not re build to the great “power” they once were in just as few years.

  • Pious

    agreed. I get the feeling there is a bit of chicken being played between tata and the Brits on JLR. Tata would come off really well with decent brands at various market niches (or is the plural of niche just niche?). By the way, I must be an Austin Powers fan but dont know it – my missus has the volvo (the symbol is the symbol for iron, not the boy thing), I have the shaguar

  • Frenchie

    News that I heard is the chinese are interested in Volvo.
    Keen to expnad into the auto market and frontrunner is Geely.

  • Frontman

    Actually I find it amussing that you find it a fire sale Salesman. I view it more as sensible rationailisation. If something has had several billion poured into it, and is still a loss maker, why not cut yourlosses and move it on? Or would it be more sensible to follow GM’s example and let it collapse to the point that it’s worth nothing? At least (as with the other sales) Ford can hang onto a smaller amount and keep the doors open on Tech sharing and componentry. Selling Volvo who’s largest market place is Europe and thus allowing FOrd to concentrate wholly on it’s own market place without crossing over seems like the smart bussiness plan. AFter all Ford was the Number two manufacturer / Brand in Europe last year.
    I believe it’ll be either the Chinese, or an outsider European company (or both).

  • http://skyline The Salesman

    I agree Frontman. In their current situation it is best they liquidate what they can while it still has some value and “Minimize the loss” where ever possible. My point is they will have a long road ahead to re gain sustainable assists and market share. At some point they will be like starting again.

  • Frontman

    Hmm Fords doin’ okay! From someone who was being touted as being the first to go to being one of the strongest performers globally during the current crisis without recieving any “extra” Government grants everything points to them being very very strong when the fan stops spinning. Offloading Volvo, along with the other brands before, reduced expenditure that returned very little, freeing up cash for core business plans. The point that Ford started again was back in 2006. That’s when Mullaly looked at what was comming and set the wheels in motion.

  • adam (aka mada)

    Couldn’t agree more with Frontman and The Salesman.
    Alan M IS keeping Ford alive without Goverment cash.

  • Marcus

    Poor Ford, they’ll be selling the farm next to keep the doors open….