This figure is scarily close to what Ford bought Volvo for in 1999 - US$6.4 billion. But buyers may be wary, as only truly secure and safe assets are the ones sought after.
Volvo's third-quarter pretax loss was up to US$458 million. A far cry from its US$167 million loss a year earlier as sales declined 24 percent to US$2.9 billion. Volvo also spoke about job cuts of up to 6,000 workers in October and came public in November about talks with Sweden’s government about potential financial support.
Bloomberg reports that BMW, Daimler, Volkswagen and Renault are all unlikely to bid as they either have their own luxury brands, or are flat out not interested.
Ferdinand Dudenhoeffer, director of the Center for Automotive Research at the University of Gelsenkirchen in Germany says that Ford may not reach its ideal price.
“Anything other than a heavily discounted sale seems unrealistic,” said Dudenhoeffer. “For a buyer it’s the best time that one could wish for. But it’s not ideal for Ford.”
While Chinese firms haven't yet been queried, the Asian continent seems the most likely prospect for Ford's sale of Volvo.