Ford Resorting To Fire Sale Negotiation Measures With Sale Of Volvo To Chinese

Ford is in talks with the Shanghai Automotive Industry Corporation, China’s biggest car-maker, in a desperate attempt to sell its prestigious Volvo brand.

A source close to the American motor giant said it recently made a second approach to SAIC, which already owns the rights to the MG car marque.

Earlier talks in the summer faltered over price. Ford, which bought Volvo for
£4.4billion in 1999, is said to be hoping the sale will fetch £4 billion.

The disposal would send an important signal to the US Congress that Ford is taking major action to restructure its business in return for a massive cash injection.

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NItePhire - 12/8/2008 12:02:13 PM

-2 Boost

Hellz Naw.

Agent63 - 12/8/2008 4:21:34 PM

+11 Boost

Would anybody buy an East Indian Jaguar or Range Rover?

NItePhire - 12/8/2008 12:04:14 PM

+1 Boost

I was hoping that Hyundai would buy it so they could have an outlet for the Genesis.

mini22 - 12/8/2008 12:26:29 PM

-1 Boost

The Swedes don't want it

LDMAN - 12/8/2008 12:36:56 PM

+6 Boost

The Swedes won't buy it and to survive Volvo needs to be paired with a mature manufacturer to play a niche role and get access to cash to finance R&D and furture products.
Safety? The Chinese will get there eventually, just like Hyundai and Kia did. What worries me is that most acquisitions are financed. There is no excess cash floating around in the system with this recession, not to say depression.
Frankly at this point in time, I do not see anyone ponying up with US$ 4 billion, nowadays.
Will Ford simply dump Volvo to get access to bailout money?
Even the Chinese have to be cautious with their money these days, and buying Volvo, a car company so integrated with Ford at present, will mean getting in bed with Ford for the next decade or so to get engines, components, softwares, etc...

Some would argue that the Volvo dealer network is the key to entering the US and world markets, but they are cheaper brands out there ripe for picking (Chrysler, etc...) and am not sure that US consumers will buy Chinese products in their current form and shape. Maybe in the next five years, but not now.

Need4Speed - 12/8/2008 1:13:30 PM

+2 Boost

No comment -1

0to60 - 12/8/2008 5:58:52 PM

+2 Boost

horrible, lol

Milton - 12/8/2008 2:30:24 PM

+2 Boost

BMW was interested in Volvo, right?

....and it will be so awesome if they buy Volvo, don't you agree?

veyron1001 - 12/8/2008 3:13:11 PM

+3 Boost

It would actually make great sense. I really want to see how a I5 turbo engine works under a bmw.

1990300zxTT - 12/8/2008 4:28:15 PM

+5 Boost

are you pulling out the racial card? last i remember the chinese makes the clothes on your back so without them you'd be naked on the streets. now that is funny...or is that tragic? hmmmm.