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Swedish consortium eyes Volvo cars bid: report<br>Sat Aug 15, 2009 4:28<p>STOCKHOLM (Reuters) - A consortium dominated by Swedish owners plans to bid for Ford Motor Co's Volvo car unit, a Swedish business daily reported on Saturday without disclosing its sources.<p>Dagens Industri said the group, Konsortium Jakob AB, had intensified efforts recently to raise enough capital to make an offer in light of reports Ford was getting ready to intensify talks with China's Geely (0175.HK), which according to sources is among the suitors for the Ford unit up for sale.<p>The U.S. carmaker put money-losing Volvo cars up for sale in December last year as it looked to cut costs and raise cash amid industry wide record-low vehicle sales. The firm said in July it was in discussions with a number of parties on the car maker.<p>The engineers' trade union at Volvo cars had taken the initiative to the consortium, which would aim at listing the car maker, Dagens Industri said.<p>It said representatives for the consortium this week met with representatives for Ford's management, according to sources.<p>Dagens Industri said, referring to a source, that Swedish truck maker Volvo (VOLVb.ST) may join Konsortium Jakob AB. But the truck maker denied that<p>"We take an interest in what happens with Volvo cars since we share their brand, but that's where it ends," Volvo spokesman Marten Wikforss told Reuters. "We don't see ourselves as investors in the car industry."<p>(Reporting by Anna Ringstrom; Editing by Bill Tarrant)<p><A HREF="http://www.reuters.com/article/ousivMolt/idUSTRE57E0ND20090815" TARGET="_blank">http://www.reuters.com/article...90815</A>
 

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Re: Swedish consortium eyes Volvo cars bid (Steph11)

<A HREF="http://www.topnews.in/swedish-consortium-interested-volvo-cars-2202119" TARGET="_blank">http://www.topnews.in/swedish-...02119</A><br><A HREF="http://www.thelocal.se/21482/20090815" TARGET="_blank">http://www.thelocal.se/21482/20090815</A>/
 

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Very interesting turn of events (Konsortium Jakob is cool - refers back to the first volvo). Geely was also seeking a Swedish investor to buy Volvo from Ford with them....<p>Also, Geely have been and are being advised on the Volvo purchase by two ex CEOs of the Volvo/Volvocars ie Pehr Gyllenhammar and Hans Olsson.<p>I think long term it isnt a good move for volvo to stay small and independent...(small being the problem in terms of R&D costs)<p>I think the info from last week that Geely and Swedish investors are buying Volvo together is the best of both worlds.<p>Swedes and ex-volvo staff maintain and ensure the brand continues demonstrating Volvo's attributes and also ensures investment and production in Sweden, Belgium etc but importantly Volvo gets the benefit of being part of a larger car company in the volume market (Geely who are expanding rapidly).<p>A 50:50 mix of Swedish investors and Geely would be a better way forward than just Swedish ownership. Alone, volvo doesnt benefit from economies of scale and has to support the burden of R&D and development alone.....the reasons Volvo's AB got out the car market in the first place.....
 

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Re: (Shimon)

PLEASE let this be! Anyone but the Chinese!
 

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Re: (inteller)

I had said @ a yr ago, that a group of Volvo employees were working on a way to save Volvo from falling outside the Swedish boundaries. IMO...I don't think Ford really wants to sell to an Asian mtr co. They would prefer to keep the European personality of Volvo.<p>These next few months will produce some clarity on what has been a guessing game to this point. I would gladly give my 401 (1 of them <IMG NAME="icon" SRC="http://www.vwvortex.com/vwbb/tongue.gif" BORDER="0"> ) to the Corsortium group. <br>I think it would be a tremendous show of support if all of the US VCNA employees and all the US dealers would put up some serious $$ in pledges to make a Swedish ownership group work!
 

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Re: (universityvolvoOSD)

more like it, Ford doesn't want a Chinese company to PLUNDER Volvo for its safety tech and get a leg up in reliability.
 

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News Wire_Updated

<br>   Geely's procurement of Swedish auto giant Volvo is approaching the final stage, the National Business Daily learned from Sweden . Volvo and its owner Ford Motor Company are expected to make the final approval as early as this month. <p>  In addition to Geely, which will get the majority of Ford's stake in Volvo, a Swedish company will also acquire the remaining shares. Meanwhile, Ford will keep 10-15 percent of its presence in Volvo for the following 7-8 years, in order to facilitate the launch of new Volvo models. <p>  Ford plans to sell Volvo at around 20 to 25 billion Swedish Kronas (2.528 billion dollars to 3.159 billion dollars), of which Geely will pay 15.6 billion Swedish Kronas. <p>  Previously, the Volvo Engineers Union had expressed dissent about the deal and wished for a European owner instead of Chinese Geely, an opinion also shared by higher officials in the Swedish government. However, Ford's "package sale," which involves a local Swedish company, greatly eased the dissent. <p>  Some experts told the National Business Daily yesterday that Geely's boss, Li Shufu, will not merge the two companies, but will keep Volvo's operation independent. <p>  Regarding Volvo's XC90 manufacturing site in China, insiders from Geely mentioned that both Dong Guan in Guangdong Province and Tianjin Municipality are likely places. However, rumours spread earlier this month saying Beijing and Bazhou in Hebei Province may also be the host for the Swedish vehicles.(China.org.cn)<br> <br> <br> <br>
 

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Re: (universityvolvoOSD)

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD><i>Quote, originally posted by <b>universityvolvoOSD</b> »</i></TD></TR><TR><TD CLASS="quote"><br>I think it would be a tremendous show of support if all of the US VCNA employees and all the US dealers would put up some serious $$ in pledges to make a Swedish ownership group work!<br></TD></TR></TABLE><p><br>You know that's a good idea as a bidding war is about to begin. Just how far will it go is anyone's guess.<br><BR><BR>
<i>Modified by stev vanveit at 7:07 AM 8-18-2009</i>
 

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Re: News Wire_Updated (philisophe)

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD><i>Quote, originally posted by <b>philisophe</b> »</i></TD></TR><TR><TD CLASS="quote">Geely's procurement of Swedish auto giant Volvo is approaching the final stage, the National Business Daily learned from Sweden.</TD></TR></TABLE><p>Do people really believe what comes out of the Chinese media?
 

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Re: Swedish consortium eyes Volvo cars bid (Steph11)

I'm keeping my fingers crossed! While I understood Volvo's need to have Ford buy them, I'd prefer to see Volvo stay Swedish!
 
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