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Discussion Starter · #1 ·
Given that Ford is looking to sell Volvo for $6 billion, but more likely to fetch considerably less, I propose that Volvo owners form an acquisition company to buy Volvo.

If we could agree on a price of $4.5 billion, we could do it with the following:

5 million current Volvo owners (I think this is low)
$2,500 per person
1.8 million participants (36%)
Extremely high brand loyalty

This would only apply if we did a cash purchase. Even with the current credit market conditions, I suspect we could raise $3 billion in debt financing, which would reduce the contribution to $833 per person.

The result would be that we as Volvo owners would also be equity holders in the company. We would be able to steer the direction of new product development, service, etc.

FYI - I am an MBA with 25 years industry experience (much of it in automotive), currently in a position at a top tier business school. The idea might sound bold, but these times call for bold thinking.

I look forward to hearing your thoughts on this.

Andrew
 

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Re: Volvo Owners - Could we buy Volvo? (grimson)

Bender already made an offer a long time ago.
 

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my bro in law is currently involved in a scheme to buy a premier league football club from its current owners via fans putting in £1000 each or something like that.

interesting move but with 1.8million people's opinion to be expressed, voted on etc re new products etc how practically would that work?
 

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Re: Volvo Owners - Could we buy Volvo? (grimson)

Creative concept..

Backing From Sweden..European Community..EU.

Financial input From..Swedish Govt..Bond Sales..Swedes ..Bond sales ..Europe
US.. Support Fronm Volvo AB..Union Funding Packages..Short term Concessions..
Suppliers..Vendors

Let Ford..Hold some Debt..Establish Credit for Volvo Owners..holding
Bonds..Discounted Pricing..etc

Massive amount of work..Lots of Politics.. percentage issues..meaning
do the owners hold 41% /51% .have more say in direction..than
management..on and on .. Who then manages Volvo..

Great thinking outside the box
 

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And This as of Today

Will Geely buy Volvo? No, says Geely
Yang Jian
[email protected]
SHANGHAI -- Geely Automobile Group has no intention of acquiring Volvo Car Corp., Geely spokesman Wang Ziliang says. Wang was responding to widespread reports that Geely, a small but ambitious private automaker, was in talks to buy Volvo from Ford Motor Co. Many rumors and published reports have circulated in recent months that Chinese automakers are keen to buy foreign brands. But major acquisitions are unlikely, sources say, because the Chinese automakers are small and lack experienced engineering staffs. They also lack global business experience and are struggling to develop their own brands in the dynamic Chinese market. --Published:Mar. 11, 2009
 

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Re: (Shimon)

Quote, originally posted by Shimon »
interesting move but with 1.8million people's opinion to be expressed, voted on etc re new products etc how practically would that work?

Um, they elect a board of directors which hires an executive staff, just like any other company with shareholders?
 

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Re: (Token)

Hey, a Rolls-Bowls ... with a blower!
 

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Re: (CaptainBeowulf)

The ultimate flaw with this idea is: Do you really think five million families want to own Volvos for the rest of their lives? The Volvo catch phrase doesn't mean "Volvos for the rest of our lives."
To some it might, but not me. Too many other better choices IMO.
 

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Re: (nobbe3728)

Quote, originally posted by nobbe3728 »
The ultimate flaw with this idea is: Do you really think five million families want to own Volvos for the rest of their lives? The Volvo catch phrase doesn't mean "Volvos for the rest of our lives."
To some it might, but not me. Too many other better choices IMO.

So you've got hundreds of other companies lining up for you to purchase them?
 

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Re: (nobbe3728)

Quote, originally posted by nobbe3728 »
The ultimate flaw with this idea is: Do you really think five million families want to own Volvos for the rest of their lives? The Volvo catch phrase doesn't mean "Volvos for the rest of our lives."
To some it might, but not me. Too many other better choices IMO.

Actually you are wrong. The motto "Volvo for Life" implies a dual meaning.
For Life=protection
For Life=brand commitment
 

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Didn't Steve Mattin once say something like that?

Yep.

Mattin was hired on at Volvo in May 2005, saying he would "stay [at Volvo] for the rest of my life."

Hm.
 

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Re: Volvo Owners - Could we buy Volvo? (grimson)

I would do it, as would a large number of other people, but I think you could halve the investor base assuming many people would subscribe to much larger stakes.

And to the earlier comments: shareholders don't design cars, but vote on board members who then run the company, effectively appointing the people who then design cars. Unless you contaminate a design and manufacturing process with the decision making of a labor union, we can assume the market will decide what works. Chaos is in your logic.
 
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