VH_Supra26
01-06-2009, 01:06 AM
by Kenneth Hall
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Daimler AG is the latest firm to deny interest in acquiring Volvo from Ford
Ford is reportedly having trouble offloading its failing Volvo subsidiary, with German carmaker Daimler over the weekend strongly denying any interest in the Swedish brand. Volvo, which was once a part of Ford's mighty Premier Automotive Group, is now one of the last remaining vestiges of Ford's former empire, and finding a buyer is becoming more and more difficult for the Blue Oval.
The news comes from a Daimler spokesman, who claimed that Daimler was "never interested in Volvo" in reply to earlier reports linking the two companies. Ford must now seek out potential buyers for the Swedish brand elsewhere and some reports are claiming that a Chinese company could benefit greatly from acquiring Volvo, especially with the research and development teams that it has as well as its reputation for safety, which so far has been seen to be lacking in Chinese made cars. According to Reuters, Chinese media is still reporting that Changan Automobile Group could be interested in Volvo, although Ford itself hasn’t replied to the report.
The demise of Volvo has been on the cards for some time now, but it was just last year that Ford and Volvo higher-ups reassured media that management was not considering selling the company off. Volvo chairman Lewis Booth stated last year in May that Ford and Volvo management were focused on improving the business and not on selling it.
Now, however, Ford's financial troubles are forcing the company to drastically streamline its business, and while buyers were found rather quickly for former Ford brands Jaguar, Land Rover and Aston Martin, the current world economic situation is making the hunt for a new owner much more difficult.
All Content Copyright 2006-2008 Motor Authority
http://www.motorauthority.com/content/thumbs/v/o/volvo_grille_main630_01-1204-636x360.jpg
Daimler AG is the latest firm to deny interest in acquiring Volvo from Ford
Ford is reportedly having trouble offloading its failing Volvo subsidiary, with German carmaker Daimler over the weekend strongly denying any interest in the Swedish brand. Volvo, which was once a part of Ford's mighty Premier Automotive Group, is now one of the last remaining vestiges of Ford's former empire, and finding a buyer is becoming more and more difficult for the Blue Oval.
The news comes from a Daimler spokesman, who claimed that Daimler was "never interested in Volvo" in reply to earlier reports linking the two companies. Ford must now seek out potential buyers for the Swedish brand elsewhere and some reports are claiming that a Chinese company could benefit greatly from acquiring Volvo, especially with the research and development teams that it has as well as its reputation for safety, which so far has been seen to be lacking in Chinese made cars. According to Reuters, Chinese media is still reporting that Changan Automobile Group could be interested in Volvo, although Ford itself hasn’t replied to the report.
The demise of Volvo has been on the cards for some time now, but it was just last year that Ford and Volvo higher-ups reassured media that management was not considering selling the company off. Volvo chairman Lewis Booth stated last year in May that Ford and Volvo management were focused on improving the business and not on selling it.
Now, however, Ford's financial troubles are forcing the company to drastically streamline its business, and while buyers were found rather quickly for former Ford brands Jaguar, Land Rover and Aston Martin, the current world economic situation is making the hunt for a new owner much more difficult.
All Content Copyright 2006-2008 Motor Authority