Volvo to Buy Volvo?
In an interview to Just Auto [sub], Swedish Industry Dept.’s state secretary Jöran Hägglund declared that Volvo will have new owners by the beginning of that most magical of years, 2010. “Ford has a lower pace than GM-Saab, but we believe a deal should be closed come this year’s ending.” says Hägglund. Last week ago, Swedish newspaper Industry Daily reported that Volvo will be parted-out to Chinese automaker Geely, Ford (maintaining a minority stake to protect access to safety technology and prevent China syndrome) and a mystery Swedish investor. Quoting “inside sources,” A uto Motor & Sport identifies Volvo AB as the Swedish part of the proposal. Volvo AB is the divested truck/buses etc. division of “old Volvo;” they’re supposedly buying a piece of ye olde mothership to control the carmaker’s Swedish genes. Profits? Jovisst. Industry Daily’s source says Ford will put the devil in the details by the end of August. According to AM&S’s information, this is a done deal.
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Remember when Harley bought Harley?
I've been waiting for this announcement for ages. Once the decision to sell Volvo came to light having Volvo AB involved only makes sense. They still have a ton of IP and other assets in Volvo and I couldn't see them allowing Ford just to let that go for 6 beans and a flagen.
I'll be very happy for Volvo (the car corp and AB) if they pull this off. I sold my little Volvo store (and exited the car business) shortly before the Ford takeover. I don't have a crystal ball and didn't know it was coming--although there'd been rumours for years that Volvo was "in talks" with this or that major manufacturer--but I still considered myself lucky to get out when I did. Ever since I've felt that Volvo's best chance for long term survival is to do it on their own terms ... the way they did somewhat successfully for 72 years before Ford. Back in the 90s the Swedes were freaking out over the high cost of new model development (after spending billions on their new front drive platform). They convinced themselves they'd never again achieve the requisite economies of scale to develop a new series on their own. But times are different now and I think that in today's global OEM landscape Volvo could find lots of willing partners (and capable suppliers) with whom they could share development costs of future technologies and even platforms on a case by case basis. They don't need to marry a major, when they can be "friends with benefits" with several of them.
Cool. Maybe Volvo AB will license Geely to revive the 240 in China. I drive a 240 but I'm more libertarian than anything else. I think people who buy hybrids are, generally, misguided dupes. Oh hell, I think people who buy any new car need their heads examined, but they let us cheap bastards buy them after a few years for a 50%+ discount.