Volvo's Swedish Suitor Takes a Powder

by Thor Johnsen

Published: September 14th, 2009

This post was supposed to be a report about the Volvo Union turning a cold shoulder towards Geely, seeking to avoid Chinese ownership of their beloved Volvo PV, fearing the same fate as England’s Rover under SAIC. But then news surfaced this morning that the Swedish-led Consortium Jacob AB, who wanted to buy Volvo PV, won’t. According to sources cited by Industry Daily (DI), the Swedes don’t have the financial wherewithal to buy Volvo PV, now that they’ve lost frontman former Volvo Prez Roger Holtback. DI says Roger Holtback switched horses mid-stream, taking a new role as a paid adviser to US venture capitalists eyeing Ford’s sloppy seconds. Holtback will now try to get support from the Swedish unions for a US takeover bid, which includes several other former Ford executives as “advisers.” [ED: that’s supposed to help?]The Engineering Union had agreed in principle to the original Consortium Jacob (i.e., non-Chinese) Plan B. They are so not in love with the new US plans; the Yanks apparently demanded “excessive influence” in the company’s future.DI also reports of another consortium of US risk capitalists/investors looking at Volvo. But the unnamed money men have arrived a bit late to the party.If Ford’s lucky, they’ll have some kind of bidding war on their hands. In any case, they better get on with it. Ett bi rör inte vid en vissen blomma. A bee does not touch a withered flower.

Thor Johnsen

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2 comments

Lorenzo on Sep 14, 2009

"U.S. venture capitalists" are interested? I wonder if Cerberus wants to give it another shot. I don't wonder why the Swedes would be nervous about American investors.

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Angrystan on Sep 14, 2009

Where's Ingvar Kamprad when you need him?

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