Ford May Sell Volvo; BMW May Buy It
28 May 2007
The Swedish newspaper Göteborgs-Posten reported that Ford plans to sell its Volvo cars operation and that BMW is a possible buyer.
Ford bought Volvo’s automotive operation from the Volvo Group in 1999. The Volvo Group serves the heavy-duty on-road transportation market as well as off-road, stationary, marine and aerospace markets.
Ford’s Premier Automotive Group, of which Volvo is a member, lost $327 million in 2006.
Without a doubt, something is happening - seems to be a very fluid situation at this moment:
http://www.autosavant.net/2007/05/bmw-to-buy-volvo.html
Posted by: Brendan Moore | 28 May 2007 at 03:15 PM
And the Big 3 keep getting smaller!!!!
Posted by: neptune | 28 May 2007 at 05:28 PM
This is a great move. Ford needs to shed its non-core brands in an effort to rediscover its soul and prestige.
Posted by: ejj | 28 May 2007 at 05:55 PM
This will be great for Volvo dealers.I would just as soon buy a SAAB from GM as buy a Volvo from Ford.BMW will probably raise prices but quality and image will be better.
Posted by: middleoroad | 28 May 2007 at 06:43 PM
When a U.S. company buys a premium brand like Volvo, the U.S. company doesn't know how to continue to develop the brand. In the case of Volvo, Ford has bastardize the car with Ford and Mazda parts. In effect Fordilizing the car. Best thing to happen is BMW buys the company because BMW understand how to build on the strengths of the brand. Look at the successful Mini.
Volvo's strengths are that it is a safe, long-lasting car that retains its place as a prestige automobile. Volvos are referred to as bricks by their owners. Perhaps BMW can restore that brand loyalty.
Posted by: Lad | 28 May 2007 at 11:04 PM
Ford has mortgaged everything, including their logo. They bought Volvo when they were riding high on Explorer and F150. Now that had gone south, they sell them off.
This does not show good business management at all. If the Ford family did not control so much voting influence, the business practices could have changed long ago.
Posted by: sjc | 29 May 2007 at 08:56 AM
Hooray - Volvo will be free of the Ford Motor Company. They were able to maintain there individuality, 5 cyl engines, large car platform, unique SUV and fine style. Volvo influence Ford more than the other way. Rather than become a badge holder for crappy product, for example SAAB. They still have a sellable product line. I wonder why BMW? After their disaster with Rover, why would they be interested in another line of cars, nearly identical to theirs?
Posted by: BillW | 29 May 2007 at 09:27 AM
Maybe a little different market niche. The people that buy Volvo do not buy BMW and vice versa.
To understand it, you would have to ask the owners. They can tell you why and that will tell you why this is a good purchase.
Posted by: sjc | 29 May 2007 at 02:42 PM
I would like to see Ford sell Volvo and GM sell Saab. The Swedish engineers, freed of their American constraints, could get back to building creative vehicles for a niche market. Why a Swedish investment firm (not BMW) is not trying to buy both companies and solidify the Swedish branding, is beyond me. America needs alternatives to the Asian market. We are certainly not getting it from our own companies, so that creates a need for Volvo/Saab, BMW, Renault and others to fill the void.
Posted by: Bob Irwin | 16 July 2007 at 01:34 PM