Sale of Volvo still on the cards

Earlier this month, we reported that BMW execs had considered a takeover of Volvo and had gone so far as to order in a set of the Swedish carmaker’s latest financial reports. The latest buzz is that BMW is just one of several potential suitors and is currently in the process of conducting informal talks with execs from both Volvo and its parent, Ford.

A source close to BMW revealed to the Financial Times that the sale of Volvo is currently underway and that BMW is examining Volvo’s credentials with a fine-toothed comb but is unlikely to proceed with a takeover. “BMW has already everything that Volvo cars cannot offer,” the source explained.

We’re also unlikely to see Volvo taken over by a private equity firm, similar to what happened with Chrysler being bought out by Cerberus. But another source suggested that equity firm Nordic Capital has expressed some interest in the Volvo brand in an attempt to bring it back under full Swedish control.

Ford’s new CEO Alan Mulally has previously declared that a sale is not on the agenda at the moment but has more recently stated that “nothing is holy” when it comes to turning around Ford’s fortunes. The Aston Martin label which went under the hammer earlier this year was one such example of the lengths Ford is willing to go.

Via: Auto Motor and Sport