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Renault and Volvo trucks consider buying Volvo cars

 
2 1,162 views Jun 20, 2007

Renault and Volvo trucks consider buying Volvo cars

Renault and Volvo trucks consider buying Volvo cars

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AB Volvo is the second largest truck manufacturer in the world and is the former of owner of Volvo cars before selling it to Ford back in 1999. According to Swedish newspaper Dagens Industri, the truck company may join Renault in a potential buy-out of Volvo from Ford’s Premier Auto Group.

However, analysts are doubtful of the proposal, explaining that such a deal makes little business sense for AB Volvo. "This looks like a bad solution for Volvo's shareholders as there is no real industrial logic in buying a stake in Volvo cars. I think it would be very strange if they would take such a step", Danske Equities analyst Henrik Breum explained to reporters from Automotive News.

Since its separation from the car business in 1999, AB Volvo has focused primarily on its heavy-duty trucking and construction divisions, acquiring Mack and Renault Trucks in the process. Besides, AB Volvo’s latest industrial moves reaffirm the unlikelihood of the company buying a carmaker.

So far this year, AB Volvo has acquired Japan's Nissan Diesel at a cost of $1.1 billion, and is now in talks over a possible joint-venture with China’s Dongfeng Motor.



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Comments (2)

  1. By mohamad Posted: 6/21/2007 10:49am PDT

    I think volvo should back for sweden management.
    Ford can't do any thing make Volvo better.
     
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  2. By Earl Posted: 2/5/2008 11:23am PST

    I think AB volvo should buy the co' back . we need a safe car for the world. Ford can't be trusted. what happend to volvo and the sweeds . don't they care. about safty any more?
     
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