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.