salsakingcpa Posted February 6, 2008 Share Posted February 6, 2008 http://www.thebusiness.co.uk/news-and-anal...-of-volvo.thtml Full speed ahead as Ford plans summer sale of Volvo Mark Leftly Wednesday, 16th January 2008 FORD, the American car giant, is secretly planning the $6bn (£3.05bn, E4.03bn) sale of Volvo, its loss-making Swedish brand, for the summer. The Business understands Ford is determined to press ahead with the sale despite recent comments that it would hold on to Volvo for now and take it upmarket. A sale would complete Ford’s strategy of disposing of overseas brands to focus on its core American operations. A senior banker familiar with the situation said Ford intends to start work on the auction shortly after it completes the £1bn-plus deal to offload Jaguar and Land Rover, its West Midlands-based luxury marques. A deal with Tata, the Indian conglomerate, should be completed in the next few weeks. The banker said that Ford had publicly played down the possibility of selling Volvo as executives grew “fed-up and tired” of speculation over the marque’s future. It is thought that a beauty parade of investment banks will take place in the next few months. HSBC, Goldman Sachs and Morgan Stanley would be frontrunners, having advised on Jaguar and Land Rover. The auction of Volvo will prompt considerable interest, and potential bidders are expected to include Ripplewood Holdings and Cerberus, the private equity groups that looked at Jaguar and Land Rover, as well as Chinese trade buyers. Bids are likely to range from 6bn. A second senior banker said: “Sooner or later a serious decision will be made and Ford will get out of Volvo.” Ford bought Volvo’s car division for $6.45bn in 1999. Volvo, founded in March 1927, sold 428,000 cars in 2006, down 4% on the previous year. This was only 6,000 cars up on 2000, Ford’s first full year of ownership. In November, Ford announced Volvo had made a third-quarter loss, but did not specify a figure. Ford was unavailable for comment. Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted February 6, 2008 Share Posted February 6, 2008 Said it before, will say it again. News out of London is hardly trustworthy. Remember the "BMW to buy Volvo in near future" crap from last summer? And =that= came from a reputable (snort) paper, not this e-bumf. Quote Link to comment Share on other sites More sharing options...
salsakingcpa Posted February 6, 2008 Author Share Posted February 6, 2008 Said it before, will say it again. News out of London is hardly trustworthy. Remember the "BMW to buy Volvo in near future" crap from last summer? And =that= came from a reputable (snort) paper, not this e-bumf. Let's see what happens; Ford needs to sell it to pay off its bankers Quote Link to comment Share on other sites More sharing options...
suv_guy_19 Posted February 6, 2008 Share Posted February 6, 2008 Let's see what happens; Ford needs to sell it to pay off its bankers Ok, here we go again. The loans are being paid off now...as we speak. Quote Link to comment Share on other sites More sharing options...
MarkFive Posted February 6, 2008 Share Posted February 6, 2008 The banker said that Ford had publicly played down the possibility of selling Volvo as executives grew “fed-up and tired” of speculation over the marque’s future. They aren't the only ones getting fed-up and tired over the speculation... Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted February 6, 2008 Share Posted February 6, 2008 Let's see what happens; Ford needs to sell it to pay off its bankers You are not to be believed. Ford finished 2007 with more cash than they started DESPITE paying interest on those loans all year!!!!!! Not to mention that ALL that money will be required, per contract (at least according to reputable sources), to be diverted to loan repayment. Ford manifestly does not NEED to sell off Volvo to pay LOANS that are not DUE until 2011. And you might want to go check out the terms of that loan package. Come back here when you can tell me how much money Ford borrowed outright. I know the answer. I want to see if you do too. :rolleyes: Quote Link to comment Share on other sites More sharing options...
salsakingcpa Posted February 6, 2008 Author Share Posted February 6, 2008 You are not to be believed. Ford finished 2007 with more cash than they started DESPITE paying interest on those loans all year!!!!!! Not to mention that ALL that money will be required, per contract (at least according to reputable sources), to be diverted to loan repayment. Ford manifestly does not NEED to sell off Volvo to pay LOANS that are not DUE until 2011. And you might want to go check out the terms of that loan package. Come back here when you can tell me how much money Ford borrowed outright. LET'S see what happens One year from Now :boring: WHEN VOLVO is sold You will be eating your own words.... Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted February 6, 2008 Share Posted February 6, 2008 Yeah. What does that loan package look like again? Can't be bothered to trifle with facts? Well, then what's the point of coming around here? Quote Link to comment Share on other sites More sharing options...
Edstock Posted February 6, 2008 Share Posted February 6, 2008 Well, I enjoy the target practice I get from Salsa and Lolly. I just can't resist the opportunity to Quote Link to comment Share on other sites More sharing options...
BORG Posted February 6, 2008 Share Posted February 6, 2008 Ford will sell off Volvo but they couldn't do this until Jaguar and Land Rover were unloaded since it would have driven the price down on all three. Ford has moved to divorce itself of Volvo which is the clearest sign that they are preparing to split in the near future. Quote Link to comment Share on other sites More sharing options...
silvrsvt Posted February 6, 2008 Share Posted February 6, 2008 Ford has moved to divorce itself of Volvo which is the clearest sign that they are preparing to split in the near future. How? Quote Link to comment Share on other sites More sharing options...
Edstock Posted February 6, 2008 Share Posted February 6, 2008 (edited) they couldn't do this until Jaguar and Land Rover were unloaded since it would have driven the price down on all three. Please explain your reasoning. Why would selling Volvo before selling JLR force Ford to reduce the JLR sale price, and why would selling Volvo before JLR go for less money than selling Volvo after selling JLR? Any outfit buying either is interested in them for their intrinsic values. Edited February 6, 2008 by Edstock Quote Link to comment Share on other sites More sharing options...
jpd80 Posted February 6, 2008 Share Posted February 6, 2008 You are not to be believed. Ford finished 2007 with more cash than they started DESPITE paying interest on those loans all year!!!!!! Not to mention that ALL that money will be required, per contract (at least according to reputable sources), to be diverted to loan repayment. Ford manifestly does not NEED to sell off Volvo to pay LOANS that are not DUE until 2011. And you might want to go check out the terms of that loan package. Come back here when you can tell me how much money Ford borrowed outright. I know the answer. I want to see if you do too. :rolleyes: Agree totally. For the benefit of the "challenged" on this forum, here's what Ford said in 2006 Q4: Obtaining $23.5 billion of new liquidity in December, including- a convertible debt offering of about $5 billion, - a secured term loan of $7 billion and - a secured revolving credit facility of $11.5 billion. This resulted in total automotive liquidity of $46 billion at year-end 2006. Quote Link to comment Share on other sites More sharing options...
7Mary3 Posted February 6, 2008 Share Posted February 6, 2008 You can all say what you want, but if Ford can't stop their market share from going down, they will have to sell Volvo to pay those loans. Do they need to sell Volvo today? No, they don't. Quote Link to comment Share on other sites More sharing options...
suv_guy_19 Posted February 6, 2008 Share Posted February 6, 2008 You can all say what you want, but if Ford can't stop their market share from going down, they will have to sell Volvo to pay those loans. Market share has little to do with money. Ford is increasing revenues and narrowing losses on less volume. Quote Link to comment Share on other sites More sharing options...
01FOCI Posted February 6, 2008 Share Posted February 6, 2008 "Safety" is an ever evolving technology that Volvo if not pioneered made glamorous long before mandated seatbelts and car seats. There facilities are state of the art and though Ford may feel they have "learned" all they can from them for now it would be but a few short model years later when they are back to scratching there heads at how to meet the new ever stringent standards being implemented. I think Volvo is worth keeping but Fords NA operations needs to figure out how to handle the management of multiple car marquees better than they have in the past. IE: letting Lincoln rot while trying to fix Jag. Quote Link to comment Share on other sites More sharing options...
salsakingcpa Posted February 6, 2008 Author Share Posted February 6, 2008 (edited) Agree totally.For the benefit of the "challenged" on this forum, here's what Ford said in 2006 Q4: Problem with you is that you are only looking the past. In business, you have to look into the future, the main reason Ford needs to sell Volvo is because its bonds will have to be repaid soon 2010, and if it were to refinance them, then these bonds will have to be refinanced at the highest rate established by the market due to its junk bond status. Ford: Fearful of Cash Crunch? Ford Motor Credit refinances its debt at the highest rate it has ever paid to conserve cash with the threat of tough times ahead Ford Motor (F) is conserving cash to brace for what could be a tough 18 months ahead. Evidence is the auto maker's offer to investors on May 24 to replace Ford Motor Credit bonds maturing this October with bonds that don't come due until 2010 and 2011 -- at the highest rate of interest Ford has ever paid. Under terms of the offer, which is being made privately, holders of about $2.5 billion in bonds with coupons as low as 4.95%, coming due this fall, can swap them for bonds that pay as much as 10.6%. While small in the whole scheme of Ford Motor Credit's debt -- the finance unit has $21 billion in bonds coming due this year -- it shows that Ford is in sore shape: It is refinancing debt that it took on when its credit rating was a lot stronger than today and replacing it with much more expensive capital. The deal, which will allow Ford to hold on to more of its cash this year, will cost the finance unit an estimated $90 million per year. http://www.businessweek.com/technology/con...opStories_ssi_5 Edited February 6, 2008 by salsakingcpa Quote Link to comment Share on other sites More sharing options...
jpd80 Posted February 6, 2008 Share Posted February 6, 2008 Check the date on your story you D***Head Story from MAY 25, 2006 I think you should go bury your head in the garden because it's full of S**T!!!! Quote Link to comment Share on other sites More sharing options...
suv_guy_19 Posted February 6, 2008 Share Posted February 6, 2008 Check the date on your story you D***Head Story from MAY 25, 2006 I think you should go bury your head in the garden because it's full of S**T!!!! The devil has taken over jpd :P. Quote Link to comment Share on other sites More sharing options...
jpd80 Posted February 6, 2008 Share Posted February 6, 2008 (edited) The devil has taken over jpd :P. Not often Downunder is right, Fair Dinkum, quoting a story from may 25th 2006 MAY 25, 2006 News & Analysis By David Kiley Edited February 6, 2008 by jpd80 Quote Link to comment Share on other sites More sharing options...
suv_guy_19 Posted February 6, 2008 Share Posted February 6, 2008 Not often Downunder is right, Fair Dinkum, quoting a story from may 25th 2006 Quote Link to comment Share on other sites More sharing options...
jpd80 Posted February 6, 2008 Share Posted February 6, 2008 Maybe Richard will forgive my outburst when he sees the date of the article and his favourite journalist. Quote Link to comment Share on other sites More sharing options...
suv_guy_19 Posted February 6, 2008 Share Posted February 6, 2008 Maybe Richard will forgive my outburst when he sees the date of the article and his favourite journalist. I doubt you'll be banned for life lol. Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted February 6, 2008 Share Posted February 6, 2008 (edited) Where are we going today Mr. Peabody? We're going back to when David Kiley had a clue. Wow. That's an awful long way back, isn't it Mr. Peabody? Well, quite possibly Sherman, we may never get there. You see, no one really knows if David Kiley ever had a clue. Edited February 6, 2008 by RichardJensen Quote Link to comment Share on other sites More sharing options...
jpd80 Posted February 6, 2008 Share Posted February 6, 2008 So Rich, what actually happened to Ford in 2006, did they go broke? Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.