mackinaw Posted August 17, 2009 Share Posted August 17, 2009 From Automotive News via Reuters: STOCKHOLM (Reuters) -- A consortium dominated by Swedish owners plans to bid for Ford Motor Co.'s Volvo car unit, a Swedish business daily reported on Saturday without disclosing its sources. Dagens Industri said the group, Konsortium Jakob AB, had intensified efforts recently to raise enough capital to make an offer after reports that Ford was getting ready to intensify talks with Chinese automaker Geely Holding, which is among the suitors for Volvo, according to sources. The engineers' trade union at Volvo had taken the initiative to the consortium, which would aim at listing the carmaker, Dagens Industri said. It said representatives for the consortium this week met with representatives for Ford's management, according to sources. The paper said that Swedish truck maker Volvo Truck Corp., which sold its car unit to Ford in 1998, may join Konsortium Jakob AB. But the truck maker denied it is considering buying back the carmaker. "We take an interest in what happens with Volvo cars since we share their brand, but that's where it ends," Volvo Trucks spokesman Marten Wikforss told Reuters. "We don't see ourselves as investors in the car industry." Quote Link to comment Share on other sites More sharing options...
mustang84isu Posted August 17, 2009 Share Posted August 17, 2009 Ford had the right idea delaying the sale to Geely. It sounds like Sweden & Volvo Truck have a keen interest in what happens to Volvo car. Hopefully this will start a bit of a bidding war and Ford will get a better price for the brand. Quote Link to comment Share on other sites More sharing options...
Mark B. Morrow Posted August 17, 2009 Share Posted August 17, 2009 Personally I'd rather see the Swedes get Volvo. It just doesn't seem right for it to go to Geely Quote Link to comment Share on other sites More sharing options...
rmc523 Posted August 17, 2009 Share Posted August 17, 2009 Personally I'd rather see the Swedes get Volvo. It just doesn't seem right for it to go to Geely I agree....at least they'll have pride in having and developing the brand. With a Geely acquisition, despite whatever they say, we all know it'd just be to get access to all the technology Volvo has. Quote Link to comment Share on other sites More sharing options...
BrewfanGRB Posted August 17, 2009 Share Posted August 17, 2009 (edited) Frankly, I'd prefer that Ford just keep Volvo. I understand that there are substantial benefits to its sale: An extra $2B in cash that doesn't need to be raised through an equity/debt swap (or a stock offering), one fewer division for which Ford has to provide capital and more importantly, ATTENTION. (Meaning, it can focus everything on FLM). But, there are benefits to keeping it: a source of additional technological advancement, another product offering in the near-lux segment (If I were in the market for a 'vert, I'd start with a C70, as an example). But, it's also my understanding that Ford would retain access to that technology, etc even after the sale. Plus, I haven't done the research...but if we set aside performance of late (since everyone is down and probably no one is really profitable), is Volvo otherwise profitable for Ford (unlike JLR, which were money pits). The bottom line for Ford is: Is $2B now worth giving up the product offering, the in-house technology and potential profit? I don't know--it's not obvious to me like JLR. Edited August 17, 2009 by BrewfanGRB Quote Link to comment Share on other sites More sharing options...
jpd80 Posted August 17, 2009 Share Posted August 17, 2009 (edited) Before 2006, Volvo was pretty much the only profitable brand in PAG but since that time, it has incurred roughly $2.1 billion in losses most of which has occurred in the past 18 months...... 2007: Q1 $94 million Profit Q2 $91 million Loss Q3 $167 million Loss Q4 Break Even 2008: Q1 $151 million Loss Q2 $120 million Loss Q3 $458 million Loss Q4 $736 million Loss 2009: Q1 $255 million Loss Q2 $231 million Loss Edited August 17, 2009 by jpd80 Quote Link to comment Share on other sites More sharing options...
theoldwizard Posted August 17, 2009 Share Posted August 17, 2009 A bidding war ! I love it !! Quote Link to comment Share on other sites More sharing options...
twintornados Posted August 17, 2009 Share Posted August 17, 2009 A bidding war ! I love it !! +1 :happy feet: Quote Link to comment Share on other sites More sharing options...
PREMiERdrum Posted August 17, 2009 Share Posted August 17, 2009 It's this... meets this... Quote Link to comment Share on other sites More sharing options...
Catalepsy Posted August 17, 2009 Share Posted August 17, 2009 Teppanyaki is Japanese... Quote Link to comment Share on other sites More sharing options...
PREMiERdrum Posted August 17, 2009 Share Posted August 17, 2009 Teppanyaki is Japanese... That's what I get for photobucket seaching "Chinese Chef". Quote Link to comment Share on other sites More sharing options...
jpd80 Posted August 17, 2009 Share Posted August 17, 2009 (edited) There is no bidding war on Volvo cars. Anyone who does due diligence will want plenty of guarantees from Ford about future products. Not selling Volvo three years ago cost Ford over $2 billion in losses and now makes the sale harder. Edited August 17, 2009 by jpd80 Quote Link to comment Share on other sites More sharing options...
Joe771476 Posted August 17, 2009 Share Posted August 17, 2009 Did anybody ever notice the wavy sheet metal on the Volvos seemed to mimic the wavy sheetmetal on the previous generation Taurus? And now I just saw a Volvo sedan that from the side looked like a Fusion. Am I hallucinating? Quote Link to comment Share on other sites More sharing options...
rmc523 Posted August 17, 2009 Share Posted August 17, 2009 Did anybody ever notice the wavy sheet metal on the Volvos seemed to mimic the wavy sheetmetal on the previous generation Taurus? And now I just saw a Volvo sedan that from the side looked like a Fusion. Am I hallucinating? Joe, we told you to lay off the drugs! Quote Link to comment Share on other sites More sharing options...
TStag Posted August 17, 2009 Share Posted August 17, 2009 Volvo is loosing a lot more than JLR is right now. JLR lost 600 million dollars in 2008. Volvo lost more than twice that! Land Rover is seeing a very strong recovery with most models lines now reporting 50% sales growth mtd. Jaguar's pain is over. XF is a strong seller and XJ is bringing in big order books. In fact JLR have just told the UK government that it doesn't want any state aid. As Ford fans know that's something to be proud of! That said Volvo sell more cars than JLR sure. But when are people going to realise that it's not how many cars you sell. It's how much profit you make on each one. Cars like the RR, RR Sport and XJ make big profit margins. Car's like the C30 don't. And as far as the tech issue goes then how can Volvo contribute more to Ford than JLR could? 99.999% of Volov parts are Ford based. JLR by contrast supplies the likes of BMW with things like Hill descent control. Ford should have sold Volvo first. Not JLR. But to fair this is Mullaly's first major error. Quote Link to comment Share on other sites More sharing options...
Deanh Posted August 17, 2009 Share Posted August 17, 2009 (edited) Volvo is loosing a lot more than JLR is right now. JLR lost 600 million dollars in 2008. Volvo lost more than twice that! Land Rover is seeing a very strong recovery with most models lines now reporting 50% sales growth mtd. Jaguar's pain is over. XF is a strong seller and XJ is bringing in big order books. In fact JLR have just told the UK government that it doesn't want any state aid. As Ford fans know that's something to be proud of! That said Volvo sell more cars than JLR sure. But when are people going to realise that it's not how many cars you sell. It's how much profit you make on each one. Cars like the RR, RR Sport and XJ make big profit margins. Car's like the C30 don't. And as far as the tech issue goes then how can Volvo contribute more to Ford than JLR could? 99.999% of Volov parts are Ford based. JLR by contrast supplies the likes of BMW with things like Hill descent control. Ford should have sold Volvo first. Not JLR. But to fair this is Mullaly's first major error. T-Stag....sometimes your logic TRULY makes me wonder.Jaguar is currently facing a pre-tax loss of ₤281 million and as a result Tata Motors has said it is likely that job cuts will be coming. The carmaker went as far as to say that he option of shutting down under performing plants is also a definite possibility. Jaguar Land Rover has already cut 2,000 employees and has a current staff of 14,500 employees. The company is attempting to secure jobs by winning guarantees from the UK Government on a £340m European Investment Bank loan. However, the negotiations have been lengthy, with the state demanding strict terms for any financial support. Globally sales of Land Rover fell by 35 percent last year. This is the first time in eight years that Tata Motors has reported a loss thanks to its huge losses due to its acquisition of JLR. Compared to THAT Vovo is a LOT less of a headache. Edited August 17, 2009 by Deanh Quote Link to comment Share on other sites More sharing options...
rmc523 Posted August 18, 2009 Share Posted August 18, 2009 Volvo is loosing a lot more than JLR is right now. JLR lost 600 million dollars in 2008. Volvo lost more than twice that! Land Rover is seeing a very strong recovery with most models lines now reporting 50% sales growth mtd. Jaguar's pain is over. XF is a strong seller and XJ is bringing in big order books. In fact JLR have just told the UK government that it doesn't want any state aid. As Ford fans know that's something to be proud of! That said Volvo sell more cars than JLR sure. But when are people going to realise that it's not how many cars you sell. It's how much profit you make on each one. Cars like the RR, RR Sport and XJ make big profit margins. Car's like the C30 don't. And as far as the tech issue goes then how can Volvo contribute more to Ford than JLR could? 99.999% of Volov parts are Ford based. JLR by contrast supplies the likes of BMW with things like Hill descent control. Ford should have sold Volvo first. Not JLR. But to fair this is Mullaly's first major error. XK started strong out the gate too, then dropped..... Why do I seem to remember articles about Tata/JLR trying to ask the UK gov't for money not too long ago? ----Ooops: http://www.businesspundit.com/jaguar-land-...is-is-nonsense/ So all of Volvo's safety stuff is Ford based? CitySafety, ACC, etc.....? Some of it may've be Ford based, and a lot may've been developed jointly between the two brands, but I would NEVER go as far to say that 99.999% of Volvo parts are Ford based. Technically you couldn't even say that about a Ford vehicle. Oh wow, you listed ONE technology that JLR supplies to another company. ONE. And where in the world would THAT technology fit into a Ford lineup? And you think that was developed solely by JLR? Quote Link to comment Share on other sites More sharing options...
ausrutherford Posted August 18, 2009 Share Posted August 18, 2009 4 billion or bust. Quote Link to comment Share on other sites More sharing options...
Mark B. Morrow Posted August 18, 2009 Share Posted August 18, 2009 (edited) That's what I get for photobucket seaching "Chinese Chef". BORK, BORK, BORK! http://www.youtube.com/watch?v=jc_UCc8EQcQ&NR=1 Edited August 18, 2009 by Mark B. Morrow Quote Link to comment Share on other sites More sharing options...
twintornados Posted August 18, 2009 Share Posted August 18, 2009 (edited) Volvo is loosing a lot more than JLR is right now. JLR lost 600 million dollars in 2008. Volvo lost more than twice that! Land Rover is seeing a very strong recovery with most models lines now reporting 50% sales growth mtd. Jaguar's pain is over. XF is a strong seller and XJ is bringing in big order books. In fact JLR have just told the UK government that it doesn't want any state aid. As Ford fans know that's something to be proud of! That said Volvo sell more cars than JLR sure. But when are people going to realise that it's not how many cars you sell. It's how much profit you make on each one. Cars like the RR, RR Sport and XJ make big profit margins. Car's like the C30 don't. And as far as the tech issue goes then how can Volvo contribute more to Ford than JLR could? 99.999% of Volov parts are Ford based. JLR by contrast supplies the likes of BMW with things like Hill descent control. Ford should have sold Volvo first. Not JLR. But to fair this is Mullaly's first major error. :boring: Edited August 18, 2009 by twintornados Quote Link to comment Share on other sites More sharing options...
BrewfanGRB Posted August 18, 2009 Share Posted August 18, 2009 BORK, BORK, BORK! http://www.youtube.com/watch?v=jc_UCc8EQcQ&NR=1 What did we EVER do without You Tube? This really made my day after a long day at work! :happy feet: Quote Link to comment Share on other sites More sharing options...
TStag Posted August 18, 2009 Share Posted August 18, 2009 T-Stag....sometimes your logic TRULY makes me wonder.Jaguar is currently facing a pre-tax loss of ₤281 million and as a result Tata Motors has said it is likely that job cuts will be coming. The carmaker went as far as to say that he option of shutting down under performing plants is also a definite possibility. Jaguar Land Rover has already cut 2,000 employees and has a current staff of 14,500 employees. The company is attempting to secure jobs by winning guarantees from the UK Government on a £340m European Investment Bank loan. However, the negotiations have been lengthy, with the state demanding strict terms for any financial support. Globally sales of Land Rover fell by 35 percent last year. This is the first time in eight years that Tata Motors has reported a loss thanks to its huge losses due to its acquisition of JLR. Compared to THAT Vovo is a LOT less of a headache. How much did Volvo lose last in 2008 and how much did JLR lose? Just answer me that How much could Ford have sold Volvo for when they sold JLR? You said "Globally sales of Land Rover fell by 35 percent last year" what was Volvo's sales drop? How much do Volvo make on a C30. How much do Land Rover make on a Range Rover? Land Rover's sales have just started to boom again Range Rover up 50%. Solihull back to a 5 day week. FACT is Volvo is weaker than JLR. That's why Ford are taking an age to find someone who will buy it! Should have sold Volvo first..... Right now Ford would be enjoying the JLR sales recovery. Quote Link to comment Share on other sites More sharing options...
NickF1011 Posted August 18, 2009 Share Posted August 18, 2009 FACT is Volvo is weaker than JLR. That's why Ford are taking an age to find someone who will buy it! Should have sold Volvo first..... Right now Ford would be enjoying the JLR sales recovery. Uhhh....they could have already sold it. They are interested in finding the BEST buyer for it. Tata's giant FAIL so far with JLR is exactly what Ford is trying to AVOID with Volvo. And to call JLR's current sales blip a "recovery" is laughable on all levels. Quote Link to comment Share on other sites More sharing options...
rmc523 Posted August 19, 2009 Share Posted August 19, 2009 Uhhh....they could have already sold it. They are interested in finding the BEST buyer for it. Tata's giant FAIL so far with JLR is exactly what Ford is trying to AVOID with Volvo. And to call JLR's current sales blip a "recovery" is laughable on all levels. Wow, my ignore list is growing a lot recently.... Quote Link to comment Share on other sites More sharing options...
zipnzap Posted August 19, 2009 Share Posted August 19, 2009 Wasn't Volvo the only profitable part of PAG for a long period? And didn't they have trouble funding projects because Jaguar was eating into the money? Quote Link to comment Share on other sites More sharing options...
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