BERLIN (AFP) – German car giant Daimler has decided not to buy Swedish-based Volvo Cars from ailing U.S. Ford, according to the weekly Der Spiegel’s upcoming edition. “Daimler boss Dieter Spiegel has carried out a close examination of a possible purchase in the past few weeks and acknowledged a series of possible drawbacks,” the German weekly says.
Ford Motor Co. said at the beginning of last month that it was reviewing strategic options for Volvo Car Corp. “in response to the significant decline in the global auto industry particularly in the past three months and the severe economic instability worldwide.” Ford said the review probably would take several months to complete, adding that it would continue to work closely with Volvo Cars, which is restructuring “to operate on a more stand-alone basis” under chief executive Stephen Odell. Der Spiegel said Daimler’s great rival BMW had also turned down the chance to take over Volvo, leaving Ford with little hope of finding a buyer, though it mentioned China’s Changan as a possibility.
AutoBlog.com notes that the decision comes in an era where automakers are as concerned about their financial security as they are with occupant safety.
It comments that, with Ford sales slumping, the company was seeking a buyer for the last remnant of its ill-fated Premier Auto Group. Land Rover, Jaguar, and Aston Martin have all been sold off to Asian investors.