Ford in talks to sell Volvo to China's Changan

azureblue · Post by **azureblue** » 09 Dec 2008, 18:44

Ford Motor Co. , shedding assets to raise cash, is in talks to sell its Volvo car business to China partner Changan Automobile Group, the National Business Daily reported Tuesday. Changan president Xu Liuping held discussions with Ford and Volvo during last month's auto show in the Chinese city of Guangzhou, the newspaper said, citing an unnamed source at the Chinese company. The report did not provide details. It quoted an unidentified Changan executive as saying there was a chance for a deal. Changan is one of China's six biggest auto groups. Ford on Dec. 1 said it was evaluating the future of Volvo because of the global economic slump. At the time, Ford said the review would take months. The company bought the Swedish automaker for $6.5 billion in 1999 and hasn't been able to keep it profitable.

Tom Malcolm, a Ford spokesman, declined to comment. A Changan spokesman in China could not be reached for comment. Ford operates a car venture with Changan's listed arm, Chongqing Changan Automobile Co, which makes mid-sized Focus sedans. Ford reiterated yesterday that it doesn't have an immediate need for $9 billion in U.S. aid it had requested in the form of a credit line. Rivals General Motors and Chrysler LLC are seeking government loans to avoid running out of cash this year.

Post by **MadeInJapan** » 09 Dec 2008, 18:57

I certainly hope not. I'd hate to see Volvo go to China.

Post by **Maxbaby** » 09 Dec 2008, 21:38

This does not reassure me. Volvo's quest to be at the front of the pack in terms of technological innovation and safety does not seem to be in line with China's questionable ability to deal with obvious failures and atrocities within it's manufacturing industry. I think of things like BPC's in plastic baby bottles or other toys, lead in the paint of childrens toys, melamine added to baby milk, just to name a few from recent history.

I am actually rather impressed with what China has started to accomplish in some areas of the world market, but if you have owned or know someone who's owned one of their recent export quads or motor bikes, you already know what I'm talking about... when they run, the function quite well. When they don't, you're looking at months to get parts.

I'm not trying to be mean, actually. I just believe that just because you have the money and can afford to buy something, doesn't mean you should buy it. A busy house framing company buying a master plastering business for instance (one that does those incredibly detailed high-end ceilings for example, or restoration of true plaster walls that look perfectly flat) doesn't necessarily make sense, because the two trades are distinctly different, even if they both build things. There's little that the framing company will likely be able to teach to improve the plastering business.

This does not seem to be a good fit, at least not for Volvo's reputation, though I could see how it might help Changan.

Gimpster · Post by **Gimpster** » 17 Dec 2008, 08:53

You'd think the government of Sweden would pony up the cash before letting that happen. Just as a matter of pride.

Post by **Maxbaby** » 03 Jan 2009, 23:35

So here's a little gossip... As announced somewhere else, Daimler has decided against buying Volvo. I have no idea where the China deal is at these days, but...

How I ended up talking to the local Ambassador of Sweden this past week is another story, but we started talking about the sale of Volvo, and I learned that there is indeed a movement within Sweden as we speak from a private buyers group trying to make the purchase itself. How strong or serious a bid was not known. Wouldn't that be nice.

Post by **MadeInJapan** » 03 Jan 2009, 23:39

I think that would be the best thing ever...maybe they'll buy Saab and straighten them out too.

Post by **billofdurham** » 04 Jan 2009, 11:20

a private buyers group trying to make the purchase itself.

The rumour I heard was that this was initiated by some of the original (real) Volvo management who are, to say the least, disgusted with the way Volvo has gone down the pan.

Bill.

Post by **Maxbaby** » 05 Jan 2009, 22:59

Well, Bill, I hadn't been told that, but in the context of the conversation, that would be likely, and it's interesting if you've heard something about it over on your side of the pond as well. I guess we'll just see what we see.

volvo t5 · Post by **volvo t5** » 08 Jan 2009, 04:34

I HOPE VOLVO DONT GO 2 CHINA VOLVO IS A GREAT CAR THAY ARE COMTALE TO DRIVE THAY ARE SAFE WHEN YOU CRASH AND THE BEST TO GET SPARES FOR I HOPE SOMETHING GETS SORTED OUT SOON

Post by **matthew1** » 08 Jan 2009, 11:33

^^^ Please don't use all-caps, and try to use "to" instead of "2".

Thanks!