Originally posted by SBS9828X:
Ford selling its PAG division? What say you?
AB Volvo to buy back
Volvo?
Just as the sale of Chrysler to Cerberus cleared a major hurdle
yesterday, Ford has come to occupy the automotive soap opera stage
with the sale of its PAG brands including Volvo, Land Rover and
Jaguar. According to Swedish news reports, the newest dark horse
candidate interested in the Premiere Automotive Group is AB Volvo,
the Swedish commercial truck manufacturer that sold its stake in
Volvo to Ford almost ten years ago. AB Volvo is reportedly only
interested in buying back Volvo, not in purchasing PAG as a whole.
Analysts are crying foul, though, citing the fact there's little
logic in AB Volvo buying back what it sold to Ford almost a decade
ago after having worked so hard to build up its commercial truck
business. What's particularly interesting is that Renault happened
to acquire a little over 20% of AB Volvo in a past deal that sent
the French manufacturer's truck unit to Sweden. Speculation has
also recently made Renault a potential suitor for Ford's PAG
brands, which means a potential alliance between AB Volvo and
Renault could have some serious purchasing power.-autoblog[/b]
Renault, AB
Volvo eyeing Ford's Volvo Cars, newspaper
says
Renault and Swedish truck maker AB Volvo are interested in buying
automaker Volvo Cars from Ford, business daily Dagens Industri
reported, citing undisclosed sources.
World number two truck maker AB Volvo, which sold its autos unit to
Ford almost a decade ago, would be likely to take a minority stake
in Volvo Cars of around 10-20 percent, the newspaper
reported.
Analysts were doubtful, saying such a move made little industrial
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 said.
Following the divestment of its auto unit in 1999, AB Volvo has
mainly focused on strengthening its position in heavy-duty trucks
and construction equipment, notably through the acquisition of
truck makers Mack and Renault Trucks.
The acquisition of Mack and Renault Trucks from the Renault group
left the French automaker with a stake of just over 20 percent in
AB Volvo.
The Gothenburg-based truck maker, which also manufactures buses,
engines, construction equipment and aircraft components, has not
publicly voiced any interest in returning to the auto business in
recent years.
AB Volvo spokesman Marten Wikforss would not comment on the report,
saying the firm never responded to rumors. Asked if the firm had
any interest in acquiring an automaker, he said: "You can just look
at our current structure."
Volvo Cars spokeswoman Maria Bohlin was equally tight-lipped when
asked to comment on the article.
"We aren't saying anything since we won't comment on speculations
in the media," she said.
The truck maker has routinely stated that it is interested in
strengthening all parts of its existing business, not least its
truck operations outside Europe and North America where
acquisitions would be difficult for competition reasons.
This year, the firm bought Japan's Nissan Diesel in a $1.1 billion
deal, more than doubling its sales in Asia.
It is also in talks on a possible investment in a vehicle joint
venture, Dongfeng Motor, owned by former Nissan Diesel parent
Nissan Motor and China's Dongfeng Motor.
