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Chinese purchase of Volvo ever more likely

Posted by Hootan Mahallati | March 25, 2009 | In news volvo

Talk of Ford planning to sell Volvo is by now old news. The fact that the Chinese are the most likely suitors is also well known. However, Ford sources have now offered some detailed information about the sale.

It seems that no Western manufacturers are interested in acquiring Volvo, and that several Chinese companies are involved in the evaluation process. Ford wants the buyer to demonstrate respect for and understanding of Volvo and its culture, the same criteria it considered when it sold Jaguar and Land Rover to Tata.

For the past year, the figure of $6B has been mentioned as Volvo’s market price. However, Ford believes that Volvo, which is not profitable and is deeply affected by the recession, is worth about $1.2B. That is not a whole lot for one of the car world’s most respected brands, responsible among other things for the life-saving three-point safety belt.

[Source: Autocar]

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