Back in 2007, Ford announced it would not be selling Volvo, as it worked to move the Swedish carmaker to a more efficient and independent system. But a lot of things have changed since.
With 2009 bringing with it the full impact of the global economic crisis, Ford HQ has a vastly different view of the world. Desperate to make it through the hard times without government aid, Ford has decided that Volvo?s time with the American manufacturer is coming to an end.
Business Spectator is reporting that Ford Motor Co?s sale Volvo is close to being finalised as the company runs due diligence on the preferred bidders, with an announcement expected this month or early next.
While the identities of the remaining bidders have not been officially revealed, it?s known that Chinese carmaker Geely ? believed to also be strongly pursuing Saab ? is among them.
Ford paid US$6.45 billion for Volvo in 1999. A review of the company?s prospects and worth in January 2008 saw its value being written down to US$4.05 billion.
This revised value, along with a 37 percent slump in Volvo?s vehicle sales in April, is likely to result in a heavy discount for the eventual successful bidder.