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Crown rolls out new bid for Volvo Cars

Published: 03 Dec 2009 17:27 GMT+01:00
Updated: 03 Dec 2009 17:27 GMT+01:00

The international consortium Crown, which includes former Volvo head Roger Holtback, has submitted a revised offer to buy Volvo Cars.

“An offer from the Crown consortium has been submitted. I can confirm that,” Holtback told the TT news agency.

However, he refused to elaborate on the potential deal to buy Volvo from US-owner Ford reported on by the Wall Street Journal.

Magnus Sundemo, chair of the Volvo Cars' chapter of the engineers’ union Ingenjörer/Akademikerna, thinks that Ford has a rather flexible deadline for how long it may take before reaching a final decision about an eventual sale of Volvo.

“It’s a malleable limit. But naturally it’s creeping closer all the time. And the end of the year is the end of the year. There may be a goal they wish to achieve before the year is over,” he told TT.

Sundemo believes a potential deal with Geely is being held up by Ford's desire to protect large portions of its intellectual property from leaking to China.

“From what I understand, that’s the issue Ford is putting most of its energy into. It’s a bit of a double-edged sword. We (Volvo’s unions) want to bring enough with us to the new owners to remain a competitive company. Meanwhile Ford wants to release as little as possible,” he said.

What remains clear, however, is that the ties between Volvo and Ford won’t be cut especially quickly.

“Somehow there will be a ‘transfer period’. We have common platforms and common tools. That must be regulated. You can't just cut the cord. We’re going to have to live together for a few years regardless of who the buyer is,” said Sundemo.

TT/The Local (news@thelocal.se)

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Your comments about this article

21:53 December 3, 2009 by karex
I've always known it comes down to technology transfer with the Chinese...
22:03 December 3, 2009 by Leprechaun .se
The ones who sold saab and volvo to the US in the first place need serious amounts of hate letters. How could they be so stupid? AH!

Is there a possibility that this is going to turn out well?
22:29 December 3, 2009 by karex
A lot of thought went into it. When an automobile manufacturer is part of a larger group with products that follow a completely different strategy, such as quality instead of volume focus (as the car industry seemed to be heading led by American manufacturers), you have to choose which one to keep.

The groups owning Volvo and Saab had to decide what to let go. They opted for the automobile division.

Renault was faced with the same dillema, but they chose to keep the automobile division and sell off the other products instead.

You can't effectively run a business which contains one part of the product line following one market strategy and the other a completely opposite one. It's that simple.
09:40 December 4, 2009 by spy
A chinese company really would be the last option for Ford. I hope this new consortium can muster the cash required. Good luck volvo!
11:13 December 6, 2009 by bmwlee
We like our Volvo XC90. Our 6 year old likes the rear seat entertainment system. We make trips on it. We enjoy it very much. We were planing to get another Volvo. But, if Volvo cars are going to make in China, we are not going to buy any Volvo any more. Therefore, we hold off buying.

I have no luck with Chinese products. I refuse to buy them as much as I could.

I don't think Chinese Geely would be following rules and regulations to protect the intelligent technology.

It's a shame that Volvo sold the car division to Ford to begin with...
09:42 December 8, 2009 by voidplay
The chinese make your laptops and camera and your computer chips to if not now they might someday surpass Volvo in technology. Join them and stay afloat if you can't beat them.
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