Volvo Group willing to help troubled Volvo Cars

Volvo Group willing to help troubled Volvo Cars
The Volvo Group has said it would help support Volvo Cars in order to protect the Volvo brand in the event that the carmaker’s parent Ford goes bankrupt.

Concern about what might happen to Volvo Cars has caused a great deal of hand wringing in the boardroom of Volvo Group, which sold the eponymous carmaker to Ford in 1999, reports the Dagens Industri newspaper.

So far discussions have focused on what Volvo Group might do should Volvo Cars be unable to fulfill its responsibilities for projects important to both companies.

At this point however, Volvo Group not needed to come to the rescue of Volvo Cars.

“We would be happy to pay for joint projects, sponsorship and research projects for example, and we can imagine to enter into different consortia without becoming the primary owner,” Volvo Group chair Finn Johnsson told the newspaper.

“However, we absolutely don’t want to buy Volvo Cars.”

Johnsson added that he doesn’t agree with the recent suggestion put forward by Gothenburg-based business professor Rolf Wolff that the Swedish state should purchase the carmaker.

“The state doesn’t know anything about the auto industry and Volvo needs an owner who can increase sales and cooperate on components and development,” said Johnsson.

He added that French carmaker Renault could be the kind of owner which could benefit Volvo Cars.