Sale of Volvo Cars advancing: report

Sale of Volvo Cars advancing: report
Representatives from Ford will be meeting with investment banks in London next week to discuss the potential sale of its Volvo Cars subsidiary, Sweden’s leading business daily reported on Friday.

The paper, Dagens Industri, which did not cite its source, said four candidates were in the running to acquire the Swedish auto manufacturer: the Chinese groups Changan and Dongfend, along with a European alliance and “an unidentified” consortium.

The paper said that Ford, which wants to sell Volvo Cars for $3-4 billion, would confer in London next week with representatives from investment banks Citigroup, JP Morgan and Rothschild to discuss the deal.

It added that Renault-Nissan of France was “likely” to have been the group that asked Rothschild to represent it at the meeting.

A spokeswoman for Volvo Cars declined to comment on the newspaper report.

Ford Motor Company, despite a huge $14.57 billion loss last year, has said it still has “sufficient liquidity” to fund a turnaround plan without US government aid.

The company said in early December it was considering the sale of Volvo Cars, which it acquired in 1999 for $6.45 billion.