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New buyer interest to bid in Volvo sale

TT/Christine Demsteader · 21 Nov 2009, 13:29

Published: 21 Nov 2009 13:29 GMT+01:00

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Ford has previously indicated that Geely is the preferred choice to take over the Sweden-based company, which continues to show losses.

According to newspaper Dagens Industri, the US consortium Crown will make an offer in the next seven days with half of its capital coming from Swedish investors.

Crown is led by American Michael Dingman who brings 21 years of experience as a board member of the US-based Ford.

Dingman is joined in the consortium by advisor and former Volvo CEO Roger Holtback.

Whilst the Geely bid is estimated to be valued over $2 billion no details have yet been released of the Crown consortium’s counter offer.

A third party, the Jakob Consortium, dominated by Swedish investors has also pledged an interest in the buy out.

Story continues below…

Losses for Volvo Cars continue to shrink. In November, the company posted their best quarter result of the year, losing $135 million compared with the $458 million it reported lost in the same period of 2008.

TT/Christine Demsteader (news@thelocal.se)

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Your comments about this article

22:12 November 21, 2009 by 2394040
This American hopes that Volvo will remain Swedish. Having said that, any buyout should be viewed with suspicion. Geely would most likely change the company beyond recognition, no matter what the "experts" might say. I would prefer to take my chances with Sweden.

The "New World Order" advocates would prefer to ship production to a "low-wage" country that doesn't believe in freedom.
05:54 November 22, 2009 by Marvino
Don't give up the fight Crown and Jakob consortia. I'll keep my fingers and toes crossed for you...
09:33 November 22, 2009 by Ales
Crown and Jakob - please keep fighting for Volvo. We all who are Volvo fans keep our fingers crossed for you both!!! I can`t imagine Volvo to end up in communist country....
10:53 November 22, 2009 by latent
no matter Geely succeed or not, it already shows a fact that big is becoming biger, and they can buy whatever they want as long as this world is runing under the theory of business and economy. ..will see....Every thing almost made in China now, ,is only due to the cheap cost,,,,,on the other hand, they got technology.
12:08 November 22, 2009 by Jimmy_Mav
I am also a fan of Volvo. I think the cooperation between Volvo and Geely will bring a lot of benefits to Volvo, although Greely do not have enough experiments to work with a world-class famous company like Volvo.

BTW, stop talking that China is a communist country now if u have not been there yet. They are good players in the capital market.
14:24 November 22, 2009 by Ales
Very interesting discussion.... please more opinions... !!!
14:34 November 22, 2009 by eliteresourceagent
it seems there are too many below average intelligence people here. How many of you have been to China? There is much more capitalistic energy and progressiveness than here...

the new world order is going to happen, it is just a matter of time. Move to the moon if that's not good enough, haha
15:34 November 22, 2009 by Ales
problem is that car industry is about branding and about very delicate management and marketing for which experience is very important, I'm not sure that such experience exists in Geely..... capitalistic energy doesn't help.... even on the moon....
16:40 November 22, 2009 by spy
I really hope that Volvo gets a buyer other than Geely.

Geely's bid is not based on them being good carmakers or even being particularly financially astute - let's face it these guys have made their money pedalling crap cars into an emerging (and protectionist) market, China. They are widely regarded as corporate savages and frankly if Ford had any other serious option then they would be pursuing it.
17:45 November 22, 2009 by Leprechaun .se
An American will be our savior? Again? Thank (non-existing) god.. and him. If he is the one who will save volvo I might just put an American flag on my balcony on July 4th.

I will never in my life vote for the damn right; this is all their fault. Had the social democrats been in power the saab wouldn't have needed a bail out and volvo being sold to China would be a ridiculous unimaginable idea. Well thank god for the US of A, selflessly protecting us since the beginning of the cold war while still taking sh!t from us; pretty damn impressive, forgotten and underestimated. WOOO!
22:49 November 22, 2009 by karex
An American group getting Volvo is almost as bad a s a Chinese group. Face it, the American idea of quality is just not the same. My Ford-built Volvo car showing atrocious, never-before-seen rust on the underside is the proof.

Just look at the track record of Opal in the Swedish market when it comes to rust as a comparison. Americans switch cars every 2 years, they never get to see the sh** quality of their vehicles before matters get out of hand.

A Swedish consortium is more like it.
05:58 November 23, 2009 by Marvino
I hope that somehow the Crown and Jakob consortia can find a way to join forces, get the proper financing and convince FORD to drop Geely from the bidders list.
08:14 November 23, 2009 by spy
I have a very bad feeling about any company that clearly rips-off other brands designs. The Geely 'Rolls Royce copy' was a discrace and shows that they really do not understand branding. Volvo I am keeping my fingers crossed for you.
15:39 November 23, 2009 by Ales
http://www.volvocars.com/newmoon/Pages/default.aspx - this was marketing masterpiece!!!
19:29 November 23, 2009 by spy
I hope you are being sarcastic. .
20:06 November 23, 2009 by Ales
I am affraid not:

http://blogs.cars.com/kickingtires/2009/11/most-read-car-reviews-of-the-week-new-moon-edition.html .......
20:26 November 23, 2009 by spy
It took me 10 minutes to tab to my age and then when I entered my details the thing didn't actually work. I gave up.
20:35 November 23, 2009 by Ales
HERE IS WHAT THEY TALK ABOUT: Nothing says vampires and werewolves like a stylish Swedish crossover. That's exactly what Volvo hopes moviegoers will be thinking when they see the stars of "The Twilight Saga: New Moon" driving the 2010 XC60 on the big screen.

The mania around the movie certainly has spread to our own car reviews; more people read the XC60 review over the past seven days than any other new-car review. Last week, it wasn't even in the Top 10. Click on any link below to read the full review…if you dare.
20:48 November 23, 2009 by spy
Yes I read that, interesting copy. . .

Nothing says vampires and werewolves like a Swedish crossover' ????????

But is this affiliation marketing attributable to the amount of views of a Volvo review on a blog read entirely by car enthusiasts? I am not so sure.

I was still unable to get the actual Volvo microsite to work. Teething problems perhaps.
22:56 November 23, 2009 by Leprechaun .se
I saw twilight.. now can someone please explain to me what the big buzz is about? Thank you.

Seriously what's the obsession about that movie? I'm glad volvo might make a profit from this (which.. sigh.. will go to ford) but it's ridiculous. They aren't even good looking!
04:06 November 24, 2009 by volvoman9
Beauty is such a subjective thing. The loss here is that of a quality product. I've owned six Volvo's. I bought them for their quality. The new ones are more attractive but I found my1970 144 to be one of the most beautiful forms ever produced. Maybe I'm kinky.

What we are really witnessing is a new world order where what the consumer wants doesn't matter. The corporation will let us know what we want and we will gobble it up because it's easier than struggling to think for ourselves. The manufacturing industries of the western world will be destroyed because we allowed them to be in the never ending struggle to improve the bottom line. Retention of a brand is romantic but lets face it would you suffer a loss of capital to keep a brand alive. The only reason the American government stepped in to save Detroit is to cushion the demise of it's auto industry. We really have no choice. To allow it's deserved but rapid death would destroy our economy and damage those of the world perhaps forever.

We have brought ourselves to the brink with our shortsighted behavior. The American society has been partying like the morning would never come. Sadly I don't believe my countrymen have understood what has happened. They are far to hypnotized by the hate mongering media who themselves have no interest in the issues other than that of enriching themselves. Pay close attention to the demise of Babylon. Don't allow yourselves to be sucked into the vortex of capitalism. The world will become one big Wal- mart if the corporate world is not stopped. Incidentally a couple of years ago I read in the Wall Street Journal that Wal-mart was the 8th largest trading partner of China. This is a staggering statement.

As much as it saddens me I fear we may be too far gone to save the Volvo's of the world.
13:31 November 24, 2009 by Marc the Texan
I hope these consortia manage to get Volvo back into Swedish hands. Geely would ruin it. I don't even buy pots and pans from China. Chinese steel is full of red lead and radioactivity because of how poor their cheap steel making methods are. They melt down radioactive pipe and ship it right out to unsuspecting customers. Where I am in Florida, there are lots of houses built between 2005-2006 that have had to be abandoned due to toxic Chinese drywall (thousands of houses in Florida alone). I avoid Chinese products as much as possible. That means never setting foot in places like WalMart.
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