Originally posted by SBS9828X:
Ford selling its PAG division? What say you?
AB Volvo to buy back Volvo?
Just as the sale of Chrysler to Cerberus cleared a major hurdle yesterday, Ford has come to occupy the automotive soap opera stage with the sale of its PAG brands including Volvo, Land Rover and Jaguar. According to Swedish news reports, the newest dark horse candidate interested in the Premiere Automotive Group is AB Volvo, the Swedish commercial truck manufacturer that sold its stake in Volvo to Ford almost ten years ago. AB Volvo is reportedly only interested in buying back Volvo, not in purchasing PAG as a whole. Analysts are crying foul, though, citing the fact there's little logic in AB Volvo buying back what it sold to Ford almost a decade ago after having worked so hard to build up its commercial truck business. What's particularly interesting is that Renault happened to acquire a little over 20% of AB Volvo in a past deal that sent the French manufacturer's truck unit to Sweden. Speculation has also recently made Renault a potential suitor for Ford's PAG brands, which means a potential alliance between AB Volvo and Renault could have some serious purchasing power.-autoblog[/b]
Renault, AB Volvo eyeing Ford's Volvo Cars, newspaper saysRenault and Swedish truck maker AB Volvo are interested in buying automaker Volvo Cars from Ford, business daily Dagens Industri reported, citing undisclosed sources.
World number two truck maker AB Volvo, which sold its autos unit to Ford almost a decade ago, would be likely to take a minority stake in Volvo Cars of around 10-20 percent, the newspaper reported.
Analysts were doubtful, saying such a move made little industrial sense for AB Volvo.
"This looks like a bad solution for Volvo's shareholders as there is no real industrial logic in buying a stake (in Volvo Cars) ... I think it would be very strange if they would take such a step", Danske Equities analyst Henrik Breum said.
Following the divestment of its auto unit in 1999, AB Volvo has mainly focused on strengthening its position in heavy-duty trucks and construction equipment, notably through the acquisition of truck makers Mack and Renault Trucks.
The acquisition of Mack and Renault Trucks from the Renault group left the French automaker with a stake of just over 20 percent in AB Volvo.
The Gothenburg-based truck maker, which also manufactures buses, engines, construction equipment and aircraft components, has not publicly voiced any interest in returning to the auto business in recent years.
AB Volvo spokesman Marten Wikforss would not comment on the report, saying the firm never responded to rumors. Asked if the firm had any interest in acquiring an automaker, he said: "You can just look at our current structure."
Volvo Cars spokeswoman Maria Bohlin was equally tight-lipped when asked to comment on the article.
"We aren't saying anything since we won't comment on speculations in the media," she said.
The truck maker has routinely stated that it is interested in strengthening all parts of its existing business, not least its truck operations outside Europe and North America where acquisitions would be difficult for competition reasons.
This year, the firm bought Japan's Nissan Diesel in a $1.1 billion deal, more than doubling its sales in Asia.
It is also in talks on a possible investment in a vehicle joint venture, Dongfeng Motor, owned by former Nissan Diesel parent Nissan Motor and China's Dongfeng Motor.