Ford is looking to dump its premium brand Volvo, known for its safety, and is currently said to be in talks with two Chinese car manufacturers – Shanghai Automotive Industry Corporation (SAIC) and ChangAn Automobile Group.
The SAIC rumour came about last week, reported by publications which were quoting unnamed sources. According to reports, Ford is hoping the Volvo sale can fetch £4 billion, which is less than the £4.4 billion sum it paid for Volvo in 1999. SAIC could do perform some front wheel drive platform sharing magic between MG and Ford.
Ford refused to comment on the talks when contacted by members of the media. “We will not comment on speculation or rumors, nor will we comment on regular business discussions that we have with our partners,” Ford said in a statement. Changan is Ford’s partner in China, and makes some Fords and Mazdas in China under one of its subsidiaries. It also assembles the Volvo S40 in China.
Another Chinese automaker Dongfeng Motor Group is also mildly interested in acquiring any assets the Detroit Three may dump for cheap. You may have noticed Dongfeng trucks in Malaysia. But Dongfeng is only monitoring the situation at best, and it’s too early to say if it would buy any assets.
Volvo trucks doesn’t want Volvo cars if Ford sells