Ford thinking of sale of Volvo cars to BMW.
Loss-making Ford Motor Co. is planning to sell Swedish car maker Volvo and German carmaker BMW could be a possible buyer, a Swedish newspaper said on Monday.
The Goteborgs Posten daily reported on its website that a source within Ford said BMW has been studying a possible purchase of Volvo.
The Financial Times also reported last Friday BMW was in informal talks to buy Volvo.
“We cannot comment on speculation, this is a question for our owner,” said a spokeswoman for Volvo cars.
Ford bought Volvo in 1999 and it is now part of the U.S. company’s Premier Automotive Group, including Jaguar and Land Rover.
Ford does not disclose results for its individual brands, but taken together its luxury line-up lost $327 million in 2006.
Merrill Lynch has said Ford could raise over $9 billion by selling the remaining luxury car brands.Volvo Cars Chief Executive Fredrik Arp told Reuters in March that Ford was committed to keeping the Swedish car maker.
Reuters.
Ford Motor Company. The Group’s principal activities are within two principal business segments. The Automotive segment consists of the design, manufacture, sale and service of cars and trucks, automotive components and systems. The Financial services segment consists of vehicle-related financing, leasing and insurance, renting and leasing of cars and trucks and renting industrial and construction equipment and other activities. The Financial sector is operated through two subsidiaries, The Ford Credit Company and The Hertz Corporation. The Group operates in North America, South America, Europe, Africa and Asia-Pacific. Automotive accounted for 83% of 2002 revenues; Ford credit services, 14%; Automobile rental and leasing, 3% and Other financial services.
Bayerische Motoren Werke Aktiengesellschaft(BMW). The Group’s principal activities are to produce and market a range of cars and motorcycles. The activities are carried out through three business segments: Automobiles, Financial services and Motorcycles. The Automobile segment develops, manufactures, assembles and sells BMW and MINI brand cars, off-road vehicles and spare parts and accessories. The Financial services segment focuses on leasing automobiles, providing loan finance for customers and dealers and insurance activities. The Motorcycles segment develops, manufactures, assembles and sells BMW brand motorcycles, C1s as well as spare parts and accessories. The Group has operations in America, Africa, Asia, Oceania and rest of Europe. Automobiles accounted for 80% of 2002 revenues; Financial services, 17% and Motorcycles, 3%.
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