California Autos Examiner

Monday, June 30, 2008

Ford Shopping Volvo Like George Shopped His Bathroom Book

NewsDaily: Ford had talks with Renault to sell Volvo: sources

"Ford Motor Co has had exploratory talks with French automaker Renault SA to sell Volvo, but the talks ended quickly due to price differences, sources briefed on the matter told Reuters. Ford has also had talks with China's third-largest automaker, Dongfeng Motor Group as a potential partner for Volvo, one of the sources said."

Will there be no takers? Ford has already entangled Volvo in its pledge of assets last year when it secured access to a massive financing package. Any sale of Volvo would require some of the proceeds to pay off the obligation tied to Volvo's assets. That means that anything less than a princely sum would yield very little for Ford. It is for this reason that you'll probably hear time and time again of talks breaking down over disagreements in price.

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