California Autos Examiner

Monday, October 27, 2008

Just Like a Bogus Virus Warning: Ford Shopping Volvo to BMW?


Ford had talks with BMW to sell Volvo?

More gossip about Ford trying to pawn off Volvo to BMW. The one problem I have with all of these rumors is that Ford has already entangled Volvo in its pledge of assets when it secured access to a massive financing package (a move that seems like sheer genius now). 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.

No comments: