Report: BMW considers offer to buy Volvo [Archive] - Ford Inside News Community

: Report: BMW considers offer to buy Volvo



ndwariga
05-28-2007, 03:15 PM
Report: BMW considers offer to buy Volvo (http://www.fomoconews.com/forums/showthread.php?p=3018#post3018)

FoMoCoNews Reports

http://photo.ringo.com/214/214230724RL919280640.jpg (http://photo.ringo.com/214/214230724O919280640.jpg)
Recently we at Fomoconews reported to you that BMW was actively seeking to buy Volvo cars from Ford. Well, here now is confirmation of this. This report is according to Marketwatch.


SAN FRANCISCO (MarketWatch) Ford Motor Co. is planning to sell car maker Volvo and BMW could be interested, according to a published report.
A story in the online edition of Swedish daily newspaper Goteborgs Posten on Monday reported an unnamed source within Ford said BMW has been considering a deal for Volvo.
The story follows a report Friday in the Financial Times that BMW is interested in the Swedish car maker.
Officials from Ford and BMW could not be reached for comment on the report.
Merrill Lynch has said Ford could raise over $9 billion by selling its remaining luxury car brands.
Ford said in April that U.S. vehicle sales fell 13% amid a slowing housing market, lofty gas prices and slumping consumer confidence.
Ford reported a sales drop of 228,623 vehicles from 262,722 a year ago. Analysts had been looking for a slide of up to 20% due mainly to two fewer selling days in the recent month, a decline in production, and reduced fleet sales. Ford sales analyst George Pipas acknowledged that April was a "challenging" month. "Most of the shortfall to our expectations as well as our expectations for the industry were on the retail side," he said in a call following the report. "However, on balance, we believe we are making progress toward improving the profitability of our business in North America.
In the luxury Premier Auto Group, Jaguar and Volvo endured double-digit declines while Land Rover saw its sales jump 12.7%, thanks to demand for the LR2 SUV.

TD Ameritrade Marketwatch (https://wwws.ameritrade.com/cgi-bin/apps/Main)

megeebee
05-28-2007, 03:45 PM
Hmmmmmm...


I was under the impression that Volvo did very well for Ford. Is it worth 9 Billion to cut off a source of highly regarded vehicles (and the platforms under them)? I know Jaguar's been the knife cutting the jugular vein of PAG. Yet the family and the corporation insist on keeping it. Land Rover, despite the worst initial quality ratings possible, seems to be doing well enough. Why sell off the profitable one?

I admit to not knowing a great deal about this, can anyone explain to me why this would be a good idea, apart from the cash of course.

SobeSVT
05-28-2007, 04:00 PM
Hmmmmmm...


I was under the impression that Volvo did very well for Ford. Is it worth 9 Billion to cut off a source of highly regarded vehicles (and the platforms under them)? I know Jaguar's been the knife cutting the jugular vein of PAG. Yet the family and the corporation insist on keeping it. Land Rover, despite the worst initial quality ratings possible, seems to be doing well enough. Why sell off the profitable one?

I admit to not knowing a great deal about this, can anyone explain to me why this would be a good idea, apart from the cash of course.

I don't see how this could be a good idea either (at least not for Ford), but who knows? maybe keeping Volvo as a uniquely Swedish brand is becoming a very expensive proposition for Ford and before doing to Volvo what GM did to Saab, Ford would rather see it go.

What I fail to see it the "offer" part. I don't see from the Ameritrade report that Ford has offered Volvo to BMW. If anything it seems like Ford is considering a BMW offer to buy Volvo cars from them. In any case the result would be the same.

This story looks promising.

ndwariga
05-28-2007, 04:00 PM
Hmmmmmm...


I was under the impression that Volvo did very well for Ford. Is it worth 9 Billion to cut off a source of highly regarded vehicles (and the platforms under them)? I know Jaguar's been the knife cutting the jugular vein of PAG. Yet the family and the corporation insist on keeping it. Land Rover, despite the worst initial quality ratings possible, seems to be doing well enough. Why sell off the profitable one?

I admit to not knowing a great deal about this, can anyone explain to me why this would be a good idea, apart from the cash of course.
I know that BMW at one time like we reported here approached Ford with an offer to buy Volvo cars and Ford turned them down.
Why now Ford seems suddenly interested in selling does not make much sense. Given the only brand I can see stepping into Volvo'sd shoes on a global scale is Mercury. Problem is, Volvo is a very well known name, Mercury does not exist outside North America.
What this could idicate is that Ford is very broke and they do not think they will be in the black anytime soon. So, they are looking to raise some money.
Volvo is probably the only bright spot in Fords Global empire

Mbukukanyau
05-28-2007, 04:09 PM
I don't see how this could be a good idea either (at least not for Ford), but who knows? maybe keeping Volvo as a uniquely Swedish brand is becoming a very expensive proposition for Ford and before doing to Volvo what GM did to Saab, Ford would rather see it go.

What I fail to see it the "offer" part. I don't see from the Ameritrade report that Ford has offered Volvo to BMW. If anything it seems like Ford is considering a BMW offer to buy Volvo cars from them. In any case the result would be the same.

This story looks promising.This site reported earlier this month here (http://www.fomoconews.com/forums/showthread.php?p=3019#post3019) that BMW had made an attempt to aquire Volvo, and ford turned them down.
It seems Ford is now looking for some more cash. It would be really stupid for Ford to get rid of Volvo.
I do not get why BMW is going after Volvo since most of the product line up overlaps. BMW would be better served by a brand like Rover that can go toe to toe with lesser brands like Nissan.

SobeSVT
05-28-2007, 04:11 PM
CLICK HERE (http://www.ft.com/cms/s/b7d4f906-0ad1-11dc-8412-000b5df10621,dwp_uuid=e8477cc4-c820-11db-b0dc-000b5df10621.html) for Financial Times take on the issue.


" . . . A second source, close to BMW, confirmed that a Volvo cars sale process is currently taking place. He also confirmed that BMW is looking at Volvo Cars’ books but does not believe that the German company will end up buying Volvo Cars.

“BMW has already everything that Volvo cars cannot offer,” the source said. . . . "

It looks like the completion of the process previously reported blown out of proportion. Anyway, among the many things that Ford can't afford these days is not to consider this type of offer.


This site reported earlier this month here (http://www.fomoconews.com/forums/showthread.php?p=3019#post3019) that BMW had made an attempt to aquire Volvo, and ford turned them down.
Those news were as especulative then as these are today. The fact that such thing was reported then doesn't necessarily mean that the offer to buy Volvo part makes any sense. But like I said . . . who knows?

Unregistered
05-28-2007, 04:40 PM
CLICK HERE (http://www.ft.com/cms/s/b7d4f906-0ad1-11dc-8412-000b5df10621,dwp_uuid=e8477cc4-c820-11db-b0dc-000b5df10621.html) for Financial Times take on the issue.


" . . . A second source, close to BMW, confirmed that a Volvo cars sale process is currently taking place. He also confirmed that BMW is looking at Volvo Cars books but does not believe that the German company will end up buying Volvo Cars.

BMW has already everything that Volvo cars cannot offer, the source said. . . . "

It looks like the completion of the process previously reported blown out of proportion. Anyway, among the many things that Ford can't afford these days is not to consider this type of offer.


Those news were as especulative then as these are today. The fact that such thing was reported then doesn't necessarily mean that the offer to buy Volvo part makes any sense. But like I said . . . who knows?

They may be speculative, but this is not tabloid reporting where someone sits and makes up stories about the wooled Yeti. There is truth here. Meaning, Ford is surely doing something that has made Marketwatch think its newsworthy.

Mbukukanyau
05-28-2007, 04:45 PM
CLICK HERE (http://www.ft.com/cms/s/b7d4f906-0ad1-11dc-8412-000b5df10621,dwp_uuid=e8477cc4-c820-11db-b0dc-000b5df10621.html) for Financial Times take on the issue.


" . . . A second source, close to BMW, confirmed that a Volvo cars sale process is currently taking place. He also confirmed that BMW is looking at Volvo Cars books but does not believe that the German company will end up buying Volvo Cars.



BMW has already everything that Volvo cars cannot offer, the source said. . . . "
It looks like the completion of the process previously reported blown out of proportion. Anyway, among the many things that Ford can't afford these days is not to consider this type of offer.


Those news were as especulative then as these are today. The fact that such thing was reported then doesn't necessarily mean that the offer to buy Volvo part makes any sense. But like I said . . . who knows?
I think this will work itself out in the next few days or months

SobeSVT
05-28-2007, 04:47 PM
They may be speculative, but this is not tabloid reporting where someone sits and makes up stories about the wooled Yeti.
. . . just the next best thing. This sites are like echo chambers that repeat what in this case, one single magazine, the Goteborgs Posten, reported. Google Volvo and see how many sites have the exact same note.

There is truth here. Meaning, Ford is surely doing something that has made Marketwatch think its newsworthy.
I agree on part of this statement, something is going on.

Myself
05-29-2007, 09:46 AM
I beg to differ, some sites, like GMI do give insight not to be found anywhere else. For example there is a guy named Igor who will give you insite into Ford insider workings unlike any you will see on Car & Driver

SobeSVT
05-29-2007, 10:13 AM
I beg to differ, some sites, like GMI do give insight not to be found anywhere else. For example there is a guy named Igor who will give you insite into Ford insider workings unlike any you will see on Car & Driver
GMI is a message board like this one, not an online news outlet. Like I said, Google Volvo go to the news section and you will see the same news wire over and over again in a whole bunch of different news websites. BTW, igor posts here too.

Not much different today, just a few analysis and that same Reuters wire. Can't wait to hear real developments on this particular story.

RG59061
05-29-2007, 02:59 PM
This is another great example of Market Analysts spending excessive amounts of time speculating!

We do know that BMW is trying to find a way to spread out the R&D costs associated with the MINI brand which is the only example of Front-Wheel Drive vehicle that BMW manufactures.

However, Volvo has become so intertwined within Ford Motor Company and so many of Ford's future and current vehicles depend upon the technologies coming from Volvo...that the likelyhood of a Volvo Sell Off becomes highly un-likely. Volvo is one of the few PAG Manufacturers that actually generates a Profit for Ford and I doubt that they would want to physically sell off Volvo.

Jaguar would be a more likely sell off, but Jaguar will not fit BMW's needs as Jaguar is Rear-Wheel Drive and not even close to the premium level that BMW wants.

I see this as meerly the Automotive equivelant of the Attempted US Airways takeover of Delta Airlines...it just won't happen.

But, lets keep watching anyway.

As Always...Stay Fabulous!
RG59061

ndwariga
05-29-2007, 07:48 PM
HERE (http://biz.yahoo.com/rb/070529/ford_volvo.html?.v=4) is the latest update

Ford denies in talks aimed at Volvo sale
Tuesday May 29, 6:32 pm ET
By Poornima Gupta

DETROIT (Reuters) - Ford Motor Co. (NYSE:F (http://finance.yahoo.com/q?s=f) - News (http://finance.yahoo.com/q/h?s=f)) on Tuesday said it was not in discussions aimed at a sale of its Swedish unit Volvo, denying reports its was mulling an immediate disposition of a unit seen as its most valuable luxury brand.

SobeSVT
05-29-2007, 08:21 PM
HERE (http://biz.yahoo.com/rb/070529/ford_volvo.html?.v=4) is the latest update

Ford denies in talks aimed at Volvo sale
Tuesday May 29, 6:32 pm ET
By Poornima Gupta

DETROIT (Reuters) - Ford Motor Co. (NYSE:F (http://finance.yahoo.com/q?s=f) - News (http://finance.yahoo.com/q/h?s=f)) on Tuesday said it was not in discussions aimed at a sale of its Swedish unit Volvo, denying reports its was mulling an immediate disposition of a unit seen as its most valuable luxury brand.
I thought so . . . :rolleyes:

RG59061
05-29-2007, 09:12 PM
What did I say earlier...nothing but pure market speculation! This is just as bad as the idea that GM should buy Chrysler or all of the spat about the various Airline Mergers.

P.S. Sobe...Love the 1961 Lincoln Continental in your Signature. By far my favorite Lincoln of all time! I would love to own a 1961 Continental Convertible in Black with a White Leather interior...stock, except for a hidden Sirius Satellite Reciever. That would be my ideal dream car.

As Always...Stay Fabulous!
RG59061

falcon lover
05-30-2007, 09:18 AM
Why BMW want to buy Volvo?????? Volvo and BMW ocupies the same space in the market: sport-luxury -european cars. BMW3-volvo S40 BMW5-Volvo S60 BMW7-S80 and BMW1- S30 Why to buy Volvo???????? ..........
To make damage to Ford????

Mbukukanyau
05-30-2007, 02:08 PM
Why BMW want to buy Volvo?????? Volvo and BMW ocupies the same space in the market: sport-luxury -european cars. BMW3-volvo S40 BMW5-Volvo S60 BMW7-S80 and BMW1- S30 Why to buy Volvo???????? ..........
To make damage to Ford????BMW seems to want another car company to move down with. I do not think they will be able to do so with Volvo.
Plus Ford is not selling. They should have bought Dodge

SobeSVT
05-30-2007, 02:14 PM
BMW seems to want another car company to move down with. I do not think they will be able to do so with Volvo.
Plus Ford is not selling. They should have bought Dodge
I am sure that after all is said and done, Cerberus will be more than happy to unload Dodge, or Chrysler or even bot of them.

SobeSVT
06-15-2007, 03:23 PM
I wonder why all the *&%#!*&%/$! Spamers chose this thread for their spam?

2b2
06-19-2007, 06:54 PM
^^^ just noticed this thread had 19 rating votes with a perfect 5.00 average :eek:
...so I gave it a 1.00terrible :D

do the spammers all vote?
could that be how they're identifying a target?