According to Swedish newspaper Dagens Industri, the buzzards circling over the remains of struggling Ford subsidiary, Volvo, are expected to finally go in for the kill during the first week of April. Quoting sources claiming to be close to the matter, “indicitative bids” from all interested parties are expected to be entered around Easter weekend (April 11-12, 2009). In addition to Chinese automobile company, Chery, Volvo’s other potential suitors include Dongfeng Motor Group, Chongqing Changan Automobile Co, and an unidentified European outfit.
Although Ford initially plunked down $6.45 billion for Volvo back in 1999 (or, as it is commonly referred to as by Volvo purists, “The day our hearts were wretched from our bodies and trampled into a bloody mess on the cold, hard streets of Dearborn”), experts doubt Volvo will fetch that much ten years later. Suffering under the same economic stress as all its fellow automakers, Volvo has been operating in the red as of late and has even resorted to requesting help from their mother government. As per the Dagens Industri, European Investment Bank (EIB) is currently entertaining Volvo’s plea for aid is expected to grant them a $568 million loan sometime soon. With Ford keeping tight-lipped regarding Volvo’s asking price, it is unclear whether the EIB loan will be enough to allow Volvo Cars to buy itself out, thereby avoiding irreversible tainting by the Chinese.
We say: c’mon Sweden, you bailed out Saab, don’t leave Volvo hanging – China will ruin it.
Source: Auto News