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Hey guys, first post here. Anyways just saw the article on Autoblog about Ford selling Volvo to China. A lot of the comments were very anti-China, (not surprised), just curious as to what you guys thought.
 

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Ford Motor Company sold Jaguar and Land Rover to Tata from India.
Ford looses milions per day, and i dont think it will be profitable on the short run.
So they need to loose weight cut costs,
Jaguar's were just mondeos with a fancier trim. They lost the charisma and apeal they had 30 years ago
the Land Rovers are full of defects...
But i thought Volvo was profitable and was on a steady root.
Lets wait a bit and see if it is true
 

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wxw30 said:
Hey guys, first post here. Anyways just saw the article on Autoblog about Ford selling Volvo to China. A lot of the comments were very anti-China, (not surprised), just curious as to what you guys thought.
You know that autoblog is full of Americans , right ?

I heard about it too, it is said to be SAIC as one of the bidder but I think SAIC should focus on MG first.
 

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From Edmunds Inside Line.

26.06.2008 - Shanghai Auto, China's largest automaker, is reported to be discussing with Ford Motor the possibility of acquiring Volvo Cars.

The purchase of Volvo would give SAIC, as it is known, a more rounded portfolio of global brands as the company gears up for a major export drive over the next two to three years.

SAIC, which is partnered in China with General Motors and Volkswagen, owns a controlling interest in Ssangyong, the Korean utility-vehicle specialist, and a minority interest in GM Daewoo. And, through its recent government-sponsored acquisition of Nanjing Auto, SAIC also owns the rights to the MG name.

SAIC also has been rumored in the Chinese media as a potential buyer of the Hummer brand from GM.

Reports in several European publications, including Dagens Industri and Automotive News Europe, said Ford was "in talks" with SAIC about the potential acquisition of Volvo, the last significant brand in the U.S. automaker's now-dismantled Premier Automotive Group. Aston Martin was sold last year to a group of private investors led by David Richards, while Land Rover and Jaguar were sold earlier this year to India's Tata Group.

The report in Automotive News Europe also mentioned an unidentified "Russian investor" as a possible suitor for Volvo.

Meanwhile, in Sweden, Volvo Cars said it planned to cut 2,000 jobs as part of a broader cost-cutting effort. The division reported a pretax loss of $150 million in the first quarter.

SAIC is a partner in Shanghai Sunwin Bus with Volvo Bus Corp., which is part of the Volvo Group, and not acquired by Ford when it purchased the car-making operation in 1999.
 

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Doesn't Volvo and MG kind of overlap? Both are near-luxury brands, though Volvo is definitely more conservative, and MG seems more adventurous. Fully expand MG and take it international - then you don't need Volvo.

But if the price is right and SAIC has the management resources to make it work, sure, why not.

Still, got to be real careful. Don't overpay for a sinking ship... If Ford can't make Volvo work, who's SAIC to make it work???
 

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Still, got to be real careful. Don't overpay for a sinking ship... If Ford can't make Volvo work, who's SAIC to make it work???
But the diference is that. Jaguar and Aston Martin were a sinking ship, Land Rover needed huge investments, but Volvo is ok. They tech is advanced as not the dificulties like the td5 engine of rang rovers, they reputation of quality is mint, not like the jags who are nothing more than mid size or full size fords with fake wood trim...
I real dont get it...
 

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SAIC denies talks with Ford over buying Volvo

June 27, 2008 - China's largest automaker Shanghai Auto, known as SAIC, denied it has ever held talks with Ford over the Volvo purchase deal, China Business News reported.

The newspaper cites SAIC sources as saying that reports hinting SAIC is in talks with Volvo are highly speculative, because SAIC has never held talks with Ford on that matter.

Edmunds reported on Wednesday that SAIC is to be discussing with Ford Motor the possibility of acquiring Volvo Cars. The purchase of Volvo would give SAIC a more rounded portfolio of global brands as the company gears up for a major export drive over the next two to three years, according to the report.

SAIC is a partner in Shanghai Sunwin Bus with Volvo Bus Corp., which is part of the Volvo Group, and not acquired by Ford when it purchased the car-making operation in 1999.

Reports in several other European publications, including Dagens Industri and Automotive News Europe, said Ford was "in talks" with SAIC about the potential acquisition of Volvo, the last significant brand in the U.S. automaker's now-dismantled Premier Automotive Group.
source: Gasgoo.com
 

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tdi said:
Still, got to be real careful. Don't overpay for a sinking ship... If Ford can't make Volvo work, who's SAIC to make it work???
But the diference is that. Jaguar and Aston Martin were a sinking ship, Land Rover needed huge investments, but Volvo is ok. They tech is advanced as not the dificulties like the td5 engine of rang rovers, they reputation of quality is mint, not like the jags who are nothing more than mid size or full size fords with fake wood trim...
I real dont get it...

I think your assuming Ford is doing things right. Ford is known to make poor decisions and because of their strong unions and expensive labour it is hard for them to make things work. Saic could easily turn things around given the current scenario
 

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And now Chery too finds itself in the rumour mill, as reports tell of it talking to its banks to see if it could swing such a purchase.
 

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Chinese automakers should stay away from Volvo Cars

July 09, 2008

SHANGHAI -- Lately, rumors and some media are saying that Ford Motor has contacted some Chinese automakers for the sale of Volvo Cars.

It is hard to tell how much truth they contain. But one thing is clear: given their scant experience in operating in mature markets, Chinese automakers are far from ready to take over Volvo Cars.

Leveraging government support, China's major state-owned automakers, such as Shanghai Automotive Industry Corp. and First Automotive Works, can easily borrow from state-controlled banks to finance an acquisition of Volvo.

But if history is any guide, they should refrain from doing so.

In July 2005, Nanjing Automobile Corp., also a state-owned company, borrowed heavily from domestic banks to fund its acquisition of the historic British brand MG. The project failed and Nanjing Auto was later merged into SAIC.

Chery Automobile Co. is one of China's up and coming automakers. But it is accepting significant help from Chrysler LLC to improve its manufacturing. The partners are preparing cars for export that will be sold with a Chrysler LLC brand.

For SAIC, Ssangyong Motor Co., a Korean automaker it bought in early 2005, remains a big headache even today.

Saanyong's workers went on strike in late 2005 protesting against SAIC's plan to produce Ssangyong's cars in China. After regaining profitability in 2007, Ssangyong slid back into the red at the beginning of 2008.

SAIC, FAW and Dongfeng are all the earliest state-owned enterprises in China and they are still learning to operate as market-driven businesses.

Compared with SAIC, FAW and Dongfeng have even less experience in operating overseas, let alone managing the sophisticated operations of a global player such as Volvo Cars.

A friend of mine at SAIC scoffed at a media report claiming that Ford has talked to both SAIC and Dongfeng on the sale of Volvo Cars.

She says: "SAIC certainly won't consider buying it since we know how much hassle an overseas acquisition could create."

http://www.gasgoo.com/auto-news/6998/Chinese-automakers-should-stay-away-from-Volvo-Cars.html
 
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