Daimler says no to VolvoJanuary 6, 2009
Volvo and Mercedes-Benz have been known for decades as automotive safety pioneers, sharing between them the bulk of new innovations in the field. These days, however, automakers are as concerned about their financial security as they are with occupant safety. With the latter in mind, reports indicate that Mercedes parent company Daimler has decided against buying Volvo from Ford.
Amidst slumping sales and a troubled future, reports surfaced a month ago that Ford was looking for a buyer for the last remnant of its ill-fated Premier Auto Group, after Land Rover, Jaguar and Aston Martin were all sold off to Asian investors. Ford bought the Swedish automaker from the Volvo group for $6.45 billion back in 1999, and is looking to offload it for $6 billion today. Unfortunately for FoMoCo, nobody seems to have the cash. The Volvo group has rejected the possibility of buying its car division back, the Swedish government isn’t interested, BMW reportedly considered the prospect but ultimately rejected it, and now Daimler, which has had its fill of acquisition deals with Detroit, has passed as well. At this point, Chinese automakers like Shanghai (SAIC) and Geely, as well as Korean automaker Hyundai seem like the only tenable prospective buyers left.