RENAULT DISCUSS WITH FORD TO BUY VOLVO
Renault and Ford are still in talks over the possible sale of Volvo to the French automaker.
The two companies discussed a deal last year that, according to Reuters, fell through, but are now again conducting talks on a sale.
Renault and Ford could not agree on a selling price for Volvo last year. Ford purchased Volvo in 1999 for 6.4 billion US and has put a 6 billion dollar price tag on the Swedish automaker. But Volvo is losing money and has posted a 1.5 billion dollar loss for 2008.
Renault’s interest in Volvo dates back to 1993, when the French automaker’s bid to buy it was blocked by Sweden Shareholder’s Association and by people inside Volvo. The premium brand, with its larger, upmarket products, would make a logical addition to the Renault-Nissan alliance, where Renault specializes in small cars and Nissan is a volume Japanese brand.
But Volvo would not likely be a part of the alliance. Rather, the company would be absorbed by Renault and the brand would then become an in-house division of the French automaker.
No details have emerged as to what Renault is willing to pay for Volvo.