Volvo Will Get another Bidder

By Brendan Moore


Volvo logoSwedish newspaper Dagens Industri has reported that a former Ford Motor Company board member is leading a consortium that intends to offer a bid for Volvo this week.

Ford recently identified Geely, a large Chinese automaker, as their preferred bidder for their Swedish subsidiary Volvo.

Michael Dingman, the former Ford board member, leads a U.S. consortium called Crown that has substantial Swedish backing. Dingman was a board member from 1981 to 2002, until he had to retire due to the mandatory retirement age requirement.

Former Volvo CEO Roger Holtback is also part of the Crown consortium.

Reports from Sweden indicate that Crown’s bid will be somewhere between $2 billion and $2.5 billion USD. Dagens Industri quoted a Crown source as commenting, “There is no point in bidding low. You are not going to win anything that way.”

Geely’s bid is also reportedly in the same range.

Due to cost-cutting measures, Volvo’s losses continue to decrease. Volvo Cars lost only $135 million USD this past quarter, compared to $458 million in the same quarter in 2008.

Some auto analysts have expressed the opinion that a sale of Volvo may mirror the previous sale of Aston Martin by Ford in that Ford may be selling a company that is now digging itself out of a sales slump, and therefore will end up as a bargain for the new owner through a matter of timing.

COPYRIGHT Autosavant – All Rights Reserved

Author: Brendan Moore

Brendan Moore is a Principal Consultant with Cedar Point Consulting , a management consulting practice based in the Washington, DC area. He also manages Autosavant Consulting, a separate practice within Cedar Point Consulting. where he advises businesses connected to the auto industry. Cedar Point Consulting can be found at

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  1. Ford would be wise to sell to these people instead of the Chinese. There is no doubt that there is massive concern about the Chinese respect for patents and intellectual property of Volvo.

  2. Ford finally fixed Volvo and now someone else will get the credit.

  3. Will the winning bidder simply be the one who coughs up the most green, or are there other considerations like labor, etc.? How much say does the Swedish government have in this? Any?

  4. One Swedish car company abandoned and one in a bidding contest. If only Ford had bought Saab instead of Volvo, right?

  5. I hope Volvo’s next owner has plenty of money to invest in product development.

    It’s possible they could pick up the new 9-5 for next to nothing when Saab goes under this week.

  6. No bid yet, and now it’s friday. Wonder if these guys are serious.

  7. It look like Geely and Ford put the deal together this morning.

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