Originally Posted by siko

Report: Renault considering Volvo acquisition

Over the past few months, rumors have intensified about the sale of Ford's three remaining premier automotive brands — Jaguar, Land Rover, and Volvo. With BMW out of the running for Volvo, Renault has emerged as a leading candidate, Swedish daily Dagens Industri has reported.


The report did not elaborate on the talks between Ford and Renault, but indicated Volvo was the only brand the French automaker was interested in. Shortly after rumors recirculated about the sale of Ford's three PAG brands, Renault-Nissan denied an interest in buying Jaguar and Land Rover, but did not mention Volvo.

Earlier this year, BMW is believed to have considered acquiring Volvo in order to share front-wheel-drive technology and production facilities with its Mini brand, thus increasing profitability. The German luxury maker ultimately decided against the idea, however.

Implications

The implications of an acquisition of Volvo by Renault are hard to predict. In its current role at Ford, Volvo is limited from moving too far up-market due to Jaguar and Land Rover.

At Renault, there would be less conflict of interest between Volvo and other auto brands. Of course, given Renault's close ties to Nissan, there could be some overlap between Infiniti and Volvo.

Volvo might actually have the most room to grow if it stays with Ford, assuming Jaguar and Land Rover are sold. As Ford's most premium automaker, Volvo would be free to compete fully with Audi, BMW, and Mercedes-Benz.

AB Volvo interested?

AB Volvo — which sold Volvo Cars to Ford ten years ago and currently builds commercial trucks — is also interested in acquiring a stake in Volvo, according to the Dagens Industri story. The company is interested in a 10-20 percent share, the report said.

Jag, Land Rover likely to go as package

While recent reports indicate Ford is looking to sell its entire PAG (Premier Automotive Group), the three remaining companies are unlikely to go to the same buyer. If sold, Volvo will probably go to one buyer, and Land Rover and Jaguar to another.

Most recently, it was reported that Cerberus Capital Management — the company that recently agreed to buy the Chrysler Group from Daimler-Benz — is now interested in buying Jaguar and Land Rover.

Renault-Nissan and private equity firm Alchemy Partners have denied an interest. Italian automaker Fiat is said to have looked at both companies, but also decided not to proceed.

[Source: Autoblog.com]