While Ford has been trying to sell the Swedish brand for a while now, it appears that there are several potential buyers who are trying to raise the money. Chinese company Geely has reportedly signed a letter of intent to buy
Volvo, and is now in negotiations with Ford to iron out the details, such as job losses, technology transfer, marketing, and the possibility of production being started in China. Other Chinese manufacturers have allegedly also made bids.
Recent news has suggested that a Swedish conglomeration, Konsortium Jakob AB, is trying to scrape together the funds to make its own bid, and that Volvo Trucks might even be a part of this deal.
Volvo would be particularly attractive to Chinese manufacturers, though, considering the level of safety expertise the Swedish brand has – something that Chinese vehicles have generally faired quite badly at.
The Swedish government has also announced that it will offer $572m in loan guarantees for the company, which has made Volvo a more attractive option to potential buyers. Despite this, Ford stands to receive far less for the company than the $6.45 billion it paid back in 1999. Current book value for Volvo is about $2.4 billion, although it is doubtful whether anyone will pay as much as that.