Earlier this year, the auto industry saw the luxury brand Aston Martin being sold by its owner, the Ford Motor Company. The sale took place as Ford is seeking funding for its turn around plan. The past years have been tough for the Dearborn, Michigan-based car manufacturer as they incurred their biggest loss in their storied history.
After the sale of Aston Martin to a consortium of buyers led by David Richards of Team Prodrive, there were talks about whether Ford will sell another brand that it owns under the Premiere Automotive Group. While there were talks then that the Jaguar may be the next brand to be put on the auction block, Ford declined to comment. Recently though, a part of Ford’s Premier Automotive Group (PAG) is being reported to be taken over by German car company BMW.
Word has it in the auto industry that BMW is interested in buying the biggest brand under the PAG - Volvo. The Swedish brand may be suffering from reduced sales in the United States but it is still one of the most valuable brands that Ford owns. Talks about the possible takeover of BMW at Volvo came after BMW is reported to have requested for a complete breakdown of Volvo’s financial status from a European bank. The said inquiry has raised the issue that BMW may be interested in purchasing Volvo from the struggling company. Experts in the industry agreed that BMW may be looking to expand their offering to consumers.
Another reason for BMW’s interest in Volvo is the reported plan to further expand the MINI brand by sharing Volvo’s platform with the small cars of the MINI brand.
Some industry insiders are reported to have said that Volvo will be a welcome addition to BMW’s portfolio. The reputation of Volvo being a producer of safe cars as well as for producing vehicles with reliable parts such as Volvo motor mounts, suspension assembly, steering systems, and the likes will surely complement BMW’s image of being a producer of cars built for driving pleasure. Both brands are also known for their concern for the environment and the two brands making developments together is seen as one of the reasons for BMW’s rumored interest on Volvo. Although the auto industry is filled with these talks, Ford, Volvo and BMW have yet to make a comment on the issue.
This silence from the camps concerned has led to speculations among industry trend followers. It is predicted that if indeed BMW will acquire Volvo from Ford, the Swedish brand’s larger vehicles will be delegated to BMW to share platforms with. On the other hand, smaller Volvo vehicles will be sharing platforms with the MINI brand which BMW has so far successfully revived. As Volvo’s larger vehicles are merged with BMW’s, these vehicles will be introduced to the market with either a rear-wheel or a four-wheel drive configuration. For smaller vehicles, they are believed to continue using the front-wheel drive configuration.
While these are merely speculations, they have a ring of practicality in them. If indeed Volvo is sold to BMW, Ford will have an additional short-term financial boost while BMW will have a strong brand under its portfolio.
To this issue, online consumers affirmed that they could not see for selling Volvo to BMW. One point raised is the fact that Volvo has been helping Ford and Ford has been helping Volvo since the car maker from Dearborn has acquired the Swedish company. Some consumers pointed out that selling Volvo will not make sense for Ford since even if Volvo is posting reduced sale in the United States, the brand is turning a profit globally. It was also pointed out that Jaguar may be the one that Ford needs to sell although at the brand’s state right now, it is hard to find a company willing to purchase a dying brand. No matter what BMW has in mind for requesting Volvo’s financial status, the rest of the world needs only to wait since a sale such as this (if ever) will be hard to conceal from the rest of the industry.