BMW To Buy Volvo??

[Canadian Turbo]

We were promised that Volvo would not be sold. It appears, however, that like much in the auto industry recently (*ahem* “Merger of equals”), that was just a little white lie. Recent reports of talks between BMW and Ford suggest that the Bavarians who sold Land Rover to Ford but a few years ago, may be seeking another project.

Ford’s financial woes seem to continue even though they’ve been cutting costs left and right. With the sale of Aston bringing in $925 million, According to reports, Ford is contemplating selling off the rest of their Premier Automotive Group (which has been valued at over $9-billion). The group, which includes such icons as Jaguar and Land Rover, is also home to Swedish Safety gurus, Volvo.

Apparently, however, Volvo may not be up for the fight that Ford is asking of it. Reports of talks between BMW and Ford suggest that the Germans may take it over as early as next month.

Hmm… maybe that YCC concept will finally hit the streets.

[R_Ethug]

Re: BMW To Buy Volvo??

hahaha stupid ford. that is probably good for volvo..

[Kor]

Re: BMW To Buy Volvo??

Why would BMW buy Volvo though?

How does it benefit BMW?

[Tuna]

Re: BMW To Buy Volvo??

Why would BMW buy Volvo though?

How does it benefit BMW?

Yea, doesn't really make sense. I also think it would hurt Volvo as BMW has a car in every class that volvo does so I'm sure they would make sure that the Volvo in no way competes. Right now at least Ford more or less leaves Volvo alone to do as they please (or so it seems). It might help Volvo's rep though as everyone seems to think that all volvo's are fords now.

I'll probably get flamed for saying this but if they do buy it, I sure hope they don't start influencing the styling of new Volvos. I like the direction the new volvo designs are going, whereas it seems more and more people dislike the look of the new BMW's.

[R_Ethug]

Re: BMW To Buy Volvo??

yea i agree with you on the style comment jason

[Kor]

Re: BMW To Buy Volvo??

I agree with Jason and this is what I was getting at, Volvo is more of a direct competitor to BMW and I doubt that BMW really needs any of Volvo's material assets or knowledge capital.

I could maybe forsee them trying to lower the price point of Volvos to bring them into a cheaper market a la the Audi/VW tandem.

[Canadian Turbo]

Re: BMW To Buy Volvo??

Some insight???

News that BMW was mulling an acquisition of Volvo broke early this month, when the U.K.'s Autocar magazine said the German luxury maker was seeking a brand to pair with Mini in order to increase profitability of front-wheel drive architectures. Sources told the magazine BMW considered acquiring Alfa Romeo — another front-wheel-drive specialist — before looking at Volvo.

[Kor]

Re: BMW To Buy Volvo??

How does BMW buying Volvo increase profitability of their front wheel drive architectures? What does that even mean?

Thing is, if you look at the Volvo lineup, they are heavilly engineered to share engines and platforms with Ford. Aren't they? Thus they can build the Volvos fairly cheap and still deliver some luxury and performance on top.

So how does this work? BMW buys Volvo. Volvo has plans to run certain models for the next... what, 3, 4, 5, 6 years? These models are built on ford platforms with ford engines... BMW sells Fords? Does BMW re-engineer Volvos to share manufacturing with BMW's and if they do this, how does it increase profitability for them... maybe bigger economies of scale if they double the number of cars that use a certain engine or platform or drivetrain?

Thing is, I think that right now these kinds of deals are just executives going nuts over the idea that so many assets are being dumped due to massive restructuring (especially of the north american companies). Nobody wants to be left out.

I could see BMW being to Volvo what Audi is to Volkswagen... and if Volvos were priced better I think they would compete nicely with VW in that space. I hope that it happens but it doesn't seem like a straight line path from where Volvo is now.

[Tuna]

Re: BMW To Buy Volvo??

Well I think it will be difficult for Volvo's made in Sweden and Belgium to compete with VW's made in Mexico, unless of course they shift where they are manufactured which would really really REALLY be a bad move.

I know the S40/V50 is shared quite a bit in ford (even into the Land Rover line) but i'm not sure any of the others are honestly. I think the S60/V70, S80 and XC's are their own beasts. Although I'm sure they crab from the same parts bin from time to time.

[Canadian Turbo]

Re: BMW To Buy Volvo??

Ford has now officially commented that Volvo is not for sale.

[edicius]

Re: BMW To Buy Volvo??

Well I think it will be difficult for Volvo's made in Sweden and Belgium to compete with VW's made in Mexico, unless of course they shift where they are manufactured which would really really REALLY be a bad move.

I know the S40/V50 is shared quite a bit in ford (even into the Land Rover line) but i'm not sure any of the others are honestly. I think the S60/V70, S80 and XC's are their own beasts. Although I'm sure they crab from the same parts bin from time to time.

Look under your car and you will see a lot of "FoMoCo" or "Ford" labelled parts. Theres a lot of ford in all the volvos, but theres still a lot of volvo in them too.


now....the amount of parts sharing between volvos...theres sooooooo much of that.

[Tuna]

Re: BMW To Buy Volvo??

Look under your car and you will see a lot of "FoMoCo" or "Ford" labelled parts. Theres a lot of ford in all the volvos, but theres still a lot of volvo in them too.


now....the amount of parts sharing between volvos...theres sooooooo much of that.

I agree, that's basically what I said, they likely grab from the same parts bin. It's not uncommon for that to happen, I wouldn't be surprised if you saw "Mopar" in some Merc's too. what I was saying is I don't think the other volvos are as integrated into ford as their entry level cars. I could be wrong but I can't think of a Ford/Mercury/Mazda that shares the same chassis and suspension design as say a S60 or XC90. Parts? sure.

[edicius]

Re: BMW To Buy Volvo??

I can't remember what else is built on the p2 chassis but on the p1.......holy ****, s40, v50, c30, c70, mazda 3, ford focus, and a couple more.

[VWSM]

Re: BMW To Buy Volvo??

ford does own part of Volvo.

[Tuna]

Re: BMW To Buy Volvo??

ford does own part of Volvo.

Hahaha, I think that's pretty much common knowledge.