According to a report by The Financial Times, a U.S. led group has entered into a race with China’s Geely Automotive to purchase Volvo from FoMoCo. Geely Automotive confirmed its interest last month in the unprofitable Swedish car company.
Sources said that the Crown consortium has fully secured financing from U.S. private equity groups and is also seeking additional funding from Swedish investors to keep Volvo in Sweden. The Crown group is headed by formed Ford director Michael Dingman and former Ford and Chrysler executives Shamel Rushwin.
However, the Financial Times said that the Crown consortium had offered significantly less than Geely Automotive. Media reports have put the price tag of Volvo around $2.5 billion.
A Ford spokesman confirmed that a group is in discussion with interest in buying Volvo, but declined to identify the parties.
– By: Stephen Calogera