Rumor: Renault and AB Volvo eyeing Volvo cars

According to business daily Dagens Industri, Renault and Swedish truck maker AB Volvo are interested in purchasing the Volvo Group from Ford. AB Volvo orginally sold its auto unit to Ford in 1999. The report said that if Renault and AB Volvo end buying the Volvo Group from Ford, AB Volvo will hold a small share of 10 to 20 percent.

“This looks like a bad solution for Volvo’s shareholders as there is no real industrial logic in buying a stake (in Volvo Cars) … I think it would be very strange if they would take such a step”, Danske Equities analyst Henrik Breum told Reuters.

After selling its auto unit, AB Volvo focused on increasing its position in heavy-duty trucks through the acquisition of Mack and Renault Trucks.

AB Volvo declined to comment on the report, stating that the company never responds to rumors.

Ford has said that it is actively seeking a buyer for its Volvo Groups.


Source: Reuters

[tags]Cars, Car, Auto, Automobile, Vehicles, Technology, Auto News, News, Volvo, Ford, Renault[/tags]