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Ford may sell Volvo to...Volvo?

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A Swedish Homecoming?
AB Volvo eyes purchase of Volvo Cars
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Link to Original Article @ Autoweek | Published 06/20/07, 1:50 pm et

If hindsight is 20/20, then leaders at AB Volvo apparently have perfect vision. Nearly 10 years after the sale of Volvo Cars to Ford, the commercial vehicle juggernaut is reportedly looking to buy it back.

According to the business daily Dagens Industri, undisclosed sources claim the Swedish company is investigating buying a minority share of its former automotive division.

Also potentially involved is French automaker Renault SA. After selling its commercial vehicles and Mack Trucks divisions, it currently owns a 20 percent stake in AB Volvo.

Analysts doubted such a possibility, claiming that buying into Volvo Cars would demonstrate a lack of “industrial logic” on AB Volvo’s part.

After the sale of the automotive unit, AB Volvo concentrated on strengthening its position in heavy-duty trucks. With the acquisition of Mack and Renault Trucks in 2000, along with the purchase of Nissan Diesel in 2007, the Gothenburg-based company is the second-largest truck maker worldwide.

Representatives from AB Volvo have not publicly voiced any interest in returning to the automotive market in recent years and continue to downplay such a possibility. Likewise, Volvo Cars spokeswoman Maria Bohlin refused to comment on “speculations in the media.”

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