A consortium dominated by Swedish owners plans to bid for Ford Motor Co's Volvo car unit, a Swedish business daily reported without disclosing its sources.
Dagens Industri said the group, Konsortium Jakob AB, had intensified efforts recently to raise enough capital to make an offer in light of reports Ford was getting ready to intensify talks with China's Geely, which according to sources is among the suitors for the Ford unit up for sale.
The US carmaker put money-losing Volvo cars up for sale in December last year as it looked to cut costs and raise cash amid industry wide record-low vehicle sales. The firm said in July it was in discussions with a number of parties on the car maker.
The engineers' trade union at Volvo cars had taken the initiative to the consortium, which would aim at listing the car maker, Dagens Industri said.
It said representatives for the consortium this week met with representatives for Ford's management, according to sources.
Dagens Industri said, referring to a source, that Swedish truck maker Volvo may join Konsortium Jakob AB. But the truck maker denied that
“We take an interest in what happens with Volvo cars since we share their brand, but that's where it ends,” Volvo spokesman Marten Wikforss told Reuters. “We don't see ourselves as investors in the car industry.” (Reuters)