Daimler Denies Interest in Volvo
“We were never interested in Volvo,” a Volvo spokesman was quoted as saying by Autonews, without providing more details about a potential acquisition of a struggling carmaker currently on the market.
Rumors claiming that Ford is looking to sell Volvo surfaced in December when the Americans seemed prepare to give the Swedish unit to any company that agrees to pay $6 billion. Ford acquired Volvo in 1998 for approximately $6.4 billion which means that, after approximately one decade, it aims to sell the company at almost the same price.
Meanwhile, Volvo still struggles to counteract the economic recession and strives to keep up with the market demand, altering production and imposing several cost-cutting measures. The best example comes from its truck division which saw its sales down 99.7 percent in the third quarter of 2008, which means this Volvo division delivered no more than 115 trucks.
“The downturn in the economy has been significantly exacerbated by the global financial crisis. The important European market has declined significantly while North America and Japan continue to show weak demand,” Volvo officials were quoted as saying by This is Money in October 2008.
In addition, Volvo has also requested financial assistance from the Swedish government, explaining that a low-interest loan is a must in order to keep the brand alive. Sweden's authorities approved Volvo request in December and agreed to provide a $3.1 billion credit to Volvo and Saab.