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7th of October 2009 | 14:28 GMT | Alex Oagana
Volvo, to Roll or Not to Roll?...
STORY HIGHLIGHTS:
- Volvo Cars is about to exchange parents
- Will their future "parents" be the Chinese or...?
... harsh times are coming for the Swedish car manufacturer. A brand which once stood for strength, durability and most of all, safety, is now on the verge of falling out of its owner's and even its customers' graces. After countless press releases technically stipulating the same damn thing ("We ain't sellin' Volvo, yo", ed), Ford has finally made up his mind about what to tell the media and admitted to wanting to ditch the Swedes from their already crumbling line-up of car brands.
Alan Mulally himself has said that "Volvo is a good brand, but Ford will sell it in order to shift its main focus on developing the Ford brand." Right... Do you any of you guys remember Ford's "Premier Auto Group"? It included Volvo, among other brands like Jaguar. Naturally, it no longer exists.
Anway, just like in numerous other recent cases, the Chinese have again jumped on the shopping frenzy. To many deep-pocketed Asian car makers, I suppose this feels like a rebate sale. Premium brands at bargain prices, what more could you possible want? As I mentioned sometime before, I am fully supportive of this Asian invasion, but only if it means that better cars will be designed and built.
Let's take our case study for example. None other than Volvo, the "safety'r'us" car maker from the land of IKEA, beautiful and busty blondes, bestiality and good vodka. They have a pretty well-established brand, right? That itself should be worth something, even if sales have been on the down low and Volvo Cars has failed to earn any money for almost ten whole years now.
Still, I gotta say I just can't believe the alleged $2.5 billion offer from the Geely Holding Group Company didn't tickle any Ford senses a couple of weeks ago. According to the Wall Street Journal, this was the highest bidder for the dying brand. Until this week, that is, when the same WSJ said that a private-equity-backed group called the "Crown consortium" is in talks to buy Volvo as well. Details of the matter are pretty scarce at the moment, but that's not all.
Apparently the Crown consortium is led by former Ford director Michael Dingman and former Ford and Chrysler executive Shamel Rushwin. But wait, the plot thickens even more. According to the Wall Street Journal, who doesn't cite official sources, the aforementioned group began discussions with Ford about Volvo Cars two years ago. You know, back when Ford was denying any plan to sell the brand...
What will the next couple of months bring for Volvo, then? My personal guess is that it will no longer be under the Ford umbrella. Although until now I was under the impression that Geely or some other Chinese giant would finally break into European (and world) territory by buying into a well-established brand, now I no longer know what to believe. Just like Saab was "saved" at the last moment from a Chinese take over thanks to Koeniggseg's unlikely intervention, Volvo might "suffer" a similar fate and not fall into Chinese hands. What do you guys think?
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Alan Mulally himself has said that "Volvo is a good brand, but Ford will sell it in order to shift its main focus on developing the Ford brand." Right... Do you any of you guys remember Ford's "Premier Auto Group"? It included Volvo, among other brands like Jaguar. Naturally, it no longer exists.
Anway, just like in numerous other recent cases, the Chinese have again jumped on the shopping frenzy. To many deep-pocketed Asian car makers, I suppose this feels like a rebate sale. Premium brands at bargain prices, what more could you possible want? As I mentioned sometime before, I am fully supportive of this Asian invasion, but only if it means that better cars will be designed and built.
Let's take our case study for example. None other than Volvo, the "safety'r'us" car maker from the land of IKEA, beautiful and busty blondes, bestiality and good vodka. They have a pretty well-established brand, right? That itself should be worth something, even if sales have been on the down low and Volvo Cars has failed to earn any money for almost ten whole years now.
Still, I gotta say I just can't believe the alleged $2.5 billion offer from the Geely Holding Group Company didn't tickle any Ford senses a couple of weeks ago. According to the Wall Street Journal, this was the highest bidder for the dying brand. Until this week, that is, when the same WSJ said that a private-equity-backed group called the "Crown consortium" is in talks to buy Volvo as well. Details of the matter are pretty scarce at the moment, but that's not all.
Apparently the Crown consortium is led by former Ford director Michael Dingman and former Ford and Chrysler executive Shamel Rushwin. But wait, the plot thickens even more. According to the Wall Street Journal, who doesn't cite official sources, the aforementioned group began discussions with Ford about Volvo Cars two years ago. You know, back when Ford was denying any plan to sell the brand...
What will the next couple of months bring for Volvo, then? My personal guess is that it will no longer be under the Ford umbrella. Although until now I was under the impression that Geely or some other Chinese giant would finally break into European (and world) territory by buying into a well-established brand, now I no longer know what to believe. Just like Saab was "saved" at the last moment from a Chinese take over thanks to Koeniggseg's unlikely intervention, Volvo might "suffer" a similar fate and not fall into Chinese hands. What do you guys think?
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07.10.2009 | 22:54 GMT
Volvo was a great car with fastastic reliability and quality UNTIL it was bought by Ford. Then quality went downhill and all sorts of reliability problems arose. The cars got big, too luxurious, and abandoned their original market.
Anyone who buys a Volvo newer than the old 240 series is in for trouble. It's no wonder trhey aren't selling.
08.10.2009 | 14:50 GMT
I think Volvo lost the plot along the way. It used to be the 'sensible' car .. they looked like bricks but no one cared. It was about safety- of occupants and other drivers, space and quality, all affordable!! Then the vision narrowed....I vividly remember my shock when they threw V8s into the range!! Some serious thinking and customer focus will have to happen pretty quick!
09.10.2009 | 16:22 GMT
volvo will never die. volvo is fantastic. It is the perfect car
10.10.2009 | 07:37 GMT
I think you do not understand the new world order for auto. The so-called "trusted brands" are trusted only in the declining markets - US and Europe. The "volvo", "jaguar", "ford" are unknown foriegn brands in growing markets - Chinese and BRIC markets. So if China is poised to become the single largest automobile market and volvo wants to survive or be part of it - its better be owned by a Chinese co., otherwise co. is going to miss the bus. You may have 100s of yrs of history in one part of the world, but in the other part you are a foriegner with no commitments and zero history: so u r not so trusted..
12.10.2009 | 10:17 GMT
If VOLVO fades away what is Hollywood going to do. VOLVO has been the "PP" vehicle par, excellence. Like for ever "PP" - Product placement - always a Volvo so discreet , so natural, just part of the film.
I wonder how much they paid over the years for this priviledge?
John Koistinen-Lindgren
CarSanook!
Bangkok
15.10.2009 | 03:54 GMT
I love Volvos. I've owned a bunch of them including a 123 GT and a 740 turbo. They were all fun but they all fell apart. The idea of them lasting so long is only supported with a high limit on your Visa and a lucky mechanic. Ford tried to work some quality control into the line and it's worked a bit. But once you come out of the ether, Volvo (Latin for it rolls), doesn't roll as well as a Ford, Chevy or either of my Jeep SUV's.
18.10.2009 | 04:58 GMT
I'm afraid I can only agree with the previous writers here; they lost their way a long time ago. They have not kept up with the general overall quality improvement in the industry. Heck, I have no doubt that a Chevy Mailbu has better build quality these days than a Volvo, and that's a pretty sad statement if I'm correct.
They also missed the boat (thanks to Ford) on hybrids.
I don't know what will happen to Volvo. They'll probably survive in some form or another, but it may not be as more than a marginal player.
19.10.2009 | 18:16 GMT
Volvo was good until Ford bought them. As well as Saab were before they got bought. I don't blame Ford or GM tough, both companies needed new owners. But they also need to create their own product and to do what ever they feel like with their cars.
23.10.2009 | 08:30 GMT
Volvo was great...My dad bought a Volvo 240 and drived it for almost 16 years..and still in good condition before we sold it on 2005. Still, Volvo=Safety is what most people will have in their mind... It's XC60 carrying new safety system (the auto stop system) is impressive and thoughtful...but the price is untouchable...(we got super high tax in TW...) however, my girlfriend and I will definitely buy, at least, one Volvo...
24.10.2009 | 15:40 GMT
I used to always buy Volvo because it was so simple and rugged that it lasted a long time and was easy to maintain. But all cars are getting fragile, complex, and difficult to maintain, with things like electric windows, door locks, computer controlled heat systems, etc. I don't want any of that stuff, and after 5 years or so, they ruin a car. They should go back to making a boxy 4 cylinder, with as few fragile electric components as possible.
26.10.2009 | 14:29 GMT
Well, I'm on my second Volvo, 2004 XC70, and very happy. Bought it last year; everyone is surprised it's already 5 years old. Drives like new - I'm sure it will last a long time.
When judging durability, you need to distinguish between parts wear and tear and electric hiccups on one hand, and body and engine durability on the other. Volvo may have their share of trouble in the former, but excel in the latter.