Daimler Denies Interest in Volvo

Daimler has absolutely no intention in acquiring the Swedish carmaker Volvo, denying a report issued last week which claimed the company is interested in purchasing Ford Motor's unit. According to Autonews, the news report published by German weekly publication Der Spiegel said that Daimler became interested in Volvo but cited no sources for this information. However, Daimler's officials said their company never considered such a move.

“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.
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About the author: Bogdan Popa
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Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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