Ford to Get Up to $2 Billion for Volvo Cars

Ford may get between $1 billion and $2 billion for its Swedish ailing automaker Volvo Cars, in case the parent company agrees to sell the company to one of the interested bidders, Bloomberg reported today quoting a source familiar with the negotiations. Furthermore, getting rid of Volvo could take up to six months, the source, who refused to disclose the name of the interested bidders, told the aforementioned publication.

Ford has already confirmed that it is in advanced talks with several parties, but refused to unveil the names of the involved companies or the amount of money the American automaker is seeking to get following the sale of the Swedish unit.

"We've had contact with a number of parties who've expressed interest concerning the future of Volvo. Ford's been pleased with the number and quality of those parties," John Gardiner, Ford's European director of strategic communications said, citing a message sent to Volvo employees.

"We've had preliminary discussions to determine the level of interest in the Volvo business that they have and we're now talking in more detail to those parties about the future for Volvo."

One of the potential bidders might be Chinese automaker Chery Automobile as the company earlier this year admitted it would acquire Volvo but insisted it won't fight for it in case it has to.

"We may consider a takeover if no other Chinese automaker is interested. We won't fight for it," Yin Tongyao, Chery chairman, said in March.

Other reports coming from Swedish business newspaper Dagens Industri claims Chinese car makers Dongfeng Motor Group and Chongqing Changan Automobile Co, and "an European constellation" are also interested in acquiring the struggling carmaker.