US Investors Join the Race for Volvo

Up until now, Geely was the only company to express its interest for Volvo, Ford's Swedish unit that is currently looking for a new investor to pave its way to success. It seems like a consortium led by US investors are now joining the race for Volvo and are looking at ways to raise money for the Swedish unit.

In a report that surfaced today, the Financial Times informed that the Crown consortium has already secured financing from several private equity groups but before proceeding to an official bid, it needs extra backing from Swedish investors. The Crown consortium is led by Michael Dingman, a former Ford director, and Shamel Rushwin, a former executive at Ford and Chrysler, the source wrote.

If we are to trust the rumors, the group has already discussed with Ford the possibility of taking over Volvo. Furthermore, it appears the consortium offered less money than Geely but, just like in the case of the Chinese carmaker, they plan to invest more than $3 billion after the deal gets the final signing.

Ford hasn't commented on the reports so far but sources close to the matter are expecting the US-based carmaker to announce its preferred bidder and start negotiations in the upcoming weeks. Rumors initially indicated that Geely is the only company that expressed its interest in buying Volvo and some voices even claimed the Chinese carmaker submitted a $2 billion takeover proposal.

Persons familiar with the negotiations hinted that Ford and Geely have signed a confidentiality agreement so none of them is expected to comment on the reports.