It all started last week when the Beijing Times reported that FAW representatives travelled to Sweden to meet with Volvo officials and visit the headquarters of Volvo Penta, with talks regarding the purchase of Volvo's truck engine division a main topic on the agenda.
However, officials of the two involved parties strongly denied the reports. "We have a small joint venture with FAW in China, where Volvo Penta produces engines in limited volumes," Volvo's spokesman Marten Wikforss was quoted as saying by the aforementioned source.
On the other hand, Volvo is reportedly in advanced talks with Geely, another Chinese carmakers which is ready to offer up to $2 billion for the Swedish brand. According to previous reports, officials of the Chinese company already established a detailed takeover plan, with new Volvo facilities in China and a Swedish investing partner among the things worth mentioning.
Still, Ford is apparently planning to delay the selling until General Motors finally takes a decision in Opel's case. In case this happens, Ford plans to invite the losing suitor to bid for Volvo and thus create competition for Geely.
"We've been in discussion with a number of parties concerning the future of Volvo, and that situation hasn't changed," Ford spokesman John Gardiner told Dow Jones. "It's still the case that Volvo is held for sale, and it's probable that Volvo will be sold," said Gardiner. "But this process will still take some time to unfold."
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