Is Bmw Going to Buy Volvo?

Earlier this year, the auto industry saw the luxury brandcars built for driving pleasure. Both brands are also
Aston Martin being sold by its owner, the Ford Motorknown for their concern for the environment and the
Company. The sale took place as Ford is seekingtwo brands making developments together is seen as
funding for its turn around plan. The past years haveone of the reasons for BMW’s rumored interest on
been tough for the Dearborn, Michigan-based carVolvo. Although the auto industry is filled with these
manufacturer as they incurred their biggest loss in theirtalks, Ford, Volvo and BMW have yet to make a
storied history.comment on the issue.
After the sale of Aston Martin to a consortium ofThis silence from the camps concerned has led to
buyers led by David Richards of Team Prodrive, therespeculations among industry trend followers. It is
were talks about whether Ford will sell another brandpredicted that if indeed BMW will acquire Volvo from
that it owns under the Premiere Automotive Group.Ford, the Swedish brand’s larger vehicles will be
While there were talks then that the Jaguar may bedelegated to BMW to share platforms with. On the
the next brand to be put on the auction block, Fordother hand, smaller Volvo vehicles will be sharing
declined to comment. Recently though, a part ofplatforms with the MINI brand which BMW has so far
Ford’s Premier Automotive Group (PAG) is beingsuccessfully revived. As Volvo’s larger vehicles are
reported to be taken over by German car companymerged with BMW’s, these vehicles will be
BMW.introduced to the market with either a rear-wheel or a
Word has it in the auto industry that BMW is interestedfour-wheel drive configuration. For smaller vehicles,
in buying the biggest brand under the PAG - Volvo.they are believed to continue using the front-wheel
The Swedish brand may be suffering from reduceddrive configuration.
sales in the United States but it is still one of the mostWhile these are merely speculations, they have a ring
valuable brands that Ford owns. Talks about theof practicality in them. If indeed Volvo is sold to BMW,
possible takeover of BMW at Volvo came after BMWFord will have an additional short-term financial boost
is reported to have requested for a completewhile BMW will have a strong brand under its portfolio.
breakdown of Volvo’s financial status from aTo this issue, online consumers affirmed that they
European bank. The said inquiry has raised the issuecould not see for selling Volvo to BMW. One point
that BMW may be interested in purchasing Volvo fromraised is the fact that Volvo has been helping Ford and
the struggling company. Experts in the industry agreedFord has been helping Volvo since the car maker from
that BMW may be looking to expand their offering toDearborn has acquired the Swedish company. Some
consumers.consumers pointed out that selling Volvo will not make
Another reason for BMW’s interest in Volvo is thesense for Ford since even if Volvo is posting reduced
reported plan to further expand the MINI brand bysale in the United States, the brand is turning a profit
sharing Volvo’s platform with the small cars of theglobally. It was also pointed out that Jaguar may be the
MINI brand.one that Ford needs to sell although at the brand’s
Some industry insiders are reported to have said thatstate right now, it is hard to find a company willing to
Volvo will be a welcome addition to BMW’spurchase a dying brand. No matter what BMW has in
portfolio. The reputation of Volvo being a producer ofmind for requesting Volvo’s financial status, the rest
safe cars as well as for producing vehicles withof the world needs only to wait since a sale such as
reliable parts such as Volvo motor mounts, suspensionthis (if ever) will be hard to conceal from the rest of
assembly, steering systems, and the likes will surelythe industry.
complement BMW’s image of being a producer of