Chery to Buy Volvo: Fact or Fiction?
According to a report in China’s Oriental Morning Post, the Chinese government has, for its part, approved a deal that would see Chinese automaker Chery buy Volvo from Ford.
Neither side has confirmed that a deal is in the works, or even that talks are ongoing, however, Chevy has made their interest in the Swedish automaker public. Ford, for it’s part, has also made it clear that Volvo is up for the taking.
The deal would mean the complete dismantling of Ford’s grouping of luxury brands, which at one point included Land Rover, Jaguar and Aston Martin. The sale of those other companies – with Land Rover and Jaguar going to India’s Tata Motors and Aston Martin going to a collection of companies that includes several Kuwaiti banks – totaled roughly $4 billion and is touted as one of the reasons that Ford has been able to stave-off bailout money.
As no deal has been made public, the Chery-deal could just be yet another rumor, as recently it was reported that China’s Dongfeng Motor Group was looking at the purchase, and earlier the Geely company was named as a potential buyer.
No cash value has been given for Volvo, but it is expected that the Swedish manufacturer could fetch as much as $6 billion.