Report: U.S. Group Emerges as Rival to China's Geely in Bid for Volvo
For several months Chinese automaker Geely has been touted as the front runner in the bid for Volvo, but now a U.S.-based group has emerged with a credible offer.
Calling itself the Crown consortium, the group consists of several private equity firms and is fronted by two industry experts: Michael Dingman, a former Ford director; and Shamel Rushwin who held executive positions at both Ford and Chrysler.
Crown is also seeking additional funding from Swedish investors, which it hopes will help garner favor with the Swedish car maker. It is also seen as a sign of good faith that Crown wants to keep Volvo in its native country.
Crown’s offer is, however, not as significant as Geely’s almost $2 billion bid, but in many ways dealing with the U.S. group would be easier due to the lack of Chinese government involvement. Both companies are reported to have plans that would front an additional $3 billion after their initial purchase price.
Ford is rumored to be preparing to make a choice within the next few weeks, after which it would agree to hammer out the final details of a deal with the preferred party.
[Source: Financial Times]