Ford pays special attention to selling the Volvo brand nameplate, as it was for them to spend time with money. They are currently negotiating with applicants from the United States and are working to narrow the negotiations to one potential buyer. The Crown group, led by Michael Dinman (Michael Dingman), the former director of Ford (from 1981 to 2002), his son James Dinman and Chamel Rushvin, the former head of production and labor for the automaker, is currently the leader in buying Volvo. Ford managed to become the only major American automaker that avoided bankruptcy. They are working to make themselves slimmer, shedding international luxury lines to focus on their own iconic products, believing that by 2011 it will be profitable again.
The crown, which entered into negotiations with Ford about two months ago, offered less than two billion to Geely Holding Group Co. Volvo has not lost its favor as a brand, it still has its loyalists and still has a good name, sales just stalled. This company can and will be successful if it is acquired by a company that allows people who know Volvo to do what they do best. Crown is working to achieve this goal, trying to attract former Volvo executives as fair partners. Those sought after include Roger Holtbak, who was the CEO of the Swedish automaker in the late 1980s.
Ford is hiring to complete negotiations and complete a successful sale during this quarter. They can narrow the list of bidders to one in just a couple of weeks. Geely is currently the largest privately owned automaker in China, and is currently the most likely winner of bidding at the start of trading, which began more than a year ago. Everyone at Ford, Crown and Geely is quiet about the negotiation process and how they can go. Ford will continue to be the supplier of engines and other components for Volvo, which protects its intellectual property in negotiations.
Ford must be very careful about intellectual property, but it is quite difficult. You may be so closed up with regard to intellectual property that you will eventually damage the product and damage the relationship with automakers who take the Volvo nameplate. Negotiations include obligations for obligations such as pensions. Ford wants to sell Volvo about 2 billion dollars. This is less than a third of what the automaker paid for the nameplate ten years ago. Ford had a “pre-tax” loss of 231 million in the second quarter compared with 120 million lost in the entire previous year. Investors seem pleased with Ford’s decision, as Ford’s stocks rose 0.21 cents to $ 7.05 in mixed trading on the New York Stock Exchange. I am sure that we will see some upcoming changes in Volvo after the new ownership takes effect and starts investing money and ideas in this old standard.
