Whoever fails to win the bidding war for GM's Opel division (Canadian supplier Magna International and investment group RHJ are the contenders at this point) may receive a consolation prize from another American automaker. According to some reports, Ford is planning on inviting the loser to take a crack at its Volvo subsidiary.
According to the Wall Street Journal, which cited a source close to the Volvo talks, Ford is slowing down the bidding process for Volvo in order to wait for the outcome of the Opel situation. The Blue Oval reportedly thinks it can get a sweeter deal by increasing the number of bidders for Volvo.
"Expect nothing to happen for another three to four works" while Ford waits for GM to finalize an Opel buyer, the person said.
Ford officially put Volvo up for sale in December, and has seen interest from several Chinese groups, including Chongqing, Chery, Geely, and BAIC, a recent dropout from the Opel bidding. It was reported earlier that BAIC's bid for Volvo was supported by the Chinese government, which controls the company. According to the Journal's source, the remaining bidders are BAIC, Geely, and at least one "western industrial group."
Ford CFO Lewis Booth told reporters last week that the automaker was still in talks with a number of parties on Volvo. If these rumors prove true, perhaps Magna or RHJ will be added to the list of bidders as well.
Source: Reuters