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Geely was previously the only automaker seriously looking to buy Volvo from Ford, but the Chinese company may now have some competition from a U.S.-led consortium.
The Crown Consortium is a U.S.-backed group led by former Ford director and turnaround specialist Michael Dingman and Shamel Rushwin, who previously held executive positions at both Ford and Chrysler. The group has fully secured financing from U.S. private equity groups, but is also looking to the Swedish government for additional funds to support one of the country’s largest car manufacturer.
Chinese automaker Geely is the Crown Consortium’s only strong competition for Volvo. Geely reportedly offered Ford around $2 billion for the struggling Swedish brand. Because of the Chinese company’s large bid, it is reportedly the frontrunner in the sale. Should negotiations between Ford and Geely falter, the Crown Consortium is the most credible alternative. A group known as the Jakob Consortium, led by the head of Volvo’s engineers’ union, Magnus Sundemo, has also shown interest in acquiring Volvo, but has had trouble raising enough financing to be considered a credible bidder.
Ford is expected to decide the fate of Volvo within the next few weeks. Exclusive negotiations would continue after the decision and will hopefully lead to a sale.
Source: Financial Times
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