Volvo Going To China Too? - Just British
Ford is in talks with the Shanghai Automotive Industry Corporation, China’s biggest car-maker, in a desperate attempt to sell its prestigious Volvo brand. A source close to the American motor giant said it recently made a second approach to SAIC, which already owns the rights to the MG car marque. Earlier talks in the summer faltered over price. Ford, which bought Volvo for £4.4billion in 1999, is said to be hoping the sale will fetch £4 billion. The disposal would send an important signal to the US Congress that Ford is taking major action to restructure its business in return for a massive cash injection. ‘Now that Ford is in dire straits this would be a good opportunity for SAIC to snap up Volvo on the cheap,’ said the source. ‘The price has dropped considerably since seeking a sale in [...]