GO
Loading...

Ford Has Had Talks With Renault to Sell Volvo: Sources

Ford Motorhas had exploratory talks with French automaker Renault to sell Volvo, but the initial talks broke down due to price differences, sources familiar with the matter told Reuters.

AP

The two parties have spoken again after their initial discussions, which were held last fall, the sources said.

Ford has also had talks with China's third-largest automaker, Dongfeng Motor Group, as a potential partner for Volvo, one of the sources said.

Ford spokesman Mark Truby declined to comment directly on the report, but said: "We announced earlier this year that Volvo is not for sale and that we are focused on improving Volvo's business results."

Even though Ford has said it has no plans to sell Volvo, the automaker has been having informal talks with interested parties, the sources said.

Dongfeng already has a joint venture with Nissan Motor Co , in which Renault owns a 44 percent stake.

The Chinese automaker has been making a push into an expansion of its passenger car and light truck line-up. The Hubei-based company has its roots in building trucks and commercial buses.

Ford does not break out results for Volvo, a Swedish brand it bought for $6.45 billion in 1999. But it has said the unit had lost money in 2007 and it wrote down the value of Volvo by $2.4 billion following a review of the brand's prospects in January.

Ford in March said it was developing a plan that would help Volvo operate on "a more stand-alone basis."

Symbol
Price
 
Change
%Change
F
---

Featured

Contact Autos

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    › Learn More