BMW: we'd like to buy Volvo
05-10-07, 07:27 AM
#1
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BMW: we'd like to buy Volvo
09 May 2007
BMW seriously considered launching a takeover bid for Volvo earlier this year, Autocar can reveal.
The Bavarian car maker requested a complete breakdown of Volvo’s financial position from a European investment bank, which is handling enquiries on behalf of Volvo’s owners Ford.
Sources also revealed that BMW had earlier looked at Alfa Romeo as a possible takeover target.
Industry experts have told Autocar that BMW is considering expanding its range of brands to aid the company’s future growth as well as underpinning its front-wheel-drive Mini division by greatly expanding its output.
It’s thought some company bosses saw Volvo as a global brand complimentary to BMW that still has considerable scope for growth. While BMW will always emphasise driving pleasure, Volvo would add safety and environmental concerns to the mix.
Although BMW’s outline plan isn’t known, it’s likely that the larger saloon and estate models would have eventually switched to BMW platforms offering both rear- and four-wheel drive.
The smaller cars in Volvo’s range would have remained front-drive and would probably been merged with an enlarged Mini family.
In fact, it is the future of the Mini brand that is causing BMW a considerable headache. It has been forced to make major investments by redesigning the new Mini, as well as engineering the Mini Clubman estate.
Mini sales are still down on their 2005 peak, and BMW insiders acknowledge that a total annual output of 250,000 to 270,000 cars is not enough to secure a profitable long-term future for the Mini brand.
Potentially, BMW could have built its proposed large five-door Mini and Mini SUV on the same front-drive chassis as a future S40 and V50.
An annual output of 500,000 upmarket Volvo and Mini front-drive cars would have ensured long-term profitability
The news that BMW is again seriously considering a buy-out of a major car maker will come as shock to the industry.
Seven years ago BMW was humiliated when massive losses forced it to break up and sell off the Rover Group, which it had bought back in 1994.
Hilton Holloway
BMW seriously considered launching a takeover bid for Volvo earlier this year, Autocar can reveal.
The Bavarian car maker requested a complete breakdown of Volvo’s financial position from a European investment bank, which is handling enquiries on behalf of Volvo’s owners Ford.
Sources also revealed that BMW had earlier looked at Alfa Romeo as a possible takeover target.
Industry experts have told Autocar that BMW is considering expanding its range of brands to aid the company’s future growth as well as underpinning its front-wheel-drive Mini division by greatly expanding its output.
It’s thought some company bosses saw Volvo as a global brand complimentary to BMW that still has considerable scope for growth. While BMW will always emphasise driving pleasure, Volvo would add safety and environmental concerns to the mix.
Although BMW’s outline plan isn’t known, it’s likely that the larger saloon and estate models would have eventually switched to BMW platforms offering both rear- and four-wheel drive.
The smaller cars in Volvo’s range would have remained front-drive and would probably been merged with an enlarged Mini family.
In fact, it is the future of the Mini brand that is causing BMW a considerable headache. It has been forced to make major investments by redesigning the new Mini, as well as engineering the Mini Clubman estate.
Mini sales are still down on their 2005 peak, and BMW insiders acknowledge that a total annual output of 250,000 to 270,000 cars is not enough to secure a profitable long-term future for the Mini brand.
Potentially, BMW could have built its proposed large five-door Mini and Mini SUV on the same front-drive chassis as a future S40 and V50.
An annual output of 500,000 upmarket Volvo and Mini front-drive cars would have ensured long-term profitability
The news that BMW is again seriously considering a buy-out of a major car maker will come as shock to the industry.
Seven years ago BMW was humiliated when massive losses forced it to break up and sell off the Rover Group, which it had bought back in 1994.
Hilton Holloway
05-10-07, 08:48 AM
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BMW prides itself on being an "independent" automaker. If they actually do buy Volvo, it may backfire on them. Not saying it will be a bad merger, in fact it will probably be a decent synergy, but BMW's pride and reputation could take a bit of a hit.
Perhaps a revival of the Volvo T series? BMW definately has the motors and the chassis to make the T series shine.. Affordable alternative to BMW M..
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05-10-07, 11:58 AM
#8
Lexus Test Driver
Volvo already has the R-series, although sales weren't what they expected.
I kind of like where Volvo is now... if they were as reliable as japanese cars, I'd seriously consider buying another one. Although merging with BMW would probably help their chassis dynamics a lot. Please no iDrive though (and yes, i've tried one out... learned it... and still do not care for it).
I kind of like where Volvo is now... if they were as reliable as japanese cars, I'd seriously consider buying another one. Although merging with BMW would probably help their chassis dynamics a lot. Please no iDrive though (and yes, i've tried one out... learned it... and still do not care for it).
05-10-07, 12:01 PM
#9
Huh? I suppose it's kinda like Toyota and Subaru but Volvo has a long and proud tradition of safety and engineering. At first glance, the stylistic approaches and philosophies of Volvo and BMW do not match.
05-10-07, 01:26 PM
#10
Lexus Champion
It could be a good move for them - a way to introduce a more practical and value oriented brand into their lineup.
Granted to me it makes more sense for the areas where BMW is only an upmarket brand. In Europe and other areas where BMWs are sold that are reasonably priced... it makes less sense to me, at least as they two companies stand now - but that could always be changed after the purchase.
PS- the title of this thread made be think of wheel or fortune "I'd like to buy a Vowel"
You should have put "BMW: I'd like to buy a V...olvo"
Granted to me it makes more sense for the areas where BMW is only an upmarket brand. In Europe and other areas where BMWs are sold that are reasonably priced... it makes less sense to me, at least as they two companies stand now - but that could always be changed after the purchase.
PS- the title of this thread made be think of wheel or fortune "I'd like to buy a Vowel"
You should have put "BMW: I'd like to buy a V...olvo"
05-10-07, 01:56 PM
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05-10-07, 03:06 PM
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Hmmm...well they bought Land Rover, aquired the 4 wheel drive technology to create the X3 and X5 and then sold it on again for a profit of over $1 billion - so if they can repeat that sort of success they'd be mad not to.
05-11-07, 04:06 AM
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Check your facts again, my friend! They did get to keep Mini but sold the Rover Group for a LOSS of over $1B.