7.31Beijing Auto set to bid for Ford's Volvo unit

Beijing Auto set to bid for Ford's Volvo unit

 

http://autonews.gasgoo.com/auto-news/1011545/Beijing-Auto-set-to-bid-for-For
d-s-Volvo-unit.html

 

Shanghai, July 31 (Gasgoo.com) Ford Motor has slowed the bidding process for
its Volvo unit in an effort to get a better price for the Swedish car brand,
and Beijing Auto is set for the Volvo bidding after failing in the Opel buy
last week, sina.com said today.

 

Sources said Ford has decided to wait for General Motors to wrap up the sale
of its Opel unit in Germany, and is hoping to invite a loser in that two-way
bidding race to bid for Volvo. GM is likely to finalize an Opel buyer in
three to four weeks.

 

Three players are potential bidders for Volvo: A group led by China's Geely
Holding Group, Beijing Automotive Industry Holding Corp (BAIC) and a group
of investors based in Europe. The three were supposed to submit final bids
for Volvo in mid-July, and Ford had intended to choose a buyer relatively
quickly.

 

Beijing Auto, which also had been bidding for Opel and its British sister
brand, Vauxhall, dropped out of that race on July 24 because of issues
involving intellectual property rights. That development prompted Ford to
alter its schedule for the Volvo sale.

 

Ford has decided to slow the bidding process to ratchet up competition and
try to get "the best possible price" for Volvo. Ford is "looking for the
best buyer and most socially acceptable buyer possible," sources said.

 

Beijing Auto is expected to go after Volvo more aggressively now that it
pulled out of the Opel race. Ford also wants Magna or RHJ -- whichever fails
to buy Opel -- to also take part in the Volvo bidding.

 

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