BMW considered Volvo takeover

Zafiro

Supreme Roadmaster

• May 9, 2007

• #1

BMW taking over Volvo? The idea isn’t as far fetched as it sounds. Recent reports have revealed that BMW executives have been evaluating a possible takeover of Volvo from Ford’s Premier Auto Group and have even go so far as to request copies of Volvo’s financial statements from a European investment bank. Other brands on BMW’s radar include Alfa Romeo, which BMW hopes to acquire to help promote future growth opportunities.

Like BMW, Volvo is regarded as a global brand but has a lot of potential for growth. BMW has always skewed its promotions towards the performance oriented crowds but has never done well in the safety and environmental stakes, something it could capitalize on with a brand like Volvo.

If any takeover goes ahead we could be seeing Volvo’s next generation saloons and estates sharing platforms with BMW’s lineup. Further, Volvo’s smaller car lineup could also benefit from technology shared with BMW’s Mini, another brand that executives are hoping to expand.

However, BMW would be treading very cautiously. Seven years ago it suffered the embarrassment of massive financial losses when its venture with the Rover Group fell though in 1994, a mistake it can’t afford to repeat.

Autocar - BMW: we'd like to buy Volvo

 

D

Deleted member 25

• May 9, 2007

• #2

Alfa bid considered ? It smells the BS.

 

Zonda

Autotechnik Ace

• May 9, 2007

• #3

I would've loved if BMW bought Volvo. Maybe then we could've seen more R models or maybe even RWD ones
Aquiring Alfo would be great too, some Alfa design can never be bad

 

Giannis

Staff member

• May 9, 2007

• #4

I am dreaming, this can't be true

Seriously speaking folks, such a takeover will help both BMW and Volvo much more than we can think of. Imagine safer and "greener" BMWs and performance Volvos. This will be the heaven...

I can dream myself driving an RWD S60

 

Zonda

Autotechnik Ace

• May 9, 2007

• #5

^^ Awsomeness.

Indeed, I think both companies would benefit from this. Volvo would also get the "BMW Quailty Stamp".

 

bmer

Tire Trailblazer

• May 9, 2007

• #6

Volvo and Alfa are just for starters. I'm sure BMW will also buy Jaguar, Saab and Honda. Finally they will merge with PSA and Renault-Nissan...

 

I

Imhotep Evil

Torque Titan

• May 9, 2007

• #7

The last time they tried to buy Volvo, I belive, the swedish goverment interviened to stop it.

Or was that Saab ?!

 

wltsm

Torque Titan

• May 9, 2007

• #8

Well I never expected to be reading this!

To me Volvo and BMW are selling the same kind of cars, although volvos are cheaper.

The S40 is like the 3er, and S60/80 are like the 5er, seems a bit close to me. I would have said BMW would have been better off buying brands, where the BMW brand can't go, like a supercar brand, which is why I wanted them to buy Aston Martin! Not sure what Alfa would bring them them either, but BMW would bring a lot to Alfa!

Lets see what happens!

 

siko

Tire Trailblazer

• May 9, 2007

• #9

Since is not a mamouth company, I don't want it to spread itself too thin and lose focus on their core products (look what the Chrysler merger did to MB's reliability... and Daimler has much more resources).

So I would be against this take over. My 2 cents.

 

Giannis

Staff member

• May 9, 2007

• #10

I.E. said:

The last time they tried to buy Volvo, I belive, the swedish goverment interviened to stop it.

Or was that Saab ?!

Click to expand...

I don't really get what you say...

 

D

Deleted member 25

• May 9, 2007

• #11

Imhotep Evil said:

The last time they tried to buy Volvo, I belive, the swedish goverment interviened to stop it.

Or was that Saab ?!

Click to expand...

From what i remember, it was renault who tried aquire volvo, but the swedish side stopped the operaton at the last moment.

 

Deutsch

Tire Trailblazer

• May 9, 2007

• #12

I say do it! Sure there would be some product overlap, but minimal since Volvo believes FWD is the way to go safety wise. If BMW is serious about expanding the Mini brand and not sharing components w/ RWD BMW's and FWD Mini's, this venture would yield a great business opportunity. Not only that, but at long last Volvo's might have a chance at becoming "fun" to drive (major improvement on my "new" '03 S60 2.4T Sport vs. my base '01... more on that later ). Volvo and BMW are two brands that I've been an admirer of since I was a kid, so this is welcomed news. While this may not happen, I don't see Volvo in the hands of Ford forever, that's for darn sure.

 

EnI

Piston Pioneer

• May 9, 2007

• #13

Yep, BMW are looking into future ...

http://www.germancarforum.com/autom...ng-future-strategic-plans-new-m-possible.html

 

Deutsch

Tire Trailblazer

• May 9, 2007

• #14

EnI said:

Yep, BMW are looking into future ...

http://www.germancarforum.com/autom...ng-future-strategic-plans-new-m-possible.html

Click to expand...

So how soon do you think BMW will make a decision on a possible acquisition? Would love to hear Scott's thoughts??

 

I

Imhotep Evil

Torque Titan

• May 9, 2007

• #15

OK Eni, so now SCOTT, know anything ?!

 

Deutsch

Tire Trailblazer

• May 9, 2007

• #16

siko said:

Since is not a mamouth company, I don't want it to spread itself too thin and lose focus on their core products (look what the Chrysler merger did to MB's reliability... and Daimler has much more resources).

So I would be against this take over. My 2 cents.

Click to expand...

Remember that Chrysler had more weaknesses than strengths when it was purchased by Daimler Benz, and that's still very much the case and hence the reason DB is dumping the merger. The contrary is the case for Volvo, Volvo has only gained momentum and has improved upon existing strengths in what they do. I could really see Volvo benefiting hugely from a BMW takeover, at the same time I only see a marginal benefit for BMW itself, but for Mini such an event would be great.

 

EnI

Piston Pioneer

• May 9, 2007

• #17

Deutsch said:

So how soon do you think BMW will make a decision on a possible acquisition? Would love to hear Scott's thoughts??

Click to expand...

As you can see some target monitoring is already in progress. There are still the first phase going on: locating targets. Checking organizational, operational & financial status. Then Supervisory Board will get reports & suggestions, and made a decision which brands to target - and to approach the current owners of targeted brands.

This is not the first time BMW are doing this. They have done that in late 80's & early 90's already: approaching Porsche, RR/Bentley, Land Rover & Mini owners & offering buying out these brands. But owners of those respective brands weren't interested.

History is repeating.

 

bmer

Tire Trailblazer

• May 9, 2007

• #18

EnI said:

History is repeating.

Click to expand...

I hope not...(Rover)

 

I

Imhotep Evil

Torque Titan

• May 9, 2007

• #19

bmer said:

I hope not...(Rover)

Click to expand...

Me neither.

 

EnI

Piston Pioneer

• May 9, 2007

• #20

bmer said:

I hope not...(Rover)

Click to expand...

No, no, no ...

BMW are determined to buy a healthy company only - no more sick patients. Brands like Volvo, Saab, Alfa Romeo, Lancia are perfect targets - semi-premium brands with history & good recognition,

If no acquisition will be possible BMW will be forced to expand MINI product line - but nobody wants that since that will hurt iconic MINI brand (mind MINI is a lifestyle product / brand).

Another possibility is reviving some other brand BMW still own: Riley or Triumph. But in this case marketing (launching a completely new brand), production (expanding facilities) & R&D costs (large FWD platforms) will be enormous - but so would be acquisition costs in case of Volvo / Saab etc takeover.

I personally am a big fan of Triumph brand name. It would be great to revive Triumph brand - and position it against Volvo, Alfa, Saab, etc.