Who Should Buy Volvo?

As we reported earlier today, Ford is officially looking to sell Volvo, the last piece of the Premier Auto Group. In a better economy we suspect parting with Volvo wouldn't be so easy, but the $4.4 billion the company is probably worth is a nice chunk of much-needed cash for the automaker and, equally as important, it would be beneficial for Ford to subtract Volvo's losses from their overall quarterly performance. Who could buy the Swedish brand? Chinese company Chery expressed interest but may not have enough capital to acquire the automaker. Ratan Tata could make a move but, if he was interested, he'd have probably tried for the brand the first time. Who does that leave?

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The original bidding war took place between Volkswagen AG, Fiat and Ford, with Detroit winning the prize. VW has an embarrassment of riches when it comes to brands and doesn't need any help enhancing its presence in North America. Fiat, on the other hand, has been looking for a cheap way to get more mainstream products to the US and Volvo could be a better bridge than Chrysler, which has been rumored to be in talks with the Italian automaker. We think selling Alfa Romeo Breras and Fiat 500s next to XC60s could make more sense than selling them next to than F430s so we wouldn't be surprised to see the Italian company make some entreaties to Ford.

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