As of today, Ford has officially begun talks with an unnamed number of potential buyers for Volvo, one of its Swedish car divisons (the other beign Saab). Rumors are saying that the demand from Western based firms are not showing much interest in the brand, but several Chinese groups may be trying to obtain it. The same company that makes the Geely GT may soon be producing Volvo S60’s!

It’s hardly surprising that Chinese firms are interested in purchasing Volvo for an amount close to $1.2 billion, as the popular brands over in China are very different than in the US. While most people would not give a second look at a Buick Riviera in the States, Buick is considered to be a very respectable marquee in China. 

Losing Volvo would be a shame, as their cars have always been well built and have interesting features; the Volvo XC90 has an indicator that alerts drivers when other cars may be tucked away in blind spots to the side. Of course, their reputation for safety has helped convince countless mothers to choose Volvo as transportation for newly licensed teen drivers. Of course, there is also a cult following for some of the older wagon models such as the 240DL, which has a large engine bay that begs for a turbocharged LS1 engine swap!

One problem that has always plagued Volvo (and Saab) is their pricing versus prestige factor. While most Volvo and Saab models will cost as much as (or more) than a BMW 3 series or Mercedes Benz C Class, a Swedish car just doesn’t have the wow factor to back up the pricetag. I have never seen a Volvo as the star of a rap music video.

However, the sale of Volvo would not be all bad news; it would enable Ford to go farther with their “One Ford” plan that is proposed to save the company. In a nutshell, Ford enthusiasts would finally get what they have been begging for many years: Ford will start bringing over their European models that have received rave reviews. This is projected to increase sales while reducing the need to do R&D for two separate model lines, USA and the world. So we can expect to see the European Ford Fiesta to hit the streets of the US as the Ford Focus pretty soon.

Ending on a note about Volvo: Ford announced that they will be unveiling their master plan for the Volvo in December of this year, so we have quite a while to wait.