Volvo bidding war heats up

Volvo Australia managing director, Alan Desselss, wants a quick conclusion to Volvo's sale to a new owner but he might be out of luck. While Chinese automaker Geely was announced as Ford's preferred bidder last month the latest report from news agency, Reuters, indicates that American consortium, Crown, has increased its offer.

The Crown consortium, led by former Ford director Michael Dingman, has reportedly increased its bid to match Geely's offer US$1.8billion, with financial backing from both Sweden and China. It has reportedly been encouraged by Ford to push harder to try and displace Geely.

This latest development won't be great news for Desselss. He told the Carsales Network earlier this week that getting the sale completed as soon as possible would give the brand much needed stability and security.

"For the sale to be resolved is the main thing, one way or the other, because then you know," says Desselss.

While he admits he is not involved in any of the negotiations, Desselss says the new owner -- either Geely or Crown -- must have money to invest in the brand.

"Whoever the new owner is it doesn't matter as long as they have money, cash is king," Desselss says. "That would allow Volvo to prosper."

But having said that, Desselss is confident that Geely is the right company to take control of Volvo, citing the experience of Jaguar and Land Rover under new Indian owners, Tata. He believes that investment in Volvo's established products and facilities would allow the company to continue its strong recent form. 

"Their intentions appear to be good and that can only be good for us," he says. "I think that would be a massive, massive boost for us."

Getting the deal officially signed, though, remains the priority, especially for the Volvo dealer network. And Desselss believes the takeover by a new player in the global industry is the best outcome for them.

"More than anything they want the deal to be finished so we can all move on," he says. "I think the dealers are pleased that it's not a BMW or a Renault or Nissan because that creates uncertainty, as it has before with PAG [Premier Automotive Group]."

Geely has already stated its intention to triple Volvo's annual global sales and grow the brand in its native China, where it believes it can produce 200,000 sales.

Volvo currently builds long wheelbase versions of the S80 in China for the domestic market.

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