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.
Source: Autoblog.it
