WHEELIN' AND DEALIN'; FORD, VOLVO DEAL POINTS TO MORE MERGERS.Byline: Sallie L. Gaines and Jim Mateja Chicago Tribune Chicago Tribune Daily newspaper published in Chicago. The Tribune is one of the leading U.S. newspapers and long has been the dominant voice of the Midwest. Founded in 1847, it was bought in 1855 by six partners, including Joseph Medill (1823–99), who made the paper Ford Motor Co.'s decision early Thursday to pay $6.45 billion for the passenger-car business of Sweden's Volvo AB leaves several big-name players in the global automobile industry automobile industry, the business of producing and selling self-powered vehicles, including passenger cars, trucks, farm equipment, and other commercial vehicles. out on a limb. The all-cash deal is just the latest move by an aggressive Ford, which recently raised its stake in Japan's Mazda Motor Corp. to a controlling one-third. The purchase, including the Volvo brand name and several plants, fills in important niches for Ford, giving it a stronger presence in Europe as well as a broader product line. And coming on the heels of the creation of DaimlerChrysler AG, it heightens speculation that the worldwide consolidation of the auto business is far from over. But the deal leaves Italy's Fiat SpA Fiat SpA International holding company and major Italian manufacturer of automobiles, trucks, and industrial vehicles and components. In 1899 Giovanni Agnelli (1866–1945) founded the firm that was incorporated as Fiat in 1906; he led the firm until his death. , which had tried unsuccessfully to make a deal with Volvo, looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. another partner. And Japan's Nissan Motor Co. has made no secret of its desire to head to the altar. In fact, almost every recognizable automaker - including venerable European nameplates like BMW BMW in full Bayerische Motoren Werke AG German automaker. Founded as an aircraft engine manufacturer in 1916, the company assumed the name Bayerische Motoren Werke and became known for its high-speed motorcycles in the 1920s. , Citroen, Volkswagen and Renault - is on some analyst's list of likely takeover targets, even though most publicly deny interest. Regardless of which deals get done, the Ford-Volvo announcement makes it clear that consolidation in the auto industry is far from over. Whether that's good or logical is not as clear. Peter Schmidt Peter Schmidt may refer to:
the best known of several U.S. indexes of movements in price on Wall Street. [Am. Hist.: Payton, 202] See : Finance that the market has ``gone completely bananas'' by viewing bigger as better. ``Big doesn't mean successful; look what happened to the dinosaurs,'' he said. However, industry experts say several companies have logical reasons for seeking partners. ``Debt helps prompt acquisitions,'' Healy said, noting that Volvo had $6 billion in debt. In buying Volvo's car business, Ford is continuing a decades-old pattern of buying specific product lines. It bought Jaguar in 1989 to give it a spot in the luxury niche alongside its more conservative Lincoln nameplate. Ford also owns Aston-Martin. Ford already has about 10 percent of the European car market; with Volvo, that will go to nearly 14 percent. But more important, the deal gives Ford a new price point. Volvos are more expensive than Fords, but less pricey than Lincolns. CAPTION(S): Photo, Box PHOTO (Color) Jacques A. Nasser, president and chief executive of Ford Motor Co., left, and Leif Johansson, president and chief executive of Volvo AB, shake hands Thursday in front of a Volvo S-80 after the news conference announcing that Ford is buying Volvo. Bjorn Olsson/Associated Press BOX: FORD'S GLOBAL REACH EXPANDS |
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