BRUSSELS - The sale of AB Volvo's car business will force other automakers to review their strategies in Europe - particularly those volume makes trying to compete in the large-car market, analysts said.
'Ford killed its Scorpio and GM's Omega sales aren't exciting. The volume manufacturers have increasing difficulty selling in the upscale segment,' said Stephen Reitman, an analyst with Merrill Lynch in London.
'One of the pluses for Ford is that it will fill a gap in the product lineup created by ending Scorpio production last summer.
'Ford is missing products in the lower executive car arena,' said David Leggett, director of automotive forecasting at the Economist Intelligence Unit in London.
Fiat S.p.A. said it is studying 'all possible acquisitions or alliances in order to strengthen its core business activities.' Fiat admitted it had bid for Volvo.
Said Fiat in a statement: 'The sole acquisition of Volvo's automobile division did not fall into the Fiat Group's strategic plans and thus was never exclusively part of our negotiations.'