VW, Volvo in Talks, but Won’t Say More

Volkswagen, Europe’s largest car maker, has approached Volvo to discuss how they might cooperate, Volvo said, but the Swedish auto maker would not confirm a published report that the talks might lead to a merger. Both companies declined to characterize the discussions between VW Chief Executive Ferdinand Piech and Volvo Chief Executive Leif Johansson at Volvo’s headquarters. Analysts said the meeting may have been VW’s overture to buy Volvo’s profitable heavy-truck business and perhaps its passenger car unit. Piech, who has headed VW’s aggressive expansion this year with the acquisitions of Rolls-Royce Motor Cars and Lamborghini, has said he wants to enter the heavy-truck market. Volvo’s worth is estimated at about $13.7 billion. A Wall Street Journal report that the talks could lead to a merger sent VW and Volvo shares soaring. Volvo’s American depositary receipts jumped $4.13 to close at $33.69 on Nasdaq. Volkswagen’s ADRs rose $4.50 to close at $199.50 in over-the-counter trading.