Renault, AB Volvo eyeing Ford's Volvo Cars: paper

STOCKHOLM (Reuters) - France's Renault (RENA.PA: Quote, Profile, Research) and Swedish truck maker AB Volvo (VOLVb.ST: Quote, Profile, Research) are interested in buying auto maker Volvo Cars from Ford Motor Co. (F.N: Quote, Profile, Research), business daily Dagens Industri reported, citing undisclosed sources.

World number two truck maker AB Volvo, which sold its autos unit to Ford almost a decade ago, would be likely to take a minority stake in Volvo Cars of around 10-20 percent, the newspaper reported.

Analysts were doubtful, saying such a move made little industrial sense for AB Volvo.

"This looks like a bad solution for Volvo's shareholders as there is no real industrial logic in buying a stake (in Volvo Cars) ... I think it would be very strange if they would take such a step", Danske Equities analyst Henrik Breum said.

Following the divestment of its auto unit in 1999, AB Volvo has mainly focused on strengthening its position in heavy-duty trucks and construction equipment, notably through the acquisition of truck makers Mack and Renault Trucks.

The acquisition of Mack and Renault Trucks from the Renault group left the French auto maker with a stake of just over 20 percent in AB Volvo.

The Gothenburg-based truck maker, which also manufactures buses, engines, construction equipment and aircraft components, has not publicly voiced any interest in returning to the auto business in recent years.

AB Volvo spokesman Marten Wikforss would not comment on the report, saying the firm never responded to rumors. Asked if the firm had any interest in acquiring an auto maker, he said: "You can just look at our current structure."

Volvo Cars spokeswoman Maria Bohlin was equally tight-lipped when asked to comment on the article.