Earlier this month, Autocar reported that BMW had expressed significant interest in buying the Volvo brand from Ford Motor Company early in 2007. The report claimed BMW had gone so far as to request financial data about the Swedish automaker.

Yesterday, the Swedish newspaper Goteborgs Posten threw another logo on this rumor’s fire by reporting that sources within Ford have confirmed that BMW is exploring the possibility of purchasing Volvo. Another source has even claimed BMW and Ford have already begun informal talks.

Our previous post already touched on all the questions that need answering, including why BMW, which became the go-it-alone automaker after owning Land Rover left a bad taste in its mouth, would jump back into the ownership game. Also, while BMW and Volvo have distinct identities (the Ultimate Driving Machine versus the ultimate safety machine), there would at least be some overlap in their respective lineups.

Finally, while Ford has stated that nothing is sacred when it comes to its Premiere Automotive Group, of which Volvo is a member, why would it sell one of PAG’s most promising brands? We have an answer for that one: Volvo’s actually worth something. While many, including Ford itself, might hate to see Volvo leave the fold, the Swedish brand would likely catch a premium price on the market and help Ford fund its turnaround.

Would a BMW/Volvo ticket capture the consumer’s heart? This armchair analyst is hardly qualified to give an answer, except to say that Volvo is a brand on the verge of some big things (C30 anyone?) and requires a patient parent company with deep enough pockets to see it through.

Thanks to everyone who sent us the tip!]

[Source: Reuters]

Don’t go getting too excited, it probably won’t mean a crate version of the S65 or N54 for Roundel fans. Running an automaker is expensive, especially a manufacturer that leans more toward niche status than casting a wide net. BMW is looking at all options for future revenue, and one of the thoughts that’s occured to the well-respected manufacturer of cars with chutzpah is to bank on its engineering chops and sell engines to other carmakers.

Lotus has pimped themselves out for years to other automakers, and the Porsche name has ended up on things like hard drives, so BMW selling their award-winning engines to gain an extra stream of return on their investment is a far less radical move. Hey, if selling their more mundane powerplants to emerging markets like India and China keeps the coffers full and awesome performers rolling our way, we’re all for it.

[Source: Motor Authority]