Some reports indicate that Volvo rejected DaimlerChrysler's offer, saying it wasn't high enough. The reported asking price is $20.8 billion; one report indicates an offer from DaimlerChrysler of $4 billion less than that.
Both companies refuse to comment on the possible merger, saying they would not comment on speculation.
Volvo sold its passenger car division to Ford early this year for $5.8 billion, leaving it to concentrate on its heavy truck, bus, construction equipment and other divisions. It also has been buying stock in competitive truck maker Scania, but has been unable to take over the company.