After Volvo sale, Ford will focus on the ‘Blue Oval’ brand

Article by Christian Andrei, on August 25, 2010

The sale of Ford Motor Co.'s Volvo unit means that Ford will not have a luxury brand outside North America. While that may seem to be an unfortunate occurrence to some, analysts share the opinion that for now, Ford doesn't need such a segment.

These analysts said that they certainly would have wanted to see Volvo become integrated with Ford but then, they believe that the "Blue Oval" Ford brand would be able to sustain Ford's turnaround.

Compared to rivals General Motors Co. and Chrysler Group, which both went into bankruptcies in 2009, Ford is farther along when it comes to the overhaul of its lineup.

In 2009, Ford had a small profit and for 2009, it still expects to get a profit. It became apparent that Volvo was the casualty in Ford's intense focus on its Ford brand that caters to the mass market. CEO Alan Mulally said that it depended on the Ford brand to turn around its balance sheet.

At the Geneva Auto Show last March, Ford global marketing chief Jim Farley said that the company's focus is really only on the Blue Oval.

Farley explained that while there's a chance for Lincoln and Mercury to achieve more than Ford ever has on the premium aspect of the business, the carmaker has only just started in developing the Ford brand portfolio globally.

Farley explained that Ford's strategy is not aimed at creating "a globalized Infiniti or a globalized Lexus." Farley clarified that instead, Ford wants to get to the point where it will have fully realized its capability as a brand.

Topics: volvo, ford

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