It was denied by GM that besides the Hummer it was not selling any of its brands, but the global financial crisis and rough market conditions are bringing grave pressures to put up with. Quite lately, Ford has made public that it is opening up contemplation of 'strategic options' for its Volvo brand, overturning several disavowals that the brand would be put up for sale.
Reports lately say that both car manufacturers have approached the Swedish government to appeal for assistance for Saab and Volvo. Initially, the appeal for Swedish aid reflects the moves of Ford and GM in Washington, D.C., but upon nearer investigation, it is about topping up the cash reserves at Saab and Volvo more than anything else.
The Financial Times reported that the application for assistance is being made in preparation for sale, making their books look attractive customers, which stand was made tougher by today's announcement by Ford. "
Given the unprecedented external challenges facing Ford and the entire industry, it is prudent for Ford to evaluate options for Volvo as we implement our ONE Ford plan," said Alan Mulally, Ford President and CEO. Particularly, the sale of Volvo is being contemplated as Volvo's CEO, Stephen Odell, attempts to create a tougher balance sheet and a more independent position for Volvo inside the Premier Automotive Group (PAG).
Contacts for the Swedish assistance were reportedly made via Volvo CEO Odell, and Jan-Ake Jonsson, managing director of Saab, to Maud Olofsson, the industry minister of Sweden, and other top-ranking officials. The appeal are being considered, Sweden is contemplating of allocating about $247 million to the two manufacturers, either via direct aid or loan guarantees, with more possibilities in view.