Ford considers selling Volvo

Article by Christian A., on August 25, 2008

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.

If you liked the article, share on:

Topics: ford, volvo

Comments

Recommended

The Chevrolet Corvette will be turning 65 years old in 2018, and as part of the celebrations, the brand is introducing a special edition C7 – the Chevrolet Corvette Carbon...
by - November 19, 2017
Tesla revealed that with its new Semi, truck drivers can expect better experience especially with heightened safety and the lower cost of transporting cargo. Indeed, the cabin of the new...
by - November 19, 2017
November 17 is considered a very special day for Tesla, as this is the day that they revealed the highly anticipated Tesla Semi. But Elon Musk did not think the...
by - November 17, 2017
More details have emerged about the new sixth generation of the BMW M3 just as the German premium practically announced the end of the current-gen 3 Series with the unveiling...
by - November 17, 2017
All is set for Volkswagen’s plans to enter the electric vehicle game, as prompted by the so-called Dieselgate scandal. In fact, the German carmaker has already made a commitment to...
by - November 17, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries