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Big Three Bailout: Volvo Back on the Block, Ford Says
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Enlarge PhotoWord this morning that the Swedish government was taking an interest in Saab and Volvo has been followed by an official announcement by Ford that, once again, Volvo's future is up for grabs.
In a brand-new press release, Ford says the "significant decline in the global auto industry particularly in the past three months and the severe economic instability worldwide" have led it to once again question Volvo's place in the Ford lineup. In the release, Ford says Volvo will move forward as a stand-alone company and will continue to focus on design, safety, and environmental issues.
"Volvo is a strong global brand with a proud heritage of safety and environmental responsibility and has launched an aggressive plan to right-size its operations and improve its financial results. As we conduct this review, we are committed to making the best decision for both Ford and Volvo going forward," says Ford president and CEO Alan Mulally.
Ford's giving itself a few months to work on the project--in the meantime, Volvo is set to show off the new 2010 Volvo XC60 to journalists in January and is bowing with a 2010 Volvo S60 concept at the 2009 Detroit auto show.
And before then, the Big Three head to D.C. in search of bailout money--and in search of big, showy gestures to prove to Congress that they're serious about a turnaround. Coincidence?
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Make sure you check out our partner sites dedicated to focused news, reviews and more for Ford, Chevrolet, Toyota, Honda, and the Toyota Prius.
In a brand-new press release, Ford says the "significant decline in the global auto industry particularly in the past three months and the severe economic instability worldwide" have led it to once again question Volvo's place in the Ford lineup. In the release, Ford says Volvo will move forward as a stand-alone company and will continue to focus on design, safety, and environmental issues.
"Volvo is a strong global brand with a proud heritage of safety and environmental responsibility and has launched an aggressive plan to right-size its operations and improve its financial results. As we conduct this review, we are committed to making the best decision for both Ford and Volvo going forward," says Ford president and CEO Alan Mulally.
Ford's giving itself a few months to work on the project--in the meantime, Volvo is set to show off the new 2010 Volvo XC60 to journalists in January and is bowing with a 2010 Volvo S60 concept at the 2009 Detroit auto show.
And before then, the Big Three head to D.C. in search of bailout money--and in search of big, showy gestures to prove to Congress that they're serious about a turnaround. Coincidence?
---
Make sure you check out our partner sites dedicated to focused news, reviews and more for Ford, Chevrolet, Toyota, Honda, and the Toyota Prius.
Responses (3 total)
By Reece | Posted: Dec 2nd 2008, 09:50:30 PM
Buying Volvo wasn't Ford's best decision, though not as bad as buying Jag, Land Rover and Aston MArtin (but thank god they did buy Aston Martin). Volvo is the only one they seemed to be going anywhere with ut if they are desperate for cash then this may be the best thing to do. Not sure who would buy it though in these market conditiond you would not want to be sepending too much so is there any benefit to Ford in selling if they can't get a decent price?
Sad thing Jack Nasser, an aussie, was responsible for many of the poor investments.
Wise men buy when the market is low and sell when it is high, American Auto execs pay to much at the top of the market and have to fire sell at the markets lowest point.
By R2dad | Posted: Dec 2nd 2008, 12:01:54 AM
Maybe in this case "No" means "Maybe". Look for Ford to sell Volvo for a dollar, as long as the buyer takes some debt off their hands...
By Ed | Posted: Dec 1st 2008, 04:57:05 PM
As with the ill-conceived purchase of Jaguar, FOrd's purchase of Volvo developed into a full-fledged disaster. Ford poured Billions and Billions into Jaguar, only to have it sold for a piece of bread to some third-world auto illiterates, under whose mismanagement Jaguar is doing even worse.
VOlvo, remarkably, is NOT wanted even in Sweden! Volvo told Ford it is NOT interested in repurchasing from Ford the Volvo CAR division, even on pennies on the $ it received when it sold that turkey to Ford.
Great Job, MORON CEOS at Ford!
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