Report: Ford's On-Again, Off-Again Sale Of Volvo Is On - Summer Sale Scheduled

[Perian]

Link: http://www.thebusiness.co.uk/the-mag...of-volvo.thtml

FORD, the American car giant, is secretly planning the $6bn sale of Volvo, its loss-making Swedish brand, for the summer.

The Business understands Ford is determined to press ahead with the sale despite recent comments that it would hold on to Volvo for now and take it upmarket. A sale would complete Ford’s strategy of disposing of overseas brands to focus on its core American operations.

A senior banker familiar with the situation said Ford intends to start work on the auction shortly after it completes the £1bn-plus deal to offload Jaguar and Land Rover, its West Midlands-based luxury marques. A deal with Tata, the Indian conglomerate, should be completed in the next few weeks.

The banker said that Ford had publicly played down the possibility of selling Volvo as executives grew “fed-up and tired” of speculation over the marque’s future.

Article continues at link.

[Perian]

Sad.

I was hoping Ford would keep Volvo.

So much potential - lost in the dollar conversion.

How about building Volvo's in one of the soon-to-be closed Ford plants? The new UAW agreement could make it possible.

[agman25]

Ford is going back to it's roots. Great cars's for everyman. Nobody can really predict what long term effect selling PAG will have on the bottom line but it will definitely help Ford focus on what Ford is about. That can't be bad.

[Greg Burr]

I did hear early one morning on the radio in LA last July that the Financial Times reported that Volvo was sold and that the formal announcement was to be made later.

Saw no further mention in the media until now.

If Ford does this, then it is freer to make Mercury the upscale brand, hopefully with Ford of Europe's offerings, instead of a purveyor of rebadged Fords.

[Quickening]

So we are left with Ford, Mercury (basically dead), Lincoln (equivalent to Buick) and Mazda.

:/

[johnny smallblock]

As Greg Burr said, let Mercury sell Euro Fords at higher prices.

Then you can move Lincoln to an American luxury position...and hope the 2 don't trip over each other trying to reach the same customer.

[Hitman1970]

Originally Posted by Quickening

So we are left with Ford, Mercury (basically dead), Lincoln (equivalent to Buick) and Mazda.

:/

Hopefully these sales will give Ford the necessary capital to change that spot-on assessment of the brands.

[1931Chevy]

All i can say is that the media doesnt have anything good to report so they come to this speculations like the one of Ford and Chrysler merging

[domijj]

Originally Posted by Quickening

So we are left with Ford, Mercury (basically dead), Lincoln (equivalent to Buick) and Mazda.

:/

Well, hopefully they can then focus on their core brands, restore them to profitability, and most importantly make some great products again. When I think of Ford I get the image of very low quality products and bland styling. When I think of Mercury I think of an upscale Ford done right. When I think of Lincoln I don't think of luxury; I think of high depreciation, generic (ugly) styling, and geriatricness.

[ohmywrd8]

Everything Ford does is lackluster and they can't do anything. They couldn't even make a decent midsized car without Mazda. The new Ford Taurus is a Volvo underneath. Ford couldn't make it the safest car or whatever without Volvo technology. If they are just tired of speculation as to what to do with it, then they are lazy *******s. They don't want to put any thought into trying to make it work so they are just going to get rid of it. Even if they have more cash in store, the lackluster product is going to continue. Everything they make is only half good. They probably get tired of engineering a car when they are half way through. Whatever, it's just Ford trash. Volvo was a good investment and it's another buyout that for screwed up.

[genjy]

I hope BMW would buy Volvo.

BMW would then have a premium family car division, a sporty luxury division, and an affordable small car division.

[Hotspur]

Selling Volvo is an act of desperation. Ford certainly is in deep financial trouble.

Volvo will survive and grow. Will Ford??

[crooner214]

I understand they need the money, but I think this is a very bad idea. Jaguar and Land Rover need to go, but this is a mistake.

Then again, it seems to me Ford has been nothing but mistakes lately...

[1931Chevy]

what the heck you all talking about, when Ford makes and official announcement then I would comment on the stupid move but you all making gloom and doom theories in something that might not happen

[BrickTamland]

I was sure hoping Ford would keep Volvo, but my resolve is melting under this news. Too bad.