Ford Motor Corporation has denied reports that it's selling its Swedish-based unit and further stated that it's not in any way negotiating with anyone to sell Volvo.
According to reports on Sunday Times and New York Times quoting unnamed source said that Ford has decided to consider possible offers for Volvo. But Ford spokesman Tom Hoyt denies the reports and said that the automaker is not involved in any such talks. He said, "To my knowledge, we are not in negotiations with anyone about the future of Volvo."
It was last August that Ford has announced that it was exploring possible sale options for its Aston Martin luxury sports car brand which it was able to sell March of this year. The automaker has also left sales possibilities for the other Premier brands open of which include Volvo (also maker of quality ).
David Cole an auto analyst said that if the cash problem of Ford worsens it may end up selling Volvo as a desperate measure. It can be remembered that Ford purchased Volvo from Sweden's Volvo AB in the year 1999 for $6.45 billion.
Mark Fields, Ford's President of the Americas has told Free Press, "Volvo is pretty integrated into Ford right now." Mr. Fields is now leading the North American turnaround plan of Ford. He is also previously led the premier Automotive Group overseeing Jaguar, Land Rover, and Volvo.
After the sale of the ultra-luxury Aston Martin brand for $848 Million last May, Ford is now considering selling options of its other PAG brands in order to raise additional fund to support its turnaround plan. Ford's Way Forward plan aims to shutdown 16 plants, cutoff 44,000 jobs, and the revamp the company's lineups of Ford, Mercury, and Lincoln in hope of helping the company regain financial health in 2009.
Ford CEO Mulally in an interview with Free Press said that a review of the role of Jaguar and Land Rover will have in Ford's portfolio and future will be known very soon. CEO Mulally further said, "Any good business continually reviews its portfolio." According to analysts particularly from Citigroup, those two brands can obtain for Ford as much as $8 billion.
Fields also pointed out the fact that Ford is currently working to merge Volvo's operations with that of Ford's for the past five years or so especially since the Detroit-based automaker would like to be known as a safety leader. But then according to Mr. Fields, "At the end of the day, you have to do what is right for the business."
