#1 Ford Confirms Talks to Sell Volvo
03-25-2009, 07:54 PM
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- Jan 2009
- Central Florida
Ford confirms talks on Volvo sale
Ford has confirmed it is in talks with "a number of parties" regarding the sale of its Swedish subsidiary Volvo.
The US giant said it was pleased with both the number and "quality" of those who had expressed an interest, but did not reveal any names.
Ford is seeking to offload loss-making Volvo as it continues efforts to turnaround its own fortunes.
In 2008 Ford made its biggest ever annual loss, despite selling Jaguar and Land Rover for $2.3bn (£1.15bn).
Those two UK-based brands were bought by India's Tata Motors.
According to reports in Sweden, a number of Chinese firms are interested in buying Volvo.
These are said to include Chery Automobile, Dongfeng Motor Group and Chongqing Changan Automobile.
"Ford is now talking in more detail to these interested parties about the future for Volvo," said a spokesman.
Volvo made a loss of $736m in the last three months of 2008, while Ford's overall loss for the whole year totalled $14.6bn.
Volvo and fellow Swede carmaker Saab were given 28bn kronor (£2.3bn, $3.5bn) from the Swedish government in December.
Saab is owned by GM, which already recent said it was in talks to sell the business.
[snip]"Because we're a great nation, our challenges seem complex; it will always be this way. But as long as we remember our first principals and believe in ourselves, the future will always be ours." -Reagan
03-26-2009, 08:51 AM
Ford needs to get rid of it's excess baggage, and this is a good way to do so.
I think Ford will survive this time. Mullaley came in before the current problems and was already in the process of taking some extreme steps to save the company, that's why Ford didn't need the cash bailout, just the backing of it's credit.
I'm not so sure about GM and Chrysler.
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