Ford may consider possible sale of Volvo Car
Ford might re-evaluate strategic options for Volvo to cope with the decline in the global auto industry
Ford Motor has announced that it will re-evaluate strategic options for Volvo Car, including its possible sale.
According to Ford, the decision to re-evaluate strategic options for Volvo comes in response to the significant decline in the global auto industry, particularly in the past three months and the economic instability worldwide.
Ford has said that the strategic review of Volvo is in line with a broad range of actions it is taking to strengthen its balance sheet and ensure it has the resources to implement its product-led transformation plan. The review likely will take several months to complete.
In the meantime, Ford will continue working closely with Volvo as it implements its restructuring plan. At the same time, Ford and Volvo will continue to put in place processes that allow Volvo to operate on a more stand-alone basis in the absence of the Premier Automotive Group structure, an effort which began in November 2007 following a previous review by Ford of strategic options for Volvo.
Alan Mulally, president and CEO of Ford, said: 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.
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