Ford not interested in selling Volvo
It's just plain difficult to follow Ford Motor Company lately, as there seems to be more rumors about the embattled American icon than any other automaker. On any given day, all, some, or none of the Premiere Automotive Group could be for sale, and everyone from Renault to Hyundai, even the Russians, could be the most interested suitors.
In the past couple weeks, a sale of Jaguar and Land Rover has appeared more and more likely, as Ford has hired KPMG to assist in a possible sale. In a recent interview with the Free Press, however, Way Forward architect and Ford President of the Americas, Mark Fields, claims that Volvo definitely isn't on the block. The product portfolios of the Ford brand and Volvo are far too intertwined at this point, especially in Europe, for a split to pan out in the Blue Oval's favor. Ford will likely combine the R&D between the two brands further in North America, where Ford is working to bring down costs.
For our money, it makes sense to keep Volvo in the fold, if only because the Swedish automaker represents one of the few outright success stories in the Ford portfolio.
[Source: Freep]
Reader Comments (Page 1 of 1)
Hamud 8:26AM (6/28/2007)
Thank god. I saw the photo of Ford and Volvo logos together before reading the headline and the first thing that came to my mind was "ahhh hell, they gonna sell it afterall..."
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James 8:31AM (6/28/2007)
Has Volvo really been that successful for Ford? I sure haven't seen any of those new S80's tooling around, and they sure are taking their sweet time with that XC90 redesign.
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brimg87 9:08AM (6/28/2007)
I'm sure the technology has helped Ford products quite a bit.
Yaroukh 9:42AM (6/28/2007)
What is few and what is many?
successes:
- AM
- Mazda
- quality of Jaguar products at least (which was just a joke before Ford bought Jag)
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Richard 10:17AM (6/28/2007)
Well,
If no one is interested, Ford isn't either!
Humph!
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jamie 11:07AM (6/28/2007)
GWTP
Get with the program!
Ford is in such dire straits that all of its subsidiary brands are actually holding back recovery.
Forget the KPMG audit (they're not interested in buying anyway), and sell Range Rover and Jaguar to Cerebus a.s.a.p.
Sell Volvo to AB Volvo but retain 20% equity. Let AB Volvo handle the day to day operations allowing them access to Ford components. Good for Volvo (the Swedes will love you). Good for Ford (still retains the Safety Car image). No losers here.
Okay, Ford should retain its 37% stake in Mazda especially for its easy access to the Japanese market. In fact I would actually prefer that Ford held 50-51% if possible. That way the Way Forward could be further enhanced and accelerated with Ford adopting Mazda products. Eg. New Ford Focus based on the Mazda 3. New Ford Thunderbird base on the Mazda RX8. There's very high potential for greater synergies and economies of scale than is currently being utilized.
Ford has got to be more like Toyota in all of its operations. Dump what is holding you back from being like Toyota and enhance the current products. That is the key to a successful turnaround.
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calculon 1:54PM (7/06/2007)
Selling Volvo would leave Ford without any premium brand (don't even go there with Lincoln) and more and more people in Europe especially are turning to premium brands.
Once the dead weight is cut from the PAG we'll see the real value of Volvo, monetarily, in technology and from a positive brand association.
SKluck 12:21PM (6/28/2007)
I believe Ford already owns as much of Mazda as they legally can under japanese law.
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Jon 12:42PM (6/28/2007)
This is good news,the brand ford desperatly needs to sell is Land Rover which is a useless brand to begin with. Ford can turn it self around by bringing their Euro and Aussie offerings to America which finally will happen since Ford was caught testing an all new Falcon just recently. Also ford needs to get rid of Mercury it is also a useless brand and just focus on Ford,Licoln,Jaguar and Volvo Mada is doing very well.
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1337 1:35PM (6/28/2007)
Jaguar and Land Rover share production facilities, and both companies now have products that are based on other Ford corporate platforms (Although the Land Rover LR2 and the X-type are both mediocre vehicles when pitted against their competition). Because of the shared production facilities, Jaguar and Land Rover must be sold together.
Jon 12:58PM (6/28/2007)
Mazda*
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Murphy 3:38PM (6/28/2007)
I was with you jamie all the way up to the comment about being like toyota. Toyota has been a very successful company till now. However they are making some of the same mistakes the american companies made several years ago that gave them such a bad rep. Ford and GM are moving along just fine the last thing they want to do is let their quality start dipping again like toyotas is doing recently.
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whofan 3:40PM (6/28/2007)
Ford should have their dealer network also offer Mazda and volvo. This would draw more people to Ford lots and probably increase sales for all brands within the Ford fold. I believe Mazda and Volvo actually help Fords` image considering both are excellent vehicles along with the newer Ford vehicles as well. This I think would give shoppers of other brands a reason to stop for the variety . One stop shopping. Mazda and Volvo aren`t very well represented in remote areas of the country as Ford is.
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Don 4:46PM (6/28/2007)
Oh, enough of THIS crap.
We aren't selling PAG.
We selling PAG.
But not Volvo.
Okay, maybe Volvo.
Nope, not Volvo.
Good God.
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Robert 5:04PM (6/28/2007)
OK... most of the rumors around PAG are just that. Ford never said that it was selling Volvo. Ford still hasn't said it is looking to sell Jag or LR.
This is not a case of Ford being incapable of running their business. It IS a case of journalists and enthusiasts starting and perpetuating rumors because of poor journalism and research.
The only things CONFIRMED are that BMW checked out buying Volvo earlier this year, which never really went anywhere and that Ford has asked a couple banks and KPMG to value Jag and LR. Now, this would insinuate that Ford is more serious about ditching LR and Jag, but they haven't even confirmed that they've received an offer that is interesting.
If people would just stop writing new stories based on rumor and hearsay (which if journalistic integrity meant anything, they wouldn't), others wouldn't think Mulally and Co. are some bumbling idiots that can't make up their mind.
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Barney 5:39PM (6/28/2007)
Some say Ford ruined Volvo. If the price of Volvo became reasonable then more would know. The specialty car may show more profit but so does volume sales. Ford should make more effort to sell this car in volume.
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Daniel Dacey 11:05PM (6/28/2007)
In Australia Ford is a brand with huge issues to do with quality and customer service. The basic Ford product is good, but the company culture is all about cutting corners and not caring about the consequences and the dealer network is best not talked about. Selling Mazdas, branded as actual Mazdas at Ford dealers would hurt Mazda and would defintely loose it sales.
Although both brands are intertwined, Mazda Australia goes to great trouble to make sure you don't see a Ford badge near their products and for good reason. Generally Mazda is perceived as a premium brand over Ford in Australia.
Dan
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Bryan 9:21PM (6/28/2007)
Didn't I already say this last week?
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Kri 6:19AM (7/02/2007)
Volvo has hardly been a success story since Ford took over... They have hardly managed to increase their sales over the level achieved 10 years ago, while Audi almost trippled theirs over a similar period of time. The safety image is slowly eroding, too, nothing groundbreakingly new that came from Volvo in that period. And the new design language sure does not project a safety image.
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omar 5:15PM (7/05/2007)
Volvo is actually doing kinda weel, but when Ford continuously sucker technology from them, you can not see the growth of the comapny. Ford is just like all the other american brands that out right suckkkk.
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