The Business in the UK is speculating that, despite comments to the contrary, Ford is planning to auction off Volvo as soon as its deal to unload Jaguar and Land Rover to Indian automaker Tata is done. The summer sales event that would see the last of Ford's Premiere Auto Group sold off is expected to fetch Ford around $6 billion, which is just a smidge less than the $6.45 billion the automaker paid for the Swedish brand back in 1999. Unfortunately, despite a much improved product line-up, Volvo hasn't made a cent of profit under Ford's stewardship. We're a bit leary of this claim that Volvo is headed for the auction block so soon, as Ford has intertwined its own platforms with those of Volvo to such an extent that selling off the automaker would involve extremely complicated deals to ensure that products planned for the near future that happen to share components are not interrupted. So far, only this one media outlet is reporting the story, with no other news organizations having stepped forward to corroborate its claims. Thanks for the tip, David!
[Source: The Business]











Reader Comments (Page 1 of 2)
Carlos @ Jan 18th 2008 5:31PM
Well I guess it's not much of a secret anymore then huh?
Franz @ Jan 18th 2008 5:36PM
lol. I was just gonna post that. You beat me to it.
psarhjinian @ Jan 18th 2008 5:39PM
Tricky. Volvo and Ford are hip-deep in a platform-sharing quagmire. Anyone that buys Volvo is going to need to sort that out (basically, Ford needs to drop the Taurus and Volvo needs to axe the 30/40/50) or risk some complexity.
I don't know who'd buy them, and I wince at it being a Chinese buyer or a vulture capitalist like Ceberus. I used to hope Saab would be spun off at the same time and the two companies merged into one, with Volvo taking the high and soft and Saab the low and sporty.
MixiM @ Jan 18th 2008 5:49PM
Even the S80 and V70 share the same platform as the Ford Mondeo
planetautomatic @ Jan 18th 2008 5:46PM
What auto consumers get is the rear end from large auto companies who are too entrenched in their Mountain Boardroom politics and Powertrain vested money machinery.
The auto industry needs the DNA of stalwarts like Maurice Wilks(Jaguar),Bill Lyons(Jaguar),William Walmsley (LR),Henry Ford (Ford) & Ratan Tata (Tata).
This Cannot-Stop-Making-Gas-Guzzling-Cars syndrome is not sustainable with pimping deals, but from innovation,honesty and integrity.Fords bake-for-stake disposition will level auto consumers into addictive gas guzzling cookie-cutter fratmobiles cause they havent "recovered" investments patronized with their own doings.
Ford's bait-and-switch business strategy reflects no plans for streamlining its losses or genuine
interests in being a trusted role-model or partner in the changing auto landscape.Icons ,marquees,car
enthusiasts, pensioners, workers be damned.Just engage and capitalize selling that old inventory.
This will only drown jaguar,land rover or volvo to any new owner.
Globalisation 101: Leadership,Invention & entreprenuership has no latitude or longitude.
He who sucks loses.The auto industry will see a change of guard.
Let it go Ford, stick to what you "knew" best.Making great cars, not unaf-"ford"-able money-making empty complicated hand-shakes.
Larry @ Jan 18th 2008 5:49PM
Any other biology majors here who simply CANNOT stop calling that car a "VOLVOX?" Or, jokingly, two or more are "Volvoces?" LOL
Seoultrain @ Jan 18th 2008 6:10PM
How about the gynecologists out there? What does Volvo sound like to you?
Larry @ Jan 18th 2008 7:10PM
Seoul.......Fun reply, but, I just don't get it? What is a Groinecologist? (hehehehe, thanks, Archie Bunker and Norman Lear!) So is Volvo a brand of eye shadow? A brand of lipstick? A douche? "Summer's Volvo?"
jim @ Jan 18th 2008 5:58PM
One thing holds true about Ford you can always expect them to do the opposite of what they say, so when they said recently that Volvo wasn't For Sale that meant yes it is.
Reuben @ Jan 18th 2008 5:59PM
I could've sworn volvo turned quite a few profits, it's just the rest of PAG (JAGUAR) ate them up and as a whole VJLR never made anything.
David Naylor @ Jan 18th 2008 6:00PM
"Unfortunately, despite a much improved product line-up, Volvo hasn't made a cent of profit under Ford's stewardship."
Has the article writer been living under a rock? Volvo has been the only part of PAG, heck of all of Ford, which *has* been making profits?
mikea @ Jan 18th 2008 6:12PM
yep ^^^
volvo's the only part of PAG that has ever turned a profit.
Seoultrain @ Jan 18th 2008 6:19PM
Mazda is also very profitable.
Which brings up the possibility that if Volvo goes, Mazda will be the only foreign Ford-owned mark left. Seeing as Mazda basically gets Ford Europe's good stuff (Mazda3=Euro Focus, Mazda6=Mondeo), I dunno if it would be good or bad for mazda to get sold. Then again, Ford also gets the Edge from mazda's CX-7 and the Fusion from the Mazda6, so maybe there's too much cross-breeding there to break up that ownership.
why not the LS2LS7? @ Jan 18th 2008 6:23PM
The Fusion is on the same platform as the Mondeo and Mazda6, isn't it?
Seoultrain @ Jan 18th 2008 6:28PM
LS2/LS7, i actually started reading up on that after I posted. Turns out the Fusion is on a stretched Mazda6 platform, which is not the same as the Mondeo, but probably related. However, next year's new Mazda6 WILL be built on the new Mondeo's platform. That's gonna be a hell of a car. No idea about the next-gen Fusion's platform.
Tom @ Jan 18th 2008 6:16PM
Well, there was this rumor some time ago that BMW is interested in buying Volvo. Maybe this is it?
compy386 @ Jan 18th 2008 6:27PM
Volvo has not made any profit. Despite what analysts believed, Ford announced last earnings period that Land Rover is the only part of PAG that ever made money. Mazda's profits are not included with PAG.
I find it really hard to believe this story because if Ford did want to do this, then why did Ford explicitly say they were not selling Volvo. It doesn't make any sense to turn this around so quickly. Also Ford originally planned for Jag and Land Rover sale to be completed before year end. That didn't happen though obviously.
Reality Check @ Jan 18th 2008 6:36PM
70 percent of Fords cars are based on Volvo, plus Ford has saved a fortune using their platforms. Americans don't realize what happens over in Europe. So anyone who says Ford hasn't made money from Volvo is shall we say dumb, ignorant, or poorly informed. It also gives Ford a European Division for Lincoln while not using that damaged name. The real problem for Volvo is Fords poor use of its dealerships, they need to offer Volvo at their best dealerships to show main stream Americans that Volvo is part of the program, their other lines should have been combined but there were to many Smart people running Ford...
volvfan88 @ Jan 18th 2008 10:58PM
no dont ever mix the dealerships like that Volvo stay on their own, Ford stay to themselves also.
Robert @ Jan 19th 2008 12:05PM
Actually, our local Volvo dealer is tied in with a Ford dealer.