Ford might be looking to sell Volvo to a Chinese company according to a report by Dagens Industri and followed up by Automotive News. Sources are saying that Shanghai Automotive Industry Corp. may be one of the potential suitors, while a Russian investor has also expressed interest in Ford's Swedish arm. FoMoCo's CEO, Alan Mulally began a strategic review of the automaker last year and the possible sale of Volvo was reported to be in the cards. However, Ford denied such a plan at the time and when AN contacted a Ford spokesperson for comment about the report today they said, "We have been consistently saying since the end of last year that Volvo is not for sale. We are focused on improving Volvo's business results."Regardless, news of the possible sale of Volvo comes on the same day Ford announced that 2,000 workers will be laid off in an effort to cut costs due to an overall weak market and rising material costs. Volvo is hoping to slash around $662 million in costs, with the primary cuts coming from workers in Sweden. 1,200 workers were informed of the cuts today, and overall, 1,400 white-collar staff and 600 blue-collar jobs are on the chopping block.
[Source: Automotive News – Sub. Req.]
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Reader Comments (Page 1 of 4)
BlackCanary @ Jun 25th 2008 11:01AM
I vote for the Russians. Dont sell to China, please. Come on, someone from Sweden man up and buy back Volvo.
SPG @ Jun 25th 2008 11:06AM
Potentially terrible news for Volvo, one of my favorite brands.
Pro's, reputable name and safety for Chinese cars.
Con's, could destroy the reputable name of Volvo.
Omer @ Jun 25th 2008 12:37PM
destroy name more than Ford really.
AMcA @ Jun 25th 2008 11:06AM
This makes no sense to me. Volvo cannot exist, except in the family of a larger automaker which will provide it with platforms and technology. It's a small mainstream auto company. Those can't exist separately anymore.
And the Chinese or the Russians are in no position to supply what Volvo needs.
tankd0g @ Jun 25th 2008 4:26PM
Seems to me the Russians, Indians and Chinese have all the money these days, what else does Volvo need?
Vintage @ Jun 25th 2008 11:07AM
Here's an idea: Let's just sell EVERYTHING to China. That'd be so cool.
o'bummer @ Jun 25th 2008 11:34AM
After we have sold everything to the Chinese we can throw in the U.S. Congress free as a bonus and a sign of our good will.
It shouldn't take the current crop of elected clowns more than 10 years to screw up China as badly as they have screwed up America. Then we can buy back everything from China, and they can keep the Congress as a bonus and a sign of our goodwill.
info @ Jun 25th 2008 12:40PM
Since China has supplied a huge amount of the funds that put the US into such this obscenely huge national debt, isn't that the case anyway?
Soul Shinobi @ Jun 25th 2008 8:52PM
Yes, info, yes it is.
Alex @ Jun 25th 2008 11:08AM
If this actually happens we can say goodbye to Volvo and hopefully Ford too for destroying the quirky little automaker.
Tagg @ Jun 25th 2008 3:39PM
I wouldn't call Sweden a "quirky little automaker". They sell over 100,000 cars in the U.S. alone and over 62,000 in Sweden compared to SAAB's 32,000 cars sold in the U.S. and 25,000 cars sold in Sweden. If anything Ford may have saved Volvo from much worse fate.
You want to see the gutting of a Swedish automaker look at SAAB which are desgined and managed from the U.S. while Volvo's are designed and managed from Sweden.
Alex @ Jun 25th 2008 4:17PM
True, I actually drive a SAAB and I think I got that line from their
voice automation system when I ordered a roof rack. ;) I stand corrected Tagg
Kimura @ Jun 25th 2008 11:15AM
It's completely illogical to sell Volvo, when you consider just how many Ford products are underpinned by Volvo platforms.
Soul Shinobi @ Jun 25th 2008 8:57PM
They'll probably keep the rights to those platforms, they just wont get any new ones from Volvo anymore.
BigMcLargeHuge @ Jun 25th 2008 11:17AM
Dear BMW,
Buy Volvo.
plzkthxbye
jamie @ Jun 25th 2008 11:19AM
This is a no brainer.
Ford dumped the only brands that could have brought increased profitability to the company, ie. Aston Martin, Jaguar, and Land Rover.
Why hang onto Volvo now? If Ford is 'growing' back to its roots, then Volvo is out of place. Some new Volvos look too Ford-ish. That is bad for the brand. Ford got what it wanted from the deal, now cut your losses and run.
BTW, GM chuckled about merging with Ford yesterday. Yeah, they were looking at the combined $350 billion in revenue that would place it as #1 in the world again with 35% market share; plus the combined $50 billion cash hoard to weather the current storm. But realistically, there is too much debt load; too many underutilized assembly plants producing too many similar gas guzzlers; and too many internal problems to solve. Talk about desperate times requiring desperate measures to resolve a crisis. Wow!
BlackCanary @ Jun 25th 2008 11:24AM
It is not that Ford is selling Volvo, it is who they are selling it to. Which volvo looks Fordish? I think they all look like Volvos. It is too bad that Fords dont look more like Volvo. How could Land Rover, Jag and Aston Martin return Ford to profitability, can you expand on that thought? They were anchors when they had them, Ford didnt have the resources to control such a large empire.
me! @ Jun 25th 2008 11:47AM
I think you mean the new ford's look volvo-ish. The cliped front corners, angular roof lines and broad shoulders appearing on Fords now were being done by Volvo starting with the S80, long before Ford. Fords look like Volvos because they have Volvo design their platforms, develope their safety features and much of the technology used in their current and upcoming vehicles. Don't get me wrong though, I'm all for Volvo being sold to another (better) company but dollars and corporate size aside lets not pretend Ford is the better of the two.
jamie @ Jun 25th 2008 11:44AM
From what I have heard, it doesn't matter who Ford sells Volvo to, but when and how much? Even Volvo AG has expressed interest in re-acquiring the automotive branch. So there are a lot of interested buyers out there that make a lucrative sale possible.
The hoodlines and architecture of the S40 and S60 remind me of a warmed over Taurus (previous edition).
Billy Boy bought Aston Martin, Jaguar and Land Rover because he thought he could bring more international awareness of Ford products and grab some excess luxury dollars that were freely floating around. But like you say, Ford's pockets weren't deep enough.
Then Ford downtrodded Land Rover's exclusivity, IMO. But Jaguar XF is just awesome and a real winner. More time and more money could have built these brands into something much greater than Lincoln will ever be. Just look at the appalling Lincoln MKS or MKZ. Time and money ran out for Ford. That is sad. :(
me! @ Jun 25th 2008 11:47AM
think you mean the new ford's look volvo-ish. The clipped front
corners, angular roof lines and broad shoulders appearing on Fords
now were being done by Volvo starting with the S80, long before Ford.
Fords look like Volvos because they have Volvo design their platforms,
develope their safety features and much of the technology used in
their current and upcoming vehicles. Don't get me wrong though, I'm
all for Volvo being sold to another (better) company but dollars and
corporate size aside lets not pretend Ford is the better of the two.