• Dec 1st 2008 at 10:59AM
  • 12
Ford announced today that it's "re-evaluating strategic options for Volvo Car Corporation", which in plain English means that it may sell the Swedish brand that it's owned since 1998. The Dearborn-based automaker says this re-evaluation will take about three months, during which Ford and Volvo will work together as they always have. While the sale of Volvo will be no doubt be decided upon during this time, Ford has also said it will be working on propping Volvo up as a stand-alone business since the Premier Automotive Group, which once included Volvo, Jaguar, Aston Martin and Land Rover, has been dismantled. There's no mention of how much Ford thinks it can get for Volvo or whether any companies have actually expressed interest in the foreign brand known most for slavish devotion to safety. Though Volvo sales have been down sharply this year, the same can be said for virtually every brand in the industry. Potential suitors of Volvo may also be interested in the new S60 that will debut next month at the Detroit Auto Show and may improve the brand's fortunes.

[Source: Ford]



DEARBORN, Mich., Dec. 1, 2008 – Ford Motor Company [NYSE: F] announced today it will re-evaluate strategic options for Volvo Car Corporation, including the possible sale of the Sweden-based premium automaker.

Ford said 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 severe economic instability worldwide. The strategic review of Volvo is in line with a broad range of actions Ford is taking to strengthen its balance sheet and ensure it has the resources to implement its product-led transformation plan.

"Given the unprecedented external challenges facing Ford and the entire industry, it is prudent for Ford to evaluate options for Volvo as we implement our ONE Ford plan," said Ford President and CEO Alan Mulally. "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."

Ford said 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 under CEO Stephen Odell, who was appointed to lead Volvo earlier this year.

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.

"Outstanding safety, an increased focus on environmentally friendly vehicles and contemporary Scandinavian design will continue to be the foundation upon which we will build a strong Volvo business for the future." Odell said. "We intend to build upon our strong brand heritage and to appeal to our global customers with vehicles like the new XC60 – the safest car Volvo has ever built. Volvo also will introduce seven low-emission models in 2009, giving us the best environmental product range in the premium segment.

"We have a strong brand presence in Europe, North America and the Asia Pacific region, and are growing in key markets such as China and Russia, where we are the leading premium brand."

Ford Motor Company, a global automotive industry leader based in Dearborn, Michigan, United States, manufactures or distributes automobiles in 200 markets across six continents. With about 224,000 employees and about 90 plants worldwide, the company's core and affiliated automotive brands include Ford, Lincoln, Mercury, Volvo and Mazda. The company provides financial services through Ford Motor Credit Company. For more information regarding Ford's products, please visit www.ford.com.

Safe Harbor

Statements included herein may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on expectations, forecasts and assumptions by management and involve a number of risks, uncertainties, and other factors that could cause actual results to differ materially from those stated. We cannot be certain that any expectation, forecast or assumption made by management in preparing these forward-looking statements will prove accurate, or that any projection will be realized. More detailed information about these and other factors that could affect future results is contained in our filings with the Securities and Exchange Commission. Our forward-looking statements speak only as of the date of their initial issuance, and we do not undertake any obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events or otherwise.

I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.

    • 1 Second Ago
      • 6 Years Ago
      no biggie, but didn't Ford buy Volvo in 1999?
      • 6 Years Ago
      Mazda should consider the purchase of Volvo since they are lacking a luxury brand to compete with Japan Big 3 and European brands. Volvo is a well respected brand with plenty of room to go upmarket and Mazda could benefit from this acquisition.
      • 6 Years Ago
      What's the issue w/Volvo FWDs?

      I've driven at least 4 RWD and 2 FWD Volvos regularly in my time as a Volvo driver, and had no issues with the latter (especially on ice and snow, which I cannot say for the former).

      Also, Volvo offers AWD.
      • 6 Years Ago
      Ford CEO on a phone call to Chery of China - "Is your offer of $3 billion for Volvo still valid?"
      • 6 Years Ago
      Well, I do have to say that Ford injected a freshness in design that would have never happened if Volvo had stuck with the parent. If the Volvo group buys them back to keep everything Swedish I predict bad things.
        • 6 Years Ago
        They have ONE big SUV. Can you name a car company besides Ferrari that has fewer?
        • 6 Years Ago
        Assuming you are talking about cars like the S60, S80 & xc90, those designs were well into developement before Ford had anything to do with Volvo. Infact the s80 was introduced before Ford even owned Volvo or least within several months of the purchase. Volvo's move to their new design language is most likely part of why Ford purchased the company and although Volvo sales have slowed those new designs are what brought Volvo to highest sales level in their history in the early 2000s.
      • 6 Years Ago
      Volvo is stuck between a rock and a hard place. It cannot compete with BMW, Lexus or Mercedes in the luxury segment and it is too expensive to compete in the mass-market. It is positioned more like Acura is now, a BMW/Lexus wannabe but not yet there, but higher than a Toyota or Honda. And we all know how successful Acura has been lately.

      Volvo needs to lower its cost structure and sell a mid-size car close to the price of a fully-loaded Camry and Accord. Build them in Mexico if need be, but selling family sedands, fully loaded and pricing them in Lexus territory means losing sales.
        • 6 Years Ago
        I agree completely, Volvo and even Saab would do great as mid level luxury contenders, you get the perks of a euro luxury car without the price.
      • 6 Years Ago
      Shouldn't that be "Pre-owned Swedish Automaker"?
      • 6 Years Ago
      Hopefully it's BMW who picks up Volvo !
      • 6 Years Ago
      I once thought about buying a volvo, really like the car except they were all fwd... I learned my lesson years ago with fwd cars..