Ford: Ballast is off…
Ford Motor Co. is considering selling Volvo Car Corp. as the beleaguered U.S. automaker seeks to raise cash and weather a global automotive sales crisis.
A year and a half ago Premier Automotive Group (PAG) unprofitableness – Ford Premium Departmen - led the American Corp to think about selling Volvo in the end of 2007. But finally the Swede brand get a luck. But not for a long time… So after 1.5 years, the clouds thicken over the Volvo again.
Ford Motor Co. is considering selling Volvo Car Corp. as the beleaguered U.S. automaker seeks to raise cash and weather a global automotive sales crisis. Official sources do not deny that the strategy for Volvo may be close to the exit strategy for the market.
Obviously, Ford sales decrease for 20% in October! In such circumstances, It seems logical decision to sell Volvo. Moreover, it is possible that the U.S. Congress may require Ford to discontinue funding for foreign brands to avoid extra costs.
It is obvious that Ford CEO efforts are directed on PAG decrease:
• the British brand Aston Martin Assets’ sale;
• Tatoy’ purchase of Indian brands - Jaguar and Land Rover;
• Japanese Mazda’ re-purchase of its shares
By the way, the chairman of Swedish union IF Metall, Stefan Lofven, said it is now extremely important that the Swedish government steps in and shows its support for Volvo in the sales process. "Volvo is a strong brand. Now they have to find a serious owner who wants to and can develop Volvo in the future," he said.