While it has been expected for some time, Ford has officially announced that it will be re-evaluating strategic options for Volvo, which includes potentially selling off the Swedish brand.
The auto industry as a whole has witnessed dismal sales recently, and Volvo has also been hit hard particularly in North America. While Volvo has struggled, this isn’t the first “evaluation” the Ford Motor Company has already had to make. Other premium brands including Jaguar, Land Rover, and Aston Martin, have already been sold off to help Ford stay afloat and raise vital capital. While Ford continues to focus on its bread-and-butter models and brands, which appeases Springfield MA Ford and Ford Tacoma, Volvo is the last European premium brand the automaker possesses and may not be able to deliver on the sales successes that Ford desperately needs.
Ford recognizes the unique attributes of the Volvo brand, including its renowned safety and environmental responsibility. Many drivers such as those at New York Volvo have repeatedly purchased Volvo products because of their solid safety track record and innovative product design. However, with declining overall sales, Ford will continue to seek a solution for Volvo which is the last brand to remain from the Premier Automotive Group.
Despite sales set backs, Volvo is not without attractive products. The automaker has a solid lineup of premium vehicles, including the new XC60 compact crossover, which is geared to take on the BMW X3 and VW Tiguan. Volvo also has plenty of unique models in the works as well, such as several low-emission vehicles.
More information on Ford’s re-evaluation of Volvo can be found below.
Ford Motor Company Announces it Will Re-Evaluate Strategic Options for Volvo Car Corporation
DEARBORN, Mich., Dec. 1 /PRNewswire-FirstCall/ — 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.
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