Ford weighs selling Volvo amid industry downturn

[onehandle]

Source: AP

DETROIT – Ford Motor Co. is considering selling Volvo Car Corp. as the beleagured U.S. automaker seeks to raise cash and survive tight credit markets and a global automotive sales crisis.

Goteborg-based Volvo Cars, which Ford bought in 1999, has been struggling with declining demand and a strong euro which made its products more expensive. Volvo sales through October are down more than 28 percent compared with the same period in 2007, according to Autodata Corp.

Ford said Monday it expects its strategic review of the Swedish luxury automaker will take several months. The move is one of several actions Ford is taking to strengthen its balance sheet amid what it called "severe economic instability worldwide."

"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 company President and Chief Executive Alan Mulally in written statement, referring to a plan to standardize the company globally.

Read more: http://news.yahoo.com/s/ap/20081201/ap_on_bi_ge/ford_volvo_5

[Ganja Ninja]

1. If they never made money off their American market how did they ever

find the money to buy Volvo in the first place?

[noonwitch]

2. They bought Volvo in better times

Like K-Mart once did with Borders. K-Mart sold Borders when they started having problems (around the time they let Builder's Square go bankrupt).


Ford needs to sell whatever they can and raise as much money as they can, in case the government chooses not to bail them out.

[Ganja Ninja]

6. They should have to sell it..

Maybe if they had spent the money they paid for Volvo on re-engineering and updating their North American models they wouldn't need the government to come to their rescue. And GM is just as guilty with buying Saab and expanding into China and every other corner of the globe.

I think the biggest problem these companies have is their global ambitions. They need to keep their money here, invest in parts suppliers here, and make products here that will sell in markets like Europe and Japan. Instead they take the money from the good times here and invest it overseas until their American market falls off. Then they go begging to the government and blaming their UAW pension obligations as the reason they aren't making money.

[WriteDown]

7. By that logic....

shouldn't Toyota and Honda just focus on selling cars in Japan and close their factories in the US?

[Ganja Ninja]

11. Toyota and Honda aren't begging for money from the American government.

GM and Ford are spending their profits in good times to expand overseas and letting their American operations almost collapse. Then they use the poverty excuse as leverage to get tax breaks, government loans and concessions from the unions. That's how they play the game. They know that America needs an auto industry as part of our national security. They're playing a game of economic chicken. That's why the government should require them to sell off their foreign holdings before giving them help.

[WriteDown]

12. GM is profitable in China and Europe.....

Why would you have them focus on unprofitable markets? The US needs to take the same policies as the Japan. Make it illegal to sell Japanese cars here. That's how THEY play the game.

[Ganja Ninja]

14. Good! Let them bring some of those profits right back here to the

good old USA and fix the North American operations that gave them the profitability to expand overseas in the first place.

You can't have it both ways. If the American market isn't profitable, if GM & Ford never made money here, then they would never have been able to expand overseas. I contend that the reason they aren't making money here now is because they used money that should have gone into re-engineering and updating American operations to expand overseas.

It's great they invested and made a profit. You can't be profitable if you don't invest. Now let them invest in America with those profits they made in China just like they invested in China when they were making a profit in America. It shouldn't be the responsibility of the American tax payer to support domestic car manufacturers as they expand globally.

[WriteDown]

15. You are right....

You can't have it both ways. If Japan does not want US vehicles sold in Japan then the US should not allow Japanese vehicles to be sold here. I'm sure that Toyota and Honda have benefited from reduced competition in Japan. Let's see the US take a page out of their playbook.

[Ganja Ninja]

17. I'm perfectly fine with making every country we have free trade pacts

with live up to them for all industries across the board.

[madrchsod]

3. true volvo fanatics rejoice

volvo quite making good simple cars since ford bought them.

[mountainvue]

4. Hopefully they will sell to someone who

will respect the brand. Best damn cars ever...

[CountAllVotes]

5. I know someone that bought a new one in 2006

and it needed a new radiator before it had 15K on it. Piece of junk dare I suggest?

:dem: :kick:

[armed_and_liberal]

8. It would be the best thing for Volvo

Ford has ruined the Volvo brand by marketing through Ford Dealers instead of the specialty Volvo dealers that have always existed. None of the Ford dealers can or care to repair and maintain these cars. Volvo for their part since the inception of the 850 series in 1993 has tried to compete against the luxury European market and have lost badly. Volvo was doing much better when they focused on utility and safety instead of gadgetry.

I have owned 4 Volvos since 1977. My wife drives a 2006 v70 (62K) that has never been in for a warranty repair and I drive a 1999 s70 with 150k miles and only needed repair twice (electrical and a motor mount). Comparably the 2003 Honda Odyssey we use to have,lost the transmission at 1600 miles, the engine computer went out at 26K, and all 3 oxygen sensors had to be replaced soon after the warranty ran out at 36K. The 2006 Ford F150 that I drive at work usually is in the shop once a month for a problem

[donco6]

19. I've had my XC70 for 3 years. Best car ever.

And I've owned 2 BMWs prior to this one.

[donco6]

18. Mine's a 2006, and I've never had any trouble at all. n/t

[mountainvue]

21. Covered by the manufacturer's warranty. n/t

[ksimons]

9. too little, too late nt

[HopeHoops]

10. I never understood why Ford wanted an "Ugly Car Division" in the first place.

[RedstDem]

13. Ford Wanted Volvo's Technology

And Designs.

Volvo was way ahead of Ford at the time. I Think.

[Kolesar]

16. Bring back the Checker!

[WorseBeforeBetter]

20. I'd take...

this:



over this:



any day.