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Monday, December 1, 2008
As global auto sales continues to plunge, Ford Motor Company is constantly shedding its assets in a desperate attempt to raise cash. The latest development concerns the possible sale of Volvo as FoMoCo announced today that it is "reevaluating strategic options" for the Sweden-based premium automaker. The announcement comes only a couple of weeks after Ford said that it will sell nearly two-thirds of its 33.4% stake in Mazda ending 12 years of control of the Japanese 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.
"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."
The American automaker stated that the review for the sale of Volvo will likely take several months to complete. In the meantime, Blue Oval 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.
