Ford lowered the value of its Volvo brand by $2.4 billion today. The value reduction came after an evaluation of the Swedish brand, but Ford failed to mention the current value of the brand. Ford denies the announcement was part of a plan to ready Volvo for sale, despite recent rumors.
Instead, the U.S. automaker says it lowered the value of Volvo because it expects the brand to sell fewer vehicles in the coming years. Ford has already announced that first quarter Volvo production will be reduced by 23,000 units — totaling 112,000 vehicles.
A poor exchange rate is also being blamed for Volvo ’s expected sales slump. “It is a result of the poorer than planned performance of Volvo reflecting the exchange rates and sales decline in the US and discounts,” Ford ’s Chief Financial Officer, Don Leclair, told Automotive News.
Despite the unfavorable exchange rate, Ford says it has no plans to build Volvo cars in the U.S.
Volvo is one of three brands that makes up Ford’s Premier Automotive Group — the other two being Jaguar and Land Rover . Ford is in the process of selling its Jaguar and Land Rover brands, but denies any intents to sell Volvo.
