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Ford now considering Volvo sale?

07/16/2007, 7:35 AM

By Andrew Ganz

While Ford has officially put its British entities – Land Rover and Jaguar – on the market, the company has long expressed a desire to hang onto Volvo. Now rumors come from Ford’s United Kingdom offices that the blue oval is seriously considering selling Volvo.

The London Times and Automotive News Europe both report that sources say that Ford to sell Volvo two weeks ago in a board meeting. Although Ford hasn’t gone as far as hiring any financial advising firms or talking to other automakers, but they won’t officially deny that Volvo is up for sale. Instead, Ford’s public relations team says that Volvo is not currently for sale, but they are analyzing all options.

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07/16, 8:32 AM

posted by:

LP640

this is getting boring
first theyre selling volvo
then theyre not
then they are
then theyre not
Ford need to shut up and make sure they know what they are doing before announcing it

07/16, 8:47 AM

posted by:

Piablo

Everyone knows Ford is in dire straits so the rumor mill is rampant. I wouldn’t be surprised if it were stock holders or investment firms behind most of these rumors. In the end, everything is for sale. If some company comes in offering the right price I’m sure they’d entertain the offer.

07/16, 9:06 AM

posted by:

meanpants555

And what are they to do with all the cash from their “garage sale?”

07/16, 9:31 AM

posted by:

global_lightning

0. Pay off existing obligations (ie, pension and medical costs)
1. Re-invest the money to improve Ford’s bread-and-butter cars (Mustang, Fusion, trucks)
2. Differentiate between Ford and Mercury. Mercury becomes a pipeline for Ford’s European vehicles while Ford continues with their best selling cars and some Australian models.
3. Lincoln moves upmarket without worrying about Jaguar/Volvo/Land Rover sales

07/16, 9:41 AM

posted by:

musclemustang94

ok this is getting dumb. Ford has repeatedly said Volvo is not for sale, leftlane is just tryin to think of something ot report.

07/16, 10:06 AM

posted by:

AMGoff

Volvo should be held on to, having it in the lineup would not hurt a thing though. In my head, this scenario always made the most sense.
1. Ford – Trucks and sports cars.
2. Mercury – your mainstream coupes,sedans, etc.
3. Lincoln – more traditional, “American” luxury
4. Volvo – less traditional, “European” luxury.

Of course that would take some real “Bold Moves” to ever do a thing like that.

07/16, 11:09 AM

posted by:

A4

LP640 they didnt announce this you dumbass, the keyword is rumor

07/16, 11:49 AM

posted by:

TomF

The Ford-Volvo rumor is all over the mainstream media today even though it has been kicking around Leftlane for months. The reason is the Sunday Times story out of London which propelled this whole thing into the mainstream. Leftlane isn’t “just trying to think of something to report”; it’s reflecting the current news cycle.

If they sell Volvo and fail to use the cash to make a “bold move”, though, this will be seen as idiocy. Volvo right now is a better business than Ford North America.

I personally think selling Volvo is bad for the business. But if I had the $8 billion from the sale in hand I would:

** Rebuild the North American Ford car line around just five products: Fiesta, Fusion, Taurus, Mustang, Edge. Kill all other cars and CUVs, including the Flex and the Taurus CUV (it’s stupid to throw four same-sixed CUVs at the same niche).

** Build one SUV: the Ford Escape. That will be our SUV. Kill the Explorer, the Expedition, etc.

** Either rebuild the Mercury car line around Australian and European specialty vehicles that do NOT have evil-twin nameplates at Ford (Falcon, Euro-Focus, etc.)… or kill Mercury outright.

** Build two trucks — the Ranger and F-150. Prioritize the Ranger renovation.

** Build two Lincolns: the sedan (Zephyr? MKZ? Whatever) and an up-market Flex. Kill all the weird bloated black trucks, the Navigator and the ridiculous Edge knockoff.

** Commit to getting hybrid versions of everything on the market by 2012, especially the bigger vehicles.

That is all. Mulally better grow a pair and make some damn moves or there won’t be an Americam car company here pretty soon, Volvo or no Volvo.

07/16, 4:53 PM

posted by:

young insight

first, lets all be thankful TomF isn’t running ford.

as far as selling volvo, they are gonna suffer if they aren’t able to borrowvolvos great products and produce ford and mercury versions

07/16, 6:09 PM

posted by:

terminator

TomF, you are saying to axe some very important vehicles. First off the Superduties are probably the most important vehicle in the entire Ford lineup right now (I hope you just forgot to mention that). The Falcon should definately be a Ford vehicle in the US along with the Euro Fiesta, Focus, and Mondeo.

I agree with most of what you’re saying about Ford’s US lineup accept the Flex needs to be built as the new standard of minivans instead of a small suv. Ford has hinted at this but they really need to jump on the idea because modern minivans are the most bland and boring vehicles out there so taking sales with a new refreshing idea would not be hard.

Kind of an idea that I had that would get more publicity to Murcury and get them out of the shadow of Ford would be to make them a hybrid only manufacturer. All the new green innovations in powertrains would be showcased through the Murcury brand which is still very alive and kicking and has lately been known for its great quality ratings.

All technological innovations should be showcased through Lincoln since that is what they have always been known for. If you don’t know they were the first to use the HID, projecto, neon, and halogen I believe in their lighting fixtures. They have pretty much patented every major lighting design in automotive history.

Volvo if not sold should always stand for safety.

07/16, 6:12 PM

posted by:

terminator

By the way Mullaly is the best leader Ford has seen since Iacocca. There is no doubt about this, if he was able to do it with Boeing I have total confidence he can do it with Ford. If you read some of the moves he has already made you would see that this guy does have balls and is not afraid to throw his weight around.

07/16, 8:25 PM

posted by:

1c3d0g

Foolish move if this were the case.

07/16, 11:59 PM

posted by:

Elvio

Ford is not selling Volvo. No reason to sell after dumping the Jag and the CRAP–LR.

07/17, 2:45 PM

posted by:

Stuart

Hold onto Volvo AND KILL MERCURY

07/17, 6:26 PM

posted by:

TomF

All I am saying in that the world’s most successful car companies have a handful of platforms and nameplates that succeed around the world — not a morass of badge-engineered, Xeroxed blandmobiles nobody recalls, or multiple same-sized vehicles pitched at the same market niche.

In the CUV/small-SUV department, Toyota pours two flavors: the Highlander and the RAV4. Period. Ford has the Edge, the Lincoln MKX, the Five Hundred/Taurus wagon, the Montego, the Flex, the Escape, and there’s probably more on the way. I just don’t understand it.

Mulally would really impress me if he did something shocking that gave the Dearborn oldtimers cardiac arrest — like command an end to badge-engineered Mercury vehicles and make the Mercury division the home of European, Australian, and/or green-chic, alternative-fuel vehicles.

(For some reason Lincoln thinks I fit the MKX target demo and keeps sending me these huge, expensive, lavish pieces of direct mail. My wife looked for 15 seconds and decreed that the MKX is one car we will never, ever, ever consider… she took an instant, visceral dislike to it.)

07/17, 10:28 PM

posted by:

AMGoff

There is no reason to kill Mercury, especially if Volvo were to be sold. The brand just needs some unique models. If anything they should have used the Marauder as a base line for the whole brand. A whole line of upscale, hot rod sleepers would have been awesome. Ford just needs to zero in on Mercury’s identity, not kill it.

07/18, 12:39 AM

posted by:

terminator

I wouldn’t be surprised if Ford was turning Murcury into a hybrid only brand. They’re marketing the Mariner Hybrid like crazy and are planning on a Montego Hybrid. This would be a smart move to give Murcury it’s own identity.

07/21, 10:52 AM

posted by:

BLISS

THEY SHOULD KEEP IT…..ITS PROFITABLE

07/21, 10:53 AM

posted by:

BLISS

VOLVO MAKES GOOD CARS…..THEY ARE KNOWN FOR SAFETY.

 
 
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