Although General Motors has been fairly candid about the future of its Hummer brand, Ford continues to maintain that its Mercury and Volvo divisions are here to stay, even in the face of mounting evidence to the contrary. Ford’s suppliers have already hinted that the Mercury brand is on life support and a new report indicates that Volvo might already have one foot out the door.
According to Automotive News, Ford is currently in talks with China’s Shanghai Automotive Industry Corp. to sell off the Volvo brand. Additionally, Dagens Industri reports that Ford is also in talks with a Russian investor who wishes to acquire the Volvo brand.
Although Volvo has been under “strategic review” for the past year, a Ford spokesperson told Automotive News: “We have been consistently saying since the end of last year that Volvo is not for sale. We are focused on improving Volvo’s business results.”
Despite Ford’s denial of a Volvo sale, the writing could already be written on the wall for the Swedish automaker. Volvo announced 2,000 job cuts today and, with Ford’s North American operations further in the muck than originally planned, Ford may not be able to hold out on a Volvo sale until conditions improve.
