Ford mulling sale of Volvo
Sale of luxury brands would give Ford 'breathing space'US auto giant Ford Motor Co. is weighing the sale of its Swedish Volvo car unit, one month after it said it would not do so, the online edition of The Wall Street Journal reports.
The company has not made a decision yet on the possible sale, a source familiar with the matter told the Journal, adding that the deliberations were in a very early stage.
A Ford spokesman told the economic newspaper the company has not approached any would-be buyers with the idea.
However, another person close to the deliberations said the sale of Volvo has a 50-50 chance of happening.
On June 12, Ford Motor Co. said it was "actively" studying all "strategic options for all of our operations," that could include the sale of its British nameplates Jaguar and Land Rover, but excluded Volvo.
Ford spokesman John Gardiner said at the time that the situation was the same as the previous month when the company dismissed reports it was in talks with German automaker BMW.
"We're not in discussions with BMW or anyone else" on Volvo, Gardiner said on June 12.
Analysts said the sale of its luxury brands would give Ford some breathing space as it restructures its US operations. The company recorded a net loss of US$12.6 billion in 2006.
Source: AAP
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