Monday, December 1, 2008

Volvo on the chopping block?

In today's news, it looks as if Ford is considering selling its Volvo brand. Desperate times call for desperate measures, I suppose, so we will see if this actually happens.

Here is an excerpt from Automotive News:

"Ford Motor Co. said today it will consider the sale of Volvo Car Corp. as it explores "strategic options" for the Swedish brand.

Ford said it would review its options for Volvo because of the significant decline in the global auto market and severe worldwide economic instability. The company expects the review to take several months to complete.

A possible sale of Volvo would help Ford strengthen its balance sheet, officials said. It is part of Ford's efforts to make sure it has enough resources to introduce an array of new products intended to turn around the automaker's financial fortunes.

"Given the unprecedented external challenges facing Ford and the entire industry, it is prudent for Ford to evaluate options for Volvo," said Ford CEO Alan Mulally in a prepared statement."

What are your thoughts? I have often wondered if Ford should eliminate the Mercury brand. It seems as if its lineup is basically the same as Ford's and often wondered if this could save them money?

No comments: