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Amy Wilson |
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Ford CEO Alan Mulally |
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DETROIT — 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
DETROIT — Ford Motor Co. said today it will consider the sale of its Volvo Car Corp. unit as it explores “strategic options” for the money-losing Swedish brand.
Ford said it was reviewing 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.
Ford acquired Volvo in 1999 for $6.45 billion.
A possible sale of Volvo would help Ford strengthen its balance sheet, executives said. The action is part of Ford’s efforts to ensure that it has the financial muscle to introduce an array of products intended to turn around the financial fortunes of the Detroit 3 company.
“Given the unprecedented external challenges facing Ford and the entire industry, it is prudent for Ford to evaluate options for Volvo,” Ford CEO Alan Mulally said in a statement.
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