Ford says it’s keeping Volvo, won’t say for how long

In the face of its seemingly never-ending sale of Jaguar and Land Rover, Ford says it’s going to keep Volvo, at least for the present. No long-term plans were announced for what will be the last remaining arm of Ford’s Premier Automotive Group once Jaguar and Land Rover finally part from the company. However, Ford’s goals for the brand seem to take a long view of things, focusing on cost and branding, especially since Volvo’s hybrid technology is important to the Blue Oval.

Ford CEO Alan Mulally refused to rule out a future sale of the division, but also said the plan for Volvo is to improve its cost structure and improve its brand positioning - goals that seem to aim at a longer-term vision. According to Automotive News, specific elements of Ford’s plan for Volvo include enhancing Volvo’s position as a global premium car maker, developing more appropriate business arrangements that allow Volvo to operate more independently of Ford, developing more synergies between Ford and Volvo on the development and purchasing side and disclosing individual financial performance results for Volvo beginning in 2008.

The financial disclosure is of special interest, as Volvo posted an undisclosed loss in 3Q 2007, believed to be in excess of $100 million. Independent disclosures will end the rumors and allow analysts to see how Volvo is doing as a brand, and track Ford’s work to improve it.