2012 Ford Focus Electric: Overly Timid Or...

Ford cutting production at Volvo, possibly seeking buyer

 
7 1,224 views May 20, 2008
Follow Viknesh

Ford cutting production at Volvo, possibly seeking buyer

Ford cutting production at Volvo, possibly seeking buyer

Enlarge Photo
Volvo’s sales slump of the past several months has led to a pretax loss of $151 million for the first quarter of the year, and with no sign of turnaround in sight parent company Ford plans to cut production in the hope that it will reduce costs. Latest reports claim Ford is hoping to improve Volvo’s financial state ahead of a possible sale.

Executives at Ford have stated publicly that it doesn't plan a sale, however the Wall Street Journal reports that CEO Alan Mulally has told top executives he wants to eventually seek a buyer for the Volvo brand. Previously, Jerry York – a representative of one of Ford’s biggest investors, Tracinda Corp – voiced his own desire to sell Volvo and revealed that it could happen within the next 18 months.

The production cut could potentially affect one-third of Volvo’s staff at two of its plants in Sweden and the news comes less than 24 hours after Volvo announced that it could lay off as many as 700 workers. The most likely plant to see a reduction is Volvo’s Torslanda plant in western Sweden, which is responsible for its larger vehicles such as the V70 (pictured).



Posted in:
 
Contribute
Send us a tip Comment Contact the editor
Follow Us

People Who Read This Article Also Read

 

Have an opinion?Join the conversation!

  • Posting indicates you have read this site's Privacy Policy and Terms of Use
  • Notify me when there are more comments
Comments (7)

  1. By Paul Posted: 5/20/2008 8:58am PDT

    What value would Mercury have to anybody? I keep seeing reports that Jerry York wants Ford to sell Volvo and Mercury? It makes me wonder how much they know about the auto industry. Tracinda only knows how to raise its stock - temporarily.
     
    Post Reply
    Vote
    Bad stuff?

  2. By Paul Posted: 5/20/2008 9:04am PDT

    Come to think about it. I think I'll bid on Mercury and rebadge Mustangs, along with sequential taillights, add some unique leather, and Sync. Voila! I'm in business!
     
    Post Reply
    Vote
    Bad stuff?

  3. By Randy Posted: 5/20/2008 11:12am PDT

    ford is such a joke, sell mercury who would buy it, its more like ford is going to have to pay someone to take mercury off their hands
     
    Post Reply
    Vote
    Bad stuff?

  4. By Bender Posted: 5/20/2008 11:25am PDT

    I really hope Volvo lands at someone better than Ford. BMW would be ideal, I think...
     
    Post Reply
    Vote
    Bad stuff?

  5. By chris Posted: 5/20/2008 2:47pm PDT

    Bender; I think BMW is going to aim for a 4th brand that isnt quite so... overlapping.

    I don't really agree with this idea that ford would sell mercury. They might sell the name and copyright, but mercury doesnt EXIST. It would be like "Plymouth"... just a nicer trim level on Dodge. thats all. you cant sell a company like that.
     
    Post Reply
    Vote
    Bad stuff?

  6. By simple Posted: 5/21/2008 12:32am PDT

    Volvo is Ford's only 'true' luxury brand since Lincoln is no longer a valid luxury nameplate, just a ford trim level. Mercury is simply one notch above the Ford brand's top trip levels.
     
    Post Reply
    Vote
    Bad stuff?

  7. By CK Posted: 7/4/2008 8:33am PDT

    Don't count on BMW being a good prospect for takeover- they ripped the s**t out of MG/Rover not so long ago and left them for dead (once they'd got all the 4x4 technology for their X series and a new Mini out of it first).
     
    Post Reply
    Vote
    Bad stuff?

 

Have an opinion?Join the conversation!

Connect with Facebook

Motor Authority. Now with your friends.

Discover stories your friends read.
Share stories more easily.
You control what you share.
Learn more

Research New Cars

Go!


More from High Gear Media

 
 
MotorAuthority
  • Follow Us
  • Twiiter
  • Facebook
 
 
© 2011 MotorAuthority. All Rights Reserved. MotorAuthority is published by High Gear Media. Stock photography by Homestar, LLC. Send us feedback.