Volvo not for sale says chairman

Volvo not for sale says chairman

Volvo's sales slump of the past several months has led to a pretax loss of $151 million in the first quarter of the year, and with no sign of turnaround in sight analysts are predicting Ford could end up selling the carmaker just as it did with Jaguar, Land Rover and Aston Martin. According to Volvo chairman Lewis Booth, nothing could be further from the truth.

Speaking with Automotive News Europe, Booth said management is focused on improving the business and not on selling it. Booth’s comments come less than a day after Jerry York – a key representative of Ford investor Tracinda Corp – said that Ford should sell Volvo along with Mercury.

Booth, who is also the executive vice president of Ford of Europe, said Volvo's products are in demand but rising raw material costs and a weak U.S. dollar are pushing up development costs. Booth is confident the introduction of the new XC60 crossover (pictured) will help boost sales while also lifting the carmaker’s profile in the luxury market.

"We have to get Volvo out if this in-between land," he said. "We need to build on our attributes of safety and environmental performance."

Ford has also confirmed that no sale of Volvo is on the table.

Volvo XC60 Crossover