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.