Ford to sell Volvo?
6 May, 2008
19 Comments 
Recent investments in Ford Motor Co. by Kirk Kerkorian’s Tracinda Corp has worried Volvo fans as the investment group pushes Ford to unload the Swedish marquee.
While Ford stocks have hit records highs, Kerkorian representative Jerry York told Automotive News that the best move for the company is to “unload Volvo and Mercury”. York and Ford CEO Alan Mulally met in early April, a few days after Tracinda Corp. began buying Ford shares.
“I’m very confident that (Mulally’s plan) is the answer, and I think you’ll see that he’ll put Volvo on the market within the next year and a half,” York said. “There’s no rational reason for keeping Volvo or Mercury.”
Ford was quick to deny such plans, noting that Volvo is not for sale and that the company continues to invest in Mercury.
Tracinda currently owns 4.7 percent of Ford’s shares outstanding. The investment group has had a long history of pushing for change and cost cutting in other automotive brands, with past investments in Chrysler and General Motors.
However the Ford family still owns 40 per cent, making it rather difficult for any massive changes to take place.
Volvo has shown great growth in the last few years with a revamped model lineup and a cleaner, sexier image.
Should Ford sell Volvo and concentrate on its own business?
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May 6th, 2008 at 1:56 pm
*****PRIMO!*****
No loss, Volvo is a NOTHING brand.
Be good that they in theory could get together with SAAB and the glory days could return!
NOTE how Ford dont want to sell the BEST brand in the fleet. makers of the mighty CX7 [which C/A will be testing soon!]
Stand up and be counted Mazda ["You should see us now!"]
Cheers
F-0 :-)
Vote:May 6th, 2008 at 2:30 pm
Hell no. Volvo has added much needed technology and safety to the Ford brand globally. Europe’s range has been invigorated by the addition of the brilliant T5 engine, safety testing facilities and Volve will surely turn a profit soon with the current range invigoation they’ve had.
Vote:May 6th, 2008 at 3:15 pm
No Ford ………..do not sell Volvo. I think it would be a mistake to sell Volvo as it has had a positive effect on the Ford brand. ford has sold enough of the PAG and now it is time to settle down and make a go of whats left. It does the brand no good for everyone to see them selling off everything.
Vote:May 6th, 2008 at 3:35 pm
I say its a good thing. Hopefully Volvo will get back to their grass roots design and not comprimise when it comes to quality standards.
Vote:May 6th, 2008 at 4:30 pm
Johno…
You have me confused. Volvo’s quality standards have not dropped due to Ford owning them.
Thats a crock.
The Ford buyout of Volvo has been one of the success stories for auto companies who merge.
I agree with Bob and F6 310.
Vote:May 6th, 2008 at 4:33 pm
I think Volvo is probably the best of Ford’s current team. To sell Volvo would be like selling shares in Toyota! lol
Vote:May 6th, 2008 at 5:44 pm
Yes get rid of VOLVO so ford can struggle! (sorry).
Vote:May 6th, 2008 at 5:47 pm
Does that mean ford will be all by them self?
I mean theve got rid of Jaguar, Land Rover and now Volvo (maybe).
The only thing is ford shares in is Mazda and Mercury.
Vote:But if they do get rid of Volvo that means ford gets more $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$!
May 6th, 2008 at 5:47 pm
As many Ford vehicles are becoming very safe and sharing platforms with Volvo, they just might render the “safety brand” useless.
Vote:May 6th, 2008 at 6:15 pm
I say let go, I won’t compromise Volvo, they would still have the liberty to buy Ford expertise and engineering, however I reckon they’ll be better off on their own. Some other speculator will snatch them up, work them over make loads of bods redundant then pull out.
Vote:May 6th, 2008 at 7:00 pm
Don’t sell Ford, Tracinda Investment advice can’t be that good if you use the current state of Chrysler and General Motors as an example. I think they are wrong.
Vote:May 6th, 2008 at 7:11 pm
Frugal-One, you really should keep off the keyboard. “Volvo are a NOTHING brand” ? What do you smoke while you refresh the CA page just so you can make the first worthless comment ?
This from the person who loves to sprout ” *** PRIMO ***…” – just what is that about ?
Volvo have a image – and some innovative technologies, something that Mazda lack.
Sorry, but a CX-7 is a good looking car but the turbo lag, poor fuel economy and interior shortcomings make it a loser to me.
Vote:May 6th, 2008 at 8:13 pm
nah,
they have gotta keep Volvo.
Mazda, Volvo and Ford are all good for each other.
they have cleared the dead wood now, so all that is left is to put the head down and work together and create greater efficiency.
Volvo makes great cars.
Vote:i just reckon they need to throw some “Kinetic” exterior designs on one or two mods to broaden their appeal range
May 6th, 2008 at 10:05 pm
Always interesting how people quote Ford as the owners of Mazda. They a a minority shareholder with 33.9%, but enjoy an controlling interest. But Mazda isn’t owned by Ford.
Vote:On the Volvo sale, I think the effort that has gone into Volvo’s image and style is starting to pay dividends and Ford must think that the price is at a premium and they have serious cash flow issues to want to sell.
May 7th, 2008 at 2:09 pm
Milar’
Vote:33.9 % is not a minority share – it is THE majority share.
Sure, unless you own 100% of a company you do not fully own it, but many publicly listed companies are said to be “owned” by another company, even though they do not hold all shares. Ford are the MAJORITY shareholder of Mazda, so yes you can say Ford own Mazda, and it isn’t going to change any time soon.
May 7th, 2008 at 6:14 pm
They have to take care of Volvo to retain its prestige. Ford just let go of Jaguar and Tata is set to make the luxurious cat leap high again. They need to make their mark in the luxury segment again, especially in the US where Lincoln cannot light a candle to Cadillac anymore.
Vote:June 30th, 2008 at 11:21 am
I just learned that Ford owns Volvo, and I will never own another Ford again. Therefor, I’m selling my Volvo. it’s a XC90 and I like it allot, but it’s basically a Ford, and it’s lacking quality in the mechanical materials. Ford put a GM Transmission in the 6Cylinder model, and it goes out at 60k miles. and no recal. this sounds like Ford behavior, not Volvo quality. So yes, Ford, Sell Volvo to someone that will bring Volvo back to the Quality of the 240 Series. Cars that run for 500k miles with no major problems. I can’t believe Ford is, or was number one is Profits. It’s only because their cars brake so often that people have to keep buying the same car over and over again by way of fixing it.
Vote:July 2nd, 2008 at 10:38 am
Joseph M, hang onto that XC90. That Aisin-Warner gearbox isn’t Ford’s design, any more than the XC90 was (it was completed before the takeover, not after). Funny thing: everybody laughed when Ford bought Volvo Car Corporation (VCC, which is NOT all of Volvo) at a bit over three billion dollars. Every platform costs between three and five billion to engineer, and Ford has saved that by putting the mature and sorted Volvo platform under the Five Hundred (now the Taurus) and its Mercury version (now the Sable), as well as the Taurus X (Freestyle) and Lincoln MKS, so that purchase has already paid for itself several times over. Add in the billions they saved on safety testing and engineering, and you’re talking the screaming deal of the century. Whomever buys VCC will get all that great engineering, as well as the only part of Ford that’s been consistently profitable (at times, the *only* profitable line they have). Remember, Volvo invented the 3-point safety belt, dual-triangle braking systems, and those cushy curtain airbags that everybody copies but nobody does quite as well. Unlike ol’ Frugle-Me up there, Volvo’s airbags are actually useful. Volvo has been a benefit to Ford; let’s hope they get one more opportunity to help them out before coming back home.
Vote:May 8th, 2009 at 11:37 am
Ford has destroyed the volvo brand. Every new model has further design flaws. Let it go.
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