Comments on: Ford to consider selling Volvo

By: Frontman

Frontman — Wed, 03 Dec 2008 00:53:36 +0000

Reckless, with Volvo you also have to look at the product releases it has had over the past 4 years and ask yourself how much of the loss has been derived by developement costs?
Also again compare Volvo to SAAB. Both bought by their respective owners around the same time, but on Volvo has really evolved.
As to the product sharing and Ford bieng a cheap Volvo etc, I see this as a good thing both ways, firstly enhancing Fords product, secondly proving the reliability and cost of Volvo. Look at VWAG from Skoda all the way through Audi.

By: Adam (aka Mada)

Adam (aka Mada) — Tue, 02 Dec 2008 23:08:49 +0000

What company is thriving at the moment!!??

At the same time Ford bough Volvo is was itself making record profits…

Toyota has lost 70% of thier operating profits in NA alone.

The financial meltdown is affecting EVERYONE, to single out one or two companies is simply short sighted.

Ford did not kill Volvo, that’s where you are wrong.

Volvo is suffering like other’s Ford simply can’t tip bucket loads of cash into Vovlos while they fight for thier own survival.

By: Reckless1

Reckless1 — Tue, 02 Dec 2008 13:44:25 +0000

Thanks for your support Adam and Bob, but can you explain why I’m wrong – the article says the company was purchased for 6.45 billion (assume $US).

Last year it made a $US164M loss, and this year it has made a $US729M loss. That’s a serious J curve in the wrong direction.

With the Global economy as it is right now, the Volvo company in it’s current money bleeding state would have to be worth at auction –

$US”enter your bid here”

What are we offered – start us somewhere – can I see $100 -how about $1.00 – any offer? Any Bid?

Tough luck Ford – can’t sell – you’ll just have to keep bleeding more money – maybe only $US1.5Bn loss next year.

Maybe give it away to Sweden before it’s too late. Plenty of cars and their manufacturers are vanished; ther’s no reason why Volvo needs to stay. There is an equally good or better alternative for every Volvo model.

RIP Volvo, you can hang out with Riley, Morris, “insert bygone vehicle here”.

By: Al Juraj

Al Juraj — Tue, 02 Dec 2008 13:02:32 +0000

I think it seems like Ford is becoming the cheap Volvo rather than Volvo being known as an upscale Ford. It’s probably poor strategy which is the same reason why they had to let go of Jaguar. It’s not a good idea to share engines and chassis components, such that the Focus XR5 Turbo is simply a bargain S40. It’s also hard to justify an S80 over an equally luxurious, safe but way cheaper Falcon G6E Turbo. When it comes to true European luxury, you’d turn to BMW or Mercedes.

During the 90s, Volvos were renowned for their safety, leagues ahead of the others. But now, lots of cars can get the perfect 5-star rating, which means many other brands have caught up already. And given that fact that they aren’t as fun to drive as German cars, there’s a need to come up with something new in order to remain a strong brand.

By: John of Perth

John of Perth — Tue, 02 Dec 2008 10:32:31 +0000

It comes down to American corporate culture aiming for quarter by quarter repeated profit returns for shareholders. Somehow I think if Volvo management was left to its own devices the results would be quite different. It might be a smaller operation but perhaps more profitable and efficient – why do manufacturers think they need a product in every market segment or try to create one like the BMW X6 (godawfully ugly and completely unecessary).

I bet Volvo were far more profitable when they were producing the 144/164 with one or two variants.

If most of Volvo’s vehicles are based on Ford platforms and running gear then the differentiation is not significant. Might be more efficient but not really Volvo.

Perhaps we will see more marques disappear.

And yes I had a 244 with overdrive for awhile and it was great for its era compared to the Kingswood and XE Falcon which I also owned.

By: Andrew M

Andrew M — Tue, 02 Dec 2008 09:51:13 +0000

anything is for sale for the right price,
and thats all this is saying.

the key word if any sale happens is “strategic”.
my money says if ford do find the right buyer for the right price, that they will stipulate terms that see continued developmental cost sharing along with maintaining control like the clever way they raised some loot from mazda.

those in the industry are praising how Mulally is going about raising the cash to secure fords future

By: Tom

Tom — Tue, 02 Dec 2008 09:36:03 +0000

I’ve always been a Holden guy, but i have infinitely more trust in Ford’s ability to build a quality product.

By: Brad

Brad — Tue, 02 Dec 2008 09:25:14 +0000

Good move Ford, sell the farm, build your new Fiesta in crappy Thailand, what next ?
Ford is gone……

By: Bob

Bob — Tue, 02 Dec 2008 08:31:52 +0000

Yeah reckless for once you’re way off. I also see it how Frontman does.

By: Adam (aka Mada)

Adam (aka Mada) — Tue, 02 Dec 2008 05:42:26 +0000

reckless1…

You have got that incorrect.

Frontman has it right…