Comments on: Ford tells employees of possible buyer for Volvo

By: Marcus

Marcus — Fri, 27 Mar 2009 08:45:15 +0000

Poor Ford, they’ll be selling the farm next to keep the doors open….

By: adam (aka mada)

adam (aka mada) — Thu, 26 Mar 2009 23:20:08 +0000

Couldn’t agree more with Frontman and The Salesman.
Alan M IS keeping Ford alive without Goverment cash.

By: Frontman

Frontman — Thu, 26 Mar 2009 02:49:11 +0000

Hmm Fords doin’ okay! From someone who was being touted as being the first to go to being one of the strongest performers globally during the current crisis without recieving any “extra” Government grants everything points to them being very very strong when the fan stops spinning. Offloading Volvo, along with the other brands before, reduced expenditure that returned very little, freeing up cash for core business plans. The point that Ford started again was back in 2006. That’s when Mullaly looked at what was comming and set the wheels in motion.

By: The Salesman

The Salesman — Thu, 26 Mar 2009 01:09:12 +0000

I agree Frontman. In their current situation it is best they liquidate what they can while it still has some value and “Minimize the loss” where ever possible. My point is they will have a long road ahead to re gain sustainable assists and market share. At some point they will be like starting again.

By: Frontman

Frontman — Thu, 26 Mar 2009 00:37:41 +0000

Actually I find it amussing that you find it a fire sale Salesman. I view it more as sensible rationailisation. If something has had several billion poured into it, and is still a loss maker, why not cut yourlosses and move it on? Or would it be more sensible to follow GM’s example and let it collapse to the point that it’s worth nothing? At least (as with the other sales) Ford can hang onto a smaller amount and keep the doors open on Tech sharing and componentry. Selling Volvo who’s largest market place is Europe and thus allowing FOrd to concentrate wholly on it’s own market place without crossing over seems like the smart bussiness plan. AFter all Ford was the Number two manufacturer / Brand in Europe last year.
I believe it’ll be either the Chinese, or an outsider European company (or both).

By: Frenchie

Frenchie — Wed, 25 Mar 2009 23:24:13 +0000

News that I heard is the chinese are interested in Volvo.
Keen to expnad into the auto market and frontrunner is Geely.

By: Pious

Pious — Wed, 25 Mar 2009 23:09:20 +0000

agreed. I get the feeling there is a bit of chicken being played between tata and the Brits on JLR. Tata would come off really well with decent brands at various market niches (or is the plural of niche just niche?). By the way, I must be an Austin Powers fan but dont know it – my missus has the volvo (the symbol is the symbol for iron, not the boy thing), I have the shaguar

By: The Salesman's says Yeah Baby

The Salesman's says Yeah Baby — Wed, 25 Mar 2009 23:01:16 +0000

Pious,
As a great Roman military leader once said “We either expand or die” Rantan Tata obviously knows this.
So no i wasn’t joking. If you have ever played monopoly you would know that you should buy everything you can as soon as you can so you have the most power. Ford is having a fire sale, every thing must go at cost or below, the problem with that is they are loosing more and more “power” with every asset they sell. Shifting into survival mode might not completely kill them but they will not re build to the great “power” they once were in just as few years.

By: Pious

Pious — Wed, 25 Mar 2009 22:46:42 +0000

Dunno if you were joking about Tata given his recent brinksmanship and financial issues, but it would make sense. There is some part sharing between Jag and Volvo, and volvo is a market not targeted by Jag (Jag want to keep it more exclusive *sniff*). Land rover gets left out, though, with XC volvos all competing directly.

By: The Salesman's says Yeah Baby

The Salesman's says Yeah Baby — Wed, 25 Mar 2009 22:45:26 +0000

For those of you who haven’t seen the movie i say that because the Volvo symbol is the same (minus the name Volvo) as the necklace he wore in the movie. Yes i have seen it to many times