After extended denials it was looking to offload its Volvo subsidiary, embattled Ford has now finally conceded it's examining the possible sale of the Swedish brand.
"It is prudent for Ford to evaluate options for Volvo," Ford President Alan Mulally has been quoted as saying in international news reports.
"Volvo has launched an aggressive plan to right-size its operations and improve its financial results. As we conduct this review, we are committed to making the best decision for both Ford and Volvo going forward," Mulally said.
The announcement came as Ford -- along with General Motors and Chrysler -- was due to submit survival plans to the US Congress. The 'Big Three' were to state their case for $US25 billion ($39 billion) of emergency aid.
Raising the subject of potentially selling Volvo could be seen as a measure to help Ford win support from the US Government and enable it to secure the funding it needs to secure its future.
Volvo, like many other carmakers, has been hammered by the global recession and it posted a loss of $US458m ($712m) during the third quarter of this year. Overseas reports suggest the company is currently in the process of laying off about 6000 workers.
Ford says a review at Volvo would take several months, and claims it won't necessarily resort to selling the premium marque.
Industry experts have been quoted as saying that offloading Volvo would be no easy task in the current economic environment -- particularly given the losses posted by the brand in recent times.
Meanwhile, an Autocar report suggests Volvo boss Stephen Odell has been embroiled in further talks with the Swedish government about a separate $248 million cash injection for the company.
Volvo has reported that sales in the USA last month totaled 4404 units -- an astonishing 46 per cent down on sales for the same time in 2007. For the year to date, Volvo sales in North America (76,113 units) are down 29.5 per cent, so indications are that the market outlook for the Swedish brand is worsening.
Locally, Volvo has experienced a slight downturn to date this year, with 3726 sales until the end of October, compared with 4011 for the same period last year.
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