Ford denies reports it's in talks to sell Volvo unit - update
Ford is denying reports that it's putting Volvo up for sale. Officials say the company is not negotiating with anyone to sell the Swedish automaker.
Volvo, acquired by Ford eight years ago for $6.95 billion, is the flagship of Ford's Premier Automotive Group, a stable of luxury European cars Ford bought during an expansion in the 1980s and 1990s, The Sunday Times reported. Ford began dismantling its premier brand lineup this year when it sold Aston Martin in a deal worth $858 million. This week Ford is to take bids on Jaguar and Land Rover, being sold as a pair, in a deal that could be worth $2 billion, the newspaper reported.
Volvo, which is larger than Aston Martin, Jaguar and Land Rover, employs 27,500 people and makes about 500,000 cars annually at plants in Sweden and Belgium. Renault could be a bidder, while other automotive bankers believe BMW, Hyundai or a Chinese car manufacturer may be interested. “They are getting a lot of people coming to them with ideas because Volvo is an attractive asset,” said an automotive industry source. (monstersandcritics.com)
That contradicts earlier reports by The Sunday Times in London and the New York Times suggesting Ford was preparing to sell its money-making Volvo luxury brand. The newspapers said the sale would help the company return its North American operations to profitability, Both had cited unidentified sources. Ford recently has said that it's reconsidering the status of Jaguar and Land Rover. They and Volvo make up Ford's Premier Automotive Group. Volvo is the main profit-maker among the three brands. (wzzm13.com)
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