Volvo in Jeopardy? Maybe Not...

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YSSMAN

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Ford, Ford, Ford... What the heck is going on in Dearborn?

LLN.com
Ford is "at least considering the sale of Volvo if not seeking a buyer," according to a report by trade publication Automotive News. Volvo began losing money this year due to a weak dollar and slowing sales. There's speculation Ford might sell the Swedish automaker before losses begin to mount.

Any sale poses a major problem for Volvo, because the next-generation V70, XC70, XC50, and S60 are all expected to use Ford's midsize EUCD platform. Volvo has an aggressive plan in place to revive its slowing sales, but it's held hostage to the problems at Ford. Presumedly, Ford would have to allow any potential buyer of the Volvo company to use Ford platforms until a new architecture was developed.
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So is Ford looking to cut back to the point at which it is just Ford, Lincoln, and Mercury? I can't see that being an effective way to market themselves not only in the US, but worldwide. Volvo has undoubtedly been the best deal of the recent Ford mergers, creating exciting products, with a good ammount of cross-development between the two companies. So Volvo has a losing year, so what? Saab has consistantly for quite some time, but you don't see GM running away like a baby...

But, I digress. Ford seems to "know what they are doing" with their "Way Forward" plan. I may dissagree with it, but then again, I'm not the CEO of Ford that has to satisfy the shareholders.
 
Ford are total morons if they're getting rid of Volvo yet keeping Lincoln and Mercury. The new S80 is totally great. I've been in one.
 
Agreed. Get rid of Mercury, but for the love of cottage cheese, don’t get rid of Volvo!
 
I thought this was about the show.

The only thing I like out of Mercury is its version of the Fusion. Maybe once Ford sell all the companies, they can fix themselves...
 
If they get rid of Volvo, wouldn't that eliminate at least 70% of bad drivers?

It seems every Volvo I get stuck behind is an old lady doing 23mph in a 40 zone with her turn signal on for the past 8 miles.

The cars themselves? I think their alright, it's the buyers thats the problem.
 
I think you guys are missing the point.

Ford puts Volvo out for sale: $$$$$$$$$$$$$$$$$$$$$$$

Ford puts Mercury out for sale: Peers pointing fingers and laughing at them.

I'm no expert on this, since I don't know much about Volvo. But from my casual observation, I don't think neither Ford or Volvo is helping its' partner that much. I understand that European Focus is based on Volvo/Mazda chasis or something or rather, but I just don't think the relationship is that special.

I believe Volvo, unlike Saab, is worth a lot of money. Ford needs a lot of capital right now. If they can find a buyer who is willing to pay a fair price for Volvo, I think they should sell.

Edit:
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If they get rid of Volvo, wouldn't that eliminate at least 70% of bad drivers?

It seems every Volvo I get stuck behind is an old lady doing 23mph in a 40 zone with her turn signal on for the past 8 miles.

The cars themselves? I think their alright, it's the buyers thats the problem.
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I never noticed that. Also, I think I can hear M5Power(Doug) screaming right now. :lol:
 
Ford wouldn't sell Mercury, they'd shutter it like GM with Oldsmobile and DCX with Plymouth. As much as I'd hate to see another iconic American brand taken behind the barn and shot, it would make way more business sense than putting Volvo up for sale, IMO.
 
I think a6m5 has hit the nail on the head.

Note that Ford doesn't really need Volvo to share platforms with... it's got Mazda. And with Ford now taking the big step of stepping away from truck sales, they probably need the money they can get from the Volvo sale to tool up for whatever they're going to concentrate on next... (please let it be cars and not crossovers... :D ).

Mercury? Shutter it. Who'd buy a marquee with no platform, engine or models of its own? :ouch:
 
Why are Ford so stupid these days?

The XC90 was the first good step towards rebuilding in Australia from their 2003 year.
And by next month, they will have released the XC90 Diesel, will have the C70 coupe-convertible almost ready for Australia and also prepare the new S80 flagship. Next year, they will be trying something new by releasing the compact C30, which will run up against a new range of rivals, including the BMW 1-Series and Volkswagen Golf.

I'd like to see Volvo further evolve.
 
volvo was the only profitable manufacturer of the ford group at one point, and now ford are running scared just as volvos are becoming desirable cars among the young.
 
...Well apparently now Ford says neither Volvo, Jaguar, or Land Rover are anywhere near any point of sale...

I certainly was scared there for a moment!
 
YSSMAN
...Well apparently now Ford says neither Volvo, Jaguar, or Land Rover are anywhere near any point of sale...

I certainly was scared there for a moment!
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the instant I saw this topic, the game show theme song went through my head.

Seriously, though, Ford's got a TON of rumors flying around it lately. Glad they're not selling any of their good brands.
 
Jim Prower
the instant I saw this topic, the game show theme song went through my head.

Seriously, though, Ford's got a TON of rumors flying around it lately. Glad they're not selling any of their good brands.
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According to my supervisor, layoffs start in a couple weeks... managerment goes first! It will be interesting for me when I return in three months.

I sure hope Ford doesn't sell any of the brands. They are free to kill Mercury though. It doesn't really do anything on it's own much. Too similar, in my opinion.
 
First Jaguar, then Aston Martin, and now Volvo. a6m5's right about why Ford would sell these rather than Mercury. And just closing Mercury down would cost them money, rather than make money. It's typical short-sighted American thinking, something that was infectiously prevalent in the 1980's: get something working, make it look good, then sell it for parts. Why put in the long-term effort and manage a solid brand (and support many employees) when you can make the quick buck (and screw everyone but yourself)?

What's the reasoning behind this? Is it all just rumors about something else going on there? I thought the Ford/PAG sales were being considered under Bill Ford's control, not Mulally? Maybe it's just part of the crap ideas Bill had that are just now making rounds.


I hope.
 
I hope VAG or Renault/Nissan buys Volvo. If Ford does indeed sell Aston Martin, Jaguar, AND Volvo I will slowly unbecome a Ford fan.
 
kennythebomb
Can you post the source for that?
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Yes, I am sorry for not doing it first...

LLN.com
Ford today said its Jaguar, Volvo, and Land Rover brands are not currently for sale. "For the moment Jaguar, Volvo and Land Rover are not for sale. If that changes we will tell you about it," Lewis Booth, head of the Premier Automotive Group, said during a conference call with analysts in Europe today. He acknowledged, however, that "everything is on the table," and the status of those companies could change.

Currently, the only Ford brand for sale is Aston Martin, which the automaker put on the block nearly a month ago. At the time, the company said Aston Martin could be "an attractive opportunity to raise capital and generate value."

Any possible sale of Jaguar or Land Rover would likely be a package deal, due to the vast number of resources the two companies share. As discussed yesterday, a sale of Volvo would be even more complex, because the Swedish automaker uses Ford platforms.
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So thats better, but I don't like the idea of Aston being for sale...
 
kennythebomb
I'd rather not see Aston Martin go either... but I don't know how well that brand does for Ford.
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To hear Ford tell it, they're all doing lousy. But that doesn't make sense to me. Sales in all three groups (AM, Volvo, Jag) are up, aren't they? The cars have rarely been better, and I can't remember the last time demand was this high (well, I can, but it was 40 years ago: James Bond, The Saint, and the E-Type, respectively).

Maybe Ford isn't used to spending the real R&D required to make such good cars, and they don't see it as a long-term investment. It certainly shows on their current car lineup. I don't know how Mazda gets away with it. More and more great cars from solid R&D, but there's no sign of any corporate sale over in Japan. Maybe it's upper-management politics gone haywire, and it's all just scare tactics to get someone(s) back in line.
 
I belive Aston Martin turned a profit for the first time (under Ford) last year, and I belive they were predicting another record-breaking year this time around as well. As for Jaguar and Land Rover, I'm not completely certain of the current situation. I belive they have been gaining in sales, but given their current R&D costs (particularly those from Land Rover) are sky-high, there are going to be problems.
 
I once heard that the average age for a Volvo driver is something like 60 years old. Probably because they're large, heavy, expensive, and extraordinarily safe.

For some strange reason, old ladies don't drive Volvos, they drive 1970's Honda Civics.
 
Poverty
volvo was the only profitable manufacturer of the ford group at one point, and now ford are running scared just as volvos are becoming desirable cars among the young.
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According to the Daily Telegraph:-
Daily Telegraph Motoring
In each of the past six years, Volvo has sent a healthy profit back to Ford in Detroit (in 2004 it was $700 million) and, despite recent falling sails in the US, it has at times been the only profitable car-maker in the House of Henry.
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So they sell their only good earner? Sounds like Ford is desperate for short term solutions.
 
ExigeExcel
According to the Daily Telegraph:-

So they sell their only good earner? Sounds like Ford is desperate for short term solutions.
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Yeah sounds like ford must be in bad shape. Im sure ford of europe always make profits, but maybe they just got that as part of ford motors itself.

I wonder who is in worse shape... Ford or GM?
 
By all accounts here in the US, this is how we have viewed it:

1) GM is in by far the best shape of the three companies. They have cut costs from the bottom line, are removing unnecessary models, and turing out new products that are SHOCKINGLY good from an American company. Granted, they still have issues with some build quality, but it is improving year after year.

2) Ford sits in second, recently surpassed by Toyota to be pushed back to #3 worldwide. Ford, atleast in the US, seems to be lacking direction with many of their models, and the reluctancy to update certain ones (FOCUS!!!) is hurting the bottom-line. But Ford is pushing ahead with a somewhat coherent way of understanding whats wrong and how to fix it, but they are having big problems with their execution.

3) DaimlerChrysler is in BAD shape. The folks in the US and the folks in Germany wouldn't say so, but they are headed back to the way things used to be. Poor product development, poor product execution, poor product placement in the marketplace. DCX currently has models that have dealer-lives upwards of 300 days. They are overstocked, and undersold, and no one seems to know why.

---

But, Ford isn't selling Volvo. I'll repeat it again, they ARE NOT selling Volvo. Only Aston is up for sale, and even then, I'm not sure if Ford will be able to push it off any time soon...
 
Ford's shape overseas seems (to me) to be pretty good... shows short-sightedness if they're looking outside of the US to cull their ranks...
 
niky
Ford's shape overseas seems (to me) to be pretty good... shows short-sightedness if they're looking outside of the US to cull their ranks...
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What echo?

harrytuttle
First Jaguar, then Aston Martin, and now Volvo. a6m5's right about why Ford would sell these rather than Mercury. And just closing Mercury down would cost them money, rather than make money. It's typical short-sighted American thinking, something that was infectiously prevalent in the 1980's: get something working, make it look good, then sell it for parts. Why put in the long-term effort and manage a solid brand (and support many employees) when you can make the quick buck (and screw everyone but yourself)?
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;)
 
Poverty
Volvo is on the recieving end of a first class action law suit supposedly.
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Really? I had no idea. Good thing you provided details....


http://www.fazmiclaw.com/Volvo.html
http://www.lawyersandsettlements.com/case/volvo_xc90_recall
http://www.kscourts.org/ca10/cases/2006/08/04-4070.htm

Which one? I'm betting it's the ETM issue (first link). It's hardly any worse than the Firestone/Ford debacle from a few years ago, not to mention endless other ones (Focus) within the Ford group. Pot, kettle, something black....
 

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