Ford said it will re-examine strategic options for Volvo, including the possible sale. It seems that Ford’s decision to re-evaluate strategic options for Volvo has come about by the significant decline in the global auto industry and the severe economic instability worldwide.
"Given the unprecedented external challenges facing Ford and the entire industry, it’s prudent for Ford to evaluate options for Volvo as we implement our ONE Ford plan," said Ford President and CEO Alan Mulally. "Volvo is a strong global brand with a proud heritage of safety and environmental responsibility and 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."
The review by Ford will likely take several months but in the meantime Ford said it will continue to work closely with Volvo as it implements its restructuring plan under CEO Stephen Odell, who was appointed to lead Volvo earlier this year. At the same time, Ford and Volvo will continue to put in place processes that allow Volvo to operate on a more stand-alone basis in the absence of the Premier Automotive Group structure.
