Ford To Sell Volvo, Reports
Dearborn, Mich. - Ford Motor Co. is setting to sell its moneymaking Volvo luxury brand as it works to return its North American operations to profitability, according to reports.
The Sunday Times reported, the decision to sell Volvo, a part of Ford’s Premier Automotive Group, was made in the past two weeks, but that the timings of the sale had still to be decided,
Ford would entertain offers for Volvo following a board meeting last week, said The New York Times.
Tom Hoyt, Ford spokesman said that the company was not commenting on speculation about future of Volvo. He confirmed that Ford’s board met last week but said he knew of no decision.
Hoyt said, “We’ve said all along that we’re viewing our options and assessing our business”.
Last August, when Ford announced it was searching the possible sale of its Aston Martin luxury sports car brand, the automaker left open the possibility that other Premier Automotive Group brands, including Volvo, could be sold.
The deal could be worth $8 billion, yet no bank had been appointed to manage the Volvo transaction. Ford got Volvo from Volvo AB of Sweden in 1999 for $6.45 billion.
Ford was reviewing its position on Premier Automotive Group brands Jaguar and Land Rover last month, fueling venture that company was getting closer to sell the brands. Ford sold the Aston Martin for $848 million in March.