Saturday, December 20, 2008

Volvo Trucks

Ford Motor Co has announced that it is considering selling its Volvo Cars marque, but a review of its current options would take several months to complete. Volvo itself is currently undergoing a restructuring plan under its new CEO Stephen Odell.

It was previously speculated that the Swedish government may be interested, but what about Volvo (the industrial group whose businesses include making Volvo trucks) themselves? Volvo sold Volvo Cars to Ford in 1999. But it seems that they’re not interested in revisiting the past. They’ve come out and said that they “absolutely do not want to buy Volvo Cars”, quoted verbatim from their chairman Finn Johnsson in a report from Swedish financial daily Dagens Industri.

However Volvo has stated they would gladly gladly finance joint projects such as sponsor projects or R&D projects, and could consider being part of various consortiums without actually being the main owner.

They’ve also publicly opposed calls for the Swedish government to take over Volvo because according to them, the government knows nothing about the car industry and Volvo needs a owner that has the ability to work on increasing sales and cooperate with suppliers on components and development.

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