Even as Ford Motor Co. was seeking buyers last year for Jaguar, Land Rover and Aston Martin, the automaker insisted its Volvo unit was not for sale. But according to reports, the Dearborn, Mich., company was at least willing to listen to offers for the Swedish carmaker.
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Ford reportedly held exploratory talks with Renault SA last Fall about Volvo, according to Reuters, but the talks broke down due to price differences -- a familiar problem for Renault CEO Carlos Ghosn, whose 2006 talks with General Motors Corp. broke down over similar issues. However, despite the breakdown, the two parties have held further talks, unnamed sources told the wire service.
Ford has been selling assets as part of its plan to focus on its core brands and to raise cash to fund its ongoing restructuring. Volvo's future remained up in the air last summer as Ford proceeded to sell Land Rover and Jaguar, with the automaker announcing in November that it has developed a plan to improve financial performance at the division after conducting a strategic review.
The Reuters' story only goes to further confirm conventional wisdom that Volvo will not be a long-term part of Ford's portfolio, though it may prefer finding the unit a partner instead of an outright sale. Ford beginning this year is breaking out Volvo's financial performance as a standalone, a change that will make things easier should it ever decide the time is right for Volvo to follow Jaguar, Land Rover and others out the garage door. - Lou Whiteman
See Reuters report
See TheDeal.com story on Ford's November announcement
