Ford preparing to sell Volvo in deal that could be worth up to $8b.

Ford Motor Co. is preparing to sell Volvo, a British newspaper reported Sunday.

July 16, 2007 08:20
1 minute read.


Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analysis from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief


Ford Motor Co. is preparing to sell Volvo, a British newspaper reported Sunday. The Sunday Times, citing unnamed sources in London, said the decision to sell Volvo, which is part of Ford's Premier Automotive Group, was made in the past two weeks, but that the timing of the sale had yet to be decided. No bank had been appointed to handle the transaction, the newspaper said, adding the deal could be worth US$8 billion. Ford spokesman Tom Hoyt on Sunday said the company wasn't commenting on speculation about Volvo's future. Ford acquired Volvo from Sweden's Volvo AB in 1999 for US$6.45 billion. Last month, Ford said it was reviewing its position on Jaguar and Land Rover, fueling speculation that company was getting closer to selling the fellow Premier Automotive Group brands. Ford sold Aston Martin, another part of the Premier Automotive Group, for US$848 million in March, with some analysts saying the luxury brand did not fit into Ford's long-term survival plan. That plan includes cost savings by developing multiple models worldwide on the same underpinnings. The possible sale of Volvo comes as the company is struggling to return to profitability in the face of fierce competition from Asian automakers and developing tastes for more fuel-efficient models in its key North American market. It is slashing thousands of jobs and plans to close plants to cut costs. Dearborn, Michigan-based Ford posted a narrower loss of US$282 million for the first quarter. The Premier Automotive Group reported a record pretax profit of US$402 million for the quarter, due largely to Volvo. And Ford has been relying on Volvo, an analyst has said, as it tries to globalize its engineering, design and manufacturing systems.

Join Jerusalem Post Premium Plus now for just $5 and upgrade your experience with an ads-free website and exclusive content. Click here>>

Related Content

The Teva Pharmaceutical Industries
April 30, 2015
Teva doubles down on Mylan, despite rejection