Volvo won't be sold - yet
- Ford admits Volvo's future is under discussion
- Spokesman insists 'no sale talks at present'
- Announcement due on Jaguar and Land Rover
Ford's Premier Automotive Group (PAG) is evaluating Volvo's future - but it is not in any discussions to sell the company at the moment.
The denial follows intense speculation that Ford would offload Volvo, Jaguar and Land Rover as it tries to refocus on large-volume, mass-market cars.
Volvo was valued at £4 billion by analysts Merrill Lynch earlier this year. Ford bought the company in 1999 as part of its expansion policy and Volvo is widely believed to still be profitable, despite stagnating sales.
PAG, which is made up of Volvo, Jaguar and Land Rover following the sale of Aston earlier this year, reported a profit of £197 million in the first quarter of 2007, but Ford does not detail which parts of the company made money.
'We are not having any discussions with any companies in relation to selling Volvo,' said a PAG spokesman.'
Jaguar and Land Rover
An announcement regarding the potential sale of Jaguar and Land Rover is expected this Thursday, July 19, although Ford is only expected to reveal that it is beginning talks with a number of potential buyers, rather than announcing a new owner.
The most likely buyers are thought to be private equity groups, with Cerberus, which successfully bought Chrysler from Daimler in May, the favourite.
Ford has also stressed that it is selling the companies as part of its global restructuring process, not because of a cash crisis.
Used cars for sale
Reviews and News
Our reviews are based on hard data and thorough testing in the real world.
Up to the minute news from around the globe