Ford could sell off Volvo

Monday, December 01, 2008

Cash-strapped car maker admits Volvo could go
Ford has enough cash to survive only seven months
Sale will not affect consumer rights of Volvo owners

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Cash-strapped Ford is looking to raise money by selling off Volvo.

Ford has previously denied it would sell Volvo, but has changed its plans because it needs to shore up its dwindling finances. Ford has lost $129 million (about £81.8 million) in the past three months and is reported to have enough cash to survive only the next seven months if it continues to spend at its current levels.

Volvo lost $458 million (about £308 million) in the previous three months

'It is prudent for Ford to evaluate options for Volvo,' said Ford President Alan Mulally. 'Volvo has launched an aggressive plan to right-size its operations and improve its financial results.'

Any sale is likely to take several months and will not result in the loss of any consumer rights for Volvo owners.

America's big three car makers – Chrysler, Ford and GM – are set to meet America's Congress imminently in an attempt to secure a $25 billion (about £16.8 billion) state bailout.