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From the Internet:

DEARBORN, Mich. (AP) - Ford Motor Co. said Sunday the automaker wouldn't comment on speculation about whether it planned to sell its Volvo unit.

A British newspaper, 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 $8 billion.

Ford spokesman Tom Hoyt said the company wasn't commenting on speculation about Volvo's future.

Ford acquired Volvo from Sweden's Volvo AB in 1999 for $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 $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, Mich.-based Ford posted a narrower loss of $282 million for the first quarter. The Premier Automotive Group reported a record pretax profit of $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.
 

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Selling Volvo would be a huge mistake.

Ford needs 1 and 1 thing only to get back out of the red. No matter what assets they sell off, it wont save them.
Ford, GM, Chrysler all need to work on getting the automotive labor laws to become equal for all companies that put plants in North America. If FoMoCo has to pay out twice as much for labor to save them from being victims of a UAW rebellion, then how can plants run by import automobile manufacturers be able to wage slave the same employees, and stiff them on benefits. You cant compete with automakers that spend 1/2 as much for labor. And in this case, Volvo is one of their brighter equities.
 

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[quote author=Crystallas link=topic=83296.msg1563033#msg1563033 date=1184651500]
Ford, GM, Chrysler all need to work on getting the automotive labor laws to become equal for all companies that put plants in North America. [/quote]

Since when were the laws different from one company to the next? They all work under the same laws, the Big3 have just backed themselves into a corner by giving in to unreasonable demands from the UAW for so long.

As for selling Volvo, it doesn't seem to likely, since Volvo was used as collateral for the recent round of financing. So if Ford sold Volvo, they'd basically just have to give the money straight back to the back to repay the loan. You can't take out a loan to buy a car, then sell the car and pocket the cash, so why could Ford do essentially the same thing?
 

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:shock: I kind of doubt this. I feel this is a reporter mixing up lies. Volvo is good for Ford, as Ford is good for Volvo. Ford needs much of Volvo's engineering/safety and reputation. Ford uses some of Volvo in the Fusion by the way! Viscious rumors, that is what I feel this is.
 

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[quote author=Waldo link=topic=83296.msg1563194#msg1563194 date=1184673657]
[quote author=Crystallas link=topic=83296.msg1563033#msg1563033 date=1184651500]
Ford, GM, Chrysler all need to work on getting the automotive labor laws to become equal for all companies that put plants in North America. [/quote]

Since when were the laws different from one company to the next? They all work under the same laws, the Big3 have just backed themselves into a corner by giving in to unreasonable demands from the UAW for so long.

As for selling Volvo, it doesn't seem to likely, since Volvo was used as collateral for the recent round of financing. So if Ford sold Volvo, they'd basically just have to give the money straight back to the back to repay the loan. You can't take out a loan to buy a car, then sell the car and pocket the cash, so why could Ford do essentially the same thing?
[/quote]

Wait a minute. Do you think the big 3 could have avoided strikes and other woes by playing harder ball with the UAW?
 

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[quote author=Crystallas link=topic=83296.msg1568837#msg1568837 date=1184824614]
Wait a minute. Do you think the big 3 could have avoided strikes and other woes by playing harder ball with the UAW?
[/quote]

Even if they had gone through a strike say 10 or 20 years ago, they'd be in a much better position then they are now. But back then they were thinking short term, not long term.
 

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[quote author=Waldo link=topic=83296.msg1569125#msg1569125 date=1184850812]
[quote author=Crystallas link=topic=83296.msg1568837#msg1568837 date=1184824614]
Wait a minute. Do you think the big 3 could have avoided strikes and other woes by playing harder ball with the UAW?
[/quote]

Even if they had gone through a strike say 10 or 20 years ago, they'd be in a much better position then they are now. But back then they were thinking short term, not long term.
[/quote]

You aren't really allowed to think long term in a public company. You have to enhance shareholder value NOW or you're out.

Anyway, I dearly hope they don't sell Volvo. I could be wrong, but I don't think Volvo loses money, and it helps offset the cost of platform development by increasing marketshare/shipments, so why would you sell it? Not to mention, half their cars are shared with Volvo now! The Taurus (500/Montego/whatever)/S60/S80 are the same platform, and the Mazda3/Euro Focus/Volvo S40 are the same platform.
 

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[quote author=MZ6ZoomZoom link=topic=83296.msg1589117#msg1589117 date=1185482893]

You aren't really allowed to think long term in a public company. You have to enhance shareholder value NOW or you're out.

Anyway, I dearly hope they don't sell Volvo. I could be wrong, but I don't think Volvo loses money, and it helps offset the cost of platform development by increasing marketshare/shipments, so why would you sell it? Not to mention, half their cars are shared with Volvo now! The Taurus (500/Montego/whatever)/S60/S80 are the same platform, and the Mazda3/Euro Focus/Volvo S40 are the same platform.
[/quote]

I think that if Americans don't fight for what's American nobody will. I'd much rather see a Japanese car company go under than Ford because I have family ties with Ford. With that said, if Ford would have put more money into R/D back when things were going good they would have the quality to hang with the Japanese. But since they had no vision of the company (Long Term Goals) and companies like toyota had long term goals (like beating the big3 in their own back yard) they ended up on top, now for those that say.... Well, toyota isn't on top, the big3 still has some of the biggest companies out there, even still, toyota kills them in profits every quarter....

To sum it up Ford coasted when things were going good and fell behind because a lack of having a long term goal. Toyota is a public company and has a had that goal since the early 80's, so long term goals are needed to keep a company moving forward. the only way to beat the odds is to be relentless like toyota is and aim for dominancy. Fords goals aren't strong enough, not only do they need to match the quality they need to beat it and take no prisoners.
They need to make these goals long term and think/be at the front when it comes to technological breakthroughs.
 
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