Ford to sell Volvo

[coupe3w]

Item 6 and 7 Tata to pay more and Volvo for sale

 

http://seekingalpha.com/article/60721-unde...ay?source=yahoo

Edited January 18, 2008 by coupe3w

[igor]

interesting - we shall see how accurate they are ..

 

Igor

[Ford Jellymoulds]

This website does seem to be full of shit like this?

 

ITEM 5

January 18, 2008 -- Wall Street pros say they can withstand beatings like yesterday's global stock rout - but what really worries them is when their toes can't feel the bottom anymore.

 

Analysts say treacherous economic waters are suddenly much deeper than anyone expected, with experts fearing we're already in a recession and could be treading water in life preservers for as long as another 12 months.

http://www.nypost.com/seven/01182008/busin...well_366728.htm

 

Maybe Ford might have to sell Volvo to stay afloat, but its great to see Ford look like they might be getting a lot more for Jaguar/Land Rover, selling Volvo may not be such a bad thing if the US does go into recession then Ford will be lean and mean now its got rid of all the dead wood at Ford and won't be carrying it around with it anymore, l think Alan Mulally is doing a great job at Ford.

Edited January 18, 2008 by Ford Jellymoulds

[92merc]

If Ford were to plan on selling Volvo, then I can see why they said they will be making Lincoln their "global" luxury vehicle. Not that I agree with it though.

 

On the other hand, if they do sell JLR and Volvo, they sure as hell better step up the Mercury line of vehicles. There's no reason then that they can't expand that lineup into a completely different line of "Fords", similar to Pontiac and GM.

[theoldwizard]

interesting - we shall see how accurate they are ..

 

Igor

... and if anyone is willing to pay $6B ! Mother Volvo AB wasn't last year !!!

[J-150]

one thing we've learned from past recessions, luxury cars continue to sell.

 

the rich still have money. it's the middle class that takes it in the crotch during a recession.

[Ford Jellymoulds]

one thing we've learned from past recessions, luxury cars continue to sell.

 

the rich still have money. it's the middle class that takes it in the crotch during a recession.

 

Thats good the the Chinese should hit the rocks then great.

[andy82471]

Now that FORD has offloaded LR, JAG, and AM and plan to ditch VOLVO soon, how much longer can they remain the third largest automaker in the world. Has Volkswagon already surpassed FORD in terms of global sales or is FORD still ahead ?

[J-150]

Thats good the the Chinese should hit the rocks then great.

 

 

sounds about right. launching a new company and car line in a recession is bad news.

[LoveTaurus]

Recession is mostly in the U.S. Chinese economy not affected very much by us. They're still doing strong.

Edited January 18, 2008 by LoveTaurus

[Ford Jellymoulds]

Now that FORD has offloaded LR, JAG, and AM and plan to ditch VOLVO soon, how much longer can they remain the third largest automaker in the world. Has Volkswagon already surpassed FORD in terms of global sales or is FORD still ahead ?

I would rather see Ford be No3 and make a profit, than be No2 and end up going bankrupt with dead wood and end up getting BOUGHT out and OWNED, asset stripped and raped by somebody like Toyota.

Edited January 18, 2008 by Ford Jellymoulds

[focus05]

The loss of all three companies will eliminated about 750,000 sales from Ford's total. Probably enough to push it to No.4. But, if they are making money and can grow from there. That's perfectly fine.

[papilgee4evaeva]

Autoblog just posted it, using the UK's The Business as a source:

 

http://www.autoblog.com/2008/01/18/report-...-sale-of-volvo/

 

My question is... what happens to the new technology that the two companies share?

[TStag]

I can see why Ford MIGHT sell Volvo. It's in a much more perilous state than JLR. Whilst the Volvo brand is strong, it's not strong enough just yet to push further up market. To do that it will require more bespoke parts. In addition Volvo is planning a lot of new models to try and fix itself. All this requires a lot of wonga, which is difficult to secure at Ford right now. One of the things I've heard is that Land Rover, which is seriously profitable these days had got to a point where it was proposing what it considered to be great new models but Ford just couldn't afford the investment. Despite knowing Land Rover was backing winners. If Ford is struggling to back a successfull business like Land Rover, what hope Volvo? Ford NA is vacuuming up all the cash the days.

 

Volvo also has it's factories in the wrong places. Because it's down market from BMW/ Merc/ JLR and co and sells in lowish volumes it can't support these factories. Volvo has serious structural issues. I actually think finding a buyer could be a bit tough without reducing the ticket price....... Maybe Ford is ging to realise at last that it's sold the wrong bit of PAG!

[96towncarcartier]

VOLVO IS NOT FOR SALE!!!

 

Gees, don't you fools READ???

 

 

The article is SPECULATIVE. Even the writers of Autoblog state that they are LEARY of this claim. They also state that NO OTHER ORGANIZATION has stepped up to corroborate this SPECULATION.

 

Volvo IS NOT going anywhere! Get a clue, people.

[FordFanForEver]

I said this before and i'll say it again. Ford probley would be better of selling Jag/LR in the long run because thats more money to upgrade the lincoln brand and to REVIVE the Mercury brand. In my mind, if Jag/LR are gone, you almost have to have Mercury to fill in.

[TStag]

I said this before and i'll say it again. Ford probley would be better of selling Jag/LR in the long run because thats more money to upgrade the lincoln brand and to REVIVE the Mercury brand. In my mind, if Jag/LR are gone, you almost have to have Mercury to fill in.

 

That was probably true 2 years ago,when Volvo was making money, Jag was loosing cash left right and center and Land Rover was about breaking even. Now we have got to a point where Land Rover is booming and is seen as a top premium car maker, Jag is undergoing a full blown recovery and Volvo is in dire need of MASSIVE investment. People forget too easily that JLR brands had struggled for decades with no money to design and engineer cars. Ford's investment has gone into fixing this. For the first time in their historys both brands are working with modern equipment in modern factories. The hard work has been done. Selling JLR will now just raise cash to pump into rescuing Volvo. I don't expect Lincoln or Mercury to see much of it as a result. Volvo is going into massive meltdown mode!!!!!!!! I actually think Volvo has been struggling for a couple of years, it's quite feasible that Land Rover' and Aston Martin been the real stars of PAG.

 

As I say Ford are selling 2 premium brands that are begining to return shareholder value, whilst getting ready to dump billions into Volvo. It's the worse scenario possible. Ford should sell Volvo, regardless of whether or not it sold or keeps JLR.

[jpd80]

Mulally said to Bill Ford, "If I can't sell cars with your name on them, all the rest is pointless."

Ford has lost its way trying to run 4 or 5 companies plus its own fragmented divisions.

 

When you look at PAG as a whole - 750,000 cars/year for basically zero profit, what's the point?

Unless these other marques make massive profit, there's no point in keeping any of them.

 

It would have made more sense for Daimler to own Volvo than Chrysler.

[FordFanForEver]

That was probably true 2 years ago,when Volvo was making money, Jag was loosing cash left right and center and Land Rover was about breaking even. Now we have got to a point where Land Rover is booming and is seen as a top premium car maker, Jag is undergoing a full blown recovery and Volvo is in dire need of MASSIVE investment. People forget too easily that JLR brands had struggled for decades with no money to design and engineer cars. Ford's investment has gone into fixing this. For the first time in their historys both brands are working with modern equipment in modern factories. The hard work has been done. Selling JLR will now just raise cash to pump into rescuing Volvo. I don't expect Lincoln or Mercury to see much of it as a result. Volvo is going into massive meltdown mode!!!!!!!! I actually think Volvo has been struggling for a couple of years, it's quite feasible that Land Rover' and Aston Martin been the real stars of PAG.

 

As I say Ford are selling 2 premium brands that are begining to return shareholder value, whilst getting ready to dump billions into Volvo. It's the worse scenario possible. Ford should sell Volvo, regardless of whether or not it sold or keeps JLR.

 

I agree, Jag/LR/Volvo needs to go out the door if thats what it takes to save the ford motor company. They need the money to revive all Lincoln and Mercury.

[rmc523]

Autoblog just posted it, using the UK's The Business as a source:

 

http://www.autoblog.com/2008/01/18/report-...-sale-of-volvo/

 

My question is... what happens to the new technology that the two companies share?

 

I would think Ford would work out some sort of agreement with Volvo's new owners to continue to share technologies, etc., or they may even retain a small stake in the company (which means sharing technology as well). At least, that would make sense to me.

Edited January 20, 2008 by rmc523

[TStag]

Selling Volvo certainly does make sense, it's got a good brand names, so that will raise cash. However Ford will need to invest billions to fix it. Selling JLR actually makes no sense. Jag is undergoing a massive fightback now, the XF is piling up awards and giving the company a waiting list. Land Rover is allegedly more profitable per car than even BMW. All JLR need to do is continue to gradually expand. This could generate serious amounts of cash for Ford Motor company. But Volvo is the new black hole.

 

Ford should focus on Ford, above Lincoln and Mercury. Ford is the global brand upon which everything else is built. Ford should not waste money on making Lincoln into a global brand. But should focus on taking on Buick in China and the USA. Personally speaking I'd switch Mercury over to selling FOE cars with the Mercury badge on. I see no future for the Mercury brand other than using it as a label to stick on FOE cars. I'd give Lincoln 5 years to make serious profits, with it's own bespoke model range. If It can't do it then I'd shut that and buy a European brand that will.

[theoldwizard]

Recession is mostly in the U.S. Chinese economy not affected very much by us. They're still doing strong.

For now ! If this recession last for more than a few months (by definition a recession has to be at least 6 months), the Chinese will feel it big time, as their largest customer (US of A) stops buying !

 

China is a country with no social safety net. Imagine huge factories, with their dormitories and cafeterias, closing. You will suddenly have hundreds of thousands of starving workers in the streets.

[twintornados]

"The Business in the UK is speculating that, despite comments to the contrary, Ford is planning to auction off Volvo..."

 

Cut and paste from the article but right in the first sentence it states the key word "speculating"

 

[TStag]

For now ! If this recession last for more than a few months (by definition a recession has to be at least 6 months), the Chinese will feel it big time, as their largest customer (US of A) stops buying !

 

China is a country with no social safety net. Imagine huge factories, with their dormitories and cafeterias, closing. You will suddenly have hundreds of thousands of starving workers in the streets.

 

But isn't a recession likely to drive more Western companies into China to cut their costs?

[rmc523]

Selling Volvo certainly does make sense, it's got a good brand names, so that will raise cash. However Ford will need to invest billions to fix it. Selling JLR actually makes no sense. Jag is undergoing a massive fightback now, the XF is piling up awards and giving the company a waiting list. Land Rover is allegedly more profitable per car than even BMW. All JLR need to do is continue to gradually expand. This could generate serious amounts of cash for Ford Motor company. But Volvo is the new black hole.

 

Ford should focus on Ford, above Lincoln and Mercury. Ford is the global brand upon which everything else is built. Ford should not waste money on making Lincoln into a global brand. But should focus on taking on Buick in China and the USA. Personally speaking I'd switch Mercury over to selling FOE cars with the Mercury badge on. I see no future for the Mercury brand other than using it as a label to stick on FOE cars. I'd give Lincoln 5 years to make serious profits, with it's own bespoke model range. If It can't do it then I'd shut that and buy a European brand that will.

 

JLR may now be growing and increasingly profitable, but Ford's reason for selling it is because of the point you mentioned. You said they need to gradually expand.....Ford doesn't have the means to fund further expansion at this time. With the products planned for JLR, Ford decided it couldn't afford to keep the two any longer. One product reason is the Range Rover switching to an aluminum chassis, etc. (although I read an article the other day that said they may not switch since it will cut too heavily into profits). Personally, I agree with you that JLR should stay, since it seems they are finally on the track to profitability and success. I also agree with you that Volvo is increasingly looking like the new (former) JLR black hole. Their sales are slipping even with several new products. That said, the lineup also has it's fair share of old, almost neglected products (S60, etc). This is just speculation, but IMO I'd think to fix Volvo will require even more money than it did to fix JLR since it already has a larger model range. With JLR, you could expand to new segments, etc., but with Volvo, it's already playing in most of them. I suppose the argument could be said that all you would have to do is improve the products they are already offering, so I don't know what to tell you.

 

Now, onto Mercury.....you said FoE cars should be brought here and badged as Mercuries, this has been debated time and time again. With Ford globalizing it's operations, most products (except exclusive ones like F-150, Flex, etc) will be designed globally with little changes between FoE and FNA products. THen Mercury would just become another Ford rebadge if you went with this strategy. It would've been a short-term fix a few years ago, but at this point, it'd probably be a waste of money.