Ford has confirmed it is considering selling Volvo as part of its bid to ensure it does not run out of money. The announcement comes just hours after it was reported Ford has approached the Swedish government for financial aid for the Volvo brand.
Alan Mulally, Ford’s chief executive, says the company is evaluating all strategic options for the Volvo range, including a possible sale of the Sweden-based premium automaker.
In a statement, the chief executive says: “Given the unprecedented external challenges facing Ford and the entire industry, it is prudent for Ford to evaluate options for Volvo as we implement our one Ford plan. We will re-evaluate strategic options for Volvo Car Corporation including a possible sale.”
Ford says the review is likely to take several months to complete, and will be run in consultation with Volvo’s chief executive, Stephen Odell, who was appointed to lead Volvo earlier this year.
Mulally adds: “As we conduct this review, we are committed to making the best decision for both Ford and Volvo going forward.”
Ford is currently under pressure to come up with a detailed survival plan for the US government, alongside General Motors and Chrysler. The companies will submit detailed plans to Congress showing how they plan to repay federal aid tomorrow. Congress will discuss the case on Friday and could vote on the rescue plan as early as next week.