In an announcement from Ford in the USA, Alan Mulally, Ford president and CEO, has confirmed that the strategic options for Volvo are being re-evaluated. Mr Mulally said that Ford are committed to making the best decision for both Ford and Volvo.
The significant downturn in the global automotive market and economic stability world wide, is clearly the reason that Ford have decided at this time to make take this step. Whilst the review is anticipated to take several months to complete, sources world wide suggest Volvo is on the market.
Ford purchased Volvo in 1999 for $6.5 billion and it became part of a stable of brands owned by Ford, which included, Aston martin, Jaguar, Land Rover and of course, a part ownership in Mazda.
A change in emphasis for Ford saw Land Rover, Jaguar and Aston Martin all sold off and very recently, Ford also reduced its shareholding in Mazda.
There is no doubt, what ever the eventual outcome for Volvo, that all of the companies which Ford has been involved with have benefited from that involvement and because of that, they all make much better cars. So for that reason alone, it’s really sad that having made such a big difference, Ford have found it necessary to dispose of them.
The pendulum swings both ways though and Ford have clearly benefited from these relationships and looking at Ford’s model line up now, its plain and simply very impressive, setting the benchmark standard for every class of vehicle they build, so it has all been worthwhile.
