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Monday, December 01, 2008
Ford Weighs Selling Volvo Unit as Part of Restructuring
By Joanna Ossinger
FOXBusiness
Ford Motor (F) said on Monday that it would evaluate options for its Volvo unit, including a possible sale, as it tries to improve its balance sheet amid a crisis for the auto industry.
Ford said the restructuring could take several months to complete, and in the meantime it will continue to implement Volvo’s current restructuring plan.
Volvo, which is based in Sweden, is reportedly in talks with that country’s government about its options.
“Volvo is a strong global brand with a proud heritage of safety and environmental responsibility and has launched an aggressive plan to right-size its operations and improve its financial results. As we conduct this review, we are committed to making the best decision for both Ford and Volvo going forward,” Ford CEO Alan Mulally said in the company’s press release.
Ford in recent weeks has appeared to be in better shape than its fellow Big Three company General Motors (GM), which has said it could run out of cash in the next couple of months.
Ford, GM and Chrysler have a big day on Tuesday -- they report November auto sales, and they have to present lawmakers with a proposal to receive $25 billion in government loans to keep them solvent amid the current downturn. Executives from the Big Three will testify before Congress on Thursday and Friday.
Ford’s shares were up 4.8% to $2.82 each in late morning trading on Monday.
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