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: CNBC: Ford And Why I Think It Will Sell Volvo--Do You Agree?


SobeSVT
05-05-2008, 10:38 AM
http://media.cnbc.com/i/CNBC/Sections/News_And_Analysis/_Blogs/Beat%20Blogs/Behind_The_Wheel_new/__COVER/behindthewheel_635x80.jpg (http://www.cnbc.com/id/24464958/site/14081545?__source=yahoo|headline|quote|text|&par=yahoo)
NBC: Ford And Why I Think It Will Sell Volvo--Do You Agree?

Ask yourself a question, and be honest: If you ran Ford, would you hang on to Volvo and continue sinking money into turning around the brand or would you unload it as soon as you got a decent price?

It really is that simple for Ford CEO Alan Mulally.

Yes, I know the man running Ford and his lieutenants all say Volvo is not for sale. Before we get into this debate let me say I think Mulally's being straight with us, while not telling us his long range plans. True, Volvo's not for sale right now. Do I think that will change in the future? You bet.

Job 1 at Ford is fixing Ford. And from Mulally's perspective, you get there by shedding brands (Aston Martin, Jaguar, and Land Rover are either gone or going) and making sure Ford (the brand) is the best it can be. That means focusing on streamlining costs, product development, marketing, etc. And to make sure that turnaround works, you need a singular focus and cash. Two things Mulally gets if and when he sells Volvo.

So why not sell Volvo right now? The time isn't right. The credit markets are horrible. Potential buyers won't give Ford the $5-$6 billion Volvo is worth. So Mulally will sit and wait for the right time.

But from my perspective (and many others in the auto industry) the European brand will eventually be sold. Remember, Ford is leveraged to the hilt, and at some point Mulally and his crew will need to repay the loans. If you were him, and you had the chance to secure some cash to give yourself a little breathing room wouldn't you do it?

for more CLICK HERE (http://www.cnbc.com/id/24464958/site/14081545?__source=yahoo|headline|quote|text|&par=yahoo)

You can send your comments to the author to BehindTheWheel@cnbc.com

1931Chevy
05-05-2008, 10:50 AM
this idiots from the media always talking and making predictions just like when they said Ford wa sgoing to loose money the past quarter, I have to agree that with the market conditions it would be pretty bad to buy a seller for Volvo if they decide to sell , but this gives Volvo time to reshape their cars and slow or halt loosing sales in the states, and Ford IMO should utilize some of the US plants and build them here

2b2
05-05-2008, 06:18 PM
While I wouldn't call Phil LeBeau an idiot,
imho these wallstreet-types Only care about (short-term) ROI
and don't know (or care) that much about the CARindustry from the Car side
so
tho their 'advice' might/sometimes make sense from that perspective,
the businesses would eventually suffer Greatly.

wingsnut
05-05-2008, 09:08 PM
Ford learned plenty from Volvo.
If they moved on and sold, I would not mind.

2b2
05-05-2008, 09:28 PM
^ yeah, Ford would be fine without Volvo
not so sure Volvo would be ok without Ford...

megeebee
05-11-2008, 12:42 PM
Ok, ok, I'll say it:

"This is just a nasty rumor. Ford will never these (this) brand. They've said so."

1931Chevy
05-20-2008, 10:31 AM
http://biz.yahoo.com/rb/080520/ford_volvo.html?.v=2
Chief Executive Alan Mulally told top executives he wants to eventually seek a buyer for the Volvo brand, the newspaper said, citing people familiar with the matter.

MKII
05-20-2008, 12:44 PM
My feeling is Ford will sell its major stake in Volvo , similar to its deal with Mazda.

Ford and Volvo are very enmeshed especially Ford Europe. I cannot see a complete sale of Volvo, not with FMC going forward with a "One World Ford"

2b2
05-20-2008, 04:02 PM
Ford has said publicly that it doesn't plan a sale, but CEO Alan Mulally has told top executives he wants to eventually seek a buyer for the Volvo brand, the newspaper said, citing people familiar with the matter.


imho Mr.M. needs to start "packing heat"
for these loose-lipped execs