Dec 01
The Volvo V70
General Motors and Ford Motor have approached Sweden’s government about financial aid for their lossmaking Saab and Volvo brands.
Related article: Ford Says It May Sell Volvo, Its Last European Brand
GM and Ford want to bolster the two marques’ finances in anticipation of selling them as the Detroit carmakers grapple with a cash crunch that threatens their survival.
Stephen Odell, Volvo’s chief executive, and Saab’s managing director Jan-Ake Jonsson have separately spoken to Maud Olofsson, Sweden’s industry minister, and other officials about securing funds, according to several people familiar with the discussions.
Ford and GM will both tell the US Congress they have long-term plans to dispose of the brands this week when they present detailed business and financial plans to support their request for $25bn of emergency funding.
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Tags: Bailout, Cars, Ford, General Motors, GM, Government, Politics, Saab, Sweden, Taxpayers, Volvo
Dec 01
The Volvo C70
Dec. 1 (Bloomberg) — Ford Motor Co. said it may sell its Volvo unit, the company’s sole remaining European brand, a day before the automaker is scheduled to present a survival plan to U.S. lawmakers.
The review of options for Volvo was spurred by the worldwide auto decline and probably will take several months, Ford said today in a statement. Shedding the Swedish unit would complete the unwinding of a two-decade strategy of diversifying by buying European luxury brands. Volvo, acquired in 1999 for $6.4 billion, was retained after a similar evaluation last year.
Related article: Volvo and Saab ask Sweden for aid
Ford, General Motors Corp. and Chrysler LLC are to present plans tomorrow demonstrating why they should get $25 billion in U.S. financial aid and that they can be viable businesses. Volvo was once central to a failed strategy by Dearborn, Michigan-based Ford to reap a third of its profits from luxury autos in 2006.
“All of these businesses are being forced to reveal their hand,” said Maryann Keller, an independent auto analyst and consultant in Greenwich, Connecticut, in an interview. “Ford can put Volvo up for sale, but there aren’t going to be any buyers. It may come down to the Swedish government taking it.”
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Tags: Cars, Economy, Financial Crisis, Ford, Recession, Volvo
Oct 27
Driven down: sales of Volvo trucks have dipped a staggering 99.7%
The depth of the recession was revealed today as truckmaker Volvo admitted demand across the Continent has crashed by 99.7% as it took orders for just 115 new lorries in the last three months.
That compares to orders totalling 41,970 in the third quarter of 2007. Global orders for Volvo slumped 55% in the last three months while Scania, of which Volvo has majority control, said its western Europe truck orders collapsed by 69%.
Volvo, which also makes trucks under the Renault and Mack brands, reported a 37% plunge in third-quarter earnings to £230m.
‘The downturn in the economy has been significantly exacerbated by the global financial crisis,’ the company said. ‘The important European market has declined significantly while North America and Japan continue to show weak demand.’
Volvo indicated that there could be thousands of job losses. It has already said 1400 jobs are going, and yesterday revealed that 850 jobs would be axed in its division making heavy construction vehicles.
24 October 2008, 2:19pm
Source: Evening Standard
Tags: Economy, Volvo
