Ford to keep Volvo

Ford Motor Co does not plan to sell its Volvo brand, for the time being according to recent comments by CEO Alan Mulally. Ford says it is in the midst of developing a strategic plan for the future growth and development of Volvo. "Our plan now is not to sell Volvo but to improve its cost structure and brand positioning. I think we can do substantially better than where we are today," said Mulally. But he refused to rule out a future sale, saying the company would "continue to review its brand portfolio."
Ford wants Volvo to operate more independently and achieve greater efficiency by cooperating on the development of new platforms. It paid US$6.45 billion for Volvo in 1999.
It is unclear how profitable the brand has been for Ford, because its results are not reported separately, although Ford said Volvo lost money in the last quarter.
Ford is also in the final stages of deciding on the sale of its Jaguar and Land Rover divisions, with Tata Motors and two private equity companies still in the bidding. The decision is expected to be announced by January 2008.