Ford May Sell Off Volvo

Company's US sales off 28% in '08; Swedish government in talks
By Gabriel Winant,  Newser User
Posted Dec 1, 2008 10:29 AM CST
Ford CEO Alan Mulally testifies on Capitol Hill, Nov. 19, 2008, before a House Financial Services Committee hearing on the automotive industry bailout.   (AP Photo)
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(Newser) – Ford is looking to cut costs wherever it can, and that might mean selling off its Volvo unit, the Wall Street Journal reports today. US sales for Volvo dropped off 28% in the first 10 months of 2008, and Ford, bleeding cash, plans to trim down and focus on its namesake brand; it’s already sold off other luxury brands like Jaguar.

Says Ford chief Alan Mulally, “Given the unprecedented external challenges facing Ford and the entire industry, it is prudent for Ford to evaluate options for Volvo.” The government of Sweden—where Volvo and Saab, which is owned by General Motors—is involved in talks on the companies’ future, the Journal adds.