Tag Archives | Ford may sell Volvo

Check Your Mirrors

By on October 28, 2008 in Features, News

Odds and ends about cars and the car business

By Autosavant staff writers

10.28.2008

BMW and Ford in Talks regarding sale of Volvo – London’s Sunday Times reported that Ford is in talks with BMW about the possible sale of Volvo. Such rumors also surfaced earlier this year, though they were quickly discovered to be unfounded.

From Ford’s perspective, the main reason behind the sale would be to raise cash, which has lately become a popular reason for US automakers to sell their assets. Sources close to both automakers indicated that talks have taken place, though a BMW spokesperson flatly denied the suggestion.

Reports from Göteborg in the past several months have shown there to be low morale among factions within Volvo, and many Volvo employees would like to see Ford sell their company. Since BMW is known for manufacturing high-quality cars which are enjoyable to drive, many Volvo enthusiasts would love to see the Swedish brand under the BMW umbrella, with the hopes that such a union would lead to Volvo vehicles capable of shaking the brand’s stodgy image.

VW hints that the Scirocco may be sold in the US – After reversing itself on this issue several times, VW is now saying that the new Scirocco may show up in the US after all, and as early as 2009 calendar year. The main issue holding the Scirocco back previously was the negative dollar/euro valuation, and that has largely mitigated itself as a result of recent market conditions. If the Scirocco does get sold here, it will be higher-priced and higher performance than the GTI so as to not cannibalize sales from the current VW performance icon. The appearance of the Scirocco after a 16-year absence would be warmly greeted by performance enthusiasts in the US. Continue Reading →

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Volvo Considers More Platform Sharing, Move Downmarket

By on August 15, 2008 in News

By Chris Haak

08.15.2008

According to Motor Authority, Volvo is considering a near total-reversal of its previously stated goal of reducing volume and shifting the brand upmarket in the face of the strong Euro, surging raw material costs, and an aging lineup (the S60, XC90, and S40 are all several years-old designs). Instead, the report says that the current thinking is to instead move the brand somewhat downmarket, sharing more platforms with Ford, and increasing sales volume.

Such a move is fraught with risk, of course. Ford has spent a lot of energy (and money, of course) toward the goal of keeping Volvo as a contender for consumers’ attention in the upmarket brand segment. Moving downmarket quickly would certainly seem to throw all of those efforts out the window.

Such a complete strategic shift, occurring so rapidly, tells me that – like GM’s handling of the Saab brand – Ford doesn’t have a clue what Volvo does or should stand for, other than safety, of course. The brand tried to grow a sporty branch a few years ago with the R-badged models, but customers accustomed to conservative, boxy 240s just a few years earlier stayed away from the flashy, boxy new models. Then, all of the R models were discontinued, and the brand really seemed to get its design mojo with models such as the S80, S60, S40, and their corresponding wagons. Innovations such as the floating center stack gave a unique Scandinavian character to the cars’ interiors (clean, comfortable, and functional – just like an Ikea!), but beyond that – not much. The current S80, Volvo’s newest model aside from the XC60 crossover that’s just launching, is priced as if it’s an Audi or BMW if you check off too many option boxes, but it’s simply not in that tier of luxury brands. Volvo occupies a similar segment Saab and Acura, and to a lesser degree Infiniti do. Continue Reading →

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