Needing cash fast, Ford wants to unload Volvo. The first move is to show that the car line is making money. Who is going to purchase a company that’s losing money? Sales are down by almost half, which will most likely scare away even the most speculative investors.
Volvo is a popular car with families, because they’re so safe. I bought a used Volvo wagon in the late ’80s. It had 100,000 miles on it when I bought the vehicle, and I got another 50,000 out of it without a major repair. Solidly built and structurally sound, I see a lot of upwardly mobile families driving Volvos with car seats in the back. Ford is reportedly going to ask for $5-$10 billion dollars for the brand, but they could be dreaming with that price, especially in a recession.
Ford has too many car lines, so selling Volvo makes sense. Hopefully, the move will provide them with some much-needed funds that they can use to make better cars that are greener, more affordable and family friendly. They say that of the Big 3, Ford is in the best shape. They’ve been the most proactive in making greener cars, and by offering attractive deals, they’ve been selling new cars when most Americans are content to drive the cars they have currently have, while they wait and see what’s going to happen with the economy.
Detroit News article after the jump: