Ford Seeks To Get Loss-Making Swedish Division Off Its Hands

Ford Seeks To Get Loss-Making Swedish Division Off Its Hands

Ford Seeks To Get Loss-Making Swedish Division Off Its Hands


The US giant said it was pleased with both the number and “quality” of those who had expressed an interest, but did not reveal any names.

Ford is seeking to offload loss-making Volvo as it continues efforts to turnaround its own fortunes.

In 2008 Ford made its biggest ever annual loss, despite selling Jaguar and Land Rover for $2.3bn (£1.15bn).

According to reports in Sweden, a number of Chinese firms are interested in buying Volvo.

These are said to include Chery Automobile, Dongfeng Motor Group and Chongqing Changan Automobile.

“Ford has held preliminary discussions with several parties interesting in buying Volvo Cars,” spokesman John Gardiner said in a written statement.

The US company “has been pleased with the number and quality of these parties, and preliminary discussions have been held to ascertain their level of interest in the Volvo business,” he added.

“Ford is now talking in more detail to these interested parties about the future for Volvo,” he said.

Gardiner said that, while the talks could lead to a sale of the beleaguered Swedish company, “no final decisions have been made at this stage and this process will still take some time to unfold.”

There may be up to five potential bidders for Volvo Car, including one or more Chinese automakers.

General Motors, is also seeking to sell its Swedish unit, Saab Automobile. Saab, which is in creditor protection, said earlier this month that its suitors included Swedish and Chinese parties.

Volvo Car recorded a fourth-quarter pretax loss of $736 million as its revenue fell 35 percent to $3.3 billion.

The car company is separate from Volvo Group, a maker of commercial vehicles that is also based in Sweden. Ford acquired the group’s passenger-car unit in 1999 for $6.45 billion and made it part of its premier auto group.

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