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Volvo Sale Could Net Billions For Ford
2007-09-02 15:57:00
They point to the fact that Ford sold Aston Martin and plans to sell Jaguar and Land Rover. Of course, Ford denies selling Volvo . So what is truly the case here? One argument against a sale is that the Swedish brand has been relatively profitable for Ford, contributing the most of the $420 million earned by the Premium Automotive Group (PAG) during the first quarter of this year.In fact, PAG stablemaes Jaguar and Land Rover have been doing better, too. Land Rover's U.S. sales have risen 8 percent in the second quarter of this year and is expected to make a profit of as much as $1 billion by year's end. And Jaguar is showing improvement as well. If Ford does decide to sell Volvo, that would put an end to the PAG which have its own ramifications. So why sell Volvo? Ford lost a record $12.7 billion last year. Analysts speculate that the sale could garner some $8 billion would certainly help Ford get back on its feet with its American brands (i.e., Ford, Mercury, and L...
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