Ford Motor Company, the world’s 4th largest automaker, is seeking to sell Volvo Cars, the Swedish carmaker that was acquired by Ford in 1999. The probable sale for $6 billion may be a decisive approach of showing the U.S. Congress that the automotive company is also taking the necessary steps in slashing its expenses and in achieving market profitability. Ford, along with U.S. auto giants General Motors and Chrysler, is appealing to the U.S. for a $34-billion aid in the face of credit crisis and recession. Since 2005, Ford has suffered from a $24 billion loss and Moody’s Investors Service has reaffirmed its Caa1 rating of Ford, which is a dismal seven levels below investment grade.
Volvo is still a strong brand (considering that it had been ranked No.1 for safety in a January survey conducted by an independent U.S. Consumers Union) but it presently relies heavily on the American and the Western European markets.
Ford Motor Company is an American multinational company based in Dearborn, Michigan. Founded by Henry Ford and incorporated in 1903, Ford was responsible for the manufacturing revolution in the early 1900s when the company introduced mass production of cars through moving assembly lines. Ford is now the world’s 4th largest automaker based on worldwide vehicle sales and it owns other brands such as Lincoln, Mercury, and Gothenburg. Ford also owns a small stake in Japanese car manufacturer Mazda and British carmaker Aston Martin.
Ford Names Gephardt, Earley to Board .