Volvo for sale?
TEXT OF STORY
Doug Krizner: Ford’s denying reports its preparing to sell Volvo. Even so, some European analysts this morning are saying a sale could be in the cards. We have more from London and Stephen Beard.
Stephen Beard: Ford has denied that it’s talking to another company about selling Volvo. All it will say is that it’s assessing all its operations.
Having lost more than $12 billion last year, the need for that assessment is pressing. Ford has already sold Aston Martin, and it’s currently trying to get rid of Land Rover and Jaguar.
Analysts now reckon that Volvo could be next, going for as much as $8 billion. Paul Newton of Global Insight says there will be no lack of buyers.
Paul Newton: I suspect there would be a lot of interest. Volvo’s in fine shape. It’s not grown without hiccups. It’s had a little bit of a fallback last year, but we’re expecting some new models to come on stream which we’re expecting to do very well.
He says the stories about Volvo suggest that the sale of Jaguar and Land Rover is not going as well as Ford hoped. The company has set a deadline of this Thursday for potential purchasers to express an interest in those two brands.
In London, this is Stephen Beard for Marketplace.
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