Ford and Renault Initial Talks on Volvo Sale
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According to sources, Ford Motor Co., Ltd. has had preliminary discussions with Renault Motors on the sale of Volvo, but negotiations on the price issue will soon end.
The person said that as early as last fall, the two sides had to negotiate, after a year after the two sides will once again put the issue of Volvo sold to the negotiating table. Sources also said that Ford had already discussed with Volvo, China’s third-largest automaker, about Volvo’s cooperation.
Ford spokesman Mark Truby declined to comment on Volvo's sale. "We announced earlier this year that Volvo will not be sold, and we will focus on improving its operating efficiency."
However, sources said that although Ford said that there is no plan to sell Volvo, the loss giant has already begun to contact potential buyers.
Industry analysts pointed out that for the past two years, Ford has lost more than $15 billion in losses, and the plan to turn a profit in 2009 will apparently fail. It wouldn't be impossible for Ford to get Volvo out of cash.
Due to the dismal operation, Ford plans to close 16 North American factories and lay off tens of thousands of people in recent years. In addition, the company has pledged 33.0 billion assets to improve operations in 2006.
Ford bought Volvo cars for $ 6.45 billion in 1999 and lost $ 151 million in the first quarter of this year.
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