DEARBORN, Mich. – Ford Motor Co. is considering selling Volvo Car Corp. as the struggling U.S. automaker seeks to raise cash and weather a global automotive sales crisis.
Ford said Monday it expects its strategic review of the Swedish luxury automaker will take several months. The move is one of several actions Ford is taking to strengthen its balance sheet amid what it called "severe economic instability worldwide."
"Given the unprecedented external challenges facing Ford and the entire industry, it is prudent for Ford to evaluate options for Volvo as we implement our One Ford plan," said company president and CEO Alan Mulally in written statement, referring to a plan the standardize the company globally.
Ford officials would not speculate on how a potential sale would affect the companies. Spinning off Volvo into a separate may be a possibility, as both companies have already taken steps to allow Volvo to operate on a more standalone basis. That effort began in 2007, after a previous strategic review of Volvo.
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