LONDON (AP) _ Ford Motor Co. is preparing to sell Volvo, a
British newspaper reported Sunday.
The Sunday Times, citing unnamed sources in London, said the
decision to sell Volvo was made in the past two weeks, but that the
timing of the sale had yet to be decided.
No bank had been appointed to handle the transaction, the
newspaper said, adding the deal could be worth US$8 billion.
Ford acquired Volvo from Sweden's Volvo AB in 1999.
Dearborn, Michigan-based Ford sold Aston Martin for US$848
million in March, with some analysts saying the luxury brand did not
fit into Ford's long-term survival plan. That plan includes cost
savings by developing multiple models worldwide on the same
underpinnings.
The possible sale of Volvo comes as the company is struggling to
return to profitability in the face of fierce competition from Asian
automakers and developing tastes for more fuel-efficient models in
its key North American market. It is slashing thousands of jobs and
plans to close plants to cut costs.
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