Ford Officially Looks at Selling Volvo Brand

Following months of denying it wasn’t interested in selling its Swedish luxury brand, Ford Motor Company announced today it is considering selling off the Volvo Car Corporation as a move to restructure itself.

The announcement comes as Ford, preparing to face another round of Congressional hearings on a possible automaker aid package, is looking at ways to reduce its operating costs. In a release, Ford CEO Alan Mulally said it is “prudent for Ford to evaluate options for Volvo” as the company continues to implement its “ONE Ford” plan.

Similar rumors popped up earlier this year, when Ford sold both its Jaguar and Land Rover subsidiaries to India’s Tata Motors. At the time, rumors swirled that Volvo was next on the chopping block, though Ford officials denied such a possibility existed.

Revealing the possible sale may help Ford executives while on Capitol Hill, but it won’t aid the automaker in the halls of Sweden’s parliament. Earlier today, Automotive News reported that Ford, along with General Motors, was approaching the Swedish government for an aid package targeted for Volvo and Saab, respectively.

Sweden’s industry minister, Maud Olofsson, harbored some reservations over the automakers’ intent with both brands – if either were likely to be sold in the near future, then the kronors weren’t likely to flow.

Still, a firm decision regarding Volvo’s future is, according to Ford, several months away. Should either the restructuring take hold or the Swedish aid arrive, a sale could be averted, but it remains a possible – and viable – option.

Sources: Ford, Automotive News