Despite increasing rumours, Volvo is not for sale, according to senior Ford sources.
Instead the company has decided to turn around the fortunes of its loss-making Swedish subsidiary, rather than allow it to be sold to a Russian or Chinese bidder. Ford’s senior management wants to boost Volvo’s annual sales from 420,000 to well over 600,000 units.
Ford is said to be unimpressed that Volvo has stumbled with a product strategy, which has seen sales of most of its models falling in recent months.
One source suggested that Volvo was too small to properly compete with premium makers such as BMW and Mercedes and it would be better to play to its traditional strengths by competing with ‘premium mainstream’ brands such as VW.
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