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Hot News: Ford Keeps Volvo

dikarocks submitted on 8/13/2008 Official Bell & Ross Timestamp: 10:12:47 AM

24 user comments | Category: Spy News | Source: | SOURCE: dikarockz.blogspot.com

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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Hot News: Ford Keeps Volvo

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dikarocks

— dikarocks (View Profile)


User Comments

Maverick2020

Keeping Volvo is a good decision at Ford, as is keeping its interest in Mazda.

— Maverick2020 (View Profile)

Posted on 8/13/2008 11:34:11 AM | reply to this comment | Votes: 2   

Bored

@ Mav,

Why? Their interest in Mazda has been one of the few things Ford has done right and haven't f'd up. Volvo is such a shell of its former self in Ford's hands that it's almost to the point that the humane thing to do would be to euthanize it.

— Bored (View Profile)

Posted on 8/13/2008 12:26:06 PM | | Votes: -4   

Deutschland

Sadly, Volvo may be done

— Deutschland (View Profile)

Posted on 8/13/2008 12:21:25 PM | reply to this comment | Votes: -2   

carguy68

ha ha that's funny dush land

— carguy68 (View Profile)

Posted on 8/13/2008 12:52:57 PM | reply to this comment | Votes: 3   

mini22

I think they have been remained unfocused. it can be turned around. They have good styling,great interiors but mediocure driving dynamics. This needs to be improved. The X60 is done so they really need to market it right. There should be a perfromance C30 and perhaps a 4dr C30 to compete with the GTI. The S40 and S50 should be made slightly larger to better compete with the 3 series and A4. They should make a fixed coupe C70 but with a large sunroof. It could be thousands cheaper,perform better and get better fuel economy. AWD should be offered on all models as an option.Where are the diesels? Where are the hybrid diesels?

— mini22 (View Profile)

Posted on 8/13/2008 12:53:57 PM | reply to this comment | Votes: 3   

pushrod27

Volvo can be turned around. I've driven some of the new Volvos. The V70 and S80 are both great cars, with very plush interiors. If anything, being associated with Ford is the biggest turn-off for me when it comes to Volvo. The only thing worse than being owned by Ford is being owned by the Chinese. They're kind of between a rock and a hard place.

— pushrod27 (View Profile)

Posted on 8/13/2008 1:04:05 PM | reply to this comment | Votes: 2   

PlanB

I also agree that Volvo can be turned around also. The current cars are competent and reliable enough but can be really competitive if given a little more effort in a few areas.

— PlanB (View Profile)

Posted on 8/13/2008 1:09:34 PM | reply to this comment | Votes: 1   

EL34

Volvo's are selling very good here in SoCal.

— EL34 (View Profile)

Posted on 8/13/2008 1:15:37 PM | reply to this comment | Votes: 0   

drake0707

Has anyone here owned a Volvo? Are they generally good cars?

— drake0707 (View Profile)

Posted on 8/13/2008 1:28:21 PM | reply to this comment | Votes: 1   

Htay7500

S80 is the most underrated car in its class. amazing interior, drives well.

— Htay7500 (View Profile)

Posted on 8/13/2008 1:34:21 PM | | Votes: 3   

cdoke

Yes- my first car was a 1989 Volvo 740. I don't know if you will find any of this helpful due to how old it is, but it was a generally good car. It wasn't the fastest, but the problems I had with it were repetitive and the result of driving it where I did, namely, on washboard country roads.

When the C70 came out, my aunt and uncle bought a C70 coupe for my cousin. She really liked it, but there were a few problems, sand would get into the door and cause the failure of the window roller mechanisms, also I recall them taking it in to have the tires worked on and they put it on the rack, in the process causing the failure of one of the traction control modules. The biggest problem they had with the car wasn't due to the car; it ended up being rear-ended on 3 separate occasions.

— cdoke (View Profile)

Posted on 8/13/2008 4:13:11 PM | | Votes: 1   

Sarcastic1

Fantastic Cars! I had an 850 and now an S60. My family has been through dozens of Volvos and they are wonderful cars! They suit their demographic incredibly well. The Volvo customer is someone who wants luxury, reliability, and safety. They want something that will get them to work, get the kids to soccer practice, take the family on vacation, but also make a decent impression in the country club parking lot. The idea that Volvo would be on the level of VW is disgraceful. The Volvo brand is far more premium than VW. Comparing the Jetta to an S40 is like comparing Hilton Head Island to Wildwood New Jersey. Both are beaches, somewhat nice but nothing pretentious. Hilton Head, however, has a higher level of class.

Outside of the R, Volvos do not have record performance, but that goes back to the demographic. A V10 just isn't necessary. Unpretentious luxury, reliability, and safety is what the Volvo consumer seeks. If Ford decides to infect this company with their pathetic...everything, then this is just another great brand for the history books.

— Sarcastic1 (View Profile)

Posted on 8/14/2008 9:26:03 AM | | Votes: 1   

pushrod27

Wildwood (and every beach in New Jersey) is a filthy disgrace. Why is the water brown?

— pushrod27 (View Profile)

Posted on 8/15/2008 12:42:21 PM | | Votes: 1   

DROOPYSAKK

volvo has carved a nice niche for themselves.

i like the move

— DROOPYSAKK (View Profile)

Posted on 8/13/2008 1:42:24 PM | reply to this comment | Votes: 0   

truthpursuit

Niche car companies lose money,with the investment costs of starting new vehicle production you must have some volume to pay those costs.Dealers also need volume to make any money.

— truthpursuit (View Profile)

Posted on 8/13/2008 2:17:23 PM | reply to this comment | Votes: 0   

johannas

The redesigned S40 next year will turn heads in a big way.

— johannas (View Profile)

Posted on 8/13/2008 4:02:34 PM | reply to this comment | Votes: 0   

CRS2112

I always look at Volvo when purchasing a new car - but never go in that direction. Not sure why. Everyone I know who owns one - likes them. They also seem to have a very loyal following.

— CRS2112 (View Profile)

Posted on 8/13/2008 6:07:15 PM | reply to this comment | Votes: 1   

Gunther7

Keeping Volvo is a good move by Ford. However, Volvo should avoid the trap of trying to go too far up market. They should focus their cars in the low $20k to $42k range and focus on what they do best - safety, design and move toward green - which would fit their demographic well. For example, a C30 that has a small diesel that gets 38 mpg priced below $25k and advertised to young, college educated, environmentally hip kids should find an audience. Volvo's designs are some of the best from Europe, but with S80s/XC70s/XC90s hitting $50k, they are too up market. How about a XC70 with a value pack (radio/IPod/sunroof), funky designed waterproof seat skins (think Toyota FJ Cruiser) with some cool add ons a la Honda for $33k. Do the same with the XC60 for $28k. Now that's a recipe for hitting 600k cars per year.

— Gunther7 (View Profile)

Posted on 8/13/2008 8:54:32 PM | reply to this comment | Votes: 1   

JWalkerLegrande



Ford mortgaged Volvo along with US production facilities in 2006. If they wanted to sell it, first they'd have to repay the $16 bn or so debt they still owe...

Is this what real estate guys call upside down ?

— JWalkerLegrande (View Profile)

Posted on 8/14/2008 5:27:14 AM | reply to this comment | Votes: 2   

NewBornKosovo

How can Volvo compete with VW?
I dont understand.

— NewBornKosovo (View Profile)

Posted on 8/14/2008 10:55:18 AM | reply to this comment | Votes: 1   

Godgore

As of 8/8/08, the SF Bay Area Volvo dealers haven't sold one new Volvo for the month of August. That's how bad it is.

No REAL factory lease programs.

No REAL direction.

Superman, HELP!

— Godgore (View Profile)

Posted on 8/14/2008 5:55:48 PM | reply to this comment | Votes: 1   

jochet

Iv'e owned two Volvo's in my life, the first was a used 1967 4 door w/stick. I sold it in 1971 with over 300,000 miles on it, great transpertation. The second was a turbo charged wagon with the extra seat in the back facing the road. This car also was a stick, with leather seats, although it wasn't as reliable as my first Volvo, it was a great driving car. Volvo lost its way a long time ago, maybe ford can bring it back.

— jochet (View Profile)

Posted on 8/14/2008 8:28:49 PM | reply to this comment | Votes: 1   

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