Just Sox

Ford Eyes $8b Volvo Sale

The struggling Ford Motor Co. is preparing to sell Volvo, the profitable Swedish car group, in a move that could raise US$8 billion, said The Australian news. A decision in principle to sell Volvo was taken Saturday, but that the timing of the sale had yet to be decided, said city sources. No bank had been appointed to handle the transaction.

Volvo Cars is the flagship of Ford’s Premier Automotive Group (PAG) - a luxury European marque which also includes the Jaguar and Land Rover brands. The PAG was created during the automaker’s expansionist phase in the 1980s and 1990s.

The Dearborn automaker began dismantling PAG in 2006 when it faced a difficult financial crisis. Earlier this year, it sold Aston Martin in a deal worth £479 million, and this week it will receive indicative bids for Jaguar and Land Rover. The duo, which is being sold as a single business, is expected to account for £1 billion.

Meanwhile, Volvo is bigger than Aston Martin, Jaguar and Land Rover. The Swedish company employs 27,500 people and produces about 500,000 cars annually in Sweden and Belgium. It has been by far the most gainful part of PAG and has made a considerable contribution to development of other Ford models. The sale of the company would signal the final dismemberment of the Ford's luxury car business outside North America. Is the Volvo antenna sensing a potential sale of the company soon?

Auto industry sources said that the timing and speed of the sale would depend on the level of interest that came from rival carmakers and private-equity groups. “If they have a good offer from a Western carmaker, they would be able to move fast, because the integration issues can be sorted out quite quickly. But if it’s private equity, it will all need to be worked out in advance so they can do their normal due diligence,” said one source familiar with the talks.

As reported by reported the MSNBC, Rod Lache, an analyst at Deutsche Bank, told clients Tuesday that Ford has at least two good reasons to dispose of Volvo. First, a sale would simplify the parent's operating structure and recovery ¬strategy. Second, it would provide extra cash to restructure healthcare liabilities as part of forthcoming contract talks with the United Auto Workers' union.

Jonathan Steinmetz, an analyst at Morgan Stanley, noted that "Ford does not have the resources, from a financial or a managerial perspective, to keep ploughing time and money into all its brands." Meanwhile, Joe Phillippi, a New Jersey-based consultant, notes that Volvo was supposed to help Ford gain a foothold in the European premium car market. Instead, he says: "Ford has never been able to move its brand out of the everyman category."

The Scandinavian luxury brand remains a niche brand in North America, which makes up more than a quarter of its sales, lacking the striking lure of the Toyota Motor Corp.'s upmarket Lexus and the Honda Motor Co.'s Acura brands.

Volvo sold about 430,000 vehicles in the previous year, well below the 650,000 target set by the Dearborn automaker. While auto analysts expect that Ford could raise more for Volvo than the $6.5 billion it paid in 1999, the profits would still be minimal.

“They are getting a lot of people coming to them with ideas because Volvo is an attractive asset. If they get the right one they could act quickly,” the source said. Those individuals familiar with the discussions, as reported by MSNBC, said Ford has imposed strict conditions of secrecy on would-be bidders, even to the point of vetting potential advisers. “They are completely paranoid about leaks,” concluded the source.

About the Author

Glady Reign is a 32 year old is a consultant for an automotive firm based in Detroit, Mi. she is a native of the motor city and grew up around cars hence her expertise in the automotive field.

UK Tights - Jonathan Aston Sweet Roses Tights

Reed My Lips $7.32 Reed My Lips by Tom ScottThis product is manufactured on demand using CD-R recordable media. Amazon.com's standard return policy will apply....

Rattlesnake Guitar - Music of Peter Green (2 CD SET) $49.98 2 CD SET - Rattlesnake Guitar / Music of Peter Green DISC 1: 1. Black Magic Woman - Larry McCray 2. Love That Burns - Dave Peverett/Rod Price 3. Stop Messin' 'Round - Kim Simmonds/Savoy Brown 4. Looking For Somebody - Snowy White 5. Crying Won't Bring You Back - Luther Grosvenor/Mike Kellie/Jess Roden 6. Leaving Town Blues - Rory Gallagher 7. If You Be My Baby - Dave Peverett/Rod Price 8. Ramblin...

What Happens in Vegas $2.99 ...

Bang $1.99 ...

White Water Summer $8.36 A young man (Kevin Bacon) takes a group of boys on a wilderness trip in the rugged Sierras, and together they must face a series of challenges from the land around them...and from within themselves. With Sean Astin, K.C. Martel. 90 min. Standard and Widescreen (Enhanced); Soundtracks: English Dolby Digital 4.0, Dolby Digital stereo Surround, French Dolby Digital Surround; Subtitles: English, Spani...

Jonathan Aston Cherish Tights -Nude-One Size $24.95 We Love these Neutral Jonathan Aston Cherish Tights with large spots, we hope you will cherish them too! Perfect for this years spring collection of nude shoes and pastel fashion. Because they are a neutral colour they go with almost any colour outfit. ...

Jonathan Aston Lycra Seam and Heel Tights Sheer seam and heel tights from Jonathan Aston's Vintage Lycra collection are absolutely adorable. Featuring a Cuban heel and shiny 15 Denier finish. They also consist of a reinforced toe, boxer brief and cotton gusset. An absolute essential accessory for your hosiery drawer! 85% Nylon 15% Lycra...

Jonathan Aston Cherries Tights-Multi Color-One Size $29.95 These New Stunning Jonathan Aston Cherries Tights are perfect worn with a dress, especially red and nude coloured dresses, skirts or shorts....

Aston Martin DB4, DB5 and DB6 $18.76 The legendary Aston Martins, including the James Bond DB5 and the Zagato-bodied DB4 GT, are chronicled here with complete specs, road tests, driving impressions, photos and illustrations. Get the lowdown on the creation and evolution of the models that made the name, and the personalities behind the cars. Contains specially commissioned color photos and tips on buying and restoration. ...

Cars: Dream Machines CARS: DREAM MACHINES will take you into the fast lane for a motoring cavalcade that features the world's greatest four-wheeled dream machines. Illustrated in full color throughout, each entry includes a detailed specification table and authoritative performance figures. The line-up features stylish and sensational coupes, roadsters, and sedans including...the legendary Mercedes-Benz 300SL gullw...

Operative Orthopaedics the Stanmore Guide (Hodder Arnold Publication) $40.65 Operative Orthopaedics is a definitive and comprehensive guide to elective orthopaedic surgery for trainees preparing for FRCS and surgeons at MRCS level. With the emphasis on techniques employed and the reasoning behind them, this book is both a practical instruction manual and a revision tool. Based on the authoritative "Stanmore Course" run by the Royal National Orthopaedic Hospital Operative O...