Our plan now is not to sell Volvo but to improve its cost structure and brand positioning. I think we can do substantially better than where we are today.

Jaguar and Land Rover still on chopping block

Alan Mulally, CEO at Ford, has stated today that Ford is not planning on selling the Volvo brand any time soon. He was quoted during a conference call: “Our plan now is not to sell Volvo but to improve its cost structure and brand positioning. I think we can do substantially better than where we are today.” Ford has completed a strategic review of Volvo, and even though Volvo suffered an undisclosed loss (rumoured to be 'more than 100 million' according to insiders) Ford is still convinced of the long term profitability of the brand.

Volvo of course owns a state-of-the-art Safety Center in Gothernburg, Sweden and shares its C1 and EUCD platforms with Ford vehicles which may have given Ford second thoughts about selling the Swedish manufacturer in the first place. Ford will now have Volvo focussing on the premium car segment, in a similar way that Audi is so successfully doing.

Jaguar and Land Rover are still on the chopping block and are rumoured to be sold early next year. Alan Mulally: “Discussions are progressing with selected parties who have expressed interest and we anticipate these discussions will culminate in an agreement no later than early next year.”

Later this month the new Jaguar XF will go into production in the UK, and will 'make or brake' the English specialty manufacturer. In 2005 Jaguar closed its Coventry plant but if demand for the new XF exceeds expectations than Jaguar can call in the help of PAG stable mate Land Rover. Jaguar and Land Rover have a labour agreement which allowes them to move workers from one company to the other if need be, but no decision has been made just yet on this topic.

 

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