Volvo safe - for now

THE Ford Motor Company revealed last week that it has decided not to sell Volvo in the short-term but will aim to improve its cost structure and brand positioning.

While negotiations continue over the sale of fellow Premier Automotive Group (PAG) brands Jaguar and Land Rover, Ford said it had developed a plan for Volvo after conducting a strategic review.

The main priority is to improve the Swedish marque’s financial performance.

In a statement, Ford said the plan also includes “enhancing Volvo’s position as a global producer of premium vehicles establishing appropriate business arrangements between Volvo and Ford-brand operations to allow Volvo to operate on a more stand-alone basis in the absence of the PAG structure and continuing to achieve synergies between Ford-brand operations and Volvo in areas such as product development and purchasing”.