Ford denies reports about selling its Volvo unit

Ford Motor Co., responding to reports that it's putting its Volvo unit up for sale, said it is not negotiating with anyone to sell the Swedish automaker.

Photo: Ford denies reports about selling its Volvo unit

The Sunday Times, citing unnamed sources in London, said the decision to sell Volvo, which is part of Ford's Premier Automotive Group, was made in the past two weeks, but that the timing of the sale had yet to be decided.

The New York Times, in a story posted Sunday on its Web site, said Ford would entertain offers for Volvo following a board meeting last week. The newspaper cited people whom it didn't name who it said had knowledge of the situation.

Ford spokesman Tom Hoyt said in an interview with The Associated Press on Sunday that the company wasn't commenting on speculation about Volvo's future. But later in the day, he issued a denial that the automaker was in talks to sell the unit.

"To my knowledge, we are not in negotiations with anyone about the future of Volvo," Hoyt said.

When Ford last August announced it was exploring the possible sale of its Aston Martin luxury sports car brand, the automaker left open the possibility that other Premier Automotive Group brands, including Volvo, could be sold.

Auto analyst David Cole said if Ford's cash flow problems were desperate enough, selling Volvo might make some sense.

"You could get cash out of it, which is very important right now," said Cole, chairman of the Center for Automotive Research in Ann Arbor.

Ford in December finalized a $23.4 billion financing package to fuel its restructuring and cover expected losses in its automotive operations. It pledged domestic plants and other automotive assets as collateral, the AP reports.

Source: agencies

Prepared by Alexander Timoshik
Pravda.ru