Ford "Not in discussions" to sell Volvo

United States The Big Three are experiencing the lowest rates in their history as Japanese automakers continue to grow in the United States auto market. Ford, General Motors and Chrysler have already announced and implemented a reduction in the workforce as part of their turnover plans. In the case of Dearborn, Michigan, based in the Ford Motor Company, the sale of the brand is seen as a short-term solution to their financial problems.

Earlier this year, Ford sold the British Aston Martin luxury car to a consortium led by race champ David Richards. The money received from the sale of a prestigious brand was the impetus for the financial condition of the car manufacturer.

After the sale of the famous brand, there were suggestions that Ford would place another British brand on the auction block - this time Jaguar. However, Ford denied that they plan to sell a struggling luxury car brand.

Most recently, it was the Swedish car manufacturer Volvo, which is said to be the next after Aston Martin. It was rumored that the German automotive giant BMW AG had requested the full financial position of the Volvo Cars from a Swiss bank that deals with the financial aspects of Volvo’s work at the Ford Premiere Auto Group.

This speculation, although Ford was recently refuted with John Gardiner's official spokesman: "Ford is not discussing interest in Volvo Car Corp with BMW or any other automaker." The speculation around Volvo sales became stronger when it became known in the newspapers in London and Sweden that BMW was talking to Ford about selling a manufacturer of safety-oriented cars.

Another development in the automotive industry that fanned speculation about selling Volvo is that DaimlerChrysler recently sold its sick American arm in the form of the Chrysler Group for Cerberus, an investment firm.

Meanwhile, FoMoCo is progressing with restructuring plans to return the company to profitability after the publication of their greatest loss in the long history of last year. Ford recently announced that they have closed their Canadian casting plant. The plant’s closure is linked to Ford’s plan to eliminate engine casting as part of their business. Other production facilities, such as buildings that build Ford bodies, will continue to operate. In the aforementioned Canadian plant, cylinder block castings were made for the 4.2-liter V6 engines and Ford crankshafts for various engines used by Ford on various car models. These engines are 4.2-liter, 5.4-liter V-8, 3.0-liter V-6, 4.6-liter V-8 and 2.3-liter engines.

About 450 people worked at this Canadian plant, and also created other jobs outside the facility. In addition to the Canadian foundry, Ford also announced that they will close another casting plant near Cleveland. The Ford Motor Company further announced that they are seeking independent auto parts manufacturers to supply engine castings. This step ensures that they can focus more on the production of more important automotive components, such as engines and gearboxes.