Volvo CEO Rejects Discussion of Possible Sale of Brand

The head of Ford Motor Co.'s Volvo car unitlast year, Ford Motor Co. has been considering a
refused to discuss if the brand could end up beingnumber of strategic alternatives for all of their
sold as its parent company looks to refocus on itsoperations, just like any responsible doing of a
troubled North American business.business.
In an interview on the sidelines of an autoFor $848 million, Ford sold Aston Martin brand in
conference, the refusal by Volvo Car Corp. CEOMarch. And until recently, the company had said
Fredrik Arp follows news reports in Europe earlierthat it was not interested in selling Land Rover
this year that Ford briefly investigated the idea ofand Jaguar. For $2.5 billion, Ford purchased the
selling the Swedish brand.Jaguar passenger-car unit in 2000. But it has been
Ford announced earlier this month that it hasforced to evaluate again its global business
retained financial advisors to be able to help itstrategy as a result of big losses in North
identify "the best way forward" for its LandAmerica, where high gasoline prices are dragging
Rover and Jaguar brands. These brands are partbuyers away from Ford pickup trucks and
of the Ford Premier Automotive Group that lostsport-utility vehicles, while new entrants weaken
almost $4.8 billion since 2004, despite severalthe segments.
restructuring efforts.Last Tuesday, Mr. Arp said that Volvo's global
Ford has attributed much of the declined sales tovehicle sales climbed 8 percent during the first
Jaguar but does not break out results from itsfive months of the year, and that he expects
individual European luxury brands. Swedish brandthat the brand will set a new record for unit sales
Volvo is also a portion of Premier Automotivethis year. With quality Volvo brakes, Volvo cars
Group.reached between 430,000 and 450,000 units of
Mr. Arp reasoned that he rejected the discussionsales every year. Such sales figures are far
and speculation because it is not in the interest offewer than competitors such as BMW AG and
Volvo car stakeholders, customers, dealers orDaimlerChrysler's Mercedes unit - each of which
anybody else, and because he does not own thesells more than a million vehicles every year.
business. He explained at the Prague conferenceAs regards Volvo's financial performance over the
organized by the industry publication Automotiveyears as compared with the other brands in
News Europe.Ford's premium group, the company officials have
A Ford spokesman explained that the auto makergenerally indicated greater satisfaction. Some
is not in discussions with any company withindustry analysts have speculated that Volvo
regard selling Volvo, which it bought in 1999 forwould be easier to sell than Jaguar or Land Rover
almost $6.5 billion. Nonetheless, Mr. Arp continueddue to its initiatives in various safety features.
that as they have consistently been saying since