At the Frankfurt Auto show, European-operations Chief of Ford Motor Company Lewis Booth yesterday confirmed that Ford is still deciding on whether to trade its Volvo brand or not. He also expressed uncertainties on Ford’s ability to provide financial backing to its top brands.
In an interview at the auto show, Booth declared that selling the Volvo units is an act the entire company is still cautiously pondering on. Thorough analysis is needed to make this decision since it is a rather complicated task that can greatly affect the standing of the company, in which Volvo plays a significant part. “The decisions are, can we manage, do we have the financial resources to do everything? Clearly, we’ve concluded with Jaguar and Land Rover we don’t….This is a discussion of realities.”
The verdict on selling Volvo is actually more difficult to obtain than the decisions to be made on the sale of Land Rover and Jaguar. This is primarily because the sales of Volvo models have been, by and large, advantageous to Ford.
According to Booth, Ford is currently dealing with several challenges, forcing it to settle on cost cutting. Its strategy consists of building up additional models from lesser fundamental stages. The big-time automotive company actually feels the intense need of a worldwide restructuring.
The prospective outcomes of Ford Chief Executive Alan Mulally’s restructuring tactics are being emphasized at the popular auto show in
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