December 01, 2008

Chinese Volvo?


Ford Motor Company announced today it may sell Volvo as part of its larger strategy to refocus and save its core business. No details were given by Ford but speculation is that a Chinese or Indian or even European firm could acquire Volvo. The Volvo brand is increasing in China and the Volvo S80L sedan was designed specifically for the Chinese market to compete with the Audi A6 the most popular status sedan in the country.

Just 2 weeks ago Chang'An Ford Mazda Auto Corp. broke ground in Chongqing on a new production facility - Volvo's third largest - to make the wheelbase for the new S80 cars. Whoever buys Ford's stake Volvo is likely to become more Chinese in the near future.

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