Volvo, yet the accomplishment story in Ford’s Premier Automotive Group, has hit choppy waters. And according to Wall Street Journal insiders, Ford is preparing to treat the Swedish automaker the same way it did the English ones: put particularlly floaties on it and continue the type bobbing extensively sufficient to deal it.
Volvo drew up $94 million in income in Q1 of 2007, but lost $151 million in Q1 of the current year. In total, within the beyond two years, the in the wake of smiling Swede has lost $1.7 billion, portion of that is due to exchange rates, and a new is due to marketing a lower number of cars. To battle the decline, Volvo is shedding up to a third of its strive motivate at one European plant, and cutting going back on creation at another. As you could suspect, both of people plants initiate the record vehicles in Volvo’s lineup.
A couple of weeks ago, Ford was intriguingly — or deceitfully — that much in “Volvo’s not for sale” mode. Now it looks the Mulally has admitted to one or two Ford execs the current Volvo is in regards to to wear the “Needs a Caring Home” sign. Jerry York, the best hand man of Kirk Kerkorian, maintains this Volvo would maybe be purchased in 18 months. The way Times seem now, we would be surprised if it took the present long.
[Source: Wall Street Journal via Yahoo!]
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