December 02, 2008 12:00 am DETROIT (AP) -- Ford Motor Co. is considering selling Volvo Car Corp. as the U.S. automaker seeks to raise cash and survive tight credit markets and a global automotive sales crisis. Goteborg, Sweden-based Volvo Cars, which Ford bought in 1999, has been struggling with declining demand and a strong euro which made its products more expensive. Volvo sales through October are down more than 28 percent compared with the same period in 2007, according to Autodata Corp. Ford said Monday it expects its strategic review of the Swedish luxury automaker will take several months. The move is one of several actions Ford is taking to strengthen its balance sheet amid what it called "severe economic instability worldwide." Ford officials would not speculate on how a potential sale would affect the companies. Spinning off Volvo into a separate entity may be a possibility, since after a prior review, Ford started taking steps last year to allow Volvo to operate on a more independent basis. "Our relationship with Volvo during this time remains unchanged, and we will continue to work together," said Ford spokesman Mark Truby. "What's most important is that we make the right decision." The Swedish government has said it has been in talks with Volvo and with General Motors Corp.'s Saab unit following reports that the U.S. parent companies were seeking aid for their Swedish carmakers.
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Photos
Cars loaded on a truck at the Volvo Torslanda factory in Gothenburg, Sweden. Ford Motor Co. is considering selling Volvo Car Corp. as the struggling U.S. automaker seeks to raise cash and weather a global automotive sales crisis. AP