Ford to lower production at Volvo unit

Dearborn May 20, 2008; Reuters reported that U.S. automaker Ford Motor Co is cutting production at its Volvo unit to reduce costs and potential losses at the Swedish luxury brand, the Wall Street Journal said Tuesday.

Chief Executive Alan Mulally told top executives he wants to eventually seek a buyer for the Volvo brand, the newspaper said, citing people familiar with the matter.

On March 4, Ford said it is developing a new business plan for Volvo that would include the unit operating on a more standalone basis, and that a top priority was to return Volvo to sustainable profitability.

Earlier this year, Ford agreed to sell Jaguar and Land Rover to India's Tata Motors Ltd in a $2.3 billion deal.

Reporting for Reuters by Neha Singh in Bangalore; editing by Rory Channing

Copyright © 1996-2008 The Auto Channel. Contact Information, Credits, and Terms of Use. These following titles and media identification are Trademarks owned by Gordon Communictions and have been in continuous use since 1987 : The Auto Channel, Auto Channel and TACH all have been in continuous use world wide since 1987, in Print, TV, Radio, Home Video, Newsletters, On-line, and other interactive media; all rights are reserved and infringement will be acted upon with force.

Privacy Statement | Size Does Matter | Media Kit | RSS feeds | Affiliates

Send your questions, comments, and suggestions to Editor-in-Chief@theautochannel.com.

Submit press releases or news stories to submit@theautochannel.com.
Place copy in body of email, NO attachments please.

To report errors and other problems with this page, please use this form.

Link to this page: http://www.theautochannel.com/

TheAutoChannel is represented by Gorilla Nation. Please contact Gorilla Nation for ad rates, packages and general advertising information.