| Rumor has it that the Ford Motor Co. may let go of its | | | | only brand (within PAG) that has a value... but it is all |
| Scandinavian brand - Volvo. After its announcement | | | | just speculation." |
| that Land Rover and Jaguar brands are up for sale, | | | | Hallenbeck points to global sales and a local operation |
| watchers in the industry expect that the next deal | | | | that is fast. "We couldn't be more happy with the way |
| would involve Volvo Cars, also part of the Premier | | | | things are going," Hallenbeck says. "To the end of June |
| Automotive Group (PAG). | | | | we were up 24 per cent on the previous year and |
| Reports about Volvo joining the PAG sell-off has sent | | | | that was up 37 per cent over '05. To last week we |
| flutters through the company's Australian operations. | | | | have sold more than 2900 cars, more than for the |
| But Ford denies the sell-off. The Dearborn-based | | | | entire year in 2003. We have a lot of momentum, the |
| automaker recently sold its luxury automaker Aston | | | | dealers are incredibly happy and everybody is smiling." |
| Martin. Then it decided to include Land Rover and | | | | One of the strong reasons behind Volvo's resurgence |
| Jaguar to the potential sale list. | | | | has been the renaissance of its lineup. The |
| The sale is aimed at raising money to finance the | | | | modifications were not limited to the enhancement of |
| turnaround of the automaker for it to return into the | | | | the design philosophy, styling and dynamics, as well as |
| black soon. In overhauling its American brands, Ford | | | | the upgrade of auto parts such as the Volvo axle, |
| needs a considerable sum to defray the expenses. In | | | | engine and more. |
| view of this, analysts in the industry said that Volvo is | | | | Ford, which sold Aston Martin for $450 million in 2006, |
| likely to be sold at $8 billion dollars. | | | | has valued Volvo at 25 percent more than the $6.5 |
| "Officially, it's no comment because we haven't heard | | | | billion it paid in 1999, reported Cars Guide. The official |
| anything or received any instruction from Ford or | | | | line from Ford is that it is not in discussion with any |
| Volvo," Volvo Australia spokesman Todd Hallenbeck | | | | companies regarding a sale of Volvo, but added that it |
| says. "All we know is what has been floated in | | | | is continuing to assess all of its options for the |
| European media." | | | | business, the report added. |
| "The worrying thing about these reports, even if they | | | | Separately, Hyundai denies its alleged plan to acquire |
| are speculation, is that it doesn't do a lot for brand | | | | the Swedish brand. "We do not have any interest in |
| confidence," Hallenbeck says. "The disappointing | | | | buying Volvo or Jaguar or Land Rover," says Jake |
| aspect of the reports is that they come when Volvo | | | | Jang, a spokesman for Hyundai. |
| internationally and in Australia is on an upward curve." | | | | Hyundai, which was named by the Sunday Times as a |
| "The relationship between Volvo and Ford has always | | | | potential bidder for Volvo, said that it is too busy |
| been very strong. It has always been a money earner | | | | pursuing its own expansion plans. "Our hands are full |
| for them... Ford has invested the money for us to | | | | now," Jang said. "We are in the process of building |
| develop the C30, the new C70, the S80. They have | | | | global manufacturing facilities from China to the United |
| given us the real foothold to develop a new model | | | | States and Europe." Hyundai had also denied a report |
| range," Hallenbeck adds. "There is a lot of speculation | | | | in February that it was interested in buying Jaguar, |
| and a lot of people are saying that Volvo may be the | | | | Chron reports. |