Volvo’s Chairman: Volvo is not for sale

In response to Jerry York’s recent comments that implied that FoMoCo may drop Volvo from its portfolio, Volvo’s Chairman Lewis Booth said today that the brand is not for sale.

“We’re focused on improving the business,” Volvo Chairman Lewis Booth told Automotive News Europe.

Booth said that Volvo’s product program is in good shape, however the company was recently hurt by rising raw material costs and the strength of the euro against the weak dollar. Volvo reported a pretax loss of $151 million in the first quarter of 2008, compared with a profit of $94 million during the same quarter last year.

Booth said that Volvo is counting on the new XC60 SUV to increase Volvo’s volume. He also said that Volvo must try to move more upscale.

Mark Turby, Ford’s spokesman said that Ford is focused on improving Volvo’s result as the company’s first priority. He also said the FoMoCo continues to invest in new Mercury products including the new Milan and Mariner that will debut later this year.

Source: Automotive News (Subscription Required)

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