It seems like people really want FoMoCo to get rid of Volvo. Even though Volvo’s Chairman, Lewis Booth, denied any rumors of the Swedish company being on the auction block, Volvo just can’t seem to stay away from talk of Ford dropping the company.
The Wall Street Journal reported today that Ford is cutting production unit to reduce the costs and losses. The cut would affect one-third of workers at Volvo’s European plant and speculations have started again that Ford is preparing the company for sale.
Previously Mulally said that Ford has no intentions of selling Volvo, however, the Wall Street Journal reports that Mulally has told top executives that he wants to eventually seek a buyer for the brand.
The cut in production will scale back where Volvo makes larger and less popular vehicles. According to spokesman Olle Axelson, Volvo will produce 44 cars an hour instead of 60 at its Swedish plant.
Source: Automotive News (Subscription Required)
[tags]Cars, Car, Auto, Automobile, Vehicles, Technology, Auto News, News, Automotive, Volvo[/tags]