It’s that time of the month again where we hear speculations on Volvo being sold. This time, according to Dagens Industri, FoMoCo is talks with a Chinese company, Shanghai Automotive Industry Corp., to take Volvo off their hands. A Russian investor is also rumored to be interested in buying the Swedish brand.

A Ford spokesman responded to the news saying: “We have been consistently saying since the end of last year that Volvo is not for sale. We are focused on improving Volvo’s business results.”

In other Volvo news, the Swedish automaker said today that it will cut around 2,000 jobs across its operations in order to reduce costs. The company plans on cutting 1,400 white-collar staff and 600 blue-collar workers. The cut is part of a plan to reduce costs by 4 billion dollars.

Ford took Volvo off the auction block in November and said that it plans to focus on improving the company’s cost structure.

 

Source: Automotive News (Subscription Required)

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  • albert
    The actual problem of volvo cars sales decrease is actually caused by

    1) Draining away valuable profit resources in not keeping or allowing budget developed new refined engines and suspension components systems but rather pump away the profits to keep jaguar and land rovers development in the premier groups( before sold to TATA).

    2) Since there is no new technical achievements as Volvo used to achieve due to lack or tightening of budget , competitors had came up with better and more equiped models beating volvo car technology hence public lost interest in volvo cars for the asking price.

    3) from internet story I came to know ford management are more interested in sucking volvo technology in placing these valuable technologies especially safety and five cyclinder engines into their upcoming ford new models( for survival)

    4) FORD does not understand the general world preception of buyers. Most car buyers around the world unlike USA would seek a 2.0 T five or four cyclinders engine that will win hands down in terms of ownership affordability, insurance and road tax viability. But rather under Ford management , Volvo just keep pumping out large engines( thirsty on fuel) for customers outside USA and telling the buyers buy it or leave. In this way Volvo cars lost sales around the world except emerging new market like russia or china ( where there were no VOLVO cars before).

    5) So far there is no more engine improvement in terms of horsepower and torque from a smaller displacement engines rather than keeps pumping big displacement engines above 2 litres for world market if buyers need power . What is happening to once fabulous turbo technology .Even now VW can out beat volvo turbo technology wins by more horsepower from asquueze from a smaller engine ( to save and maximise fuel consumption)

    6) The skin Metal sheet of new volvo cars are absolutely softer in terms of gauge thickness . Look compare old S40 and new S40 metal hardness and toughness ( see the difference ). It can be easily verify the sheet metal gauge
    thickness had been thinner or reduce than before

    7) Car like S60 and new S40 2005 onwards asking price is too much for the amount of rear passenger headroom and headroom offer. Simple very tight and not generous in space ( cause by coupe /too steep /too rakish C pillar )
    as compare to other cheaper and more sensible models like accord and camry and passat and sonata . It seems Ford management refuse to learn or accept such important shortcomings an still insist that new generation of volvo s60 or s40 to come will be more coupe than ever. THIS CONCEPT WILL BE DOOMED BEFORE PRODUCTION FOR 90% BUYERS ACCEPTANCE IN THE MARKET) WHY ? SIMPLE LOGIC: WILL CAUSE
    REAR HEADROOM AND LEGROOM LACK ING IN GENEROUS SPACE AGAIN AND WHO WOULD WANTS TO BUY SUCH A CRAMP CAR AGAIN BESIDES THE SAFETY OFFER .
    DESIGN SOLUTIONS: : THINK OF 240 AND 740 PAST CONCEPT TO ACHIEVE THE FAMOUS ABUNDANCE REAR HEADROOM AND REAR HEADROOM .

    6) POOR CAR SPACE DESIGN AND QUALITY AND WRONG ENGINES DISPLACEMENT PRODUCE CREATED LOST OF VALUABLE CUSTOMERS WORLD WIDE THE LACK OF BUYER'S INTEREST CREATED BY SLEEPING FORD MANAGEMENT AND KNOW HOW CONSEQUENTLY LEADS TOWARDS A BIG DROP IN SECOND HAND VALUE ( REASON :TRADITIONAL AND LOYAL BUYERS TEND TO LOST INTEREST IN VOLVO MARQUES) . IT IS HAPPENING NOW AS CAN BE SEEN DUE TO FALLEN SALES WORLDWIDE OTHER THAN DOLLARS FACTOR IN THE USA

    7) NO MANY BUYERS LIKE V30 ( 3 DOORS OR 5 DOORS)
    CONCEPT . DID VOLVO SOLD A LOT OF C30 ? AS
    COMPARE TO S40 OR S60? THE ANSWER IS SOONER OR LATER V30 IS HEADED FOR DOOMED AGAIN . MOST BUYERS WORLDWIDE
    PREFER FOUR DOORS SALOON NOT COUPE OR HATCHBACK DESIGN.
    ( EG. BMW 1 SERIES SALES COMPARE TO 3 SERIES : CHECK THE SALES FIGURE )

    SOLUTION FOR VOLVO REVIVAL ( 2ND REVOLVOLUTION) AGAIN
    1) IMPROVE THE THE TURBO CHARGE 2.0 LITRE ENGINE - DIESEL OR PETROL ( AS MASS PRODUCTION FOR WORLD MARKETS)
    2) FORGET ABOUT COUPE/ RAKISH C PILLAR LIKE SEDAN CONCEPT , TO IMPROVE AND PROVIDE MORE GENEROUS REAR HEADROOM AND LEGROOM FOR NEXT S60 OR S40 .
    3) VOLVO SHOULD THINK OF INTERNATIONAL MARKETS REQUEST AND THAT OF USA MARKET REQUEST .
    4) IMPROVE OR THICKEN THE SKIN SHEET METAL FOR THE BODY
    5) GO HYBRIDS OR ELECTRIC ( MASS PRODUCE)
    6) KEEP GOOD SWEDISH WORKERS IN GOTEBERG IN SWEDEN ( ESPECIALY ENGINE PLANT AND ASSEMBLY PLANTS) FOR BETTER
    QUALITY CONTROLS .
    7)PLEASE DO NOT SUCK AWAY MOST PROFITS FROM VOLVO SALES TO FINANCE NEW FORD MODELS THUS LEAVING VOLVO DRY WITHOUT BUDGET FOR FUTURE MODEL DEVELOPMENT AND NEW ENGINES AND CHASSIS IMPROVEMENT.

    THIS IS MY MESSAGE TO MR MULLALY

    THANK YOU
    Albert
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