After Aston Martin, Jaguar and Land Rover the automotive industry is waiting to hear word on when Ford will sell Volvo and Mercury. Although Mulally has denied reports of the Volvo and Mercury being on the auction block, Ford may still sell the two brands.
Jerry York, a former auto executive who now represents Kirk Kerkorian’s Tracinda Corp, met with FoMoCo CEO last month. Interestingly enough a press release was released yesterday stating that Kerkorian plans on acquiring 20 million shares of Ford.
York says that he ‘thinks’ Mulally will end up holding on to Lincoln and selling Volvo and Mercury. He said the Mulally, who supposedly did not share his plans with him, would be right to do so. York said if it was his move, he would sell the two right away.
“I’m very confident that (Mulally’s plan) is the answer, and I think you’ll see that he’ll put Volvo on the market within the next year and a half,” York said in an interview with Automotive News. “There’s no rational reason for keeping Volvo or Mercury.”
Kerkorian said yesterday that he currently owns 100 million shares and has offered to increase his stake to 5.6 percent at $8.50 a share.
Source: Automotive News (Subscription Required)