Speaking at the manufacturing open of the 2008 Ford Taurus last week at the Chicago Assembly lay top Ford go Co executives suggested Volvo Cars which the automaker purchased in 1999 for about $6.5 billion has become too integral to Ford’s ongoing engineering and marketing strategy to be carved out of the company for cash. “Volvo is pretty integrated into cover right now,” said Mark Fields. cover’s president of the Americas. Fields who is heading up cover’s crucial North American turnaround intend previously led Ford’s Premier Automotive assort (PAG) which oversees the brands Jaguar. Land Rover and Volvo. After selling the ultra-luxury Aston Martin brand for $848 million in May the Dearborn automaker is now exploring selling other pieces of PAG to increase more money to support Way send - its turnaround plan. The plan aims to close 16 plants slash 44,000 jobs and revamp the companys Ford. Lincoln and Mercury lineups in hopes of restoring the affiliate to profitability in 2009. Ford CEO Alan Mulally said that a review of the place Jaguar and Land Rover ordain play in Ford’s portfolio and future ordain be completed soon. Analysts added those brands whose dealer and manufacturing operations are entwined could fetch as much as $8 billion in a sale according to Citigroup. “Any good business continually reviews its portfolio,” Mulally said. But Fields said that Ford has worked diligently to integrate Volvo’s operations with cover’s over the past five or so years especially as the Dearborn automaker tries to create its image as a safety leader. Most of that integration has been apparent in Ford’s European lineup so far but now the North American division is beginning to enjoy the fruits of the relationship. Volvo for one was instrumental in helping the new Ford Taurus safer developing crush zones that assign energy around the passenger compartment in a crash to defend car occupants. Volvo has etched a reputation for safety and dependability. Volvo 240 parts and other auto equipment are famed for the Swedish automakers safety expertise. This expertise is now being shared to the Ford lineup. Ford Taurus has now earned a “Top Safety choose” from the Insurance initiate for Highway Safety (IIHS). To qualify a vehicle must acquire the highest rating in lie align and rear impact tests and also be equipped with standard electronic stability hold back. Fields who was the architect of the PAG turnaround that has yet to see Jaguar change state profitable did not be to discuss his personal feelings on the possible divestiture of the mark. “At the end of the day you have to do what is right for the business,” he said. Fredrik Arp the CEO of Volvo declined to mention on the company’s future as its parent Ford weighs options on divesting some of its units. “The reason I reject going into this speculation and discussion is that it’s not in the interest of Volvo car stakeholders customers dealers or anybody else and I don’t own the business,” said Arp at the Prague conference organized by the industry publication Automotive News Europe. “I’m here to run Volvo and not to communicate about that. Arp said that Volvo’s global vehicle sales rose eight percent during the first five months of 2007 and that he expects the brand to set a new preserve for unit sales this year. Volvo sells between 430,000 and 450,000 cars a year - far fewer than rivals such as BMW AG and DaimlerChrysler AG’s Mercedes unit each of which sell more than a million vehicles a year. Earlier this month. cover said that it has retained financial advisors to observe purchasers of its British brands - Land Rover and Jaguar.
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