Ford Motor Company is sending signals that suggest it could be nearing the sale of its loss-making Scandinavian subsidiary, Volvo.
The U.S. maker has put on hold negotiations with the Swedish government that would have unlocked a €200 million loan tentatively approved by the European Investment Bank.
Rumors of a sale have been rife for more than a year, ever since the automaker began dismantling its once-hyped Premier Automotive Group. The niche luxury maker, Aston Martin was sold to a group of Kuwaiti investors, while Jaguar and Land Rover were sold to the Indian automotive company, Tata Motors.
Expectations of a Volvo sale heated up, last year, when Ford veteran Stephen Odell was appointed CEO of the Swedish company, best known for its focus on safety. Initially, Odell said his goal was on fixing a variety of problems at Volvo, but early this year, he and other Ford executives acknowledged they were also gauging outside interest in the brand. (more…)