F&I Management & Training

LONDON (Thomson Financial) -- Ford Motor is cutting production at its Volvo unit to reduce costs and losses at the Swedish brand, the Wall Street Journal reported today.The production cut, which could affect one-third of workers at one of its two Volvo plants in Europe, comes amid speculation that Ford is priming Volvo for a sale.Ford has said publicly that it doesn't plan a sale, but CEO Alan Mulally has told top executives he wants to eventually seek a buyer for the Volvo brand, the newspaper said, citing people familiar with the matter.

Jerome B. York, who advises one of Ford's largest outside investors, Kirk Kerkorian, endorsed the idea of a sale earlier this month, saying he believed Volvo might be sold some time in the next 18 months, the newspaper reported. ...

DATED: 20.05.08

FEED: ANE