Ford Motor is considering the sale of its Volvo car division, a move that would mark the final dismemberment of its premium-car business outside North America.
The struggling Detroit-based carmaker said yesterday that it was not in talks with any other company about a sale of Volvo.
But it added that "we are continuing to assess all our operations and looking at strategic options".
Ford has sold or is in the process of entertaining bids for the other three marques of its luxury-car division, known as the Premier Automotive Group.
It disposed of Aston Martin this year and its financial advisers have set July 19th as a deadline for expressions of interest for Jaguar and Land Rover. Analysts at Merrill Lynch have estimated that Volvo will fetch about $8 billion (€5.8 billion)
Ford bought Volvo in 1999 as part of an aggressive expansion strategy. The brand has a strong reputation for safety, but sales have stagnated in recent years - including a 3.6 per cent drop in 2006 to about 430,000 vehicles.
Volvo is seeking to regain traction with a flurry of new models, helping to boost sales in the final quarter of last year and early 2007. It has recently sought to expand in China, Russia and other emerging economies.
Ford lost $12.7 billion last year and has borrowed to shore up liquidity in anticipation of a further cash drain this year and 2008. The premier carmaking group reported a $327 million pre-tax loss last year, but recovered to a $402 million profit in the first quarter.
Ford does not break out results for individual marques, but Volvo is widely assumed to be profitable. Second-quarter results are due to be published on July 26th.
Ford officials ruled out a Volvo sale this year, but have recently taken a more ambivalent approach. Frederik Arp, Volvo's chief executive, recently declined to comment on industry speculation about a sale because "it's not in the interest of Volvo car stakeholders, customers, dealers or anybody else, and [ because] I don't own the business".
As Ford is retreating from the international luxury-car market, Lincoln, its domestic luxury brand, has shown signs of revival, with sales increases for nine consecutive months. One person familiar with the bidding process for Jaguar and Land Rover said talks were still at an early stage.
