• Detroit Free Press/AP, Monday, July 16, 2007 10:35 AM

Responding to reports in the Sunday Times of London and The New York Times that it is putting its Volvo unit up for sale, Ford Motor Co. says that it is not negotiating with anyone to sell the Swedish automaker. Citing unnamed sources, The New York Times says Ford decided to entertain offers following a board meeting last week.

"To my knowledge, we are not in negotiations with anyone about the future of Volvo," says Ford spokesman Tom Hoy. Last month, Ford said it was reviewing its position on Premier Automotive Group brands Jaguar and Land Rover, fueling speculation the company was getting closer to selling the brands.

Auto analyst David Cole says if Ford's cash flow problems are desperate enough, selling Volvo might make some sense. But he questions why Ford would want to spin off Volvo, particularly because of how much Volvo is part of Ford's design and production operations. He notes Ford's reborn Taurus--debuting for the 2008 model year--is being built on a Volvo platform.

Read the whole story at Detroit Free Press/AP »