DEARBORN, Mich. (AP) - Ford Motor Co. is preparing to sell its moneymaking Volvo luxury brand as it works to return its North American operations to profitability, according to newspaper reports Sunday.
The Sunday Times, citing unnamed sources in London, said the decision to sell Volvo, which is part of Ford's Premier Automotive Group, was made in the past two weeks, but that the timing of the sale had yet to be decided.
The New York Times, in a story posted Sunday on its Web site, said Ford would entertain offers for Volvo following a board meeting last week. The newspaper cited people whom it didn't name who it said had knowledge of the situation.
Ford spokesman Tom Hoyt said in an interview with The Associated Press on Sunday that the company wasn't commenting on speculation about Volvo's future. He confirmed that Ford's board met last week but said he knew of no decision.
'We've said all along that we're viewing our options and assessing our business,' Hoyt said.
When Ford last August announced it was exploring the possible sale of its Aston Martin luxury sports car brand, the automaker left open the possibility that other Premier Automotive Group brands, including Volvo, could be sold.
No bank had been appointed to handle the Volvo transaction, both newspapers said. The Sunday Times said the deal could be worth $8 billion.
Ford acquired Volvo from Sweden's Volvo AB in 1999 for $6.45 billion.
Last month, Ford said it was reviewing its position on Premier Automotive Group brands Jaguar and Land Rover, fueling speculation that company was getting closer to selling the brands.
Ford sold Aston Martin for $848 million in March, with some analysts saying the brand did not fit into Ford's long-term survival plan. That plan includes cost savings by developing multiple models worldwide on the same underpinnings.
The possible sale of Volvo comes as the company is struggling to return to profitability in the face of fierce competition from Asian automakers and developing tastes for more fuel-efficient models in its key North American market. It is slashing thousands of jobs and plans to close plants to cut costs.
Dearborn, Mich.-based Ford posted a narrower loss of $282 million for the first quarter. The Premier Automotive Group reported a record pretax profit of $402 million for the quarter, due largely to Volvo.
And Ford has been relying on Volvo, an analyst has said, as it tries to globalize its engineering, design and manufacturing systems.
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