Year and place: 1999-, (Göteborg). (Formed when Volvo Cars was sold by the Volvo Group to Ford Motor Company. Volvo was founded in 1927.)
Konditori 100 texts: GL / Larson Volvo 1927-1959 Volvo 1960-1998 Volvo Group 1999- Volvo/Ford 1999-
On 28 January 1999 a press release announced: "Volvo enters into agreement with Ford to sell Volvo Cars for 50 billion and concentrates on commercial products". Volvo and Ford had signed a Heads of Agreement with the intention of concluding a definitive sale and purchase agreement as soon as practicable. The sale was fulfilled with both Volvo shareholder and customary regulatory approval.
Within the context of a consolidating automotive industry, Volvo had completed a strategic review of its businesses. As a result of that review Volvo concluded that a sale of Volvo Cars to Ford was in the best interests of both Volvo Cars and Volvo´s shareholders.
Volvo Cars had both a strong product program and above industry-average profitability. However, over the longer term and within the context of its current position as a relatively small niche player, Volvo Cars would benefit from the economies of scale inherent in being part of a very large automotive company. In particular these would apply to the significant investments required in both the development of new car generations and in distribution.
"Volvo is a premium automotive brand with unique appeal that represents a good opportunity to profitably extend our lineup and grow the Ford business worldwide", says Jacques Nasser, Ford President and Chief Executive Officer. "Volvo is a perfect complement to the Ford family of brands worldwide. Volvo has a world-class reputation for safety, quality, durability and environmental responsibility - all of which are attributes that are increasingly important to customers, and fit with our 21st century vision for Ford."
Ford had informed Volvo that according to its plans Volvo Cars will remain managed from Gothenburg while having full access to Ford´s engineering, distribution, purchasing, marketing and financial resources. The combination enhances the long term prospects of Volvo Cars and the Sweden based passenger car industry.
The Volvo brand name will be jointly owned with the right for Ford to use it for passenger cars, minivans, sport utility vehicles and light trucks. Volvo will use the brand name for commercial and other products.
Good or bad for Volvo? For Sweden? I don't know. But there may be one nice effect, thinking of the comeback of old model names in the U.S.A. like Thunderbird and Impala - will we soon be presented to the brand new Volvo Duett or Ford Amazon?
My info about Volvo during and after this affair will be divided under the captions "Volvo Group" and "Volvo/Ford" (both with appendix "'99-" to show that they are parallell). Such a large company affair takes some time, so I simplify it a bit and sometimes use a 'border' between 1998 and 1999.
Happy birthday, Volvo!
Volvo celebrated its 75th anniversary on 14 April 2002. On that day it was 75 years since tne first series-manufactured Volvo car, a Volvo ÖV4, rolled off the production line on the island of Hisingen, Gothenburg.
Since then, Volvo developed from a small local industry to one of the world's largest manufacturers of heavy trucks, buses and construction equipment, with more than 70.000 employees world wide and a presence in over 125 countries.
The annual Volvo Rendezvous for Owners & Members (VROM) took place 9-11 August 2002, in the factory area on Hisingen and near Gothenburg. Naturally some trucks and buses mingled among the more numerous smaller cars. Since this year is Volvos 75th anniversary, the meet was bigger than ever. A special exhibition during VROM 2002 was the "75 years - 75 cars" display.
More info will come later...
2007-04-10. www.konditori100.se. Text/pictures: Arne Granfoss ©. Prod: AG Informice