FORD BUYS VOLVO
By Adnews Staff
Ford Motor Company of Dearborn, Michigan is buying Sweden-based AB Volvo's worldwide passenger vehicle business for $6.45 billion (US). "Volvo is a premium automotive brand with unique appeal that represents a good opportunity to profitably extend our line-up and grow the Ford business worldwide," Ford president and CEO Jacques Nasser says in a release. In addition, Ford will be able to expand its technology and research capabilities, as well as increase its presence in the Swedish market. Ford already has 87 dealers in Sweden. Under the deal, Ford will take ownership of all of Volvo's facilities worldwide including three assembly plants and two powertrain plants in Europe and Volvo's passenger vehicle product development centre in Sweden. Ford already markets cars under the names Aston Martin, Ford, Jaguar, Lincoln, Mazda and Mercury. In Canada, Young & Rubicam of Toronto handles advertising for Ford. Volvo uses the company's U.S. agency in New York.