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An Answer for Ford: Sell Brands to Raise Cash
Aug 16, 2006
Detroit Free Press
Ford Motor Co. is in a pinch.
With sales of new cars and trucks down 10% this year, following declines since 2001, the automaker is looking for ways to pay for development of new vehicles that could turn its fortunes in a brighter direction.
Top executives have hinted a solution is in the works: "We will sell the furniture if it helps fund new products," Mark Fields, Ford's president of the Americas, said last week.
Ford has said everything is on the table and won't comment on speculation. But many experts say the company could sell various parts of its business to raise billions, including:
The company's struggling luxury brand, Jaguar.
The more successful Land Rover brand, which might have to be sold with Jaguar.
Volvo, which is profitable and has a solid operation.
"If they should get rid of something, they should get rid of Volvo," said Gerald Meyers, a professor of management at the University of Michigan and the former chairman and chief executive of American Motors. "Volvo is easiest to sell."
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