Deeply affected by the impact of global recession, the Ford is planning to sell its unit Volvo car Corp. The company is set to dispose of its assets to cope up with the challenges brought by the slowdown in the global markets. Volvo being a big brand in itself has received tremendous response from bidders in the international market. Earlier, it was reported that the Mahindra & Mahindra is bidding for Volvo, which is now clearly denied by the company stating the news as a mere speculation.
Media reports unveiled that the Ford is in talks with the Cerberus Capital and Texas Pacific Group to have a joint bid for its Volvo brand.
Ford claims this move as an essential survival strategy in the falling car market. Along with Ford, the General Motors Corp. and Chrysler LLC are seeking for multi-billion-dollar US government bailout as they are suffering from a severe downturn in the domestic market due to recession.
Though Mahindra was also looking for the acquisitions to cope up with these turbulent times. But then the company is now looking out for better measures and strategies. To build up its brand reputation in the international market, Mahindra has plans to introduce its popular SUV in the US car market in the upcoming year.
At this stage when the car market is completely under pressure which company would make a fresh buy. I mean that no company would be interested to sign a new partnership or even purchase the assignments of some other car company.
Recession does seem to have hit the auto industry quite badly.The Senate also rejected the $14 billion bailout package- not good news for Ford, GM and Chrsyler.As for the Mahindra SUV, I'd definitely like to see an Indian SUV on US roads. Also looking forward to the launch of the Xylo in India soon.