Ford Readies Volvo For Sale

We first wrote on here that Ford should jettison Volvo when credit was coursing through the global economy. And, they should have. They would have likely received a small fortune at the time. Diworsification is behind much of the demise of American auto companies and it was only hubris that led Ford to buy Volvo in the first place. American auto companies diversified into home loans, IT consulting, medical research, cruise missiles, satellite tv and buying other car companies such as Ford buying Volvo. All because management tried to diversify away from their core competency of transportation. Why? Because they weren't competitive due to the massive bloat of unparalleled mismanagement.

Better late than never although only the foolish will be willing to pay a premium for Volvo in today's market. Only the foolish are likely to be companies in emerging markets deluded by the chance at buying a global brand such as Volvo. And, deluded into believing this cycle will re-ignite. We already saw this with the Kuwaiti purchase of Aston Martin and Tata's purchase of Jaguar and Rover - two consistent money pits.