Ford in talks over Volvo sale

Talks are being held over a possible sale of Volvo‚ Ford has confirmed.

Carmaker Ford has confirmed it is in talks with a number of interested parties over a possible sale of its Swedish subsidiary Volvo.

John Gardiner, spokesman for the company, said several potential bidders had come forward, although he did not announce any names.

He insisted Ford is "pleased" with the number and the quality of the bidders and said the firm is holding preliminary discussions to ascertain their level of interest.

"These are ongoing talks that could lead to a sale," he told the Associated Press.

However, Mr Gardiner added that it could be some time before any commercial agreements are reached and the future of Volvo is decided.

Ford has been struggling with a sharp decline in car sales over the last year and has already sold Jaguar and Land Rover to India's Tata Motors.

In the final three months of 2008, its Volvo subsidiary made a pre-tax loss of $736 million (£505 million) as consumers cut back on car purchases.

The company said it was considering selling the brand - which it acquired in 1999 for $6.45 billion (£4.45 billion) - in December, the AFP reports.

Meanwhile, rival carmaker General Motors is planning to sell off its Swedish arm Saab and has said it will continue to share technology with the group.

It hopes this will make a purchase of Saab more attractive to potential bidders.

According to figures from the Society of Motor Manufacturers and Traders, new car production in the UK dropped by 59 per cent in February compared to the same month last year.

Commercial vehicle production was also down 71.6 per cent.