Thread: Volvo Sold
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Old 03-30-2010, 12:58 PM
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Quote:
Originally Posted by joyridin' View Post
Ford paid 6.45 billion, ran it into the ground, then sold it for 1.8 billion.
You're correct in your first and last clause. You're welcome to explain the middle one. Volvo was absolutely strangled by lack of R&D capital at the time Ford bought it and was deep into parts-bin engineering, with no new models or engineering in sight. After Ford funded them, they developed completely new models (I drive one of them), totally revamped looks, an expanded lineup and improved tech all around (their 300 HP 2.5L being one example - my wife drives that one).

Ford simply did what too many other companies did in the boom times, bought an asset at way too high a price. Now they're paying for it.
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