The Auto Writer

Ford continues to deny it, but it is becoming clear that the company is looking to sell its Volvo brand. Ford acquired the car side of Volvo’s business in 1999 and has been rumored to be looking for a buyer for well over a year now.

Dagens Industri, a Swedish financial newspaper, says that Ford is in talks with a Chinese company, discussing a possible sale of Volvo. Also, according to Thomson Finanical News (via Forbes), a Russian suitor has expressed interest too.

Ford sold off Aston Martin to a pair of Kuwait investment companies in 2007 and recently concluded the sale of Jaguar and Land Rover to Tata Motors. Volvo is the last brand that was once part of Ford’s Premier Automotive Group, though Lincoln had once been included before being re-categorized with Ford and Mercury.

Tracinda Corp. (better known as Kirk Kerkorian) may be behind the move to have Ford sell off Volvo. Last month, a Tracinda executive suggested that Ford should sell Volvo and Mercury, though the latter suggestion seems silly given that Mercury has no assets. Kerkorian has steadily been buying Ford stock over the past few months and now has 6.49% of the Blue Oval. The Ford family remains the dominant shareholder, however, with more than 40% of Ford shares.

Unlike some of its previous sales, Ford could fetch a princely sum for Volvo, a company whose sales remain strong with products that are innovative and respected. Even with a sale of Volvo, Ford could keep a minority interest in the company much as they have done with Aston Martin and Daimler has done with Chrysler.