Why did Ford Motor company buy Volvo?

Why did Volvo agree to sell itself to Ford? where they in any financial trouble?

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  • Rabbit
    Lv 7
    1 decade ago
    Favorite Answer

    First, Volvo was and still is a diversified technology company. They still make jet planes, trucks, and boat motors, etc.

    Second, there was a realization of their limits to the auto market. Ford, meanwhile was interested in Volvo for two reasons. Volvo had innovated the manufacturing process. Ford's founder began with an assembly innovation, this could be the next step. In addition, Volvo had a safety and reliability reputation. Ford, with such mockery voiced by the public as "FORD, Fix Or Repair Daily", they didn't have that. Once more, there were valuable lessons to learn.

    Volvo saw profit growth stagnating because their niche was saturated. Ford saw Volvo possessing everything they didn't have. Ford just had a very profitable year, so they had cash. Besides, GM was buying out the other Swedish carmaker, Saab.

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  • 1 decade ago

    I don't know "why" they bought Volvo, but I agree with Tyler. I just bought an Explorer last year because it is now listed as one of the safest SUVs in the market. All that, I believe, was due to the integration of Volvo into the Ford family.

    Volvo's #1 claim to fame over the years is the outstanding safety of their vehicles. It sure wasn't the looks of the car...lol.

    So Ford has evidentally copied at least some of those safety refinements and features into their automobiles over the last few years.

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  • 6 years ago

    I read where Volvo, when they owned themselves, produced only @500,000 cars a year, world wide. Whereareas Ford built roughly more than double that, worldwide. I think what Ford saw back when they bought Volvo was another Luxury brand that could, perhaps , compliment its' Lincoln brand. Also,. they saw GM buy Saab, they had to "keep up with the JONes's". Either way, they were both grave mistakes.

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  • Anonymous
    1 decade ago

    They bought Volvo back in 1999 when they weren't in such a mess. It sure helped them with safe cars, they're tied with Honda for being the safest auto make in America.

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