Here's the article (quoted/cut-and-paste) from http://just-auto.com
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Ford plans to invest $US5 billion to $6 billion in Volvo over the next four years to add up to five new midsize vehicles to its range, expand factories and boost US sales by over 50%, according to the Wall Street Journal (WSJ) and reports elsewhere.

Coming hard on the heels of last week's rumours that Ford was planning to sell the Swedish marque, reports in the WSJ and the British car magazine Autocar have emphasised the new products on the way and the engines and platforms they will share with other new products such as a redesigned Ford Focus and a replacement for Mazda’s 323 called the 4.

"Ford has high expectations for us," Volvo spokesman Olle Axelson told the WSJ, adding that the investment showed Ford's "good faith" in Volvo's potential.

A big chunk would go towards new or redesigned products based on the ‘P1X’ programme which could spawn five new mid-size vehicles. The WSJ said the platform basis was most likely that developed by Mazda for its new 626-replacing 6; Autocar talked of a new Focus-size platform and replacements for the current S/V40 ranged dubbed S50 (a saloon primarily aimed at the US) and V60 (a taller wagon, possibly with 4WD derivatives aimed at European buyers).

Axelson confirmed to the WSJ that two of the five new Volvos would replace the S and V40, which have been slow sellers in the US despite prices starting in the low $20,000 range.

He added that the expanded product line would be supported by expanded production with manufacturing facilities enlargened to produce 600,000 units a year between factories in Sweden and Belgium, up from 425,000 last year.

Volvo transferred its 50% interest in the Dutch NedCar factory, where the current S/V40 range is built alongside the similar-under-the-skin Mitsubishi Carisma, to Mitsubishi in 2001.

The plant will stop building Volvos next year, replacing them with additional Mitsubishi models and the planned four-seat Smart car.
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(98 S70 T5SE misc mods, mostly lighting) (92 940GLE)

So, what is the scary part of this story other than that source is clueless as far as the new names of the new models are concerned?


Yannis
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2001 V70 T-5M SR, Classic Red/Graphite Lthr., ipd ME7 ECU Upgrade, K&N Air Filter, Cold Weather, Dolby Surr. Sound, Rear Spoiler, 17' 'Tethys' alloys

The only possible good news could have been that Ford would sell Volvo instead of turning them all into Mazda 626's.
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(98 S70 T5SE misc mods, mostly lighting) (92 940GLE)

An article in recent TIME magazine on PAG (Premier Auto Group)
indicated the Jaguar might use Volvo platforms. I think Ford is
trying to get it all figured out and anything could still happen. PAG
has a new leader and, according to Time, PAG autos have a 1% profit
margin and he needs to increase that to something more like 8%
(to the BMW / Lexus profit range) in next few years.

The article makes it clear that Ford's plan is to use a Mazda platform for the new Volvos. Here's the letter I sent to the WSJ editorial staff:

"Ford's strategy regarding Volvo, though it may work long term, is almost certain to alienate the cadre of fiercely loyal Volvo owners. As a five-time Volvo owner, I am one of them. Here's what Ford doesn't get: Volvo is not a luxury line. The Volvo value proposition has traditionally been a pragmatic blend of build quality, reliability and safety. The brand has had little to do with luxury (or style). Actually, I suspect the erosion in loyalty (perhaps reflected in May's 15% lower year to date numbers) began with the S80 and S60, which signaled a fairly radical brand shift toward highly styled (in my mind, overstyled) cars at the expense of...what? And the S and V 40 we all know to be a Mitsubishi, so why bother? So the revelation that Ford's new Volvos will be Mazdas outfitted to a Volvo level of luxury trim means that my next car will most assuredly not be a 'Volvo.' "

-David
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(98 S70 T5SE misc mods, mostly lighting) (92 940GLE)

The Time Magazine article is at:

http://www.time.com/time/globalbusiness/article/0,9171,1101020701-265445,00.html

It mentions similar points about eroding the cachet of the premium brands
if they are not careful.

>>And the S and V 40 we all know to be a Mitsubishi, so why bother?>>


Funny...I never heard Mitsubishi afficionados claim that the Carisma is a Volvo...and they would have a far stronger incentive in doing so.

The S/V40 (I hate to disappoint you) is so far from being even close to a Mitsubishi that it is not even funny...But few people are willing to understand and accept that.

As far as the "long-time" loyalty...that is becoming less and less a reality. Today's customers are less loyal to a particular brand than they were 10 or 15 years ago. Back then, you had "fierce loyalists", like you. Now, most people are becoming "transient" customers, there are far more good cars around and less specialized.


Yannis
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2001 V70 T-5M SR, Classic Red/Graphite Lthr., ipd ME7 ECU Upgrade, K&N Air Filter, Cold Weather, Dolby Surr. Sound, Rear Spoiler, 17' 'Tethys' alloys

au contraire. My brother, who didn't know anything about the guts of the V40, tested one a couple years ago when he was ready to leave the 240. When I asked him about it, he said "Ah. Felt like a Japanese car." So he bought a late model RWD brick instead.

Me? I know it's a Mitsubishi. And the Mitsubishi I want is the twin turbo 3000GT.
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(98 S70 T5SE misc mods, mostly lighting) (92 940GLE)

"Felt like a Japanese car" may not be all that bad if it has the reliability to go with it. Combining the comfort and safety of a Volvo with Japanese reliablity would be an ideal situation.

My brother's point was that it felt less substantial than he expected. (When I drove the V40, I thought it felt like the new 99 Passat I test-drove earlier that day, except it had better seats.) In either case, we're talking about a car with very little 'character,' the intangible 'right stuff' that nobody can define but we all know it when we experience it. There's a world of difference between the Swede-born 850/70 and the Mitsubishi S/V40. One's a Volvo.
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(98 S70 T5SE misc mods, mostly lighting) (92 940GLE)

I remember when Mitsu was getting raked over the coals by the Feds some years ago because it's US executives were smiling over the "boyish pranks" on the part of it's assembly line workers, like goosing the gals on the line with the air wrenches.

My initial inclination was to fade the accusations, until I came across the Consumer Reports Frequency of Repair charts for Mitsubishis. They were dismal, at least for a Japanese car.

Obviously the workers were concentrating on matters other than bolting the cars together correctly.

Cut to a couple of years ago when my dealer had a boatload of SV40 service loaners. I drew a brand new one. I discovered a bunch of trim screws lined up nicely on the door sill, and a bunch of corresponding holes in various trim pieces.

Some habits must die hard, and maybe even even spread to Holland.

-Punxsutawney Phil

Nah. In the United Auto Weerkeren, the trim screw liner-uppers and the and the trim screw inserters are the same guy in Holland. Aren't they?
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(98 S70 T5SE misc mods, mostly lighting) (92 940GLE)

I like your letter and agree with your position. The problem is that the cadre of fiercely loyal of Volvo owners don't buy enough Volvos to produce enough profits to placate management and shareholders. We as customers can only do so much, and that is to vote, with our feet if need be, if they don't produce vehicles we like. Volvo AB sold the car division because of its low margins and the $6.5B that was burning a hole in Ford's pocket. While Ford for the most part has done a good job turning around Jaguar, Volvo isn't a turnaround so it needs to be treated differently. One would assume that Ford would not have spent that kind of money to simply re-badge Mazdas and sell them as Volvos but the jury is still out. The vehicles being sold today are still carryovers from the prior owner. We'll have to see what happens.

Yes that is correct, and they do that by selling "overstyled" luxury vehicles that in no way resemble "bricks" .
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2002 V70..A.K.A......LARS THE SILVER FOX

Ford will just make it worse. They'll turn the whole company into shared-platform compromises, like the disappointing S/V 40's. It would be truly sad to wake up one day and discover the S60 has actually become a Volvo-ized Mazda 626. What wil "Volvo" mean then?

That they've made a profit isn't due to surging sales of the new styles. Their numbers in terms of unit volume are about the same as always (especially in US). So what they're doing right is related to business practices...after Ford bought out their debt, absorbed the one-time charge, and gave Volvo's balance sheet a clean start.

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(98 S70 T5SE misc mods, mostly lighting) (92 940GLE)

I share your concerns about platform sharing but, we can look at what Ford has done with Jaguar as to the direction that Volvo is heading for. Ford has done a fairly good job with Jaguar, they have only used common platforms for the new "entry level" Jags (x type) and they have kept their hands off the real Jags (XJS,XJ etc.) this is in spite of the fact the Ford acquired Jaguar 10 years ago, which is plenty of time to "fordize" all of Jags into Ford based platforms. I just don't think that Ford is about to re badge Fords, Mazda's as Volvo's. what makes you so certain that they are ? they haven't done that with Jaguar.
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2002 V70..A.K.A......LARS THE SILVER FOX

Lars,

The S is a common platform with the Lincoln & T-bird.

And even the big Jags use Ford's (cheap) switch gear, door handles and cost cutting trim. Previous to the Ford era cost cutting resulted in frequent repair and maintenance. Now it shows up in cheap looking and feeling fitments. Ford has made them more reliable and more successful.

American carmakers have by and large failed to appreciate that it is the cabin where drivers spend most of their time. So even high dollar products often have chintzy interiors. Volvos may be more reliable under Ford's stewardship, but the little touches will be gone in the service of the bottom line.

For most people that will not matter. And for those who care, there are other marques more than eager to welcome new customers.

Bryan

You are right about the shared interior components on Jaguars being Ford components and they indeed are cheap looking but, that doesn't make it a Ford.
believe it or not most of the componets on Volvo are not manufactured by Volvo.

some examples: the transaxle on my 2002 v70 is made in Japan by AISIN a japanese manufacturer, they also sell tranmissions to Toyota and GM.

my headlamps , vehicle wiring harness, key fob are manufactured by Valeo.
I could go on and on....but my point is that there is not a single automotive manufacturer that makes each and every component for their vehicles. it is just too cost prohibitive. it usually is cheaper to buy a part from someone else. but, like I say...you get what you pay for. This is a business and profit is king.


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2002 V70.Silver met. stock w/tinted windows

1) Jaguar needed fixing, and maybe more intervention than they've gotten to date, and 2) Ford just announced a plan to base new Volvos on a Mazda platform.
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(98 S70 T5SE misc mods, mostly lighting) (92 940GLE)

Just because it may have been the only division to turn a profit does not mean that you leave it alone, it also doesn't mean that you start selling re-badged Mazdas as Volvos. It's somewhere in between. It would not make a lot of sense for Ford to pay $6.5B for Volvo, turn it into Mazda and turn off all the Volvo faithful. Ford expects a lot from Volvo, and frankly, Volvo should expect something from Ford. I have owned a Mazda and a Ford and daresay they were quite a bit more reliable than what I read about on these threads. That said, I like Volvos for their engineering and safety. Your platform sharing concerns are groundless, IMHO.

They should give the Swedes what they need to succeed - which means money, a distribution channel...and no more. Surely they don't need a Mazda platform! You've seen how Ford builds cars. You've seen how they build SUVs! So I say to William Clay Ford, sit back, let Volvo be Volvo, and let the profits roll in.
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(98 S70 T5SE misc mods, mostly lighting) (92 940GLE)

Thanks Wayne for being level headed in this time of "crisis" please call Mr. David m and assure him that the sky is not falling.

also, I'd say that you are the most accurate about the state of affairs of Volvo and Ford motor Company , Ford purchased Volvo for it's expertise in safety, safety and last but not least, safety. In fact Ford has already used Volvo safety restraint systems (side air curtains) on the 2002 Ford Explorer and will continue to utilize Volvo for further safety improvemnts on ALL of Ford products. Ford recognizes that "safety sells" and they bought the company ( that is the best in the business (when it comes to safety.)

thanks for listening !
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2002 V70..A.K.A......LARS THE SILVER FOX