Further to the economic downturn of recent months, on the 1st December Ford Motor Company has announced that it is seriously considering to sell its Volvo assets.

Citing a “significant decline in the global auto industry,” Ford’s chief executive, Alan Mulally declared on a Monday statement that “Given the unprecedented external challenges facing Ford and the entire industry, it is prudent for Ford to evaluate options for Volvo” including a possible sale of the Swedish automaker.

In order to realign its brand structure, Ford put forward the strategy of “One Ford plan” to integrate all the global Ford brands. Then in March, Ford had already sold Land Rover and Jaguar, to shore up its balance sheet as previously reported by Labbrand.

Ford bought Volvo in 1999 for $6.45 billion. The brand, that is now Ford’s only European brand, lost $484 million only in the third quarter of 2008. On Monday, the Swedish government confirmed that it was in talks with G.M. and Ford, but declined to leave any further statement.