Ford, Volvo to share synergies, not showrooms

NEW DELHI, JUNE 24: Refuting reports of a possible marketing and dealer network tie up, Ford and Volvo India have said that they will remain independent of each other when the Volvo starts operations by the end of this year. The two auto majors will share synergies in logistics management, human resource development and IT but will have separate identities.

“We will use Ford’s expertise in areas which do not affect the consumer and brand perceptions. But there will be no dealer or service network sharing and there will be no Volvo cars in Ford showrooms in India,” said Volvo Cars India managing director Paul De Voijs.

Volvo Cars was bought over by Ford Motor Company in 1999 and the Swedish company produces some of the famous luxury brand of cars and SUVs around the world. “Volvo is part of the global Ford family and hence we will share some synergies that does not affect the consumer. It does not matter to the consumer whether a Volvo car was brought in the same truck as a Ford car or whether we share the same software for administration. But our branding will be completely independent and separate,” Voijs said.

Volvo has been planning to enter India with its best selling SUV XC 90 and premium sedan S-80 by the year end. The homologation process for the two models will be complete by August end. Volvo may tap Ford’s knowledge base with regards to homologation processes for its other models.

Echoing Volvo’s stand, Ford India president and MD Arvind Mathew also said that though Volvo is a part of Ford worldwide there will not be common showrooms.

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