29 / 100
EuroWire – September 2008
27
Iberdrola SA, of Spain, one of the world’s largest energy companies,
❈
❈
has said it would invest $2 billion to build hundreds of wind
turbines in upstate New York if its bid to purchase the regional
power company Energy East (Gloucester, Maine) is approved by
New York regulators. The new turbines would more than double
state energy production from wind and make New York one of
the larger producers of wind power in the US. Iberdrola is one of
several foreign-owned energy companies active in the American
market, where rising fuel prices and state legislation requiring
more energy from renewable sources have made wind, solar, and
hydroelectric power increasingly attractive.
Automotive
As Volvo moves to slash its US costs, Ford
denies it wants to divest the Swedish brand
After posting a $151 million first-quarter loss due to declining US sales,
Volvo, the Swedish auto maker, said it would lay off 1,200 workers
in its home country. As reported by Byron Pope on WardsAuto.com
(25
th
June), announcement of the “unfortunate but necessary action”
came amid reports that Ford Motor Co, of the US, is actively shopping
its Volvo Cars division. Volvo spokeswoman Maria Bohlin told Ward’s
that weak North American sales are causing a drain on the company,
having declined roughly 10% each year for the last three years. She
said that other factors in the cost-cutting decision include the weak US
dollar, increases in raw materials prices, and a falling European market.
Ward’s data show that, through May, Volvo’s North American sales for
2008 were down 22.0% – to 8,277 units.
According to Mr Pope, the Volvo news followed European media
reports that Ford is shopping the Swedish brand to raise cash to aid
in its own North American turnaround initiative. He cited the online
edition of Dagens Industri as saying Ford had contacted an unnamed
Chinese company to gauge its interest in Volvo. A Russian investor also
is believed to be interested in acquiring the auto maker, the Swedish
newspaper said.
Mr Pope wrote, “Although rumours that Volvo is in play have circulated
since Ford announced last year it was selling its Jaguar Cars and Land
Rover divisions, the US auto maker repeatedly has denied it intends
to sell the brand. Ford officials have maintained the plan is to position
[Volvo] as a major player in the global luxury arena.” Ford spokesman
John Gardiner denied that the brand is on the block. “As we said earlier
this year, Volvo is not for sale,” he toldWard’s.