DETROIT (Reuters) - Ford Motor Co said it will review strategic options for its Volvo brand, including the possible sale of the Sweden-based premium auto division, sending Ford shares up 8 percent on Monday.
Ford, which has been shedding assets as it scrambles for cash, said the decision to re-evaluate VOLVO (VOLVB.ES)was prompted by the significant decline in the global auto industry and the severe economic instability worldwide.
Ford's shares rose 10 percent, or 28 cents, to $2.97 in early New York Stock Exchange trading.
In November, Ford agreed to sell about two-thirds of its 33.4 percent stake in Japanese automaker Mazda Motor Corp <7261.T> for around $538 million. Ford also sold its premium Jaguar and Land Rover brands to India's Tata Motors Ltd
Reeling from the decline in U.S. auto sales to 25-year lows, Detroit's three ailing automakers -- Ford, General Motors Corp
The three U.S. automakers are scheduled to submit extensive restructuring plans on Tuesday to Congress as a condition for considering $25 billion loans for the cash-strapped industry.
"Given the unprecedented external challenges facing Ford and the entire industry, it is prudent for Ford to evaluate options for Volvo," Ford Chief Executive Alan Mulally said in a statement.
Ford said the review of Volvo will likely take several months. In the meantime, it will continue the processes to allow Volvo to operate on a more stand-alone basis.
(Reporting by Soyoung Kim, editing by Maureen Bavdek)
