Global Motors

First Daimler-Benz and Chrysler. Now Ford and Volvo. What next?

It's a jungle out there in the global car business. The economies of scale increasingly favor the multinational giants. And more of the smaller firms are deciding they'll fare best by joining with a strong partner. That's why safe, sensible Volvo of Sweden last week agreed to allow its car division to be bought by Ford, the No. 2 U.S. automaker, for $6.5 billion. The deal takes Ford closer to its goal of becoming a "world car" company. "The beauty of this deal is that Volvo is a premium brand with premium profit margins," says Scott Merlis, who follows autos for...

Want the full story?

Subscribe Now


Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!