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The automaker completed a similar review of Volvo last year and ended up retaining the company. But Ford might be taking the action again to demonstrate to Congress that it is serious about restructuring and considering all its options.
Ford -- which has lost $24 billion since 2005, the last year it was profitable -- is asking Congress to make about $7 billion in financial assistance available to the company, which it can tap if the economy worsens. The request is part of the $25-billion assistance request from Detroit's three automakers.
"Given the unprecedented external challenges facing Ford and the entire industry, it is prudent for Ford to evaluate options for Volvo as we implement our 'One Ford' plan," Ford President and CEO Alan Mulally said in a statement.
"Volvo is a strong global brand with a proud heritage of safety and environmental responsibility and has launched an aggressive plan to right-size its operations and improve its financial results. As we conduct this review, we are committed to making the best decision for both Ford and Volvo going forward."
Ford said the review of Volvo's future would likely take several months to complete, but it is unclear who would be interested in buying the troubled business unit, which reported a pretax loss of $458 million in the third quarter, compared with a pretax loss of $167 million a year earlier.
After a review of Volvo last year, Ford has said it was committed to restructuring the automaker. In October, Volvo tripled its planned job cuts to 6,000.
On Nov. 8, however, Volvo also said it was in talks with Sweden's government about financial support.
Sweden's government has said it won't provide direct aid to Volvo or GM-owned Saab because European Union rules ban such action. However, the Swedish newspaper Dagens Industri reported last week that 7 out of 10 Swedes back a temporary government takeover of Volvo if Ford can't secure its future.
In recent years, Ford has sold its other foreign luxury brands, which were once known as the company's Premier Automotive Group and part of the vision of former CEO Jacques Nasser.
At its peak, the Premier Automotive Group, officially formed in 1999, included Aston Martin, Jaguar and Land Rover.
Over the past seven years, however, the division lost $7.4 billion before taxes.
In May 2007, Ford sold Aston Martin for $931 million. Earlier this year, Ford also completed the sale of Jaguar and Land Rover for $2.4 billion, a sale that didn't cover the $5.25 billion Ford paid for the brands, or the billions in losses that Ford endured in the years that followed.
Ford acquired Volvo in 1999 for $6.4 billion and has worked for years to integrate the brand into its operations, sharing many important parts and architectures. For example, the current Ford Taurus has benefited from Volvo's safety engineering.
Derrick Kuzak, Ford's group vice president for global product development, has said repeatedly in interviews that Ford and Volvo work closely together and would likely continue to do so in the future.
"All of these businesses are being forced to reveal their hand," Maryann Keller, an independent auto analyst and consultant in Greenwich, Conn., told Bloomberg News. "Ford can put Volvo up for sale, but there aren't going to be any buyers. It may come down to the Swedish government taking it."
Bloomberg News contributed to this report.
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