The Swedish business publication Dagens Industri published a report on Wednesday, June 25 indicating the Ford Motor Company has entered into negotiations with a Chinese entity for the sale of the Volvo division.

According to the report, Shanghai Automotive Industry Corp. is the likely potential buyer with indications that a Russian investor may also be interested in the Volvo brand as well.

A spokesman for Ford, however, said, "We have been consistently saying since the end of last year that Volvo is not for sale. We are focused on improving Volvo's business results."

Since last year, however, millionaire investor Kirk Kerkorian acquired a 6.49 percent interest in Ford and has indicated he would like to see the company rid itself of Volvo in order to improve its financial position.

Since last year Ford CEO Alan Mulally has been reviewing potential strategies to bring Ford back to profitability but has repeatedly denied that selling Volvo is part of any plan under consideration. Analysts suggest, however, that Ford is simply playing coy and holding out for a good price in the face of Volvo's improved performance over the last few years.

As these rumors swirled around the automotive community, Volvo announced it would cut 2,000 jobs in an effort to trim costs; 1,400 white collar positions and 600 blue collar. Negative currency positions relative to the weak dollar and the steadily increasing cost of steel have complicated Volvo's financial position in recent months.