Ford is to put Volvo up for sale as it continues to battle in the current economic climate.

The announcement from Ford’s global headquarters in Michigan states that the company will ‘re-evaluate strategic options for Volvo in response to the significant decline in the global automotive market and the severe economic instability worldwide’.

Ford claims the review will take several months to complete.

Alan Mulally, Ford president and CEO, said: “We are committed to making the best decision for both Ford and Volvo.”

Ford bought Volvo for $6.5 billion in 1999 and added it to its stable of brands which included Jaguar, Land Rover, Aston Martin and part ownership of Mazda. Jaguar, Land Rover and Aston Martin have been sold off, while Ford recently sold its shares in Mazda.

Ford top brass are due to put their case before US Congress tomorrow (Tuesday) for a share of the $25 billion aid package to shore up their finances, along with GM and Chrysler.