Ford CEO expects lots of interest in Volvo

By Poornima Gupta and Soyoung Kim

DEARBORN, Michigan (Reuters) - Ford Motor Co (F.N) is considering strategic options for its Swedish luxury Volvo brand "right now" and expects lots of interest in the brand, Chief Executive Alan Mulally said on Tuesday.

Volvo is in a position where it is a good time to consider alternatives, Mulally said, speaking on the sidelines of an event in Dearborn, Michigan, where the No. 2 U.S. automaker showed off some new vehicle models.

"I think that even though times are tough, there are a lot of people who would love to have that brand," Mulally said. "Even though it is tough it's going to work out okay."

Volvo has been put up for sale by Ford, which along with its rivals General Motors Corp GM.N and Chrysler LLC is trying to survive a deep downturn in U.S. vehicle demand.

Mulally declined to comment on whether any companies have approached Ford regarding Volvo.

The No.2 U.S.-based automaker, which has been shedding assets as it scrambles to raise cash in recent years, has emerged as strongest of the three Detroit carmakers at a time when all three are seeking government aid.

Mulally said he fully supports an effort to address the near-term liquidity issues of GM and Chrysler.

A bailout of GM and Chrysler would bring "a lot of stability" to the battered industry, Mulally said, warning sales would "fall off really fast" if an automaker files for bankruptcy as the U.S. auto industry is highly interdependent on a network of parts suppliers and dealerships.