Subaru Out Of WRC, Following Suzuki?

Subaru may pull its support from the World Rally Championship for 2009, joining Suzuki as yet another Japanese automaker planing to leave the series.

A report posted on the Finnish MTV3 network's website claims Subaru will no longer compete in the World Rally Championship in 2009. This is big news as Subaru developed much of its following and fan base by successful competing in the series with its iconic blue-and-yellow Imprezas.

If this report is correct, it would build on news earlier today of Suzuki pulling out of the WRC. Unlike Subaru, Suzuki was new to the series and therefore moving away from the series isn't as big of a deal.

Though companies like to have racing teams to show off their engineering prowess, in a bad economy it is sometimes the easiest thing to cut. This may explain why these reports are coming out so regularly. Of course, the WRC is introducing Spec-based rules for the future, but it may be too late for these two teams.

H/T to Osmo for the tip

[MTV3.fi, Photo SWRT]

Ford Motor Co. looking to sell Volvo for cash injection

Ford Motor Co. is now thinking of selling Volvo, which is the company’s only remaining auto brand that they have in Europe. The plan to sell Volvo comes just one day before Ford have to meet with the Federal lawmakers, where they will have to present to them their survival plan.

Ford acquired Volvo in 1999 for $6.4 billion, but the worldwide auto decline has Ford in to this position. Ford had planned a two-year strategy for the Swedish brand, and now that plan has been thrown out of the window.

The move from Ford to sell Volvo will show Congress that the American automaker is taking serious action when it comes to reshaping their operation, which is what they need to do if they are to get any federal money.

Read the full article from Bloomberg