Jerry York, a prominent representative of Kirk Kerkorian's Tracinda Corporation, which recently acquired 4.7 per cent stake in Ford and plans to purchase 20 million additional shares, claims there is no reason to keep the carmakers.

York met with Ford's CEO Alan Mulally last month, and said he was confident in Mulally's plans to turn the American manufacturer around.

Despite the endorsement, the Tracinda representative said there was no rational reason for keeping Volvo and Mercury and that he thought Mulally would put the two marques up for sale within the next year and a half.

York said the margins on Ford's subsidiary Lincoln, on the other hand, were very good and that the company would most likely hold onto that badge.