Car giant Ford is considering selling Volvo, the Swedish car builder, in the wake of a “significant decline” in the motor industry, the company announced today.

Losses by the owner of British-made upmarket car brands Jaguar and Land Rover contributed to a 38.5% fall in first quarter earnings at Ford, it emerged today.

Ford saw its shares fall to their lowest level in more than a year today after becoming the second US car giant in weeks to shock investors with a profits warning.