Saturday, June 16, 2007
Land Rover and Jaguar for Possible Sale

What else is new? I guess the Ford Motor Company is expecting this to happen. Few months ago, before the British brand Aston Martin was sold, they have admitted that they are expecting more falls this year. Like more job cuts, declines on sales, the closure of production plants, and more car brands to be sold. Maybe this was the thing they are talking about. Too bad, they failed to gain back the second spot on the Big Three as they are now found on the third rank.

And as a part of its Way Forward plan, Land Rover and Jaguar have been possibly set up for sale. But they still have yet to reveal plans about Volvo. Volvo has been noted to be the top seller among the Premier Automotive Group (PAG).

The news has been spreading all over Europe these days. Ford is possibly selling Land Rover and Jaguar when some of the officials were quoted saying they are still "exploring all options." That was the statement delivered by Dieter Zetsche, the Chief Executive Officer of DaimlerChrysler, when he observed that the Chrysler group has been swaying like a limbo on sales.

There are speculations that these luxury British car brands are selling between $1.5 billion to $8 billion. However, the company does not break out the particular financial figures of these brands that belong to its Premier Automotive Group. Ford realizes that its Land Rover has been continuously gaining profits while the Jaguar brand is slowly becoming non-profitable. On the first quarter sales, most of the pretax profits were coming from its fellow PAG member Volvo that amounts to a total of over $400 million.

And just before these news get into almost everybody’s knowledge, Fiat was rumored to have been talking to Ford about its interest in buying the Jaguar brand on the previous month. But it seems like Fiat lost its interest in buying Jaguar because of its money-losing reputation. According to the Italian brand they wouldn’t risk buying a brand that could put an unlikable reputation on its credit rating.

However, private firms like Cinven, Blackstone and Cerberus expressed interest in bidding for these two members of PAG as released by a newspaper Frankfurter Allgemeine. But the British press focused much on the reports that the Alchemy, a buyout firm in UK, is also interested in both Jaguar and Land Rover.

The James Bond favorite car Aston Martin was sold to a private-equity consortium headed by David Richards earlier this year. Will these two brands be next?

posted by Car Addict @ 12:46 AM  
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