Ford to explore sale of Aston Martin
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Ford to explore sale of Aston Martin
Ford to explore sale of Aston Martin
No decisions made about firm’s other luxury auto brands
The Associated Press
Updated: 8:42 a.m. ET Aug 31, 2006
DETROIT - Ford Motor Co. said Thursday it is exploring the possible sale of all or part of its Aston Martin luxury brand as the company works to free up cash to pay for its North American turnaround plan.
But it said no decisions have been made about its other luxury car brands which include Jaguar and Land Rover.
“As part of our ongoing strategic review, we have determined that Aston Martin may be an attractive opportunity to raise capital and generate value,” Bill Ford, the automaker’s chairman and chief executive, said in a statement.
He said the Aston Martin’s dealer network, design and size are different from other Ford brands and the most logical choice for possible sale.
He said no decisions have been made about its other Premier Automotive Group brands.
“We continue to be encouraged by Jaguar’s progress and by the strength and consumer appeal of the Jaguar, Land Rover and Volvo product lineups” he said.
In July, Ford pledged to speed up and possibly deepen its North American turnaround plan.
Dearborn-based Ford’s “Way Forward” plan, launched in January, calls for shedding 25,000 to 30,000 jobs and closing 14 plants by 2012 to help return Ford’s North American automotive operations to profitability.
© 2006 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
URL: http://www.msnbc.msn.com/id/14599981/
--------------------------------------------------------------------------------
© 2006 MSNBC.com
No decisions made about firm’s other luxury auto brands
The Associated Press
Updated: 8:42 a.m. ET Aug 31, 2006
DETROIT - Ford Motor Co. said Thursday it is exploring the possible sale of all or part of its Aston Martin luxury brand as the company works to free up cash to pay for its North American turnaround plan.
But it said no decisions have been made about its other luxury car brands which include Jaguar and Land Rover.
“As part of our ongoing strategic review, we have determined that Aston Martin may be an attractive opportunity to raise capital and generate value,” Bill Ford, the automaker’s chairman and chief executive, said in a statement.
He said the Aston Martin’s dealer network, design and size are different from other Ford brands and the most logical choice for possible sale.
He said no decisions have been made about its other Premier Automotive Group brands.
“We continue to be encouraged by Jaguar’s progress and by the strength and consumer appeal of the Jaguar, Land Rover and Volvo product lineups” he said.
In July, Ford pledged to speed up and possibly deepen its North American turnaround plan.
Dearborn-based Ford’s “Way Forward” plan, launched in January, calls for shedding 25,000 to 30,000 jobs and closing 14 plants by 2012 to help return Ford’s North American automotive operations to profitability.
© 2006 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
URL: http://www.msnbc.msn.com/id/14599981/
--------------------------------------------------------------------------------
© 2006 MSNBC.com
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Re: Ford to explore sale of Aston Martin
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From: Chicagoland IL
Re: Ford to explore sale of Aston Martin
Originally Posted by Z28x
Doesn't Aston Martin make money? I wouldn't get rid of that brand.
Jaguar is tougher. How much does Ford have invested in Jag over the years? $5B? $10B? More? Ford has yet to make dime one on Jag. And if sold might only get maybe $1B for it. If I owned Jaguar, I'd simply refuse to take such a loss on it.
Maybe some creative partnering/management deal can be made with Nasser's consortium.
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From: Mack and Bewick
Re: Ford to explore sale of Aston Martin
My feelings are mixed. I certainly understand the issue with getting rid of a profitable brand, and reducing share.
But Ford cant reallly exploit PAg at the moment, and they need the cash...
Of course it they flush it the way they are doing everything else as of late, it wont make a difference.
But Ford cant reallly exploit PAg at the moment, and they need the cash...
Of course it they flush it the way they are doing everything else as of late, it wont make a difference.
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Joined: Jun 2001
Posts: 4,600
From: Pewee Valley, KY
Re: Ford to explore sale of Aston Martin
Maybe there are two things working here. Ford could sell AM outright for operating cash and Jac & Co. could be brought in as investers/partners to right the Jag/LR ship.
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From: South Jersey
Re: Ford to explore sale of Aston Martin
Originally Posted by Z284ever
Jaguar is tougher. How much does Ford have invested in Jag over the years? $5B? $10B? More? Ford has yet to make dime one on Jag. And if sold might only get maybe $1B for it. If I owned Jaguar, I'd simply refuse to take such a loss on it.
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Re: Ford to explore sale of Aston Martin
The thing about Aston Martin is that it's kind of self-contained. They have their own platform and engine family, they have strong product (and good new product in the pipe), they have a great management team, and they're making money. If you're Ford and you need to dump an asset (like maybe to raise money to take the company private), Aston is something that can be sold quickly and at a good price without significantly impacting the core business. Volvo has been too heavily integrated into Ford, and Jag and Land Rover are a mess. Aston is the jewel.
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Posts: 401
Re: Ford to explore sale of Aston Martin
Originally Posted by Mich84
Anyone think Kia/Hyundai is drooling? They wanted to launch a lux line, now here is one possibly for sale that is already up and running.
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Re: Ford to explore sale of Aston Martin
Originally Posted by landstuhltaylor
they cant do any worse than ford has
They screwed up Jaguar pretty thoroughly, though.
I don't see Hyundai buying Aston - they were looking for more of a mass-market brand (like Jaguar), and Aston does something like 5000 cars a year. It'll be private investors or maybe someone like BMW.