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Ford to explore sale of Aston Martin

Old Aug 31, 2006 | 10:00 PM
  #16  
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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.
WERM's right about the sunk costs. And if it's not likely to turn a profit any time soon, might as well stop the bleeding now and pull some cash out. Not to mention it's a huge distraction for management; get rid of it and let them focus on their core brands. Although I wonder if Jag is too integrated with Ford to make it an easy sale.

As to Aston, they're also pretty tight with Ford. Their engines are based off the Duratec, and there's lots of Ford parts bin in the cars too. But nothing that couldn't be overcome. I think it would need to be another automaker that buys it though, so that they can leverage things like supercomputers, purchasing, logistics, regulatory compliance, etc.
Old Sep 1, 2006 | 12:46 AM
  #17  
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Re: Ford to explore sale of Aston Martin

Originally Posted by georgejetson
Aston is the jewel.

Ford shouldn't pawn their Diamond.


I'd Rather see merc discontinued.
Old Sep 1, 2006 | 09:22 AM
  #18  
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Re: Ford to explore sale of Aston Martin

Originally Posted by R377
WERM's right about the sunk costs. And if it's not likely to turn a profit any time soon, might as well stop the bleeding now and pull some cash out. Not to mention it's a huge distraction for management; get rid of it and let them focus on their core brands. Although I wonder if Jag is too integrated with Ford to make it an easy sale.

As to Aston, they're also pretty tight with Ford. Their engines are based off the Duratec, and there's lots of Ford parts bin in the cars too. But nothing that couldn't be overcome. I think it would need to be another automaker that buys it though, so that they can leverage things like supercomputers, purchasing, logistics, regulatory compliance, etc.
Oh, I'm just saying that's what "I" would do. Maybe it is smart to dump it at 10% of what you have into it, and stop the bleeding - it's just something that I could never do if it were MY money. Of course things are easier when you're dealing with OPM (other people's money), as the Ford decision makers are.

Anyway, the point might be moot. As you said, PAG and Jag in particular are pretty well integrated into Ford. In fact, I can even see some of the same switch gear in my father-in-laws' S-Type, as I can see in my SVT Contour.

Maybe that's part of the problem.
Old Sep 1, 2006 | 10:00 AM
  #19  
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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.
That is kind of the gamblers mentality. I've lost $xxx but if I play long enough I'm sure I can win it all back. I've made that same mistake with stocks. Some times you just got to cut a dog loose, as much as you hate to take the lose, you have to stop the bleeding.
Old Sep 1, 2006 | 10:20 AM
  #20  
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Re: Ford to explore sale of Aston Martin

Originally Posted by Z28x
That is kind of the gamblers mentality. I've lost $xxx but if I play long enough I'm sure I can win it all back. I've made that same mistake with stocks. Some times you just got to cut a dog loose, as much as you hate to take the lose, you have to stop the bleeding.
That's kind of over simplistic. Gamblers don't control the cards. They play until they lose. And you can't control a doggy stock, you are just there for the ride.

Ford, on the other hand, controls EVERYTHING with Jag and the rest of PAG. They were in complete control when they decided that what Jag really needed was a spruced up Mondeo, called X-type. Thankfully, that car won't be replaced when it runs it's course. What a ridiculous waste of money (if it were MY money, that is), and energy. Woulda made a nice Mercury though.

The XK? If it were MY money, I would have sh!tcanned it, and used those resources to get the F-Type concept to market ASAP. I think part of the essence of Jaguar is an E-Type replacement...a role the F-Type would have filled beautifully.

Unlike the gambler who is pre-programmed to lose by his disease, Ford held all the cards from day one.

Last edited by Z284ever; Sep 1, 2006 at 10:25 AM.
Old Sep 1, 2006 | 10:53 AM
  #21  
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Re: Ford to explore sale of Aston Martin

Originally Posted by Z284ever
The XK? If it were MY money, I would have sh!tcanned it, and used those resources to get the F-Type concept to market ASAP. I think part of the essence of Jaguar is an E-Type replacement...a role the F-Type would have filled beautifully.
What's wrong with the XK?

The F type strikes me as having looks of a pure racer which might bring in a relatively young group, but Jaguar is an old money car company. Probally wouldn't be a car for the Jaguar faithful. The XK is more in line with what the 50-something, grey and balding guys who had a previous Jag and has a house in the richer part of town.

That plus the XK is the only Jag whose sales figures are up from over a year ago.

That hyper expensive all alumunum body on the XJ seems to have started the $$ drain for Jag.

Just my take on it.

Last edited by guionM; Sep 1, 2006 at 10:58 AM.
Old Sep 1, 2006 | 10:53 AM
  #22  
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Re: Ford to explore sale of Aston Martin

Originally Posted by Z284ever
That's kind of over simplistic. Gamblers don't control the cards. They play until they lose. And you can't control a doggy stock, you are just there for the ride.

Ford, on the other hand, controls EVERYTHING with Jag and the rest of PAG. They were in complete control when they decided that what Jag really needed was a spruced up Mondeo, called X-type. Thankfully, that car won't be replaced when it runs it's course. What a ridiculous waste of money (if it were MY money, that is), and energy. Woulda made a nice Mercury though.

The XK? If it were MY money, I would have sh!tcanned it, and used those resources to get the F-Type concept to market ASAP. I think part of the essence of Jaguar is an E-Type replacement...a role the F-Type would have filled beautifully.

Unlike the gambler who is pre-programmed to lose by his disease, Ford held all the cards from day one.
True, If they can get it managed correctly and maybe share some better platforms (volvo instead of Contour). Based on what Ford is doing with Lincoln and with the X-type, I don't trust then to return Jaguar into a profitable and highly respected luxury brand. It would be easier to just add a high end $75,000+ sedan to Aston Martin and gorup them with Range Rover to create a high luxury brand(s).

I'd rather see Ford keep all the brands and try and make it work, my main point is don't drop Aston Martin.
Old Sep 1, 2006 | 11:02 AM
  #23  
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Re: Ford to explore sale of Aston Martin

Why isn't Jag just sedan versions of AM's coupes? Would that not be a business model that would be both profitable and match the two companies up better?
Old Sep 1, 2006 | 09:20 PM
  #24  
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Re: Ford to explore sale of Aston Martin

A Maserati/Ferrari relationship between the two would be nice.

But I dont think its really possible, the AMs still have a lot of "hand made" in them. Im not sure if the factory setup would support it...

Add to that either way you go you're either going to make the AMs less competitive or the Jags too expensive.
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