Aston Martin - Ford Investigates Sell-off

[MADDER]

Press release on Next Car.

LINK HERE

1st September, 2006



Ford Motor Company announced overnight it has begun the process of exploring strategic options for Aston Martin, with particular emphasis on a potential sale of all or a portion of the unit.

"As part of our ongoing strategic review, we have determined that Aston Martin may be an attractive opportunity to raise capital and generate value," said Chairman and Chief Executive Officer Bill Ford. "Aston Martin Lagonda has flourished under Ford ownership, which is why we believe it is prudent to consider a sale of all or part of this prized brand. Since Aston Martin's dealer network, product architecture and size are distinctly different from other Ford brands, it is the most logical and capital-smart divestiture choice. The objective of any sale would be to position Aston Martin within a structure and resource base sufficient to allow it to reach its full potential, while enabling Ford to efficiently raise capital for its other brands."

Mr. Ford added, "Regarding our other Premier Automotive Group brands, we've made no decisions, as our review of strategic alternatives continues. However, 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."

The company said there can be no assurance that the decision to explore strategic options for Aston Martin will result in any transaction, which would be subject to Board approval.

Ford Motor Company, a global automotive industry leader based in Dearborn (suburban Detroit), Michigan, manufactures and distributes cars and trucks in 200 markets across six continents. With about 300,000 employees and more than 100 plants worldwide, the company's core and affiliated automotive brands include Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury and Volvo.

[Polyal]

That would be a huge mistake IMO. Isn't Aston about the only PAG company actually selling reasonable amounts?

Id almost get rid of jag before aston. (no I dont know what the UK sales are like)

[blutura]

Originally Posted by Polyal

That would be a huge mistake IMO. Isn't Aston about the only PAG company actually selling reasonable amounts?

Id almost get rid of jag before aston. (no I dont know what the UK sales are like)

Yep, Aston posted their first profit for 40 years this year and is the only brand (I think) in the loss-making PAG to turn a profit.

However, as strange as that may seem, that only makes it even more likely to be sold off, as a profit making business can be sold for a lot more than a loss-making one. Personally, I hope Ford hangs onto Aston and offloads Land Rover and Jaguar, but who knows - FoMoCo hasn't got to where they are now by making GOOD business decisions.

[HSE2]

Thats disappointing

[S3SR]

NOOO sell all of jag before even considering Aston Martin...

this is a sad day in Ford history... :(

[Iphido]

Selling off Jaguar makes more sense.

Ford already has several brands that fight with Jaguar. Land Rover, Volvo, Lincon. Jaguar seems to be a endless hole for money.

But yeh, it looks like Fords pretty desperate for cash. Aston would be desireable to many brands.

[aquahead2001]

I think Nasser's original strategy of being in all segments of the market place was a sound one. However, Jaguar is a problem and to a lesser extent Land Rover. The labour costs in the UK are horrendous and that will always put them behind the eight ball.

Now if they could successfully transplant as BMW and Mercedes have, with factories either in low cost countries or close to the market thus reducing logistics costs, well they'd have a chance.

People after a luxury or exclusive car will always pay that little bit more, as long as the cars are good. Aston Martin should be a very good proposition now that they have cars worth buying.

Having said all that, it's a crying shame that Lincoln and Mercury are withering on the vine. Ford really needs to concentrate on their “Home Brands”. Especially in a market that is as fragmented as the USA’s. With so many segments available, there are opportunities to utilise a single platform across a range of segments and a range of price levels. (Think Camry, which underpins RAV4, Kluger/Highlander, Lexus RX, Lexus ES and some other vehicles)

It’s time to stop concentrating on working harder and start working smarter. I heard a story that Toyota has only three seat designs across its entire range. Ford had dozens and GM has Hundreds! I don’t know if its true, but it highlights what I’m getting at.

[Interceptor]

Originally Posted by aquahead2001

I heard a story that Toyota has only three seat designs across its entire range. Ford had dozens and GM has Hundreds! I don’t know if its true, but it highlights what I’m getting at.

dont know about seats but i worked for toyota for a little while and noticed that several different models had what appeared to be similar radio/tape player/CD player chassis/fascia, i tried the programming features from one model on another that really shouldnt have had that feature on it, and to my suprise, it worked!

[crYnOid]

If what I read elsewhere is correct Ford will have to bundle aston with Jag to be able to get rid of Jag. Jaguar on its own would be hard to sell.

[outback_ute]

This reminds me of Chrysler having to sell off all its overseas interests to get a rescue package from the US govt. This isn't quite at that stage of course but the current situation surely cannot be sustainable.

[The Stylist]

I hope Ford can find another way to get round their problems without having to sell Aston Martin. What happens if Ford sell off both AM and Jaguar? - does this impact on Ford's bargaining power to get the 6speed ZF auto in our Falcon?

Again I hope not.

[T3ts50]

They should keep both so they can use future technologies on them as a testing ground. Then filter that technology through to the other cars such as Volvo, Land rover and finally ford. This would or should cut devolopment dollars in the future as they would have already been tested.

Ferrari and Maserati used to do this before their big divorce.

[boris]

I believe the jag is the only loss making brand in pag, landrover sells well and volvo turns a small profit and aston only just makes a profit. It's just that jag makes a big loss, x-type was a disappointment, s-type not much better. I reakon the new xj will help heaps. Ford needs to keep pag the technology they use in these vehicle is passed down to other brands, and they can charge s**tloads for these brands, helps cover r/d. PAG will sort itself out soon, it's Ford north america that needs a kick up the a**, sucking up all money from profits made every where else in the world!!

[ClevlndStemer]

Somemore

Fri Sep 1, 2006 7:56 PM BST

LONDON (Reuters) - UBS has won the coveted mandate to advise Ford Motor Co. on the sale of luxury car brand Aston Martin, the Swiss bank said on Friday.

Aston Martin, made famous on the big screen in the 1960s as James Bond's car of choice, this week became the latest British auto brand to face a shake-up after its U.S. owner said it may offload the iconic brand.

Ford said it had been approached by potential buyers for Aston Martin, which builds cars in the Midlands, an area hit hard in recent years by job cuts and plant closures among car makers. However, unlike some of its struggling peers, analysts said the luxury carmaker should have no problem attracting buyers lured by the string of celebrities who drive the model.

One source close the matter said the sale process was still at a very early stage and bankers were due to fly to Ford's headquarters in Dearborn, Michigan, next week to discuss it. Names in the bidding frame already include German sports car maker Porsche AG and luxury goods groups such as Paris-based LVMH and other carmakers in Japan, China and Russia, as well as cash-rich hedge funds and private equity groups. JCB, a maker of construction and excavation vehicles, is also seen as a potential bidder after it said last week it was interested in Jaguar, another Ford luxury brand. The private equity arm of U.S. bank JP Morgan Chase & Co., is among the potential buyers of Ford's luxury brands, people familiar with the matter have previously said.