After Aston Martin, Ford to sell Jaguar?
Tongues are wagging nonstop the latest news of the car hit dustry British government is reportedly negotiating with car giant Ford over the possible sale of the American car manufacturer Jaguar and Land Rover brands. According to a report by BBC
the Dearborn automaker has briefed politicians that it intends for its British luxury car brands Jaguar and Land Rover sales. “Ford Motor Co. has buyers for its Volvo
Jaguar and Land Rover brands in Europe for the money-losing automaker tries to focus on North America
” two sources familiar with the matter said.A spokesman for Prime Minister Tony Blair Tuesday said: “We are in contact with the company. We still believe that both Land Rover and Jaguar are highly successful companies and will be a very successful future. “In 1989
Ford spent £ 1.6 billion to buy Jaguar and £ 1.7 billion for Land Rover in 2000. These two manufacturers’ employee number is equal 19
000 workers in the United Kingdom. On Monday
several sources familiar with the matter quoted as saying that Ford had investment banks to the options including the sale of the two British luxury brands explore hired. Investment banks including Goldman Sachs
HSBC and Morgan Stanley are reportedly helping Ford to sell the two brands to explore the sources said Monday. Neither Ford nor the bank gave no comment on the situation
saying they would give more details next week.Ford is to reduce costs in an effort to offset declining sales. The automaker is in the process of an extensive restructuring
and the company reported a loss of $ 282m for the first three months of 2007.Analysts have wondered for some time what Ford might do with Land Rover and Jaguar
neither of which has good performed. Both companies are part of the Premier Automotive Group (PAG)
as Aston Martin. In March
the troubled U.S. automaker sold sports car firm Aston Martin for £ 479m ($ 924m) to a British-led business consortium led by Banbury-based Dave Richards
boss of motorsport firm Prodrive. In a separate report in City AM
private equity firm Alchemy Partners was said to be lining up a £ 3 billion offer for the two luxury brands. Meanwhile
the news from Ford is considering putting its British luxury car brands Jaguar and Land Rover sale has led EU leaders to voice their concern. National officer of the Unite union
Dave Osborne
said today: “We are very concerned to hear these reports and we are seeking an urgent meeting with Jaguar / Land Rover. We find it hard to understand why Ford would want to sell a successful
growing and environmentally improving brand like Land Rover and Jaguar as a brand
which is a major player in the luxury segment and one that Ford has invested heavily in. Our prime concern is the security of our members. “Jaguar
which is top of the line Jaguar oxygen sensor is
has about 10
000 employees at locations in Coventry
Birmingham and Liverpool
while Land Rover employs about 9
000 in the West Midlands and Warwickshire. Ford is expected to make an official announcement in the coming days.
