Ford looking to sell part or all of Aston Martin unit.
Discussion
Bloomberg said:
By Bill Koenig
Aug. 31 (Bloomberg) -- Ford Motor Co., the second-largest U.S. automaker, said it's looking to sell its U.K.-based Aston Martin luxury-auto unit.
The move is part of a review of assets, Chief Executive Officer William Clay Ford Jr. said in a statement today.
Ford bought a majority stake in Aston in 1987 and all of the company seven years later. The unit makes cars costing more than $100,000 and is best known for vehicles that appeared in several James Bond movies. Aston is part of Ford's Premier Automotive Group, which also includes Jaguar, Land Rover and Volvo.
``Aston Martin may be an attractive opportunity to raise capital and generate value,'' Bill Ford said in the statement.
``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.''
Aug. 31 (Bloomberg) -- Ford Motor Co., the second-largest U.S. automaker, said it's looking to sell its U.K.-based Aston Martin luxury-auto unit.
The move is part of a review of assets, Chief Executive Officer William Clay Ford Jr. said in a statement today.
Ford bought a majority stake in Aston in 1987 and all of the company seven years later. The unit makes cars costing more than $100,000 and is best known for vehicles that appeared in several James Bond movies. Aston is part of Ford's Premier Automotive Group, which also includes Jaguar, Land Rover and Volvo.
``Aston Martin may be an attractive opportunity to raise capital and generate value,'' Bill Ford said in the statement.
``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.''
This amazes me! Look how well Audi/VW have done with Lambo & Bentley, BMW with Rolls.
Well established premier brands are very valuable in todays market, what ever the product & Aston are actually in profit.
Seems like short term cash injection gain, adding to Fords long term pain, if you ask me!
Well established premier brands are very valuable in todays market, what ever the product & Aston are actually in profit.
Seems like short term cash injection gain, adding to Fords long term pain, if you ask me!
Edited by grant3 on Thursday 31st August 14:37
How much would the sale of AM raise? Not enough to get Ford out of their financial pickle, that's for sure.
Ford should be applauded for their handling of AM. The company is in great shape and producing 3 stunning cars.
I can only see this as a bad move for AM and very short sighted of Ford.
Now, if only Ford hadn't wasted BILLIONS on Jaguar and it's F1 joke.
Ford should be applauded for their handling of AM. The company is in great shape and producing 3 stunning cars.
I can only see this as a bad move for AM and very short sighted of Ford.
Now, if only Ford hadn't wasted BILLIONS on Jaguar and it's F1 joke.
From NYT...
The New York Times
August 31, 2006
Ford Explores Sale of Aston Martin
By NICK BUNKLEY
DEARBORN, Mich., Aug. 31 — The Ford Motor Company may part ways with both its British luxury-car brands as it raises money for its North American turnaround efforts.
Ford said today that it was exploring a sale of all or part of Aston Martin, a sports car marque that it has owned for nearly two decades. Analysts also expect Ford to unload Jaguar, but the company declined to comment today on its plans for that brand.
Potential buyers have come forward for both Aston Martin and Jaguar. “We’ve already received inquiries from some interested parties as it relates to Aston Martin,” said a Ford spokesman, Tom Hoyt. A British construction company, JCB, has said it is interested in purchasing Jaguar.
Ford’s chief executive, William Clay Ford Jr., said today that the decision to put Aston Martin on the market was made in the course of an “ongoing strategic review.”
Selling some or all of Aston Martin, which was founded in London in 1913, would “allow it to reach its full potential, while enabling Ford to efficiently raise capital for its other brands,” Mr. Ford said in a statement.
“Since Aston Martin’s dealer network, product architecture and size are distinctly different from other Ford brands,” Mr. Ford continued, “it is the most logical and capital-smart divestiture choice.”
The statement said no decisions had been reached regarding a sale of other brands. Ford said it has not set an asking price for Aston Martin, and analysts could not immediately estimate how much it is likely to fetch.
Brett Hoselton, an automotive analyst with Key Bank Capital Markets in Cleveland, agreed that Ford could benefit from selling Aston Martin, which has about 100 dealers worldwide and sold 4,500 vehicles last year, a record for the brand.
“It’s not core to the business,” Mr. Hoselton said.
But he disputed Mr. Ford’s assertion that Aston Martin, which recently turned its first profit since the 1960’s, was the most logical divestiture.
“Jaguar makes the most sense—that’s obviously been the money loser,” Mr. Hoselton said. “Not only is it a distraction for the management, but it’s a drag on earnings.”
Jaguar and Aston Martin are included now in Ford’s European luxury unit, called the Premier Automotive Group, which also includes Volvo and Land Rover. In a regulatory filing this month, Ford said it expects the group to be unprofitable overall in 2006 because of declining sales for all but the Aston Martin brand.
At one time Ford expected the group to be contributing one-third of the company’s overall earnings by this year. But it backed away from that forecast as losses mounted at Jaguar, which it bought for $2.5 billion in 1989.
Ford purchased 75 percent of Aston Martin in 1987 for an undisclosed amount, and assumed ownership of the rest in 1994. It opened a new factory for the brand that year in Bloxham, England, not far from Aston Martin’s headquarters in the village of Gaydon. Ford recruited a former Porsche executive, Ulrich Bez, to head Aston Martin, which sells three models: the $110,000 V8 Vantage, the $165,000 DB9 and the $260,000 V12 Vanquish.
“Ford has done an excellent job with Aston Martin,” said Michael Parchment, general manager of Miller Motor Cars, a luxury car dealership in Greenwich, Conn. “If it wasn’t for Ford, Aston Martin wouldn’t exist.”
Mr. Parchment said he hoped that any new owners would have the brand’s best interests in mind, but that it was too soon to say whether he would favor a sale.
The news that Ford may sell Aston Martin comes about a month after the company hired Kenneth Leet, a former investment banking executive, as a strategic adviser. His assignment is to guide the company’s review of its business and to recommend steps like divestitures and alliances with other auto companies.
The New York Times
August 31, 2006
Ford Explores Sale of Aston Martin
By NICK BUNKLEY
DEARBORN, Mich., Aug. 31 — The Ford Motor Company may part ways with both its British luxury-car brands as it raises money for its North American turnaround efforts.
Ford said today that it was exploring a sale of all or part of Aston Martin, a sports car marque that it has owned for nearly two decades. Analysts also expect Ford to unload Jaguar, but the company declined to comment today on its plans for that brand.
Potential buyers have come forward for both Aston Martin and Jaguar. “We’ve already received inquiries from some interested parties as it relates to Aston Martin,” said a Ford spokesman, Tom Hoyt. A British construction company, JCB, has said it is interested in purchasing Jaguar.
Ford’s chief executive, William Clay Ford Jr., said today that the decision to put Aston Martin on the market was made in the course of an “ongoing strategic review.”
Selling some or all of Aston Martin, which was founded in London in 1913, would “allow it to reach its full potential, while enabling Ford to efficiently raise capital for its other brands,” Mr. Ford said in a statement.
“Since Aston Martin’s dealer network, product architecture and size are distinctly different from other Ford brands,” Mr. Ford continued, “it is the most logical and capital-smart divestiture choice.”
The statement said no decisions had been reached regarding a sale of other brands. Ford said it has not set an asking price for Aston Martin, and analysts could not immediately estimate how much it is likely to fetch.
Brett Hoselton, an automotive analyst with Key Bank Capital Markets in Cleveland, agreed that Ford could benefit from selling Aston Martin, which has about 100 dealers worldwide and sold 4,500 vehicles last year, a record for the brand.
“It’s not core to the business,” Mr. Hoselton said.
But he disputed Mr. Ford’s assertion that Aston Martin, which recently turned its first profit since the 1960’s, was the most logical divestiture.
“Jaguar makes the most sense—that’s obviously been the money loser,” Mr. Hoselton said. “Not only is it a distraction for the management, but it’s a drag on earnings.”
Jaguar and Aston Martin are included now in Ford’s European luxury unit, called the Premier Automotive Group, which also includes Volvo and Land Rover. In a regulatory filing this month, Ford said it expects the group to be unprofitable overall in 2006 because of declining sales for all but the Aston Martin brand.
At one time Ford expected the group to be contributing one-third of the company’s overall earnings by this year. But it backed away from that forecast as losses mounted at Jaguar, which it bought for $2.5 billion in 1989.
Ford purchased 75 percent of Aston Martin in 1987 for an undisclosed amount, and assumed ownership of the rest in 1994. It opened a new factory for the brand that year in Bloxham, England, not far from Aston Martin’s headquarters in the village of Gaydon. Ford recruited a former Porsche executive, Ulrich Bez, to head Aston Martin, which sells three models: the $110,000 V8 Vantage, the $165,000 DB9 and the $260,000 V12 Vanquish.
“Ford has done an excellent job with Aston Martin,” said Michael Parchment, general manager of Miller Motor Cars, a luxury car dealership in Greenwich, Conn. “If it wasn’t for Ford, Aston Martin wouldn’t exist.”
Mr. Parchment said he hoped that any new owners would have the brand’s best interests in mind, but that it was too soon to say whether he would favor a sale.
The news that Ford may sell Aston Martin comes about a month after the company hired Kenneth Leet, a former investment banking executive, as a strategic adviser. His assignment is to guide the company’s review of its business and to recommend steps like divestitures and alliances with other auto companies.
Interesting that they don't now seem to want to sell Jag;
Ford added, however, that 'regarding our other Premier Automotive Group brands, we've made no final 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 line-ups.'
Ford added, however, that 'regarding our other Premier Automotive Group brands, we've made no final 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 line-ups.'
razbox said:
Interesting that they don't now seem to want to sell Jag;
Jag wouldnt be easy to get rid of, due to engine sharing and upcoming chassis sharing, anyone looking to buy jag would have problems finding a new chassis for the S-type replacement as Ford probably wouldnt sell on the new chassis aswell.
Overall Jag would be the sensible option to sell in the long term but how much could they sell a massively loss making company for? Volvo would have been the good one to sell, considering its made a profit every year since they got it and Toyota wanted the brand could have raised a lot of capital from that.
I reckon VW or BMW will end up with Aston or be in the top bidders for it.
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