RE: Ford flooded with Aston buyers
Wednesday 4th October 2006
Who will buy?Ford's been flooded with "expressions of interest" to buy Aston Martin.
Ford flooded with Aston buyers
Frivolous bids to be weeded out
Who will buy?
As a result, it's had to impose an extra round of pre-bidding to weed out frivolous approaches, according to the Financial Times. Investment bank UBS is drawing up a list of bidders and will remove those it considers not to be serious.
Among those said by many to have expressed an interest is AM boss Dr Ulrich Bez -- the man with a Porsche 993 in his living room. However, he's since said that he's not interested in a management buy-out but wants to keep the current management team together for whomever buys the company.
Still in the running are:
- Ex-Ford boss Jac Nasser, backed by investment bank One Equity, the private equity arm of JPMorgan
- Cerberus, a New York-based equity group that employs ex-Ford international operations head David Thursfield
- Magma, a company run by former Ford Europe boss Martin Leach
- A number of private equity groups have expressed interest, reckons the FT, although no-one is commenting.
The price remains contentious. While Ford would like to extract $2 billion (£1.06 billion) from the sale, analysts and bidders remain more fixated on a price about one quarter of that -- so expect the eventual price to be somewhere in the middle.
Here's hoping that, if an investment company buys Aston Martin, it doesn't do the classic investment bank thing of stripping the assets and selling it on for an inflated price.
Discussion
...and in doing so keeps the loss making bits to drag it down further...pointless. 
- Good to hear from you Gareth!In the market you would cut your losers and run the winners but I can see the logic in selling off Aston.
It is a company which it can be argued has peaked. They have 3 great cars out there but the cost of next generation will be very high.
What I am sure Ford is looking at is the fact that Jaguar has a greater reach into the global market and it's XJ and XK brands are doing well while the small saloons are struggling.
If Ford doesn't own Aston it releases Jaguar to launch even better top end cars that will be cheaper and superior to the current Astons. We all know that the XKR has been deliberately placed in a power band below the Astons.
Chop out the X Type and re-do the S and Jag's potential fiscal upside far, far outweights any further profit that Astons can deliver.
I do think that this sale makes sense.
It is a company which it can be argued has peaked. They have 3 great cars out there but the cost of next generation will be very high.
What I am sure Ford is looking at is the fact that Jaguar has a greater reach into the global market and it's XJ and XK brands are doing well while the small saloons are struggling.
If Ford doesn't own Aston it releases Jaguar to launch even better top end cars that will be cheaper and superior to the current Astons. We all know that the XKR has been deliberately placed in a power band below the Astons.
Chop out the X Type and re-do the S and Jag's potential fiscal upside far, far outweights any further profit that Astons can deliver.
I do think that this sale makes sense.
Don't really think £500million will reeally help Ford all that much anyway, don't they loose around that every year. Aston is doing great at the moment so as with the companies history it'll take a down turn, which is a real shame, especially if a load of bankers get their money hands on it rather than someone who could keep it going great guns and move it up a level, I'm thinking Formula 1 management style - Frank Williams, Bernie Eccelstone, Jean Todt or maybe some super designer like Peter Horbury or Jack Nasser. Or how about that guy who was at Aston and set up his own company Fisker? Get someone with big balls behind it, not just big bank notes.
What happened to the BMW rumours? I'd be happier if they went to a car company (but not VAG, they'd just end up as W12-platform variants) than an asset-stripper who'd treat it as nothing more special than a sportswear brand, or an enthusiastic individual who can't afford to develop them properly, leading to a decade of stagnation typified by 'special editions', bad bodykits and general awfulness (a la Lamborghini in the late '80s and early '90s).
Also, what happens to the engines? IIRC the V12s are from Cosworth (Ford-related company?), and the V8s are modified Range Rover units - so how are they going to power them? (again, BMW have plenty of experience building exciting straight-six, V8 and V12-powered RWD GT and sports cars).
Also, what happens to the engines? IIRC the V12s are from Cosworth (Ford-related company?), and the V8s are modified Range Rover units - so how are they going to power them? (again, BMW have plenty of experience building exciting straight-six, V8 and V12-powered RWD GT and sports cars).
Horse_Apple said:
It is a company which it can be argued has peaked. They have 3 great cars out there but the cost of next generation will be very high...What I am sure Ford is looking at is the fact that Jaguar has a greater reach into the global market and it's XJ and XK brands are doing well while the small saloons are struggling.
I can see that.
I'll be honest, I reckon Aston has served its purpose for Ford - ie the production of the V/H platform. A bit like the Lotus VVA (Variable Vehicle Architecture) system, on which the Elise, Europa, Exige and forthcoming Esprit and new Excel will be built on, the V/H (Vertical/Horizontal) is a kind of advanced platform that allows for essentially different cars to share a platform that is easily modified.
IIRC Ford used it to build not only the Aston lineup, but also the Jaguar XK - a greater volume-seller and a car that has the ability to outdo the AMV8, especially in XKR form, as it pretty-much shares an engine, has a more practical interior, is cheaper to buy and run and so on. As the XKR gets into its stride, the AMV8 will begin to look ever more like a bit of a folly (exactly the same thing happened with the original 6-cylinder DB7 and the XK8, both built on the XJS platform), especially as that particular market sector is dominated by Porsche. And then the low-volume, high-price V12s will need updating to compete with Ferrari - something which will cost an absolute fortune when you haven't got a scuderia to call upon.
That's the problem when you have similar companies jostling for position under one roof. A similar thing happened to one of the most exciting British cars of the '60s - the Rover P6BS. This thing was a properly useable supercar, with a mid-mounted Rover V8, a fibreglass body (they never finished it but Zagato were going to provide the final looks) and race-car handling. They were considering calling it an Alvis, but then corporate infighting broke out at BL - Jaguar had their E-Type, Triumph had their Stag, neither wanted it building so it was dropped. Shame.
Now imagine the consequences if Jaguar and Aston Martin 'had' to release 'rival' cars. At least one of them wouldn't get built.
Edited by Twincam16 on Thursday 5th October 12:43
Something to add to what the Horse and Twinc said.
The Aston alum platform is not the same as the Jag XJ and is in no way interchangeable – parts or technology. But they obviously 'compliment' each other so there must have been an advantage – even if it was learning by mistake. And just to qualify that although the DB7 was built off the old XJS platform, the XK8 wasn't.
The AML V12 engine is unique and still hand built (even though it's assembled in Germany!). The V8 is based on the Jaguar AJV8 block etc but at 4.3L, most else is unique to AML.
The XKR-R is coming……… 500BHP………keep an eye out at the 'Ring soon……..
The Aston alum platform is not the same as the Jag XJ and is in no way interchangeable – parts or technology. But they obviously 'compliment' each other so there must have been an advantage – even if it was learning by mistake. And just to qualify that although the DB7 was built off the old XJS platform, the XK8 wasn't.
The AML V12 engine is unique and still hand built (even though it's assembled in Germany!). The V8 is based on the Jaguar AJV8 block etc but at 4.3L, most else is unique to AML.
The XKR-R is coming……… 500BHP………keep an eye out at the 'Ring soon……..
Twincam16 said:
What happened to the BMW rumours? I'd be happier if they went to a car company (but not VAG, they'd just end up as W12-platform variants) than an asset-stripper who'd treat it as nothing more special than a sportswear brand, or an enthusiastic individual who can't afford to develop them properly, leading to a decade of stagnation typified by 'special editions', bad bodykits and general awfulness (a la Lamborghini in the late '80s and early '90s).
Also, what happens to the engines? IIRC the V12s are from Cosworth (Ford-related company?), and the V8s are modified Range Rover units - so how are they going to power them? (again, BMW have plenty of experience building exciting straight-six, V8 and V12-powered RWD GT and sports cars).
Also, what happens to the engines? IIRC the V12s are from Cosworth (Ford-related company?), and the V8s are modified Range Rover units - so how are they going to power them? (again, BMW have plenty of experience building exciting straight-six, V8 and V12-powered RWD GT and sports cars).
The rumours still abound in Bracknell, AM fit nicely amongst the other offerings from Oxford, Munich and Goodwood.
For those of you who can read german: www.automotorundsport.de/news/wirtschaft/aston_martin_milliardaer_duo_moechte_luxus_marke.129259.htm
and for those who cant...
Bernard Arnault and Albert Frère, two of Europe's most prominent billionaires, are considering a bid for Aston Martin, the British luxury sports carmaker that has been put up for sale by Ford Motor.
Mr Arnault, 57, is chairman, chief executive and controlling shareholder of LVMH, theParis-based luxury goods multinational that includes Louis Vuitton and Fendi brands. He is France's richest man.
Mr Frère, 80, chairs Groupe Bruxelles Lambert, the listed Belgian investment company that owns big stakes in the Total oil group and Lafarge, the cement maker. The pair are close friends and jointly own the Château Cheval Blanc winery, Bordeaux.
The two billionaires announced yesterday that they were joining forces to create a joint investment structure involving Groupe Arnault and the Frère-controlled NPM/CNP. A person close to the pair said: "They are looking at Aston Martin. It falls within the scope of their investment fund."
Any bid for Aston Martin would probably be worth more than €1bn (£672m).
Ford took a controlling stake in Aston Martin in 1987 but the troubled US carmaker has decided to sell the James Bond marque as part of restructuring.
UBS, the investment bank running the auction, has contacted prospective bidders with a view to forming a shortlist.
The collaboration between Mr Frère and Mr Arnault will be able to draw on an equity financing capacity of €1bn. By borrowing money, it could increase its financial firepower to €4bn-€5bn.
It is becoming more common for wealthy individuals to adopt tactics typically employed by private equity groups.
In a press release, Mr Frère and Mr Arnault said the new partnership would take stakes mainly in European companies. They added that several projects were already being studied, without giving further details.
Bernard Arnault and Albert Frère, two of Europe's most prominent billionaires, are considering a bid for Aston Martin, the British luxury sports carmaker that has been put up for sale by Ford Motor.
Mr Arnault, 57, is chairman, chief executive and controlling shareholder of LVMH, theParis-based luxury goods multinational that includes Louis Vuitton and Fendi brands. He is France's richest man.
Mr Frère, 80, chairs Groupe Bruxelles Lambert, the listed Belgian investment company that owns big stakes in the Total oil group and Lafarge, the cement maker. The pair are close friends and jointly own the Château Cheval Blanc winery, Bordeaux.
The two billionaires announced yesterday that they were joining forces to create a joint investment structure involving Groupe Arnault and the Frère-controlled NPM/CNP. A person close to the pair said: "They are looking at Aston Martin. It falls within the scope of their investment fund."
Any bid for Aston Martin would probably be worth more than €1bn (£672m).
Ford took a controlling stake in Aston Martin in 1987 but the troubled US carmaker has decided to sell the James Bond marque as part of restructuring.
UBS, the investment bank running the auction, has contacted prospective bidders with a view to forming a shortlist.
The collaboration between Mr Frère and Mr Arnault will be able to draw on an equity financing capacity of €1bn. By borrowing money, it could increase its financial firepower to €4bn-€5bn.
It is becoming more common for wealthy individuals to adopt tactics typically employed by private equity groups.
In a press release, Mr Frère and Mr Arnault said the new partnership would take stakes mainly in European companies. They added that several projects were already being studied, without giving further details.
Aston Martin owned by Louis Vuitton would be a disaster - they'd just make it into another fashion brand for clothes-horse socialites - and the driving experience would take a back seat.
They'd probably introduce hybrid and diesel options so they could sell one to Chris & Gwyneth too...
They'd probably introduce hybrid and diesel options so they could sell one to Chris & Gwyneth too...
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