RE: Bidding for Aston closes today
Tuesday 30th January 2007
Aston Martin DB9Bidding for Aston Martin, which was put up for sale by Ford five months ago, closes today.
Bidding for Aston closes today
Price likely to be US$1 billion or more
Aston Martin DB9
The investment bank that's managing the Aston sale set today as the deadline for bids, which are expected to be around one billion US dollars -- or about £550 million. Analysts also reckon that, at that price, it's a vanity purchase rather than one designed to offer a full return on investment within three years, which is the standard business metric.
Initially, there were at least 30 bidders up for buying Aston Martin but the list is now said to be down to a consortium led by super-rich Australian James Packer, another led by Aston boss Ulrich Bez, and a third led by Syrian-born billionaire Simon Halabi.
Autocar reports that equity groups from the UK and elsewhere are interested, along with Canadian component manufacturer Magna. We'll be bringing you the result as soon as possible.
We can expect to know the identity of Aston Martin's new owner this week.
Discussion
I don't understand what Ford is trying to achieve by selling Aston.
For a company that lost US$12 billion last year, the US$1 billion it stands to make from the sale is small beer.
In the process Ford will lose its most premium brand and an excellent engineering resource.
Strange and sad.
For a company that lost US$12 billion last year, the US$1 billion it stands to make from the sale is small beer.
In the process Ford will lose its most premium brand and an excellent engineering resource.
Strange and sad.
timu23 said:
I don't understand what Ford is trying to achieve by selling Aston.
For a company that lost US$12 billion last year, the US$1 billion it stands to make from the sale is small beer.
In the process Ford will lose its most premium brand and an excellent engineering resource.
Strange and sad.
For a company that lost US$12 billion last year, the US$1 billion it stands to make from the sale is small beer.
In the process Ford will lose its most premium brand and an excellent engineering resource.
Strange and sad.
I think they recognise that if they get Jaguar up to the same kind of profitability level as Aston Martin, they can make more money than a low-volume builder can manage.
Also, whoever buys Aston is still in thrall to Ford as they need Jaguar engines for the AMV8.
Why doesn't BMW take them over?? IMO it would be a perfect match. They showed us what they can do with a legendary British car manufacture. Just take a look at the Phantom. Also the mini is a success. And Aston wouldn't interfere with a current model (except the M6 with the V8 Vantage). With Aston they would have something against Porsche/Audi/VW/Bentley/Lambo and Mercedes. So… why not???
Otherwise I hope Ulrich Bez will get the award.
Otherwise I hope Ulrich Bez will get the award.
article said:
The bids...are expected to be around one billion US dollars - or about £550 million. Analysts reckon that, at that price, it's a vanity purchase rather than one designed to offer a full return on investment within three years, which is the standard business metric.
Too bloody right. Aston is only making a few £mil a year. Even if they do grow their bottom line, that's still a stupid price, brand value or not!!!
I cannot believe ANYONE would willingly pay anything more than 1/10 of that for Aston - financially they're not worth it, and the halo effect will be virtually meaningless...does anyone now buy a VW because VW own Bentley?!?
Velocity said:
I am suprised VW have not made an offer, they seem to be buying everything else in the motortrade, weather it overlaps in their model range or not.
Might have something to do with Porsche owning 27% of VW.
That's why there are reports that VW are looking at selling Lamborghini. As Porsche aren't the Halo Model of the Group.
Agree with other peoples comments though. BMW should buy it.
Hmm, why can Porsche be hugely profitable selling most of their cars below £40k (Boxsters) and Aston struggles making profit selling much more expensive machines (dont think they cost much more to produce though) ? I thought that British companies are at least good at making money, but maybe it does not apply to manufacturing?
nicedude1976 said:
Hmm, why can Porsche be hugely profitable selling most of their cars below £40k (Boxsters) and Aston struggles making profit selling much more expensive machines (dont think they cost much more to produce though) ? I thought that British companies are at least good at making money, but maybe it does not apply to manufacturing?
Porsche make many more cars, which means better economies of scale can be achieved, especially compard to Astons 'hand made' approach. Also remember Porsche has the Boxster which is relatively cheap, and pretty much saved Porsche back in the 90s from going bankrupt. Then there is the Cayenne which they no doubt make a healthly profit on (remembering it's half shared with the Toureg).
Plus a large chunk of Porsches profit recently seemed to have come from other ventures, like it's share in VW and it's engineering consultancy.
I work in the mergers and acquisitions industry and the people who pay the most are those who buy for strategic reasons - in this case it would be a major manufacturer. Private equity firms, as mentioned, are not in it for the love of cars, they are in it for the love of money/profit. ROI (return on investment) is largely irrelevant to a strategic buyer as they want it for what they can grow it into over many years, etc. Sorry to break it to all of you who hope for a wondeful future for AM. Until another major manufacturer takes it on don't expect too much. 
Road_Terrorist said:
Plus a large chunk of Porsches profit recently seemed to have come from other ventures, like ... it's engineering consultancy.
And THAT is the main point here. Industry pundits who don't really understand car companies do simple calculations along the lines of 'PBT/# of units sold = profit per car'.
Nothing could be further from the truth, and Porsche is a key example.
Jappo said:
Maybe Nikolai Moleskins could buy them and add Aston to his portfolio 
God, I hope not. Currently have a Sagaris which has dive-bombed in value courtesy of the boy-billionaire, and just about to take delivery of a new V8, so the last thing I need is for him to run the company into the ground.
By the way Jappo, just spotted your Sag is same colour as mine, but you have different wheels, never seen them before - what are they ?
Edited by GR1FF1F on Tuesday 30th January 15:40
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