Analyst: Ford should sell Volvo, not Jaguar/LR

In a new white paper on the PAG restructuring at Ford, U.K. automotive research firm Trend Tracker suggests Ford should consider selling its Ford Credit finance arm, or even Volvo, before potentially selling its premium marques, Jaguar and Land Rover. In the paper, analyst, Michael Wynn-Williams, argues that using Land Rover to enhance a potential deal would do nothing to make Jaguar itself more attractive and would deprive Ford of two premium brands and not one. Caught in a market squeeze between the premium brands and the fast proliferating value brands, Wynn-Williams suggests Ford's future lies with its own globally recognised premium brand. Ford should consider selling the Ford Credit finance arm, or even Volvo, before putting Jaguar on the block.





Wynn-William takes a look at the factors that lead to Jaguar's present predicament, showing that Jaguar's rumoured sale is the result of a "market-led failure." Although product engineering is now "world-class," the once provocative design has been "thrown away in a disastrous attempt to resurrect obsolete styling cues," he says.

Wynn-Williams suggests: "Ford's recovery strategy must now involve cutting costs by moving production to Jaguar's biggest market, the United States. At the same time Ford should embolden Jaguar's British product development skills so that it can once again seduce the market with authentic and forward-looking designs."

"For Ford to let Jaguar go now would be the beginning of the end for both brands," he added.

Regarding Volvo, Wynn-Williams says: "The Volvo Car division of PAG has made good profits for Ford, yet this is the one brand in the empire that most closely overlaps with the Ford brand itself: selling it would bring in $7bn at least."