Cerberus Capital Management — the company that recently agreed to buy the Chrysler Group from Daimler-Benz — is now interested in joining the auction for Ford’s luxury car brands Jaguar and Land Rover, Germany’s Frankfurter Allgemeine Zeitung reported today..
The newspaper said the information comes from London bank sources. The sale of the two brands would likely net Ford over $8 billion, the paper reported. Two other investor groups, Blackstone and Cinven have also shown interest.
Renault-Nissan and private equity firm Alchemy Partners denied rumors earlier this week about an interest in the brands.
A new auto giant?
If Cerberus was to acquire the two British automakers from Ford — a completely hypothetical scenario at this point in time — then it would own five key car brands: Chrysler, Dodge, Jeep, Jaguar, and Land Rover.
Essentially, it would be an auto giant in its own right. Whether the brands would be treated as one large company or simply separate properties remains to be seen.
Back on the block
Ford was rumored to be considering the sale of Land Rover and Jaguar last year, but apparently decided against the move at the time. The company did, however, put Aston Martin up for sale in August 2006, and the brand was official sold earlier this year.
News that the two companies were up for sale again broke on Monday.
Two days ago, Ford confirmed to Automotive News it was considering all options regarding Jaguar and Land Rover.
“We’re working with outside financial advisers to determine the best future for Jaguar and Land Rover,” Ford spokesman John Gardiner said. “We’re not ruling anything in or out. We’re investigating options in terms of all the possible actions.”
Volvo connection
These latest reports make no mention of Volvo, which Ford is also rumored to be considering selling. As previously reported, BMW considered acquiring Volvo earlier this year in its effort to find a front-wheel-drive specialist to pair with its Mini unit for increased profitability.



06/14, 1:14 PM
posted by:
manhertm
Hmmm ,I if this does happen, I’d have higher hopes for Chrysler, because technology sharing could be more realist, than it was with Diamler.
06/14, 1:22 PM
posted by:
04focus
I hope this wouldn’t mean rebadged Jeeps as Land Rovers. Imagine a Commander / Range Rover twin. Or a Liberty / Freelander. Brrrrrrr.
Otherwise it sounds like it could be interesting. Though this would definitely stop Chrysler’s move upmarket.
06/14, 1:29 PM
posted by:
A4
from ford to chrysler eh…
yeah 04focus… that would be BAD if they rebadged jeeps.
06/14, 1:35 PM
posted by:
GARY
Wow. That would prove to be a very interesting mix of unreliability and poor quality.
06/14, 1:39 PM
posted by:
Htay5500
garys rite. tht would be mind-boggling
06/14, 1:54 PM
posted by:
A4
although jeeps should get Land Rover’s terrain response systems
06/14, 1:57 PM
posted by:
Flipper
A Jeep / Land Rover alliance sounds like a great way for the company to save (make) money. But a Chrysler / Jaguar sounds like a depreciation king.
06/14, 1:57 PM
posted by:
Flipper
. . . . Even more so than a Saab built by GM
06/14, 1:59 PM
posted by:
jamaicandude
Yeah, the Jeep/Land Rover alliance sounds sensible… but a resounding NO to the Chrysler/Jaguar alliance.
06/14, 2:38 PM
posted by:
Fletch
Still don’t want to buy any of those cars.
06/14, 4:00 PM
posted by:
Mitch Bangowitz
remember when car companies were car companies and not part of someone’s portfolio?
06/14, 4:59 PM
posted by:
deantj
You know something, I’m starting to realize that alliances between auto companies don’t translate into anything tangible for the consumer. Besides the E-class chassis going to the 300C, what exactly did the last 5 years of Daimler-Chrysler do for any of the actual vehicles?
To think that the new vehicles will be the best of both worlds is stupid. As we’ve all seen, a merger of LAnd Rover and Jeep will mean that both lines will evolve independently of each other.
06/14, 5:07 PM
posted by:
Stuart
Land Rover should go to Mercedes or back to BMW.
Hopefully the owner of JCB that inquired about Jaguar last year will be willing to buy Jaguar again and hopefully end any chance of Jaguar going to a private equity firm.
Chrysler is more likely to go downhill with Cerburs. Just hope daimlerbenz sells while they have the chance.
06/14, 6:02 PM
posted by:
Stuart
Hopefully Land rover should be brought by Mercedes or BMW.
The owner of JCB enquired about buying Jaguar separately without LR so maybe they should sell Jaguar to him. He actually seem like he can do something with the company and be there in the long run.
Why ford would want to sell to cebarus is beyond me. They have bought (chrysler) a company which they will only push further down till death does chrysler apart and will probably do the same to jaguar and Land Rover.
06/14, 6:06 PM
posted by:
mujician
I agree with Mitch. This is all a big joke. All these companies do is buy a brand only to get their most tangible trates, then toss them out the door. That’s what Ford did with Volvo. Can’t really say they did that with Jaguar and Land Rover.
Some rich bastard needs to buy these companies and turn them into something unique. Or, maybe no-one has the balls to do that any more.
06/14, 6:12 PM
posted by:
TOZO
Jeep/Land Rover makes perfect sense!
RWD Chrysler platform shared with Jaguar’s RWD also makes sense. Volvo NEEDS FWD for Snowy Swedish roads, so Jag and Volv didn’t mix. Hopefully Ford will keep Volvo. Plus Volv was into the turbos too much. Chrylser/Jag-LR could make it work though. If they could just supercharge the Hemi with an “R,” we’re in business.
06/14, 6:41 PM
posted by:
MikeFX
At least there is no internal competition with a Chrysler/Land Rover/Jaguar family. It actually kind of makes sense, as long as they can get the reliability issue out of the crapper.
06/14, 7:42 PM
posted by:
Jax
Do they even have the money to afford the purchase?
06/14, 7:57 PM
posted by:
2008PowerStrokeF450Lariat
money in the bank for FORD though…8 BILLION FREAKIN’ DOLLARS!!! i mean come on, especially after fords 12 billion loss in 2006
06/14, 8:11 PM
posted by:
1c3d0g
No, this would be a big mistake from Cerberus. Fix Chrysler’s problems first before acquiring new car brands!
06/14, 10:40 PM
posted by:
Cire
Bad idea! Cerberus needs to focus on fixing Chrysler and not take on more ailing nameplates. I believe Jaguar would be more unfocused and diluted in this arrangement than it ever was with Ford. Land Rover might fare a little better, but I doubt it.
Anyone who has seen Chrysler Corporation’s latest products will understand how bad Cerberus needs to focus on their current corporate acquisition and not add further distractions. The Sebring, Avenger, Compass, Patriot, Caliber, Aspen, etc. all suffer from subpar exterior designs and cheap, uninspired interior designs. I cannot believe Daimler would let a corporation it is partnered with (or took over) release such hideous monstrosities. Cerberus has it’s hands full fixing this mess. There are surely other companies that are better suited to turn around Jaguar and Land Rover.
06/15, 5:39 AM
posted by:
purdue
Well, if all the financial geniuses here think it’s a bad deal, Cerberus should probably do it, then.
06/15, 8:19 AM
posted by:
Stuart
Can’t wait to cerburus come down.
06/15, 8:23 AM
posted by:
buenos
Given Cerberus’ history of essentially gutting to make profitable, I can’t help thinking…eeeewwwwww Jaguar guts all over the road.
06/15, 1:17 PM
posted by:
Scarface03
deantj:
The only other alliance benefit between Chrysler and Daimler that I (as a non-engineer) know of is the chassis for the Crossfire–it was built on the previous generation SLK chassis. A lot of the mechanicals were the same too, I think–transmission and the like. But aside from that and the 300C you mentioned, I think the “merger of equals” was more like Daimler getting a few extra bucks from its has-been product line by selling internally to the Chrysler division.
Although, I’m with the MikeFX, I think the Chrysler/Land Rover/Jaguar deal makes some sense. There would be no cannibaling of sales among the brands. Chrysler’s Jeep is proud of its off-road heritage, but so is Land Rover. Even if there’s tech. sharing (i.e., trickle-down from Land Rover), there’s still room to keep the brands separate. No one really interested in a Range Rover is not likely to cross-shop Grand Cherokees, even the SRT8. Also, Jaguar styling is on the verge of a renaissance that may need extra funding to keep it afloat. Can’t count on Ford to help out Jaguar when it can’t keep food on its own table.
But, I think the real question is what Cerberus’ intent is for Chrysler. There’s speculation that Cerberus picked up Chrysler just to sell off, negotiate out of, or disintegrate as much as the money-losing aspects of the company, and put it on the auction block again for profit. If Cerberus acquires Land Rover/Jag, does this mean they’re like Aston Martin’s new owners, and actually want to the car company to prosper? Or is getting Land Rover and Jag just an easier means to accompish its goal all along of shedding loss before maximizing a profitable sale.
06/15, 2:27 PM
posted by:
TOZO
Scarface “alliance benefit from Daimler:” Don’t forget the Sprinter, straight out of Dusseldorf and pointless unless you have to transport a lot of tall things.
06/15, 9:44 PM
posted by:
Veda
“If Cerberus acquires Land Rover/Jag, does this mean they’re like Aston Martin’s new owners, and actually want to the car company to prosper? Or is getting Land Rover and Jag just an easier means to accompish its goal all along of shedding loss before maximizing a profitable sale.”
I’d say anything for profit.
06/16, 9:15 PM
posted by:
TOZO
Jaguar + Chrysler = DaimlerChrysler again, seeing how Jaguar owns the Daimler marque anyway.
06/19, 2:25 AM
posted by:
kool_aje
Jaguar for its sedans line up and and Land Rover for SUVs. And after Chrysler own them, Chrysler could merge them in a single nameplate. Maybe “Jag Rover”. Just a joke, guys… No official news has been released for the merger