Despite all of the difficulty Ford has had trying to sell off its two remaining British brands, Land Rover and Jaguar, the carmaker is now apparently saying that it will have a tentative deal on the two brands by the end of September. Ford is also rumored to have internal plans to have Volvo sold by the end of 2007.
The news comes from The New York Times, who reported Ford’s sale plans on its website. The newspaper says that Ford’s advisers have been collecting financial information on Land Rover and Jaguar for a potential bidder. While there are no firm reports on who the buyer could be, the leading rumors have said that Tata and Mahindra & Mahindra, two Indian firms, are the only interested carmakers at the moment. Several buyout firms similar to Cerberus have also shown interest.
This is the first reputable rumor that Volvo will be up for sale. It’s expected that Ford would look to retain some stake in Volvo given that the automaker has spread Volvo platforms and technology across its range. Despite the fact that Ford hasn’t owned Volvo as long as it has Jaguar, the two companies are intertwined under the Ford umbrella.
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08/03, 7:55 AM
posted by:
Deanster
Wake us up when it’s sold. This is pathetic
08/03, 8:11 AM
posted by:
global_lightning
You can tell Ford is serious because they’re now offering rebates and 0% financing on selected car companies
08/03, 8:31 AM
posted by:
maximus
hahahahahaha
08/03, 9:38 AM
posted by:
CTS DRIVER
BOTH JUST HAD MAJOR SALES GAINS AND FORD STILL WANTS TO SELL, WHAT A GREAT IDEA.
08/03, 9:50 AM
posted by:
MikeFX
Is anyone else wondering if CTS DRIVER knows about the Caps Lock key?
08/03, 9:56 AM
posted by:
55amg
why dont ford sell ford and keep jaguar and land rover and volvo
08/03, 11:18 AM
posted by:
rey323
LOL!
08/03, 12:03 PM
posted by:
nitinsharma1000
its not that they have made profit. the prob is ford is so broke it needs money fast. its like a crackhead stealing a ferrari and selling it for $1,000.
08/03, 12:50 PM
posted by:
GL1
you are right about the crackhead comment… they are in so far over their heads now they need to sell everything just to get out of the toilet… But you are also right they should keep everything BUT FORD…
08/03, 12:50 PM
posted by:
musclemustang94
Their not broke, they have billions in cash. Stop saying **** you know nothing about. Alan just doesn’t see the point in keeping this companies in fords umbrella, sure they made money this year, but they’ve pumped so much god damn money into them that it doesn’t even matter in the long run, they are a lost cause. This is a smart move on their part, the volvo thing is b.s. they aren’t selling volvo, i am so sick and tired of leftlane saying volvo is for sale, ford has said repeatedly that volvo is not for sale.
08/03, 3:01 PM
posted by:
CTS DRIVER
i know about it just dont use it, like your weenie.
08/03, 3:10 PM
posted by:
TOZO
Ford is better off keeping it all and downsizing Jaguar to one model line: The XF sedan, and its coupe & convertible variants dubbed XK.
08/03, 4:12 PM
posted by:
davidg1977
it’s funny that if you take the value that they think they’ll get for JAG/LR ($6-8B) and then the value of Volvo ($9B), that would add up to between $15-$17B for the company. As of today, all of Ford’s market cap is $14.58B which implies that the remaining stake in Ford Credit + Ford + Mercury + Lincoln is worth between -$400m to -$2.4B. Mind you that is very simple math but it’s a real view of what the street sees in the value of the company.
I’m a lifelong Ford guy with a wife, father, father-in-law, grandfather, great-grandfather… all either current or retired employees… it’s pretty heart breaking.
now if they just built a full sized sedan that i had the desire to drive in the F/L/M family…
08/03, 4:28 PM
posted by:
Commodore
Please don’t let them go to India. Cerberus should buy them.
08/03, 4:42 PM
posted by:
deutschetouring1337
This Volvo stuff is just rumour take no heed, the S40 helped boost sales and the new C30 is going to really fly off the floors. Also with steady suv sales I don’t see Ford selling Volvo at all even though Volvo does want to become their own entity again.
08/03, 5:57 PM
posted by:
1c3d0g
Ford losing Volvo will truly be the death knell of that company. Get rid of Jaguar/Land Rover, but do NOT, for the love of G-d, sell Volvo! That’ll be the biggest mistake ever.
08/03, 9:55 PM
posted by:
Deanster
Give those marques to Cerberus. Soon Cerberus will be the Google of the automotive industry. I just want the xxxxing Wrangler smoothed out.
08/05, 4:28 PM
posted by:
Robert
Actually, Ford doesn’t need money. They have enough to restructure and then $20 billion left over for emergencies. It has more than enough barring a complete disaster in the economy or major strike by the UAW.
The point of selling a majority stake in Jag/LR and Volvo is to relieve Ford of distractions and liabilities. This is a great strategy to help correct the problems at the core of Ford.
Think of it like Ford’s relationship with Mazda. When Ford developed the C1 platform, Ford and Mazda shared the costs and risks of the program. Mazda is majority owned, but Mazda could tank and all Ford would loose is its investment there. It wouldn’t bring down Ford.
The goal is to do the same with Jag/LR and Volvo. The spin-off of Volvo would not be the death knell of Ford. In fact, it might be more beneficial than selling off Jag/LR from an investment/risk perspective (not a liability perspective). Think of it like this: Ford is designing their C2 right now. A separate Volvo entity would share those costs with Ford and Mazda (3-way split), so Ford has taken on even less investment with the platform. Then, instead of Ford forking over the money and resources to design the new S40, Volvo will take care of itself and Ford can concentrate its resources on the new Focus.
Whoever bought Volvo probably couldn’t break the Ford-Volvo bond because of how integrated the two groups are now (especially in engineering and manufacturing terms). Volvo is much more dependent upon Ford at this point than Ford on Volvo. But Volvo has the resources and could have the investment to survive on its own two feet separate from Ford’s ups and downs (or Jaguar’s successes and failures).
Anyone who blindly questions the strategy that Ford is taking really doesn’t understand its ultimate goal. Sure, there is something to be said for efficiencies of scale that might have been accomplished by a fully integrated company, but Ford hasn’t see much return from its work of integrating the different groups and so it’s possible that there are just fundamental differences in design and engineering requirements for each brand that cannot be satisfied under one roof (unlike, say, Toyota/Lexus where you can see the corporate DNA in all vehicles and the engineering for the LS460 is just a concentrated version of the engineering for the Camry).
Ultimately, Jag/LR still has access to Ford’s engineering and quality groups. Volvo can still share manufacturing. But Ford doesn’t actually have to worry about updating that many cars in its portfolio in order to prevent cash drains or meltdowns. Each brand can survive or die on its own; share and invest in platforms together or with other companies; and ultimately decide their own direction that best serves their customer base.
I think Mulally gets it, and I think Ford is heading in the right direction with its plans to divest itself of majority stakes and streamline its operations.