With rampant speuclation about a possible sale of Jaguar and Land Rover, BusinessWeek takes a closer look at exactly what Ford’s various brands are worth. “The company is thinking that the sum of its parts may be worth more than its whole,” explains David Kiley. Kiley suggests Aston Martin could be sold as part of the Jaguar-Land Rover package. He also says Ford might be wise to close Mercury. “If you buy into the idea that Ford needs to focus its resources on the brands and businesses that have the most reasonable expectation of upside, you are left with Ford, Lincoln, and Volvo,” writes Kiley. “Can Ford get along with just three brands? So far, it’s working pretty well for Toyota, which has just Lexus and Scion in addition to its own flagship. And Toyota just passed Ford and is crowding GM to be the world’s biggest automaker.”
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08/07, 11:24 AM
posted by:
Renton
Sell its stake in Mazda? Are you retarded?
Mazda provides Ford with some of its best cars. Mazda will do fine with or without Ford.
08/07, 11:53 AM
posted by:
Zan
I do not think they consider Mazda to be owned by Ford. They have a large portion of Mazda’s stock, but they do not own it.
I would have to agree with you that getting rid of Mazda would be bad, but I do not think that the article was suggesting that.
08/07, 11:59 AM
posted by:
jr2
Sell everything except FORD, LINCOLN, MERCURY.
Sell Mazda
Sell Jaguar
Sell Land Rover
Sell Volvo
Sell Aston Martin
08/07, 12:15 PM
posted by:
fromes
I think all ford needs is lincoln and ford….mercury has always seemed pointless to me.
08/07, 12:22 PM
posted by:
dave
Yes, Mercury seems pointless except Lincoln-Mercury needs Mercury cars to keep dealership volume up. Lincoln could not survive on its own.
08/07, 12:27 PM
posted by:
Zan
Mazda and Volvo make up 75% of Fords worth, you might want to rethink selling them.
08/07, 12:41 PM
posted by:
Bilbo
Mercury was invented by Edsel to give him something to do, it was always a retarded idea.
08/07, 12:43 PM
posted by:
Robert
I don’t think Ford would sell its stake in Mazda or sell-off Volvo. Mercury brand seems destined for the dustbin barring some new *unique* product. I could imagine a Ford, Lincoln, Volvo company, and I think it would allow two things: 1) Ford has the entry-level, everyday, middle-class family image. 2) Lincoln could be moved more upscale. 3) Volvo could sit where Mercury should have been, sort of entry-level, sporty Euro luxury, building platforms that eventually get passed down to Ford.
08/07, 12:43 PM
posted by:
Atomicbri
The problem is with Ford and their poor vehicle line up. Ford has let Jaguar bleed with poor decision making, The X-Type was a car Jaguar did not need, Ford just wanted more volume and that bit them in the rear.Ford has yet to solve Land Rover’s quality issues…. Ford is losing money because too much was put into their trucks and SUVs and nothing into their cars. The Focus as I have said many a time on posts is OLD and needs the C1 version badly. A facelift AGAIN will not help, the car is old. The Fusion is nice but a little late to the game. Where are the competitors for the B-Segment (Scion sized, Honda Jazz etc….) Still years away, meanwhile Ford is busy readying new Expeditions and such….WHY? Gas is forever on the up in price…. Ford is losing because of these factors (as well as unions demading high priced healthcare) Mazda is only owned by Ford 30something % and is actually a money maker, so the selling of its small stake would be pointless. Volvo has 2 new vehicles coming out as well as an updated SUV so I am sure sales there will be back on track. Maybe selling Jaguar and Land Rover will help get Ford some cash, but will not stop their problems of losing money.
08/07, 12:47 PM
posted by:
Wayne
Well, if Ford gets rid of Jaguar, they could truly take Lincoln upmarket and actually use Volvo to slot into the mid-market that they’re already at. Could this mean the return of a V12 Lincoln sedan?
08/07, 12:53 PM
posted by:
Mike Keller
Ford needs to dump Jaguar, Land Rover, and Mercury proto since they bring nothing but red ink to the table (LR is doing OK, but once the quality issue rises above the novelty of new models, it will be over). Then the new Ford looks like this:
- Ford: Everyday cars like the Fusion and Edge
- Lincoln: American luxury (bling)
- Volvo: European luxury
- Mazda: Japanese sporty cars
- Aston Martin: for street cred
None of these five would step on each other’s toes and it would allow Ford to focus marketing efforts in distinct categories.
08/07, 1:20 PM
posted by:
monts
And try to give Mazda reliability to Land Rover if its possibe. Make a Super Range Rover with an Aston Martin engine and super luxury.
08/07, 1:30 PM
posted by:
stuart
DCX should buy Mazda and put them right under Mercedes like Volkwagen is to Audi. They could share all Mazda platforms with Dodge.
08/07, 1:34 PM
posted by:
monts
WAIT!! I have the best Idea of all!! DCX, GM, Hundai, BMW, VW, and Ford could all be firends and merge thier companies. Then they could ALL make better cars and destroy Nissan and toyota and Geely.
08/07, 1:38 PM
posted by:
jay
Has anybody else brought up the argument that Ford, Lincoln and Mercurys product line are all copies of each other?!?!
Here’s what I think they should do, but of course this is just my opinion:
Ford: Bring the Euro C1 Focus over here. Get rid of the Freestyle and 500 because those don’t do much for the brands image. The F series truck, Mustang, and the Fusion should be left alone (for now). Those are good and great cars.
Mercury: Either you get rid of Mercury, or make unique products for Mercury
Lincoln: Get your own unique models. Keep your succsessful models and bring in new models unique to Lincoln.My argument is that Ford, Lincoln and Mercury are total copies of each other.
Jaguar, Land Rover, Aston Martin, and Volvo: Sell these
Mazda: Keep your stake in Mazda. Mazda is doing good.
I’m not an expert on this but this is just my opinion on this. I’m a Ford guy, and would like to see them doing good and back on track
08/07, 1:46 PM
posted by:
stuart
They only have a 33 percent stake in Mazda because Mazda won’t sell up. They only got hold of the 33 percent cos Mazda was in bad times at the time but now the shoe is on the other foot they may buy it back soon given half a chance. just look how suzuki brought back its shares from GM being in a similiar situation
08/07, 2:13 PM
posted by:
aznstuart
I think they should keep Volvo, Ford, Lincoln, and Mazda. Mazda will help them in the B-Segment market with smaller platforms and 4cyl. Volvo could become sport luxury like Acura and BMW and Lincoln could become American luxury with RWD platforms and their sites on Cadillac. Ford will be the main brand like Chevy and Toyota.
Mercury is just a waste of time. Lincoln should be able to hold its own without a knock off Mercury trying to luring customers into showrooms.
Aston Martin, Jaguar, and Land Rover are all money losers and half the world doesn’t even know it’s owned by Ford so there is no image gained from owning them. And, development costs for these brands are very high.
Because Ford cheaped out in the past, now they have to take steps back and weed out the problems they ignored before.
08/07, 2:35 PM
posted by:
Niels
They need to start making more unique products for Mercury rather than selling it off or discontinuing it. Mercury’s sales recently aren’t really disappointing, and in several tests the brand ranked higher than Honda and/or Toyota. Killing off the historic brand would only make Ford lose more fans and potential customers. Mazda is profitable – keep them. And Volvo. Land Rover…sell sell sell.
08/07, 2:46 PM
posted by:
FXDriver
Fords lineup:
- 500: Actually a decent car in need of some looks (just like me). All of the car reviews have been positive, except that it looks dull.
- Fusion: OK for now
- Focus: Bring the European model over already
- Mustang: Fine
- Edge: Get this to market now!
- Explorer + Expedition: Need to make a vehicle in between these in size for those still looking for a traditional SUV
- Freestyle: RIP
- Fairmont (or whatever its called): 7 passenger SUV to replace sold off LR3
- Come up with a classy coupe version of Fusion (like G35 sedan and coupe) and convertible (C70-based?) and you’ve got all the bases covered!
08/07, 2:48 PM
posted by:
Renton
Anyone who thinks that selling Jaguar will still allow them to keep Aston Martin is not thinking this all the way through.
Many Jags and Astons share a plethora of parts. Aston Martins would not be able to survive without some of the parts bin engineering to help defray design and manufacturung costs.
08/07, 5:16 PM
posted by:
Guttersludge
What I mean is, imagine you wake up on a mildly sunny August morning, much like today, on an incredibly beautiful steed ranch in Northern California – to be greeted with a musty dew haze rising from the pasture while you slug a hot tankard of coffee and the corn husks gleam.
The wind is slow, the noise is low, the birds are in flight and reflections are bright.
You stride over to a sun-baked brick barn and creak open the heavy red door, noticing a faint rustling among the picket pens in the dim-lit corner…
A sudden guttural shriek eminates…
“OH JEEZUS” you scream, in violent horror, abruptly and staggeringly awake now it seems, a cold sweat glazes your collar – you recoil in terror before finding the motor action necessary to run over and see what the blazes is happening…
“F*** ME, THAT IS GROSS…” you think to yourself, seeing the true nature of the incident in front of you as you stumble to a halt…
Nothing out of the ordinary it seems, just a horrendously ugly, anthracite-haired 160lb man pig leaning on the shivering arse of another equally vulgar ewe pig and mating with all it’s animal might and will.
Imagine watching intensely as the bull of a boar dumps it’s whole steaming load into a sow and falls over exasperated and manky-like as if it’s about to light a cigarette.
You stroll over to this heavy breathing mass of super-fresh pork meat and nuzzle your head into it’s crotch and take a well-spent furry bacon sac into your mouth and suck the gritty sweat off with enthusiasm.
THIS is how much Lincoln sucks.
08/07, 5:35 PM
posted by:
Guttersludge
On a lighter but far more serious note, I honestly believe the new XK is one of the most beautiful machines ever devised. When Ian Callum finished it off, I decided to get down on my hands and knees and give thanks to God for giving humans vision, resolve and ingenuity.
Another such dude worthy of much respect is Luc Donckewolke, what an artist.
And the houses of Guigiaro, Pininfarina, Bertone, Zagato ‘n the like, without whom Italy would become slightly redundant!
Now consider the expensive industrial sheen of a sporty Range Rover, the restrained Nordic finesse an ice-cool Volvo, the buttery silken breasts of a big Aston Martin, the arrogant cosmopolitain style of a (European) Ford hatchback, the manic Shogunesque bladework of Mazda lunacy and the deeply scarred malevolence of the AJ-V8’s actively invigorated snarl…
This is one of many reasons I dig Ford so much. Because Astons have nice titties.
08/07, 6:14 PM
posted by:
British_Rover
Bring back Austin Morris Wolesley Riley Standard Triumph Rover Alvis Armstrong Siddely Singer Humber Hillman SUnbeam
08/07, 7:31 PM
posted by:
pimp
Gutterslude lincoln is cool and it don’t suck balls. Anyway u can suck my balls i mean its all good if u do that.
08/07, 7:36 PM
posted by:
jay
Chrysler killed Sunbeam, Morris rights owned by MG Rover, Austin owned by Chinese (Nanjing Automobile Group) and I can keep going on… why should these brands be revived?
FX driver- ehhh I guess you’ve changed my opinion 500 isn’t terrible but it isn’t good looking. Add that to the keeps list on Ford that I had.
Guttersludge… that was TMI but you got the point out. I think I lost my apetite
And still barely nobodies brought up the argument that Mercury and Lincoln are total copies of Ford and each other!!! And Zephyr isn’t competitive in safety, as shown two articles ahead
08/08, 12:22 AM
posted by:
Angelo
the problem with the C1 Focus is that it would be too expensive for the American market. Yanks won’t pay $20k for a Focus.
08/08, 7:37 AM
posted by:
JohnnyBlazE
Losing Mazda would be bad – investing more into it would be the key.
Volvo are a good solid base for Ford and I know nothing about Lincoln, being a brit
08/08, 11:40 AM
posted by:
Dan
kill mercury and offer the Ford vehicles with the mercury bodies. just move the nameplates over, making the mercury milan the fusion, the montego the five hundred, etc. the mercury versions are all better looking, but people don’t buy them because they can get the fords for less, and in turn, the fords are intentionally made a bit less ritzy looking than the mercury versions so that there’s a reason to buy a mercury at all. Eliminate the brand issue, and make the Fords as glitzy as Fomoco cares to build the cars! And restyle the MKZ/ephyr pronto. That interior styling warrants the outside being attractive enough to walk up to the car. Very few cars have an interior that memorable, especially in Ford’s lineup…. Probably the 3rd best after the ford GT and lincoln navigator
08/08, 12:14 PM
posted by:
Tom
Nobody knows what Mercury stands for. Luxury, sport, muscle, style: they’ve tried everything. Remember that little Australian coupe with the tiny tires they passed off as a Mercury Cougar?
Most people just think of Mercury vehicles as Fords with slightly thicker carpeting. They should can the whole proposition.
Lincoln could do fine with one or two cars if they’re positioned right — as an upscale adjunct to Ford dealerships. MINI does fine with ONE car (in three variants) as an adjunct to BMW dealerships.
Volvo is a keeper, but the more they try to democratize the brand and pump up sales volume, the more diluted it gets. And Volvo quality/durability is a shadow of its former self.
Land Rover and Jag will never change. They will always be quirky, badly built, overengineered bolt buckets for fools with more status-climbing instincts than brains. They’ll never make money. Sell ‘em to the Chinese.
Aston? Not sure anyone cares. The average Ford customer doesn’t know Aston exists. The kind of “street cred” Ford customers respond to is a Shelby or a Continental.