BREAKING: Ford puts Aston Martin up for sale
You can stop wondering which brand in Ford's Premier Auto Group will be the first to go. It's Aston Martin. Though speculation had pointed to a possible sale of Jaguar and/or Land Rover, in a statement Ford indicates that Aston Martin makes the most sense because it has a completely separate dealer network, its products share few parts with other Ford brands and its size is much smaller than other members of PAG. Ford will be looking to sell either all or a portion of Aston Martin, supposedly whatever it can get for a good price while ensuring that the James Bond brand finds a happy home. As this process has just begun, no buyers have stepped forward and expressed interest.
Volvo, Jaguar and Land Rover aren't in the clear yet, however. As to their future, Bill Ford says, "we've made no decisions, as our review of strategic alternatives continues."
Is this the right move? Aston Martin is arguably better off today than it was when Ford purchased it in the late Nineties, so there's definitely some equity in the brand that the Blue Oval feels it can collect. Keep in mind this announcement doesn't guarantee anyone's interested in purchasing Aston Martin or that a transaction will take place, but the For Sale sign has been staked in the front yard and Bill Ford's waiting inside with lemonade and cookies for prospective buyers.
[Source: Ford]
FORD TO EXPLORE STRATEGIC OPTIONS FOR ASTON MARTIN
DEARBORN, Mich., August 31, 2006 – Ford Motor Company (NYSE: F) announced today it has begun the process of exploring strategic options for Aston Martin, with particular emphasis on a potential sale of all or a portion of the unit.
"As part of our ongoing strategic review, we have determined that Aston Martin may be an attractive opportunity to raise capital and generate value," said Chairman and Chief Executive Officer Bill Ford. "Aston Martin Lagonda has flourished under Ford ownership, which is why we believe it is prudent to consider a sale of all or part of this prized brand. Since Aston Martin's dealer network, product architecture and size are distinctly different from other Ford brands, it is the most logical and capital-smart divestiture choice. The objective of any sale would be to position Aston Martin within a structure and resource base sufficient to allow it to reach its full potential, while enabling Ford to efficiently raise capital for its other brands."
Mr. Ford added, "Regarding our other Premier Automotive Group brands, we've made no decisions, as our review of strategic alternatives continues. However, we continue to be encouraged by Jaguar's progress and by the strength and consumer appeal of the Jaguar, Land Rover and Volvo product lineups."
The company said there can be no assurance that the decision to explore strategic options for Aston Martin will result in any transaction, which would be subject to Board approval. Ford Motor Company, a global automotive industry leader based in Dearborn, Mich., manufactures and distributes automobiles in 200 markets across six continents. With about 300,000 employees and more than 100 plants worldwide, the company's core and affiliated automotive brands include Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury and Volvo. Its automotive-related services include Ford Motor Credit Company.
Reader Comments (Page 1 of 2)
Bocephus 10:38AM (8/31/2006)
Well...let me get my checkbook out.
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JS 10:40AM (8/31/2006)
Billy, Ill buy it!
Now....anyone want to loan me a couple....hundred....millions dollars? :)
P.s. If you throw in LR, Jag, and Volvo can I get a good package deal? All 4 for maybe a billion or two? Lets make a deal here Billy.
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killbill 10:40AM (8/31/2006)
Ford needs to liquidate all they can so they can raise money to take it private. I don't think the company can funciton as a public entity anymore. Watch for Ford Credit to be peddled...
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Dr. Woo 11:16AM (8/31/2006)
ARGUABLY better off? For the first time in decades, they turned a profit under Ford ownership.
Hopefully it goes to a company who cares about heritage and preserving the marque.
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_O ^ O_ 10:46AM (8/31/2006)
Hahaa... love the Photoshop work on that picture.
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Rastus 10:51AM (8/31/2006)
Why sell Aston Martin...they should sell Ford proper.
Perhaps someone in Uganda would be interested.
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Denis 10:54AM (8/31/2006)
Ah yes! Maybe the "first" automotive manufacture to become a "direct marketer" of vehicles.
Seriously; leverage buy-out firm and sales via internet directly to the Doctors, Lawyers, and Indian Chiefs. Oh -- forgot those CEO, etc.
Think about it: a License Dealer Network form birth to delivery with factory dealer service after the fact.
Okay--Money guys you may contact me and I'll give ya the details on how and when this goes down.
I've got enough for the Down-payment of Astion Martin but need some extra cash.
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TheOne442 11:34AM (8/31/2006)
At this point I don't know if this is good or bad. I don't really like Ford, but Aston is doing better than it has in many years.
but I guess it doesn't changed the fact that I will own an Aston Martin in the next 10yrs.
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Alex 10:56AM (8/31/2006)
I think it's just the beginning.
They are probably starting off with a small entity, to later move on to Jag, LR and maybe even Volvo.
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Ken 11:11AM (8/31/2006)
4. Hahaa... love the Photoshop work on that picture.
Posted at 10:46AM on Aug 31st 2006 by _O ^ O_
Yeah, almost as good as what CBS did to make Katie Couric skinny! But in no way as good as the folks at 'The View' who posted a picture of, are you ready....a SKINNY Rosie O'donnell! I Kid you NOT!
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David F 11:15AM (8/31/2006)
Not exactly "puts Aston Martin up for sale," yet, though it's now extremely likely.
Ford has done a lot of good things with Aston and Volvo, it will be sad to see them go. Aston went from producing 46 cars in 1992 to 4,500 last year, and it's one of the profitable brands in the Premier Auto Group (Jag is the hole in that boat). Volvo has gone from quirky ugly duckling to a serious contender, and it seems she's helped parent Ford in the engineering department.
Hopefully the sale will be an opportunity for those brands to really break out on their own and shine, but these are uncertain times, indeed.
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Corwin S 10:21PM (5/28/2007)
Just want to clarify something. Volvo was already making there transition from "quirky ugly duckling" to their current styling before Ford bought them. Ford had nothing to do with that. Volvo wasn't having quality issues or sales problems like the other European brands that Ford has purchased. The only reason that Ford bought Volvo Cars (not the rest of the Volvo Group, i.e. Trucks, Buses, Constrution Equipment, Penta, Aero, and Finance) was because Volvo needed a parent company with deep pockets so that they would have more money to do R&D. It was good for Ford too because they could add another fully functioning car company to their ranks that they wouldn't have to invest much capitol in to try to fix since nothing was broken.
I just get irritated, as a loyal Volvo customer, when people attribute Volvo's recent improvements to the likes of Ford. "Fix Or Repair Daily" "Found On Road Dead" "F---er Only Roles Downhill"
rwdmtparkingonly 11:16AM (8/31/2006)
They can't sell Volvo or their Mazda stake because they provide the platforms for every unibody Ford car and suv, so I guess they'll have to stick it to the Brits. Too bad that those are the brands that they've put the most work into, and had the most successful turnarounds with. Sucks to be poor.
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JZeke 11:19AM (8/31/2006)
Proton in Malaysia should but it.
They've done wonders with Lotus, keeping the Britishness intact and expanding their engineering resources. They might be a good parent for Aston too -- sharing resources between Lotus and Aston could be brilliant.
Aston doesnt compete where Lotus does, and no Lotus supercar will ever be mistaken for an Aston product. Anyone else see the logic in that pairing?
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Tim UF 11:30AM (8/31/2006)
what about the guy that bought TVR: http://en.wikipedia.org/wiki/Nikolai_Smolenski
he prolly has the cash to burn, and seems bent on keeping british car makers alive.
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carsRevil 11:29AM (8/31/2006)
Al Gore should gather investors to buy Aston Marton so he can then dismantle it as he believes the gas engine is the more vile invetion ever. It would be the move that would make him president in a landslide win.
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Sid 11:33AM (8/31/2006)
Agreed with #11.
My suggestion to Ford would be to get rid of PAG except for Volvo. Then shoot Mercury.
With Ford-Volvo-Mazda, they have the ability to be a very focused & leaner company providing
- value (Ford)
- Euro-spec lux/safety (Volvo)
- sport/looks (Mazda)
They can keep Lincoln just for 3-4 all-exclusive vehicles for the Hamptons crowd.
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rwdmtparkingonly 11:37AM (8/31/2006)
Lotus is a major auto consulting company, Proton owning Aston could likely create conflicts with consulting clients. Their cars serve largely as an advertisement for their consulting business. Hyundai could use the advanced Aston electronic and aluminum structure technology, and definitely won't have product overlap, but I don't know if they can afford it. At the right price Toyota is going to be really tempted to abandon tradition and become an acquirer of some of these luxury brands.
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Tim UF 11:54AM (8/31/2006)
TheOne442:
Ford is Selling High...
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RacetrackOwner 12:03PM (8/31/2006)
Damn, I bet this shuts down their racing program.
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