Filed under: Aston Martin, Earnings/Financials
Aston Martin sale imminent
More developments are underway as to what marque within Ford's Premier Auto Group (PAG) will be unloaded and to whom. The recent news is that more than 30 would-be investors began a bidding war for Aston Martin recently and when the dust settled, four were left standing.
Some of the investors knocked out during the process include Aston Martin CEO, Dr. Ulrich Bez, who partnered with other investors hailing from Asia. Dr. Bez and his friends were escorted out of the building along with the European business duo of Bernard Arnault and Albert Frere.
Of the four left standing, three have yet to disclose their identity publicly. The one that has been confirmed is Simon Halabi, who was born in Syria and has supposedly thrown over $1 billion into the ring.
With this much activity transpiring, we'd expect a sale to take place soon. Exactly when is another question.
[Source: Market Watch via Jalopnik]
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Reader Comments (Page 1 of 2)
matt 8:13AM (12/11/2006)
I bet Clarkson is weeping somewhere...
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GENERALMOTORSMAN4LIFE 8:44AM (12/11/2006)
Good-NOW THIS IS A WAY FOWARD START! Next in line that needs to be sold are Jag, Range Rover, and Volvo. Ford was crazy to think they had the cash necessary to take over these divisions having to re-develop each vehicle and start a parts, dealer network manufacturing and marketing for all of these lack luster performing divisions! Selling these would benefit Ford only if they would just stop throwing money away on producing more FWD SUV's like the edge. Ford needs more attention focused on performance vehicles! I kicked a Mustang Cobra's ass lastnight out on the freeway with a stock 99'Camaro Z28 with 122,000 miles on it-because the Mustang could not corner nor change lanes worth a damn maybe because the Mustang is riding on the Lincoln LS/Thunderbird luxury car chassis. Ford get your act together!-I do not want to see you die!-You are an AMERICAN ICON for God Sake! The dodge Challenger and new Camaro are on their way which will be 2 more reasons NOT to look in your direction for Cars in addition to your trucks! But hey, maybe one can lead a horse to water, but you can't make him drink!
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mdaj 8:49AM (12/11/2006)
I was hoping Ulrich would still be in the running. Im afraid of who will get Aston!
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Julius 8:52AM (12/11/2006)
You can lead a horse to water, and you can also make him drink. Just give him some salt.
The sale of Aston is a step in the right direction, and it will allow Jaguar to creep out of Volvo's high-end vehicles and not worry about stealing Aston sales.
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pd 8:56AM (12/11/2006)
A damn shame, D.R. BEZ was the right man for the job, with his BMW and Porsche backround. An outsider, not in car industry, will most likely spell doom for this company.
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Tiago do Vale 9:04AM (12/11/2006)
That's the way backwards...
They invested a lot in Aston Martin... and when Aston is giving a substancial profit, they sell.
They could sell it in 10 years, and by that time Aston would have payed for every investiment Ford made, give a profit similar what Ford will get for this deal, besides the income of the actual sell of the brand.
Aston represents a regular profit source, and that's what Ford needs.
Now they will have a lot of income that will look good on this year's math... but what about next year? What will they sell?
They should keep to one who are making money... they are keeping the ones that don't work.
Am I making sense to anybody?
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Avinash Machado 9:13AM (12/11/2006)
I guess none of the major car manufacturers are interested in taking over Aston. Hope whoever buys it is a car enthusiast and truly understands cars.
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Infinihertz 9:15AM (12/11/2006)
#6 - Aston will likely be profitable in the future, but so far it isn't a "regular profit source." This is the first year they've made money in 40 years! There was an Autoblog article on it months ago. Also, their profit was something like $10 million or so; I forget.
On the flip side, Ford paid very little to get Aston Martin in the first place. Someone at Ford told me it was about $300-400 million. If Ford can get $1+ billion, they'd have to own Aston for decades to make that difference (~$650 million).
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andy 9:40AM (12/11/2006)
I was really hoping that Bez would get it but i guess we have to live with the fact that England has lost its baby once again and this time probably for good. I just hope it does not end up in syria. Dubai would be better.
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Professor Porsche 10:01AM (12/11/2006)
Ford was a HUGE FOOL to buy JAGUAR and lose Billions and Billions on it, and what did it get for its $? NOTHING, a HUGE LOSER, if you have been following jag's dismal sales record.
That's what happens when you dishonestly dress up a PITIFUL Ford MONDEO (COntour in the US) and call it a Jag X Type (LOL)
You may fool some auto illiterate bimbos (and dentists) but not serious luxury car buyers.
Aston Martin is less sick than Jaguar, and maybe that is why it can fetch more on the market if Ford Sells it.
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Spectacular Bid 10:35AM (12/11/2006)
I am amazed at these naive bidders and the reports of what Ford might get for AM. Typical for any go-go era that mega dollars/pounds amounts are being tossed around.
Regardless does anyone NOT regard auto making a cyclical business? There will be a downturn and keeping up with sales of 3,000 cars all north of $110,000 just isn't possible. Let alone a new owner expecting to boost sales 20% years over year.
The brand was profitable in '06 and might be in '07 although my guess a vast majority (as does with Ferrari) comes from merchandise and brand licensing. The sad thing is that on $1B Ford makes a tidy profit [after factoring in the massive investments] but it really hurts AM as the new owners will when times get lean and the overpayment really takes effect, then they'll look to cut costs of staff, gut R&D, make a cheap mass-market AM, and maybe even more production overseas.
So really Ford is hurting Aston by extracting every last penny possible for this sale.
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Tool 10:40AM (12/11/2006)
Ford would be foolish to sell anything else besides Aston Martin.
Considering that the market is increasingly moving upscale to a real democratization of luxury, I would keep Jag, Volvo and LR and keep investing in product development to ensure a steady pipeline.
A $1 billion sale of Aston Martin is more symbolic than really helpful to Ford's restructuring. If they 86 the other PAG brands, Ford will regret that decision in 5-10 years when it is either dead or turned-around.
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roadside observer 10:42AM (12/11/2006)
I'd also like to see Ford keep Aston and deep-six Jag(and Land Rover), but you've gotta do what you've gotta do.
From all indications, Ford will hold on to Volvo(as well it should).
#10, it's easy to look back and say that Ford was "a fool" for buying Jag in 1989. The question is, though, did you say that back in 1989? Did your magic 8-ball tell you it was a mistake back then? Do you have mystical clairvoyance that no one else has?
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ma dai! 10:43AM (12/11/2006)
I don't really care much about what Ford gets out of the deal, or if it would make more business sense for them to keep it for a few more years before selling or not.
All I care about is that Aston Martin continues existing as a serious manufacturer. This deal makes me worried that it might be the beginning of the end for Aston. To me, Aston is an iconic brand, symbolising the best of british car-manufacturing. I just hope this doesn't spell the deat of AM. It would sad to see it go the way of TVR and Rover...
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Professor Porsche 11:05AM (12/11/2006)
"#10, it's easy to look back and say that Ford was "a fool" for buying Jag in 1989."
Yes.
" The question is, though, did you say that back in 1989? "
Yes.
because, even though forecasting is extremely difficult, it was KNOWN BACK THEN that they bought it FOR ALL THW WRONG REASONS.
Ford was buying carmakers left and right, such as Jag, Volvo, Land Rover, that provided NO BUSINESS SYNERGY, no extra benefits.
FORD was buying them ONLY because they COULD, they were flush with CASH from their TAURUS GEN 1 Home Run that saved their aSS, AND instead of putting that $ into R AND D and Share repurchases, as gthey SHOULD, they foolishly went on a buying spree, that, in the case of JAG< only brought them MORE AND MORE BILLIONS of $ they HAD to shove down the drain.
But I have ZERO respect for these arrogant Village Idiots in Detrroit.
They have been Losing HOME GAMES to the japanese 35 years straight, and, unlike OTHER Business cases such as the demise of the US TV Makers, in the case of AUTOS the japanese MNAKE THEM RIGHT HERE WITH AMERICAN WORKERS,
proving that the Bill Fords and Roger Smiths are DOUBLY Clueless and retarded.
"Did your magic 8-ball tell you it was a mistake back then?"
NO, but my COMMON SENSE Did, say above.
" Do you have mystical clairvoyance that no one else has?"
No, I am a firm believer that NOBODY knows the future.
Those who gaze in crystal balls eat broken glass.
I've been telling this to my grad students for DECADES.
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Professor Porsche 11:26AM (12/11/2006)
"13. Ford would be foolish to sell anything else besides Aston Martin.
Considering that the market is increasingly moving upscale to a real democratization of luxury, I would keep Jag, Volvo and LR and keep investing in product development to ensure a steady pipeline"
Not all Luxury brands are equal. many have failed, and many have failed AFTER FORD bought them and MESSED with them, as it STUPIDLY did with JAGUAR, losing BILLIONS well aftger it paid Billions to buy it.
FORD also managed to destroy LINCOLN, which was ONCE the nations no. 2 Luxury brand after Caddilac, AND NOW they both are way below and inferior to the Imports (mainly Lexus, M-B and BMW.)
Jaguar, Infiniti, Acura and VOlvo have not succeeded as luxury brands, each for different reasons.
I do not envy FOrd's situation, but these damned REtards, in bed with the selfish unions, brought it on themselves, and they have NOBODY ELSE to blame for their woes.
Oh, and BTW, FAR BETTER brands have gone bankrupt and extinct.
PACKARD being a HUGE example, it was the best car once, now it is extinct.
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Richard Warren 12:16PM (12/11/2006)
Sell it and be done.
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roadside observer 1:01PM (12/11/2006)
-Ford was buying carmakers left and right, such as Jag, Volvo, Land Rover, that provided NO BUSINESS SYNERGY, no extra benefits.-
Porsche:
Jag was purchased under different management. Different people, different times, different thinking. The people who were running Ford when the company picked up LR and Volvo are not the same people who were running Ford when Jag was picked up.
You might want to get your timeframes straight.
BTW, there was no such word as "synergy" when Ford picked up Jag in 1989.
- proving that the Bill Fords and Roger Smiths are DOUBLY Clueless and retarded. -
Memo to Porsche: Roger Smith hasn't been at GM for years.
- PACKARD being a HUGE example, it was the best car once, now it is extinct. -
Now we're comparing Ford to Packard? Give it a rest already. There is no comparison.
I understand that you have no respect for anyone in Detroit, but your ranting and your hyperbole is getting to be a bit much. Calm down.
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Professor Porsche 2:23PM (12/11/2006)
"Porsche:
Jag was purchased under different management. Different people, different times, different thinking. The people who were running Ford when the company picked up LR and Volvo are not the same people who were running Ford when Jag was picked up."
I did not say they were the same people, and i do not care if they were not, and it does not matter, they ALL FAILED MISErably.
"You might want to get your timeframes straight."
I had them straight all the time. Not that it matters much.
"BTW, there was no such word as "synergy" when Ford picked up Jag in 1989."
Maybe the arrogant FOOLS in DETROIT did not know how to spell "synergy", much less know what it means, BUT I can ASSURE you I heard it a million times in my "Mergers and Aquisitions" MBA course at the SLOAN SCHOOL (MIT) WAY before 1989, and in 1981 to be exact.
- proving that the Bill Fords and Roger Smiths are DOUBLY Clueless and retarded. -
"Memo to Porsche: Roger Smith hasn't been at GM for years."
Thanks for the obvious factoid, known to 5,999,999,999 out of the 6 billion humans. What would we do wothout your crucial info.
- PACKARD being a HUGE example, it was the best car once, now it is extinct. -
"Now we're comparing Ford to Packard? Give it a rest already."
No, NOW you do not understand that I compare ASTON, a top luxury-sports brand, with PAckard, NOT Stupid FORD that produces for the unwashed masses and is in NO danger of extinction, Aston is. GET A CLUE.
" There is no comparison."
Good, at least you got that right! That's why I did NOT compare THEM, see above!
"I understand that you have no respect for anyone in Detroit, but your ranting and your hyperbole is getting to be a bit much. Calm down."
It's called "emphasis", but these arrogant morons are so dense, they still will not get it. Nothing to do with me not being calm.
Get a clue.
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JETSOLVER 2:52PM (12/11/2006)
Ford has not made any headway into the engineering synergy the stood to gain. That may be as much about Fords internal mess as the external one. I would like to see them keep it and take advantage of the turnaround(recreation?), but I susupect that again, the shareholders have the company by the short and curlys and they will bow to the short term. Which is a shame, as I believe they just rediscovered how short sightedness has hurt the company over the last decade...I have been hoping for an example of change, but bad business as usual...Hey Ford, you have been around for 100+ years, its time to start acting like it.
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