• Mar 12, 2007
The deal is done, and it happened exactly the way everyone expected it to. Ford Motor Company has sold Aston Martin to a consortium led by Prodrive founder David Richards, Aston Martin collector John Sinders, and Investment Dar and Adeem Investment Co, two international investment companies headquartered in Kuwait. The sale price is for $925 million, and Ford will retain a $77 million stake in the sports car maker, which pegs the brand's worth at just over $1 billion which means Ford will actually get only $848 million for Aston Martin. Ford sounds pleased with the deal in the press release it issued this morning, stating Aston Martin is better off with a company that offer it more capital to work with. The deal is scheduled to hit the balance sheet in the second quarter, which means we might be seeing Ford temporarily in the black then because of this one-time special gain.

[Source: Ford]

PRESS RELEASE:

FORD ANNOUNCES AGREEMENT TO SELL ASTON MARTIN

DEARBORN, Mich., March, 12, 2007 – Ford Motor Company [NYSE: F] announced today it has entered into a definitive agreement to sell Aston Martin, its prestigious sports car business, to a consortium comprised of David Richards, John Sinders, Investment Dar and Adeem Investment Co. This transaction is the result of Ford's decision, as announced in August 2006, to explore strategic options for the Aston Martin business as the company restructures its core automotive operations and builds liquidity.

The sale is expected to close during the second quarter and is subject to customary closing conditions, including applicable regulatory approvals. The transaction values Aston Martin at £479 million ($925 million). As part of the transaction, Ford will retain a £40 million ($77 million) investment in Aston Martin. Other terms and conditions specific to the sale are not being disclosed at this time.

"The sale of Aston Martin supports the key objectives of the company, to restructure to operate profitably at lower volumes and changed model mix and to speed the development of new products," said Alan Mulally, Ford's President and chief executive officer. "From Aston Martin's point of view, the sale will provide access to additional capital, which will allow Aston Martin to continue the growth it has experienced under Ford's stewardship. Today's announcement is good for Ford Motor Company, good for Aston Martin and good for the UK. We wish Aston Martin every possible success for the future."

The new owner of Aston Martin is a consortium comprised of: David Richards, founder and chairman of Prodrive, a world-leading motorsport and automotive technology company; John Sinders, an avid Aston Martin collector and a backer of Aston Martin Racing; and Investment Dar and Adeem Investment Co, international investment companies headquartered in Kuwait.

Ford Motor Company, a global automotive industry leader based in Dearborn, Mich., manufactures or distributes automobiles in 200 markets across six continents. With more than 280,000 employees and more than 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo and Mazda. The company provides financial services through Ford Motor Credit Company.


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  • 20 Comments
      • 7 Years Ago
      #4 ... I agree !!

      Negative comments from guys like "#2 Bob" are so tiring.
      • 7 Years Ago
      #5, I'm sure you're probably just trying to inflame people, but from what I read those bonuses should "only" cost about $40M, not even close to $848M.

      That said, I did find the bonuses surprising.
      Bryan
      • 7 Years Ago
      Wow I just went to the Ford website, and Aston is already gone! Didn't take long. I am sad to see it go, but at least they retained a stake in it, and found someone who will do good for it like Ford did. Its a win win situation I guess, Ford makes money on the deal, and keeps a stake in the company that will surely be profitable. Now Ford has one less division to concentrate on. I still think they should have kept it, but you got to do what you got to do!
      • 7 Years Ago
      Great news. Now A.M. can actually have a proper management team and capital to reach new heights instead of being hampered by Ford.
      • 7 Years Ago
      sooooo, that 848 mil cash is going to be half spent on that company wide "bonus" incentives for Ford?
      • 7 Years Ago
      I think that bonuses were actually quite necessary. You have to understand the world of corporate America and the fact that the good human capital that could find a job in less than a week needs incentive to stay on board. The bonuses also help convey a sense of confidence for the employees. No one wants to be on a sinking ship. I think currently Chrysler is in the most trouble of the big 3, especially product wise.
      • 7 Years Ago
      #2 yeah .. AM suffered greatly under Ford .. I have no idea how they managed to survive .. their models are ugly unreliable and decades beyond time ... people are almost choosing Buicks over those tarted up turds called Aston Martin ... man .. Ford is dead ...

      Well, let us be honest here. While Ford did wonders for Aston, they never were able to put in that last 5% to turn the company into what it really could be. Astons DO currently suffer from some major reliability issues (flappy paddle gearboxes anyone?), most people who drive them note that AMs are down on power and the Volvo/Ford sourced switch gear on the interior just NEEDS to go.

      This isn't 1960; we have plenty of technology that would allow Aston to build a car that offers the cushy cruising that Aston owners want along with scintillating performance just a button press away so that the company can regain the performance reputation it deserves.
      • 7 Years Ago
      Goodbye Subaru WRC, hello Aston Martin F1?


      p.s. Ford did very good for Aston.... anybody who can't see that, need to take off the hater goggles
      • 7 Years Ago

      This means the British get a locally owned car maker again. Now they can proudly claim that they once again own one of their famous marques.
      • 7 Years Ago
      My understanding of the press release is that AM is worth $925M total. So Ford will be receiving $925M - $77M stock = $848M cash.
      • 7 Years Ago
      Drat. I was hoping Proton would buy Aston. :)
      • 7 Years Ago
      It was a firesale Zac. Ford needs the money badly.

      And your comments about the deservedness of bonuses (boni?) vs their worthiness are spot on.
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