Filed under: Chrysler, LLC., Dodge, Jaguar, Jeep, Land Rover, Earnings/Financials
Cerberus joins group of financial investors to bid for Jaguar and Land Rover
While poring over the RSS feeds today, we noticed a tiny article in Automotive News about Ford's desire to sell off both Jaguar and Land Rover. The potential sale has been in the news as of late, but this article caught our eye because it reveals a potential bidder with which we're all familiar. According to Automotive News, three private equity groups including Blackston, Cinven and... Cerberus (!) have shown interest in joining the auction for two of Ford's Premiere Auto Group brands. Cerberus, of course, is the same private equity group involved in the purchase of Chrysler from DaimlerChrysler.
While the news that Cerberus has thrown its hat in the ring for the purchase of Jaguar and Land Rover is not necessarily surprising (this is what private equity firms do, they buy stuff), the thought of a new American automaker housing the Chrysler, Dodge and Jeep brands along with both Jaguar and Land Rover certainly changes the landscape of the domestic auto industry in the near future. While Land Rover isn't in near as dire a straits as Jaguar, neither brand are performing at their peak potential. Unfortunately, neither is any Chrysler Group brand. Cerberus must really believe it has the magic touch to be getting involved with so many down but not out automakers.
[Source: Automotive News - sub. req'd]
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Reader Comments (Page 1 of 2)
Aprime1 3:48PM (6/14/2007)
Heh, they're also trying to buy 49% of BCE (Bell Canada... Foreign companies can't own (by law) more than 49% of a Canadian telecom).
Land Rover tech. in Jeeps would sure be lovely.
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hashiryu 3:57PM (6/14/2007)
I'd rather not have Jeep parts in my Range rover thank you. I'd prefer that another firm other than Cerberus get them both.
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Hi there 4:07PM (6/14/2007)
Well, based on the latest quality ranking, it wouldn't be such a bad thing.
Mr. Oak 4:04PM (6/14/2007)
You might want to rethink that. Maybe with some Jeep injected into RR, they won't spend so much tim atealership under repair.
georgejetson 4:37PM (6/14/2007)
You've got to be kidding. I'd rather have Jeep parts in a Land Rover than the reverse. At least Jeeps stay screwed together for more than a few thousand miles.
Doogs 4:00PM (6/14/2007)
The former offroader in me is practically drooling.
Land Rover, give Jeep some diesel know-how.
Jeep, let Land Rover borrow your Wrangler platform as a starting point for a next-gen Defender. Because that's probably the only way we'll ever see them again in the States.
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Mr. X-Class 4:03PM (6/14/2007)
2010: Cerberus passes Toyota as #1 automaker in the world.
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SSBR 4:03PM (6/14/2007)
I am not sure if this is a good idea for a new owner of a new company with lots of baggage. The should not concentrate on aquiring luxury name plates. Rather they should be concentrating on the issues they have at hand before taking up another plate. If they haven't even turned Chrysler around, i'm not sure if they can handle Jaquar and Land Rover.
http://www.rolesor.com
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Shift head 4:06PM (6/14/2007)
Too bad you couldn't put Jags and Land Rovers on Chrysler lots. They might get some people on the lots for a change.
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Dave T. 4:11PM (6/14/2007)
The only automaker routinely ranked worse than Jeep in most quality ratings is Land Rover. I don't think either one would bring the other's quality UP. However, Ford has improved the quality of both Jaguar and Land Rover since it bought them. They just both had horrible ratings to begin with.
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geo.stewart 4:12PM (6/14/2007)
I called this a couple of weeks ago on another post.
thank you , thank you, no really...
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3cubedminus3squared 9:41PM (6/14/2007)
http://www.autoblog.com/tips/
Have a nice day :)
geo.stewart 4:14PM (6/14/2007)
If you have to fix one, its probably as easy to fix 2 at the same time...
misery loves company, right?
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Jay 4:14PM (6/14/2007)
Cerberus's interest in Jaguar makes some sense, as they could continue to better position Chrysler as a near-lux brand with Jaguar carrying the premium flag.
Buying Land Rover doesn't make so much sense, what with Cerberus already having Jeep. I can't really see any reason to buy LR, accept to remove a chunk of competition.
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Dave T. 4:19PM (6/14/2007)
People keep thinking Land Rover is a bad brand. I assume the sale of the two would be you're getting one money making brand, Land Rover, and one turnaround brand Jaguar. I don't think Ford would sell a money maker and relative success story in Land Rover by itself.
I think they'd keep Volvo out of all of them because of so much cross platform work with current Fords and Mazdas.
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Moebius 4:22PM (6/14/2007)
I want my monkey man! I mean Jeep Defender!
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bestmacs 4:24PM (6/14/2007)
As a journalist, I'm certainly interested in the news angle of that post.
But, gotta laugh at that, mate. Cerberus (according to Greek mythology) was the three-headed watchdog who guarded the entrance to Hades/ Hell - and was often depicted with the tail of a snake!
Cheers
David McMahon
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Shift head 4:38PM (6/14/2007)
And if you think the UAW lost those 'higher paying' jobs to the Japanese, Mexicans and Koreans, well, think again. It was recently reported that autoworkers for Hyundai and Kia now earn more than workers in the UAW. Hyundai lost $1.8 billion last year due to labor strikes. Another strike is planned for next week.
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Tyo 4:56PM (6/14/2007)
Cerberus needs to buy jag and land rover and then split off further, an off road brand with jeep and high end off roader and LR's. Then use Jag as the even further upscale variant of chrysler, and make dodge bargain basement with the chinese built tiny cars like the hornet and lots of 6 cyl Lx cars.
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JB 5:02PM (6/14/2007)
This could work if they realign roles. Chrysler can be the mid-level luxury car, like Olds/Buick. Dodge is performance/value. Jeep is affordable off-road, not too high a top end. Jag is all luxury, no smallish models, cars people aspire to own as a reward (no X-type). No Jag SUV, but a shooting brake/crossover maybe. Land Rover is premium luxury off-road, but with better reliability. I'd like to see Plymouth come back though on the bottom end, just to show the Germans were wrong to kill it, but I could live without it.
Chrysler can't be a high-end car at the level of price of Cadillac. But it can offer luxury, max price 38K for any model. Jag slots in above that, starting at 45K.
Jeep is good for up to 30K, Range Rover from 38K and up.
Dodge is 0-30K for a maxed out Charger/Magnum. Trucks can go higher in price though, which is fine.
The most important thing is for the vehicles to not compete with each other. This is killing GM especially. Toyota offers small, medium and large sedans (Corolla, Camry, Avalon). An Avalon buyer isn't likely to shop against a Lexus, even though on paper they are very close. So some looking at a 300 isn't thinking about a Charger instead, they must be unique, at least visually.
This could work. I am trying to be optimistic.
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