Magna in the market for Land Rover and Volvo
According to UK magazine Autocar, Magna is looking into the purchase of Land Rover and Volvo. Magna, you'll remember, was in the market for Chrysler, and was for a time the frontrunner -- until all of a sudden it wasn't and the company went to Cerberus. While everyone knows that Jag and Land Rover could be sold, it was only last week that Ford said Volvo would not. It's unclear from Autocar's report if they are really just talking about Magna's interest, or if Magna has really engaged Ford about buying both companies. Magna makes parts for the Land Rover, and could also be interested in Rover and Volvo factories. We find it unlikely, though, that Ford would even consider a deal like this, which would leave it stuck trying to sell Jaguar as a standalone company. Without the sweetener of Land Rover, finding a buyer for a decent price would be more than merely challenging.
[Source: Autocar]
Reader Comments (Page 1 of 1)
Tyk 9:05AM (7/05/2007)
Jag sold less than 1500 last month.. you might as well start a luxury marque from scratch.
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SobeSVT 10:37AM (7/05/2007)
That is in the US. There is something called the "rest of the world" that has kept Jaguar alive . . . barely.
tallbacka 11:12AM (7/05/2007)
SobeSVT,
I wouldn't say that tRotW has kept Jaguar alive...it's Ford who have kept them alive by transfering trillions of dollars, it's no secret that Jaguar sucks, no one wants to buy their craptacular cars and they have been making HUGE losses for several decades now. The only sensible thing would be to close them down.
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volvfan 11:28AM (7/05/2007)
And the saga continues, Ford seems to not know what to do. Now let me know if you think that I'm wrong with this stratergy for Ford.
Ford should put the entire PAG( Volvo, Land Rover, & Jaguar) up for sale. Package Jag/Rover together because Volvo can stand alone, its the jem of the company. Deviorce all ties with Jag, keep shares with Rover, like a 15% or so. Jag/ Rover should be sold to the same investors that bought Aston Martin, or should go to the British state. Volvo should be sold only to a private company preferably the Swedish family that ownes Investor AB. This way ford would be able to keep a 30% share of Volvo Cars, allowing it to shaer technology with Volvo such as platforms and what not without having the worries of managment. This is also beneifical for Volvo because it allows them to be Swedish owned again and still have the backing of a larger company like Ford. If Volvo is sold to another car company then Ford will loose all rights and oppurtunities to colaborate with Volvo on technology sharing.
That is the best thing that i can think of for the PAG. Ford wont get to sell only Jag and Land Rover, so they had betters sell Volvo and Land Rover now that they have the chance. Investor AB, Renualt& AB Volvo, BMW, now Magna are all looking to buy Volvo Cars so Ford had betters decide on what they are going to do because they need the moneys desperately to keep up the ford core brands.
Get the money while on the table
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Val 11:29AM (7/05/2007)
And why exactly is ford pouring billions in Jaguar again?!? It has been on a loss forever, what is ford waiting for, when they can barely make ends meet globally, with the US the most spectacular disaster.
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Jon 1:21PM (7/05/2007)
This is really too bad, Jags used to have really cutting-edge designs.
I agree with volvfan on what Ford should do with the PAG.
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Landy 1:40PM (7/05/2007)
The problem with Ford is their home market.
The dollars are burned there! I remember M. Fields saying: "It's change or die!" So I guess they decided to die... Nothing really changes at Ford US - they still desperately clinge to their SUV's and Light Trucks, hoping the good old times will return. They still offer an ugly old Focus to the US customers while the lastest one is sold even in Russia! They don't want to sell the new Focus, Mondeo, S-Max or Transit in the US, although US customers seem to want exactly these cars!
Ford doesn't want to change - Ford wants the circumstances to change back for what they know and what they could handle so easily.
It's a shame, to see such a company go down just because they are not willing to change their business model to the time we live in.
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vdk 3:28PM (7/05/2007)
If they'd produce/import the new Focus, Mondeo, S-Max, Fiesta, Euro-Fusion, they would cost way more than a Focus today... would I buy one? Yes. Would anyone else buy a Mondeo for $30-35k? No. Take a look at the prices in the UK. The 2.5 Turbo you'd probably want to take (although I'll have a diesel) is almost £25k... The problem is not their willingness to import Euro Models, but the price the average people would have to pay for them. I would divide a Ford Dealership in 2: Import and Domestic.
vdk 3:32PM (7/05/2007)
And yeah... Jag had some harsh years, but they're on the right track now... have you seen the new XK?
Ford's problem is a domestic one... Ford Europe is having a profit, but Ford of America is not... why? Because we have the same Focus for what... 8-9 years now? Nothing changes, nothing! Too bad Ford is so lame over here and so interesting across the pond.
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omar 5:11PM (7/05/2007)
It is more than the home market that is the prob for Ford. I'm sorry to say the american brands have managed to do what they do best, and that is saturate the entire market until consumers refuse to buy the cars ( except for Cadillac, Jeep, & Ford Trucks). American auto industry is under major jepordy, they need major restructuring along the lines as close down many prdocution plants. GM is doing the most platform sharing right now and there is so little to disguise the underpinnings of the vehicles ( trail blaers, avalanche, cadillac truck, saab 9-7x). Come on people are not stupid, selling me the same vehicle with different name plates and want thousands more.
Ford needs to wake up, sell the PAG, restructure the core Ford brands ( get rid of mercury ). Only maintain shares in Mada, Volvo, and Land Rover.
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DRG 7:02AM (8/20/2007)
I agree with you on keeping shares of Land Rover & Volvo, because these are 2 great products and Ford Should base new US designs off the same platforms, for example a Lincoln based off of the high end Land Rover and dump the Current Navigator, and also a Ford / Lincoln sedan / wagon based off the Volvo V70 / XC 70.
A&W 9:23PM (7/05/2007)
I agree Ford needs to get moving regardless of what they do. The Mazda 6 platform has been thier only success. So invest more in Mazda,Volvo and dump the rest. I personally like the Mercury brand but the Milan looks too much like a Fusion with buck teeth.
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