According to an inside source who spoke with Automotive News, Ford will be narrowing down the potential suitors for Jaguar and Land Rover by the end of the week. While not nearly as entertaining, or enticing, as most prime-time match-making shows, the dwindling bidder list confirms a few names that we've heard before and a few others we'll surely get to know soon.
In the second round of Who Wants to Buy an Ailing British Automaker, the bidders are rumored to be India's Tata Motors, One Equity, Ripplewood, TPG and Terra Firm (those last four are mainly buyout groups). Pricing for both brands is expected to be around $1.5 billion – far from Ford's initial hopes of close to $8 billion – and it's safe to expect a third round of talks by the end of the year that will reduce the field down to two or three.
[Source: Automotive News – Sub. Req.]
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Reader Comments (Page 1 of 1)
Robert @ Nov 2nd 2007 4:21PM
That $8 billion figure is the estimated value of the brands (not valued by Ford). However, both brands have debt and liabilities associated with them. I doubt Ford assumed it could get more than $1-2 billion in actual cash. They were probably looking to off-load the liabilities (as well as lowering the number of platforms and drivetrains they'd have to maintain).
Charles @ Nov 2nd 2007 5:17PM
I say we all chip in a few bucks and make them an offer!
volvfan88 @ Nov 2nd 2007 5:27PM
Ok Jag and Rovers faith are sealed they will be sold in the process now. Ford what are you doing with Volvo, you have Volvo working hard to develop safety and technical features for you, wildest the brand itself suffer outside of the black for months now. Ford you have helped Volvo alot but now they need you to help them with funding for the next generation S60, the new XC50, the new 5 door hatch to to take the place of the S40, a large up class sedan better than the S80 likely to be called the S100, the next generation V50, and the well needed next generation XC90. come on Ford hurry up and make your decision with Volvo, sell the majority of the company keep the minor stake of 30% like in Mazda, then work from there.
M Bell @ Nov 2nd 2007 6:13PM
I've said this before, and maybe someone on the board can clear this up for me; I think selling these two brands is a tragedy, because I see a simple way that, to my mind, these brands should sit comfortably within the Ford fold.
Why, oh why, doesn't Ford assume a three-tiered approach to designing their cars? Jag / LR at the top, Lincoln and Volvo in the middle, Ford and Mercury at the bottom. If it was my strategy, this is what I would be doing.
Jag and LR should be their R&D department, because the premiums on a high-end vehicle can cover many of the costs. (In theory, anyhow!) Let's use a full-size, RWD sedan as an example, as all the lines are going to need one soon to replace the Panther and eventually the XJ.
Why not use the current XJ (Let's call that "One") to replace the next Panther platform, and do the R&D to create a bigger stablemate for the XF (call that "Two"). So. Today's excellent-if-a-little-ugly XJ ("One") moves down one step with some new sheet metal and becomes the next Lincoln Town Car and Volvo S80. Lather rinse, repeat. The next-next XJ ("Three") comes out, "Two" moves to Lincoln and Volvo, this current XJ ("One") would become the Crown Vic and Grand Marquis.
The same could be done on the truck side with Land Rover. Bring out a Land Rover pickup, even, to trickle down to an F-150? Who knows. So Land Rovers move down one level and become the next Navigators or XC90s, then become Expeditions, and so on.
The R&D, then, is always done on the highest end cars, rather than spending millions on a vehicle that really SHOULD be selling for $20k. This system would allow you to cycle through product lines faster by pushing the innovation on the highest end vehicles only, say a 4-year cycle, and each platform should then pay itself off faster.
Can someone point out the flaw in my logic? This seems so simple, I don't know why they don't just do it. Why would this not work?
TangoMotor @ Nov 2nd 2007 6:27PM
it doesnt matter how much they sell the company for, that money will probably be blown when they pay the executive bonuses...
TangoMotor @ Nov 2nd 2007 6:30PM
not that company, but those companies... granted, they will no longer be at a loss with that part of the PAG, but you know that the lump sum they receive in the process is going towards those execs, who did a "great Job"
Philip @ Nov 3rd 2007 3:50AM
Volvfan 88... Volvo will be Next, Ford needs the money. I'm a Volvo fan too.
M Bell... Land Rover sold Pick ups for many years, I'm not sure if they still do.
The buying and selling of Jaguar and Land Rover is sad and part of a trend, BMW bought Land Rover then sold it to Ford, Now Ford wants to resell it, Ford Bought Jaguar direct but now its on the auction block too, I often wonder why GM and Ford bought so many foreign car companies...
The British car industry has gone down the toilet, The Brit's don't own any major car companies, Rover was bought by BMW, then sold back to some British investment Company, Now the Chinese own Rover.
I think the same will happen to American car companies, Chrysler has already had a taste of what is to come, Look at the poor redesigns and new models that came out while Mercedes Benz were in control of Chrysler, Chrysler Minivan's, Sebring, Avenger, Jeep Patriot, Jeep Compass, Dodge Caliber and Dodge Dakota, they don't look so good, Now an investment company run's Chrysler and we all know what they do...
Tata is Indian and the only car company on the list to buy Jaguar and Land Rover, Have you ever seen a TATA, they build primitive cars for the poor.
I truly believe Ford, GM and Chrysler will be owned by foreign companies in the not too distant future, maybe China.
I think the Big three have dug their own grave, building gas hogs and vehicles that people don't really want to own.
ebm14 @ Nov 3rd 2007 5:43PM
I blame this largely on Lee Ioccoa. That shmuck invented the idea to have foreign companies open shop here and now look what has happen. Toyota USA is among the most lucrative industries in the US and people are buying them like crazy. The foundation is cracking under the big 3 and it is very said. Toyota's CEO said that American car companies still don't understand the American public needs. It is ironic that the Japanese do.
The Aftermath of the US Auto Industry will most likely be controlled by foreign conglomerates who will eventually merge with not only their domestic adversaries but ones abroad as well. Hyundai for example runs several industries from Shipping, Can food items and underwear (that is right, underwear) and perhaps one day GM. The Chinese will eventually follow or even lead the way in this future trend while Ioccoa will be 6 feet under by then.
Philip @ Nov 3rd 2007 5:57PM
I can see you agree with most of my views, I agree with most of yours, It doesnt have to be a car maker that buys out the big three, as long as they have money they will be welcome to bid, It could even be a Dot Commer, they seem to get wealthy very quiclky.
Hyundai always seem to have employee problems but still they succed in selling us more items, I know they build more than cars, Maybe they will buy one of the big three, they look far superior to Tata.
I fear China will rule our world, I blame the general public for buying these cheap products, they should have looked at where they were made and refused to buy them, Unfortunatly they only think of price, eventually we will pay THE PRICE.
Rene Curry @ Nov 3rd 2007 2:06PM
Arm chair exec...
Sell your winners, develop the losers.
Sell Volvo why they are on top. Most automakers can now duplicate everything Volvo stands for.
Jaguar needs drop dead styling and interiors while pulling from the US Ford parts bin on everything that cannot be seen. This could really work in Europe & China where it would not have a typical Ford Euro drivetrain.
Have the PAG dealer network combine to sell Rover & Jaguar under the same roof. No overlap here. Same British roots. Marketing needs to work on the heritage of the British brands and how the German & Japanese brands are lost in a sea of sameness.
Ford needs to be the low cost vehicles. Limit the high end options. Mustang is very defining in the value and rawness.
Mercury needs to have the same underpinnings of the Ford, but with totally different bodies and interiors. Everything should be geared towards a level above Ford.
This is the brand to mine the profits, not shut them down.
Lincoln needs no restraints, but must be above all Mercury models. It can even meet or exceed Jaguar since they would only compete in the US market. Jaguar should be able to survive this in the US based on exclusivity & British heritage.
JG @ Nov 5th 2007 11:12AM
I've actually been quite impressed with the Land Rover management by Ford.
http://www.landroversonly.com