Autoblog

REPORT: Ford sells off former PAG headquarters in Irvine

Dan Roth — Thu, 04 Jun 2009 18:30:00 EST

Filed under: Etc., Ford, Earnings/Financials

Not long ago, Ford's Premier Auto Group was filling the halls of a big office building in Irvine California. In recent years, Aston Martin, Land Rover and Jaguar were sent packing, and Lincoln dragged itself back to Detroit, leaving the halls lonely for sole survivor Volvo, which is also headed back to Rockleigh, New Jersey.

Rather than pay for a constantly emptying building, Ford has sold its Premier Auto Group HQ to Transpacific Company. The $73 million dollar deal removes a liability from Ford's balance sheet, although Ford had already been leasing space to Taco Bell's parent company. The fast food corporation will move its headquarters to the Irvine, California building in 2010. So it goes as Ford divests itself of properties and restructures.

Although we have yet to receive official confirmation, word is that the big weekly Cars & Coffee meetup that happens in Mazda's parking lot nearby will continue. Thanks for the tip, Will!

[Source: The Los Angeles Times]

REPORT: Ford sells off former PAG headquarters in Irvine originally appeared on Autoblog on Thu, 04 Jun 2009 18:30:00 EST. Please see our terms for use of feeds.

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Ford stock up thanks to Kerkorian, Volvo remains "not for sale"

Dan Roth — Mon, 05 May 2008 19:32:00 EST

Filed under: Etc., Ford, Mercury, Volvo, Rumormill

Kirk Kerkorian's associate Jerry York stated last Thursday that Ford would do well to sell Volvo and extinguish Mercury. Coincidentally (or not) Ford's stock zoomed up to one of the highest price levels it's seen in the last six months. Tracinda Corporation, Kerkorian's firm, has expressed faith in Mulally's leadership and his plan to strengthen the automaker. There has been speculation about a sale of Volvo in the past, and punditry has been begging the Blue Oval to do something with Mercury, or put it out of its misery, for years.

While York seems certain that Volvo will be on the market in less than two years time, Ford continues to state that the Swedish subsidiary is not for sale. Looking at the Premier Auto Group shuffle of the last year, though, it could certainly be deduced that Volvo will indeed go on the market soon. Moving the brand out of the PAG location in Irvine, CA and back to Rockleigh, NJ, where Volvo had set up shop when it first started selling cars in the United States, is a move that set off whispers of impending sale. While it might be nothing more than right-sizing office space for Volvo now that the rest of the Premier Auto Group is gone, a cross country move is a deft way to trim operational fat without layoffs, and divorcing Volvo's North American operations from Ford locations makes an ownership transition easier, too. While Ford and Volvo products share a lot of engineering and parts, a well-negotiated deal wouldn't preclude a sale that gently phases out the currently entwined platforms as they age and replacements are brought to market.

[Source: Automotive News - sub req. - Photo: Bloomberg]

Ford stock up thanks to Kerkorian, Volvo remains "not for sale" originally appeared on Autoblog on Mon, 05 May 2008 19:32:00 EST. Please see our terms for use of feeds.

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"How about we alienate our fans?" - Ford takes a page from the RIAA playbook

Dan Roth — Fri, 12 Oct 2007 10:29:00 EST

Filed under: Classics, Etc., Ford, Jaguar

The internet has made it incredibly easy for groups of enthusiasts to communicate and collaborate. Gearheads benefit a lot from this. It's easy to share pictures of our beloved rides, and with services like CafePress, you can even get some cool merchandise made up. Just like the record business is going after people who allegedly stole a whole bunch of music (how about the record company contracts, which are often a detailing of how the label will pillage an artist, cloaked in the fig leaf of legalese?), Ford has decided that it didn't like a bunch of Jaguar fans making up calendars and selling them to a small group of like-minded people. The idea that there'd be enthusiasts so enamored with one of its PAG properties that they'd go through all that effort was so abhorrent to Ford that the automaker shot off a trademark infringement lawsuit to put an end to the Leaper Love Fest. Maybe Jag's next owner will embrace the fans rather than alienate them.

Thanks for the tip, Chuck

[Source: XKE Data via Goolsbee.org]

"How about we alienate our fans?" - Ford takes a page from the RIAA playbook originally appeared on Autoblog on Fri, 12 Oct 2007 10:29:00 EST. Please see our terms for use of feeds.

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Cerberus joins group of financial investors to bid for Jaguar and Land Rover

John Neff — Thu, 14 Jun 2007 15:35:00 EST

Filed under: Chrysler, Dodge, Jaguar, Jeep, Land Rover, Earnings/Financials

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]

Cerberus joins group of financial investors to bid for Jaguar and Land Rover originally appeared on Autoblog on Thu, 14 Jun 2007 15:35:00 EST. Please see our terms for use of feeds.

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BMW buying Volvo rumour circulates again

John Neff — Tue, 29 May 2007 07:32:00 EST

Filed under: Etc., BMW, Volvo, Earnings/Financials

Earlier this month, Autocar reported that BMW had expressed significant interest in buying the Volvo brand from Ford Motor Company early in 2007. The report claimed BMW had gone so far as to request financial data about the Swedish automaker.

Yesterday, the Swedish newspaper Goteborgs Posten threw another logo on this rumor's fire by reporting that sources within Ford have confirmed that BMW is exploring the possibility of purchasing Volvo. Another source has even claimed BMW and Ford have already begun informal talks.

Our previous post already touched on all the questions that need answering, including why BMW, which became the go-it-alone automaker after owning Land Rover left a bad taste in its mouth, would jump back into the ownership game. Also, while BMW and Volvo have distinct identities (the Ultimate Driving Machine versus the ultimate safety machine), there would at least be some overlap in their respective lineups.

Finally, while Ford has stated that nothing is sacred when it comes to its Premiere Automotive Group, of which Volvo is a member, why would it sell one of PAG's most promising brands? We have an answer for that one: Volvo's actually worth something. While many, including Ford itself, might hate to see Volvo leave the fold, the Swedish brand would likely catch a premium price on the market and help Ford fund its turnaround.

Would a BMW/Volvo ticket capture the consumer's heart? This armchair analyst is hardly qualified to give an answer, except to say that Volvo is a brand on the verge of some big things (C30 anyone?) and requires a patient parent company with deep enough pockets to see it through.

Thanks to everyone who sent us the tip!]

[Source: Reuters]

BMW buying Volvo rumour circulates again originally appeared on Autoblog on Tue, 29 May 2007 07:32:00 EST. Please see our terms for use of feeds.

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Ford saves Crystal Cove meet

Frank Filipponio — Mon, 16 Oct 2006 18:28:00 EST

Filed under: Etc., Aston Martin, Ford, Jaguar, Land Rover, Mazda, Volvo

CC is dead, long live CC. After getting the boot by the Irvine Company this past Saturday, Southern California car enthusiasts were concerned that the Crystal Cove car show would disappear all together. Not only were the car owners in dispair, but also the fans of these incredible vehicles from around the world who would search the web for pictures of what supercar or museum treasure had shown up last week. A worldwide cry went out from fans around the Internet, pleading for a place to host the meet so it could live on. Several offers of restaurants and beach parking lots came in, but in the end it was Ford Motor Company who stepped up and saved the show. Now that's a Bold Move we can get behind.

The story of how it happened is a little slice of what makes this such a great show and such a great home for auto enthusiasts. It seems a couple of executives down at Ford's Premier Auto Group building in Irvine were regulars at the weekly meet. Head of Styling Freeman Thomas and Communications Head John Clinard would cruise down to the show when they could to meet other car guys and see the cars that had turned out. When they found out about the show's impending demise, they started talking to people they knew who were involved with the show. A few ideas for a new home were being bandied about, but nothing that seemed likely to be able to handle the unique requirements of a weekly, informal, car fest that can attract as many as 1,000 spectators and participants on a good weekend.

Follow the jump for the rest of the story and a few pics from the final Crystal Cove meet.

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Continue reading Ford saves Crystal Cove meet

Ford saves Crystal Cove meet originally appeared on Autoblog on Mon, 16 Oct 2006 18:28:00 EST. Please see our terms for use of feeds.

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Volvo's profitablity waning

Damon Lavrinc — Mon, 31 Jul 2006 17:01:00 EST

Filed under: Ford, Volvo, Earnings/Financials

In Ford's Premier Auto Group (PAG) one manufacturer has stood alone, sustaining a high degree of prosperity in the past. However, in the last two years, Volvo has seen a decline in its new vehicle sales and judging by figures from the first half of 2006, those numbers seem to be dwindling even more.

As far as dollars and cents are concerned, PAG condenses all of its manufacturers' earnings into one lump, so the ability to parse out who is losing what is a task reserved for only the geekiest of accounting wizards. What we do know is that PAG, as a whole, had broken even last year, while the second quarter of 2006 shows a loss of $162 million. Not massive, but worrisome.

Analysts are pointing to a number of factors leading to Volvo's decline and at the forefront of those issues is an aging product line. Thankfully, Volvo is addressing this issue head-on, granting the S80 with a thoughtful redesign, as well as bringing the new C70 into the marketplace. The entrance of the C30 hatchback, which fills a niche previously untouched by the Swedish manufacturer, may give Volvo the added boost it needs, especially if it is well received here in the States in 2008.

[Source: Automotive News - sub required]

Volvo's profitablity waning originally appeared on Autoblog on Mon, 31 Jul 2006 17:01:00 EST. Please see our terms for use of feeds.

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Ford to go Oldsmobile on Jaguar?

Joel Arellano — Sat, 25 Feb 2006 12:00:00 EST

Filed under: Car Buying, Trends, Convertible, Coupe

Jaguar must "find a way to fund its own future or face the consequences."

That's what Ford Motor Co. Chairman and CEO Bill Ford, Jr. told journalists in Detroit about Ford's "Big Cat." And the consequences? While the article didn't state if Ford, Jr. was asked that question, a high level director did answer and said Blue Oval may put the luxury marque into "exit mode," either shutting it down or selling it.

Ford purchased Jaguar in 1989, and the brand is part of Ford's Premier Auto Group (PAG) which includes Aston Martin and Volvo. But Jaguar's S-Type, X-Type, and XJ sedans are among the lowest selling vehicles in PAG. Ford hasn't given up on the band just yet, having infused $2.1 billion last year after the brand lost $745 million in 2004.

Newly appointed Ford of Europe chairman Lewis Booth has thus embarked on an ambitious plan to preserve the Big Cat's remaining lives. Besides touting the new XK coupe (pictured) and convertible, Jaguar is planning to sell fewer but well-equipped vehicles, making Jags more exclusive. This is similar to Porsche, whose vehicles make the highest profit per each one sold.

Other changes include updating Jaguar's manufacturing facilities and modernizing its models' sheet-metal.

With Jaguar's rich heritage and evocative design language, it's been frustrating for company officials and marque afficianados to see the Big Cat falter so badly for so many years. It is hard to see the Blue Oval shuttering the brand, but we wouldn't rule out Dearborn eventually seeking out a suitor if the latest capital infusion fails.

[Source: The Sydney Morning Herald]

Ford to go Oldsmobile on Jaguar? originally appeared on Autoblog on Sat, 25 Feb 2006 12:00:00 EST. Please see our terms for use of feeds.

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