Autoblog

We'd picked up rumblings a while back that India's Tata Motors was interested in placing a bid with Ford for its Jaguar and Land Rover properties. Tata's even gone so far as to set its advisors loose on the potential deal to investigate how solid the investment would be. The automaker wants to strengthen itself through expansion into other markets, rather than being tied solely to the whims of the Indian economy. Jaguar and Land Rover are worldwide prestige brands that would give Tata instant entry to many more markets with a built-in customer base. Ratan Tata confirmed his company's desire to bid for the PAG albatross brands during an interview with an Indian news channel. Further exposition by Mr. Tata on the subject was not forthcoming, but the full interview will air Sunday and Monday, and may clear up some more questions. After the jump, we imagine what a letter of intent from Tata to Ford might look like.

[Source: Forbes]

It's official, Porsche has submitted an offer to buy the Volkswagen group. Unless you've been living in a cave, you probably already know that the erstwhile sportscar manufacturer is more profitable than the megalithic auto consortium, with all its subsidiaries, and has been steadily increasing its stake in VW.

When Porsche raised its stake in Volkswagen past 30%, German law mandated that it submit an offer to Volkswagen shareholders to buy them out and take over the automotive conglomerate outright. The mandatory offer has now been officially submitted, and subsequently approved by the German Federal Agency for Financial Services Supervision.

Porsche is offering Є100.92 per common share, and Є65.54 for preferred shares, coming in at the bare minimum required by law. Volkswagen shareholders have until May 29 to accept or refuse the offer. If they accept, Porsche will have full control of Volkswagen and all its subsidiaries, including the Audi, Skoda, Seat, Lamborghini, Bugatti and Bentley brands, turning what was once the niche sportscar maker into one of the largest automobile makers in the world. It's unlikely that the VW board will accept, however, considering Porsche made the bare min bid.

Related posts:

• Porsche takes a $47b loan out to bid for VW
• Porsche, yet again, raising stake in VW

Press release after the jump.

[Source: Porsche]

The Detroit News is reporting that a group of 25 Chrysler employees in Toledo have formed a group called the "Employee Buyout Committee" and are actively exploring the necessary steps required to see the fate of Chrysler end up in the hands of its employees. Their proposal would give Chrysler employees a 70% stake in the automaker, with DaimlerChrysler retaining the remaining 30%. The group appears to be making all the right moves so far, having submitted its proposal first to the UAW, whose legal department is now evaluating the proposition. The employee buyout plan was also mentioned at DaimlerChrysler's annual shareholder meeting in Berlin on April, 4. The committee's apparent spokesperson, Michele Mauder, has also sent the proposal to Chrysler Gropu CEO and DaimlerChrysler CEO Deiter Zetsch, humbly requesting the employee's bid at least be given equal consideration with bids from private equity firms like Cerberus Capital Management and Blackstone Group, as well as Canadian parts supplier Magna. A Chrysler spokesperson has also commented that the proposal is expected to be reviewed by the automaker's legal department.

If allowing Chrysler's own 50,000 UAW employees to own the automaker doesn't happen, the UAW has expressed that it would much rather thow its hat in the ring with Canadian parts supplier Magna than any of the private equity firms that have offers on the table. While the employee buyout plan is a long shot, and if successful, an incredible risk for the employees, it's also inspiring that a group of workers would be the masters of their own fate. Unfortunately, it's not yet known how much the employees could offer for a 70% stake in their employer, which, in the end, is likely DaimlerChrysler's number one consideration in this sale.

[Source: The Detroit News]

The French military may not be fighting in Iraq, but their tires are: Michelin just landed an exclusive $1.7 billion contract with the US Department of Defense to supply the American military behemoth with tires. For the next ten years (at least), every vehicle in the US Army, Navy, Air Force and Marine Corps deployed around the world will be shod in Michelin rubber.

This isn't the first Pentagon contract Michelin has won, either. The French tire company previously won a contract worth $700 million to supply the tires for all US warplanes. In order to meet the enormous supply demands of the US military, Michelin has invested a reported $16 million. For the sake of our brave boys and girls serving overseas, let's hope the French tires don't throw up their arms and surrender at the first time of trouble. (No whitewalls, please.)

[Source: F1i.com]

All the bids are in and the winning bidder has been revealed: Aston Martin is being bought by LVMH Moet Hennessy Louis Vuitton SA, the French luxury goods consortium that produces upper-crust products ranging from leather trunks and wallets to champagne and cognac...and now exotic luxury sports cars, too.

In placing the highest bid, Louis Vuitton beat out some serious contenders, including consortia led by Aston's current boss, billionaire moguls and numerous heavy-hitting investment firms.

Ford Motor Company will reportedly retain 15% interest in Aston Martin when Louis Vuitton takes over. Although both Ford PAG and Louis Vuitton declined to comment to DowJones MarketWatch, the media outlet that broke the story, German car mag Autobild will be running the story tomorrow (Friday).

While there has been a history of fashion labels and automakers collaborating on special editions – including Aston Martin and Dunhill – the purchase of a stoic marque like Aston Martin is pioneering new ground, although Louis Vuitton does have an established history in sponsoring concours d'elegance.

Gold and brown DB9, anyone?

UPDATE: Motor Trend is reporting that the published reports regarding a sale to LVMH are inaccurate.

Related Posts:

• Did you get your bid in? Auction closed for sale of Aston Martin
• Ford tells bidders Aston will earn $109 million
• Aston Martin sale imminent
• Aussies make bid for Aston Martin

[Source: MarketWatch]

Days after reports that Gorky Automobile Plant (GAZ) owner Oleg Deripaska was interested in purchasing the brand from Ford Motor Co., a spokesperson for the maker of the Volga announced that the automaker is not interested after all. GAZ, she states, is only interested in commercial vehicles and powertrains, not entire brands. Ford has yet to respond to this new development.

Related:
Would the sale of Jaguar involve Land Rover, too?
Jaguar could be in the sights of accelerated Way Forward plan

[Source: Verdict On Cars via Reuters UK]