David Kiley over at BusinessWeek took a look at the idea of a merger between Ford Motor Company and another automaker, and had these two questions -- what's Ford worth, and would anybody even want a piece of that?
As the company mulls selling off branches like Ford Credit or merging a la GM and Renault/Nissan, they're fair questions to ask. Market capitalization puts Ford at about $13 billion -- by comparison, Toyota is worth a whopping $170 billion. Ford's semi-recent brand acquisitions, such as Jaguar, are unlikely to fetch anything close to what they bought them for.
What's a Ford exec (or recently-hired merger and aquisition guru like Kenneth Leet) to do? Ford's dire straits mean that, even at "employee pricing," its parts are unlikely to be bought, though it is possible that a Chinese, Korean or British company would go in on a joint venture.
It's easy enough to say that Ford should trim itself down to Ford, Volvo and Lincoln brands, but when nobody's buying what you're selling...
So, dear readers, how do you think Ford will manage to sell off some pieces to generate cash and offset tanking market share? Or is Kiley's article too dismal? Let us know your thoughts.