New Euro CO2 rules could hurt Ford attempt to sell Jaguar and Land Rover

As Ford continues to work on the dissolution of their Premier Automotive Group, the coming new European Union carbon dioxide emissions rules could be playing an unwelcome factor. As with fuel economy rules here in the United States, the emissions limits would likely be averaged over the entire fleet of vehicles produced by a carmaker. For Mercedes their big high power AMG models would be offset by the 88g/km Smart ForTwo diesel. That's also probably a big part of why Porsche has bought a controlling stake in Volkswagen over the past year.

It looks like many of the potential bidders for Ford's two remaining British brands, Jaguar and Land Rover, are in the private equity business and won't necessarily have other car brands in their portfolio. The new rules could put a damper on the types of vehicles they build and limit the possible value of the brands. One possibility is that Ford could maintain a minority stake in both companies which may allow them to count their emissions along with the rest of the Ford fleet.

[Source: Detroit News]

Share This Photo X