Ford selling Aston Martin\Jaguar divisions

[Imhotep Evil]

DETROIT -- Ford Motor Co. says it will consider selling its Aston Martin luxury car unit.

The company said today that it has begun exploring strategic options for Aston Martin with emphasis on the potential sale of all or a portion of the business.

"As part of our ongoing strategic review, we have determined that Aston Martin may be an attractive opportunity to raise capital and generate value," Ford CEO Bill Ford said in a statement. "(The) Aston Martin Lagonda has flourished under Ford ownership, which is why we believe it is prudent to consider a sale of all or part of this prized brand."

The statement went on to say that Aston Martin is the "most logical and capital-smart divestiture choice" of Ford's brands because its dealer network, product architecture and size are distinct.

The sale of Aston Martin also would enable Ford Motor to efficiently raise capital to support its other brands, the statement said.

Ford Motor has made no decisions on the fate of its other Premier Automotive Group brands, Bill Ford said. The automaker's strategic review of those brands continues.

"We continue to be encouraged by Jaguar's progress and by the strength and consumer appeal of the Jaguar, Land Rover and Volvo product lineup," Bill Ford said.

Ford Motor acquired 75 percent of Aston Martin in 1987. It increased its ownership to 100 percent in 1994. While Ford Motor doesn't break out specific results for each PAG brand, Aston Martin is profitable and has been for some time, Ford spokesman Tom Hoyt said.

SOURCE: Automotive News

Now Eni, what does BMW think ?!

 

[EnI]

Re: Aston Martin for sale

SOURCE: Automotive News

Now Eni, what does BMW think ?!

So BMW BoD knew more than we did. I have no idea Ford has intention to sell Aston Martin.
I'm sure BMW AG will be one of serious potential interesents for purchasing AM. I hope the price will be reasonable, that BMW will win the bid, and the BMW Supervisory board will approve the deal.

And then ...

That will be perfect! Imagine what BMW will do with AM!


PS: IE's question was based on this write-up I've posted a few days ago:

BMW Group are more & more aware there is a gap in their brand portfolio. With MINI they are covering the lower end of premium segment, with BMW they are covering the middle, Rolls-Royce is at the highest end of the segment. But a "bridge brand" between BMW & RR (covering upper premium segment)is missing. Bentley was mentioned to be such a bridge (having plan of purchasing both brands): while RR have been planned to be very exclusive (with Phantom & Corniche), Bentley would offer smaller sedans, cabrios & coupes - even a possible supercar. But Bentley is now in VW hands. The Bentley plans are burried forever.

Yet recently BMW AG have put their eyes on Aston Martin (in Ford ownership) - and monitoring closely the Ford situation. Not that AM is on sale , but Ford is considering various PAG solutions, and one never knows when Ford will start to sell their crown jewles. And in such case BMW AG will be ready to take an action. Marketing dept. is daydreaming, but the BoD has already scanned the SB mood on such a theorethical situation ...

IMO AM would fit perfectly between BMW & RR brands: offering exclusive premium sports cars (coupes, cabrios, roadsters, small sedans , and a possible mid-engine supercar), and being perfect Bentley, Maserati & Porsche fighter.

Let's see what the future will bring ... Let's hope dreams come true ...

 

[Imhotep Evil]

Re: Aston Martin for sale

Well I've chated on other forums on speculations about Ford selling Jaguar, then also LR and later AM.
I'm surprised it took so long for this to reach GCF forums.
Also what does that SB stand for.

 

[EnI]

Re: Aston Martin for sale

Well I've chated on other forums on speculations about Ford selling Jaguar, then also LR and later AM.
I'm surprised it took so long for this to reach GCF forums.

I was aware Ford had considering different solutions for PAG devision, but most specualtions said Ford would rid off the loss making brands (eg Jaguar), but not Aston Martin - which is profitable and "crown jewel" brand in PAG protfolio.

 

[Imhotep Evil]

Re: Aston Martin for sale

I was aware Ford had considering different solutions for PAG devision, but most specualtions said Ford would rid off the loss making brands (eg Jaguar), but not Aston Martin - which is profitable and "crown jewel" brand in PAG protfolio.

Well, my friend than read this:

Next up, the desperate straits that the Ford Motor Company finds itself in dominates the media now and rightly so. An iconic American company inexorably linked to the very fabric of this nation that's now quite literally on the ropes certainly merits front page coverage. Let me just say that Bill Ford was the first head of a major automobile company to seek me out personally after I founded Autoextremist.com more than seven years ago, and in my limited dealings with him since then I find him to be warm, real, bright and intensely focused on righting the company that carries his family's name - and history - on it. But Bill was late to the realization that the rapidly changing global industry, the intensely competitive U.S. market and the burgeoning energy price upheavals would negatively affect his company in a huge way, which in turn made him late to the realization that the Ford Motor Company's fortunes were in danger of falling off of a cliff.

It didn't help matters that the stifling Ford bureaucracy that has been built up over decades conspired to keep the truth from him at all costs, either. When the Chairman has to go searching for straight answers from the assembled brains around him - and still comes up wanting - then crucial issues are underestimated, opportunities are missed, and monumental mistakes are made (the total bungling of the Lincoln brand being the most glaring). That's why Ford finds itself in the dire, life-or-death situation it's facing today.

Do I think Ford is toast? No, not yet anyway. Even though their sacred cash cow, the F-150 pickup truck, has come up lame in this era of consistent $3.00 and up gasoline prices, Ford still has something left in the tank. Remember me mentioning "the franchise" earlier? Well, the F-150 is still the franchise for the Ford Motor Company, even though the wind is out of its sales, but beyond that the upcoming Edge crossover is the most pivotal vehicle on Ford's plate over the next 12 months. If the Edge is anything less than a grand slam home run for Ford, then I would be fearful for Ford's fortunes.

I think Mark Fields gets it, and I think Bill Ford himself finally gets it. Desperate times require desperate measures - and Bill and his newly-invigorated troops are trying their damnedest to finally Do the Right Thing, albeit late. They will sell off brands to raise cash, there's no question - Jaguar, Aston Martin and Land Rover are all fair game, and as ugly as it is now, it could get even uglier before they see a genuine up-tick in their fortunes again. But if Ford can hang on long enough, they will emerge from this a better, more proactive and more focused company that won't let itself get lost in the wilderness again. At least I certainly hope not, because there won't be a next time if they screw this up.

This is already one week old.
I've been discusing this on other forums for about one to two weeks.

 

[EnI]

Re: Aston Martin for sale

Well, my friend than read this:

This is already one week old.
I've been discusing this on other forums for about one to two weeks.

I was aware of the possibility Ford could sell the PAG brands, but the theory was Jaguar, Saab, Volvo, LR were more likely the "victims", not the AM.

I'm just surprised Ford announced AM brand is for sale, while other troubled brands will still stay in Ford's arms.

Whatever. I hope it will end in BMW Group hands soon - it depands on price, of course. Btw, there are rumours LVMH Group are interested in AM brand, despite LVMH having no automotive experiences.

 

[Yperion]

Re: Aston Martin for sale

Porsche has a lot of spare cash and with Piech running the show behind the scenes i bet they will make a good offer.

 

[Imhotep Evil]

Re: Aston Martin for sale

Porsche has a lot of spare cash and with Piech running the show behind the scenes i bet they will make a good offer.

Why would they need such an unapropiate brand ?!
The have themselves and a stake in VAG with its Bentley/Bugatti/Lamborghini divisions and upcoming Audi R8.

 

[EnI]

Re: Aston Martin for sale

Porsche has a lot of spare cash and with Piech running the show behind the scenes i bet they will make a good offer.

Why would Porsche buy Aston Martin which is compiting in the same segments (AMV8 vs 911; Rapide vs Panamera; DBS vs Caymann)?

I'm more sure Porsche / Piech is more interested in VAG and their premium brands ...

But Porsche could just be interested in AM only to rise the bid ... Dirty game ...



I can see BMW Group & Renault Nissan as the most possible buyers ... Or some other investor outside automotive industry ...

Also what does that SB stand for.

Supervisory Board - who gives approval on all major business decisions.

 

[dOmInIX]

Re: Aston Martin for sale

This will be interesting! I want to see AMs beautiful and in good hands! I think BMW will be serious candidate for buying AM, and if it happens I think it will be good thing!

 

[Osnabrueck]

Re: Aston Martin for sale

Actually, BMW sounds like very good match for AM. There's essentially no product overlap, and the BMW halo would fit well with the luxury sport image.

Still - I'd hate to see BMW become a needlessly sprawled company with their tenticles caught in every single facet of the business.

 

[warot]

Re: Aston Martin for sale

BMW is the last company in Germany without an expensive sport brand (eg Lamborghini, Porsche, McLaren). I think it would be great to have AM as an asset.

 

[Osnabrueck]

Re: Aston Martin for sale

When I think long term, I actually hope they don't. I'd much rather them go the Mercedes Benz route and use in-house talent to produce a special line of vehicles like what we've seen with McLaren.

BMW has room to grow when it comes to image, but they're on the right track. If they can keep up the momentum, the world will be ready for outrageous BMW supercars in about a decade.

 

[YoungWarrior]

Re: Aston Martin for sale

aston martin could be positioned between porsche, lambo and betley. VAG or porsche could make it work.

 

[Sunny]

Re: Aston Martin for sale

aston martin could be positioned between porsche, lambo and betley. VAG or porsche could make it work.

R8 is already getting nerfed to stop it from bumping into gallardo. If they buy AM, what's next? a wimpy 300hp to keep AMV8 safe?

 

[Osnabrueck]

Re: Aston Martin for sale

aston martin could be positioned between porsche, lambo and betley. VAG or porsche could make it work.

Too many conflicts of interest. Porsche nearly competes in this segment and probably couln't bridge over much of their technology. VAG is brand-saturated, and would have a conflict of interest with Bentley.

Hyundai anybody?

 

[YoungWarrior]

Re: Aston Martin for sale

aston martin could be the more sporty styled bentley is what im saying. Bentley could go a little more upmarket and astons would just be uber luxurious GT cars. The gallardo and R8 arent GT's and really the gallardo should have more power than it currently has to lead the pack. No one who once wnated a gallardo will opt for a R8 instead just because its cheaper. People buy lambos for the badge image and styling.

 

[EnI]

Re: Aston Martin for sale

The only companies that are currenntly able to purchase AM are (IMO):

BMW
Porsche
Renault Nissan
Toyota
and maybe some large Chinese automotive company ...

VAG has no resources to go for it ... Neither does DCX. Nor does Hyundai.

I'm not sure Toyota will be interested since they haven't done any similar move in the past. They obviously want to grow organicly - with their own brands.

Porsche - they invested a lot in VAG, and have interest to invest more ... Also not in Porsche's nature to be a Group with a several brands in portfolio.

Renault Nissan - they have an interest in a true luxury brand which is missing in their portfolio. So ...

BMW are the interested the most since they are missing Bentley so much since being seperated from RR. Bentley would have been premium exclusive sports brand - like it is today under VW. So AM would fit perfectly in BMW Group portfolio.

*****

I spoke with one of my BMW sources few hours ago, and he told me the situation in Munich HQ was very hectic these days.

Supervisory board is meeting unexpectedly today (Friday) ... and also there will be meeting with CEO and main BMW investors at Quandt family residence in Bad Homburg near Munich. So ...

He speculates possible AM purchase might be the reason - but that is just a speculation. Another reason could be the CEO change - Herr Reithofer is starting his CEO job today (Sept 1), so it could be a meeting with investors due that reason - to informally chat with them in Quandt's residence ... While Supervisory Board could meet to offer Herr Panke a seat in supervisory board (also a speculation) ...

We should wait if there will be an official press release about the meeting on Friday ... If not something more important and strategic is going on ...

Aston Martin purchase perhaps?

 

[Osnabrueck]

Re: Aston Martin for sale

Nissan/Renault sounds like a natural for this role. I'd be happy to see them take on the brand.

I'm of the mind that BMW is best off growing their brand into this particular niche organically. On the other hand, AM could be a truely awesome brand under the watch of BMW.

 

[Centurion]

Re: Aston Martin for sale

Ford isn't doing to good these days and selling some of it's not so profitable companies before it is too late isn't such a bad idea.