INTERNATIONAL. Under Ford CEO Alan Mulally, it is all hands to the pumps in the US where Ford is focussing all its resources on rebuilding the Blue Oval as a brand after losing more than US$12 billion in 2006.
Jaguar and Land Rover, both of which are made in the Northwest of England, look set to be sold by Ford, although it is unclear as to which company will buy the famous brands.
Ford is expected to make an official announcement before Friday but already Renault and Fiat have ruled themselves out. And investment banks Morgan Stanley, Goldman Sachs and HSBC have all refused to comment on reports that they are advising on the sale.
Jaguar and Land Rover, together with Volvo Cars, form part of Ford's Premier Automotive Group (PAG), which is expected to make a profit this year, according to some analysts. Ford's luxury lineup lost US$323 million in 2006.
The UK private equity group Alchemy Partners was thought to be a frontrunner in the race to buy the two brands, but it has played down rumours that it is preparing to make a bid. Alchemy was one of the rival bidders in the race for MG Rover against Phoenix Venture Holdings, at the time of the de-merger of Land Rover, MINI, MG and Rover from BMW in 2000.
Meanwhile the venture capital consortium that won the auction for Aston Martin this year has confirmed it is considering joining the hunt for the PAG brands.
David Richards, the motoring entrepreneur backed by Investment Dar, a Kuwaiti venture capital group, says: “Because of my relationship with Aston Martin and Ford Motor Company, it is obviously something we will consider when something is formalised. But I don’t believe there is a formal process up and running yet.”.
