Ford News: Jaguar, Land Rover For Sale - More Hybrids In The Works?

Lots of Ford news to talk about these days. The first piece of news is really an update item to a previous post about whether Ford was 'officially' putting Volvo and other PAG assets up for sale in an effort to raise cash. While Ford had denied that Volvo, Jaguar and Land Rover (Premium Auto Group) were for sale, recent comments and actions clearly indicate that the worst kept secret is now out of the bag. I think it is safe to say at this point that pretty much everything is for sale under the Ford umbrella and Jaguar figures to be the leading candidate to get chopped. Jaguar is bleeding red ink to the tune of about $1 billion annually, and Ford would absolutely love to get that off of their books, despite talking up in recent months how important Jaguar was to 'The Way Forward' corporate strategy and recovery plan.

After some huffing and puffing Alan Mulally, the chief executive brought in from Boeing to rescue Ford, has decided to get what he can for the firm's two British premium brands, Jaguar and Land Rover. The news trickled out this week after a meeting between Ford executives and British politicians. Although Ford's official position remains that it is simply exploring all its options, it has appointed three banks, Goldman Sachs, Morgan Stanley and HSBC, to flush out potential buyers. Fiat, an Italian car group, was tempted by Land Rover but pulled out of negotiations last month when it was warned how such a purchase would sully its credit rating.

With Jag a money-loser, it would appear that they are ripe for a private equity buyer and early indications are that Chrysler's new private equity owner Cerberus may very well make a bid for the two luxury brands. The Ford umbrella of brands are among the best groupings in the industry, and while I understand the need to sell off money losing entities, it is a shame to see Ford's overall brand strategy completely crumble before it really had a chance to flourish. The interesting thing to watch with Jaguar going forward will be how a new owner will be able to turn Jaguar into a profitable company without moving some or all manufacturing away from expensive UK labour. Good luck with that.

In other Ford news, more hybrids are on the way but details of their plans are foggy at best. The Ford Escape Hybrid has done relatively well, but the company hasn't been aggressive in any way to move beyond their initial offering. Apparently that is going to change, but when, how, what models?

Ford has "more full hybrids coming," Gioia told a conference in Ann Arbor, Mich., on emerging auto engine technologies monitored by Web cast. The comments were the first indication of Ford's plans for hybrid vehicle development since April, when CEO Alan Mulally named an executive to a newly created position to oversee environmental issues at the struggling automaker.

You see what I'm getting at here? Ford is talking, but there is little action, and weak visibility (at the moment) when it comes to their hybrid strategy and just about anything else at the corporate level these days. Hopefully a smooth open road lies ahead for Ford - but I'm guessing there are a lot more twists and turns to navigate before we see it, and how much of the current Ford company will be along for that ride is anyones guess.

via Economist

( Add your comments )

Recent Entries:
· 2011 Ford Explorer
· Honda Announces Mileage Marathon Winner
· Cadillac Converj is GM's next electric car

[ READER COMMENTS ]

Ford News: Jaguar, Land Rover For Sale - More Hybrids In The Works?

Add your comments...

We kindly ask that you keep your comments relevant to this blog entry. Abusive or inappropriate comments or comments that are specifically promotional in nature may be removed.