Following the established sale of their Aston Martin fleet early this year, it was in June of 2007 that Ford Motor Company has officially revealed another restructuring and refocusing in their system. This time, it has been reviewing the future and possible options for two other premiere automotive brands under its wing, namely the Jaguar and Land Rover Car divisions. And just a month after said disclosure, Ford has decided the company’s submission for a buyout of said brands and opened the arena for bidding procedures.
A spokesman for the brand earlier indicates, “We’ve had contact with interested parties in terms of Jaguar and Land Rover and we’re evaluating that level of interest. Any discussions we’ve had are preliminary only. We’re working with financial advisors to ascertain the best outcome for the future of Jaguar and Land Rover.”
To date, with the bidding process ongoing, Ford has not concretely divulged the number of bidders for the two luxury British brands, but the company cannot help but declare their amazement in the considerable list of interested parties. However, despite attempts in confidentiality, media reports were already able to identify the list of major suitors for Jaguar and Land Rover. The initial ardent players in the bidding is said to be India’s Tata Motors Ltd., as well as Mahindra & Mahirandar Ltd. Sources has also indicated two former Ford executives are currently leading private equity bids for the two British brands. There is Jacques Nasser, who was Ford CEO from 1999 to 2001. Nasser has teamed up in the bid with a private equity firm owned by JPMorgan Chase, aptly named One Equity Partners. Following Nasser is Nich Scheele, who was Ford’s President and Chief Operating Officer from 2001 until his retirement in 2005 and also headed Jaguar from 1992 to 1999. Scheele has joined the bidding with Ripplewood Holdings LLC.
“Each bidder has the opportunity to come down and sit and meet with the board,” said Jay Ward, a spokesman for Land Rover and Jaguar.
Nevertheless, Don Leclair, Ford’s Chief Financial Officer, has also disclosed that Ford is hoping to wrap up a sale of the two British brands by early next year.
Ford Motors Company acquired Jaguar in 1989 and Land Rover in 2000, linking them with Aston Martin and Swedish-based Volvo to form the company’s Premier Automotive Group. However, Ford posted a record US$12.7-billion loss in 2006. Thus, it has decided to sell some of its foreign brands as a means to raise funds in the restructuring of its energy to its core products of Ford, Mercury, and Lincoln brands. As Aston Martin was already sold to Primrose Cove for US$ 931 million, and with Jaguar and Land Rover already put on the market, Volvo will be the only foreign brand left in the PAG. However, Volvo may also be part of the transition phase for Ford as company officials have confirmed that Volvo is currently being evaluated for its worldwide operations as well.
