Ford Reported Considering Sale Of Jaguar And Other Lagging Units

[mts]

Ford reported considering sale of Jaguar and other lagging units

posted August 2, 2006

 

DETROIT (AP) - Ford Motor Co. (NYSE:F) said Wednesday it has contracted with a former Wall Street merger and acquisitions whiz Kenneth Leet to serve as a strategic adviser to Bill Ford, the automaker's chairman and chief executive officer.

 

Ford Motor made the announcement the same day The Wall Street Journal reported that the car company, which had a $123 million US second-quarter loss, is starting a review of poorly performing units, including Jaguar, with an eye toward the possible sale of some operations.

 

Ford also is considering forming an alliance with other automakers, a move that General Motors Corp. is contemplating, the newspaper reported, attributing information to unidentified people close to the situation.

 

"There are no new plans to divest our brands or invest in a new alliance," Ford spokesman Tom Hoyt said Wednesday.

 

Hoyt said Bill Ford recently told industry analysts that while all aspects of the business were being reviewed and he wouldn't rule out any possible moves, company leaders were focusing their efforts on turning around Ford Motor's North American automotive business.

 

Ford shares rose 38 cents, or 5.8 per cent, to close Wednesday at $6.96 in trading on the New York Stock Exchange.

 

Ford has been losing market share to Asian manufacturers for a decade and has been badly stung by high gas prices because big trucks and sport utility vehicles account for a majority of the vehicles it sells. For the first time last month, it sold fewer vehicles than Toyota Motor Corp. in the U.S.

 

According to the report, Leet will lead Dearborn-based Ford's review of its ailing operations. He headed merger and acquisition teams for Goldman Sachs Group Inc. and Bank of America Corp.

 

"He'll absolutely be helpful in that process and play a key role in that process," Hoyt said.

 

The newspaper said a team will consider whether Ford should sell some underperforming brands or seek alliances with other automakers. It said the team also will look at what Ford should do with its financing arm, Ford Credit. The unit's borrowing costs have risen because Ford's credit had been downgraded below investment grade.

 

Ford acquired Jaguar in 1989. Last month, Ford lowered the financial goal for its Premier Auto Group, which includes Jaguar, Volvo, Aston Martin and Land Rover.

 

Ford sold 224,447 vehicles in July, down 35 per cent from 346,429 in July 2005. Toyota's July sales totalled 241,826 vehicles, up 12 per cent from 216,417 a year earlier.

 

Ford's Way Forward restructuring plan, launched six months ago, calls for shedding 25,000 to 30,000 jobs and closing 14 plants by 2012. By year's end, the company will have cut production capacity 15 per cent and will be a third of the way toward its targeted number of employee cuts, Bill Ford has said.

 

The company's loss of $123 million, or seven cents per share, for the April-June period contrasted with a profit of $946 million, or 47 cents per share, in the second quarter of last year. Revenue fell six per cent to $41.97 billion from $44.55 billion.

[///BHRpowered]

Some things to note, jaguar has never been a high selling car, its designed for a certain type of person.

 

Aston martin is anything but badly performing, they are back in the bond movies and sales have been raising.

 

If ford wants to cut the auto lines that are losing money, why not cut the ford out of ford?

[MazdaMomma]

Some things to note, jaguar has never been a high selling car, its designed for a certain type of person.

 

Aston martin is anything but badly performing, they are back in the bond movies and sales have been raising.

 

If ford wants to cut the auto lines that are losing money, why not cut the ford out of ford?

 

aston martin is also marketed for a certain type of person

 

and ford needs to continue developing their hybrid technology. and the ethanol 88(?) is not the way to go. should work on fuel cell technology. beat everyone else to the punch so to speak.