News on the achievable sale of Ford’s Swedish subsidiary is raging on. And in response to reports circulating in Europe that Volvo is for sale, Ford has released a statement last Monday refuting all reports saying that it is not involved in any negotiations to sell its Sweden-based unit. It added nevertheless, that the business is at the moment exploring all profitable options.
According to spokesman Tom Hoyt “As part of that continuing review, we’re searching at every thing and have not ruled anything out. No choice has been made.”
Ford has also confirmed that it has in reality hired financial advisers to help find a profitable supply for Jaguar and Land Rover not which includes Volvo the producer of Volvo 740 parts. Jaguar, Land Rover, and Volvo forms Ford’s Premier Automotive Group.
Cerberus Capital Management, the private equity firm that would soon owned Chrysler Group was reported to have expressed its interest in Jaguar and Land Rover but Cerberus has not confirmed such reports.
George Magliano, an automotive research director for industry forecaster Global Insight said, Jaguar won’t likely attract top dollar due to the fact the brand just doesn’t have the luster anymore. On the other hand Volvo is a a lot more attractive item since it has a solid safety reputation and has three brand new models that are scheduled to come out this year.
He also added that Ford have to start selling the things that people want. “If they could get the price they want for Jaguar, they would have sold it by now.”
Private equity group such as Cerberus Capital Management buyer of the 80 percent stake in the Chrysler Group from DaimlerChrysler AG has reportedly expressed their interest in buying Jaguar and Land Rover but Cerberus has not yet confirm such reports.
Ford has also refused to give comments on their individual brands for sale but analysts believe that Volvo is the most profitable of the 3 brands while Jaguar remains to be the biggest funds-losing brand among the PAG. Ford’s premium group has lost 7 last year but was able to earn 2 million on a pre-tax basis for the very first quarter.
Ford has earlier unloaded a former premier group unit last March by selling its boutique sports-car maker Aston Martin to a group of investors headed by British auto-racing champion David Richards for 8 million.
Jim Hossack, Vice-President of business forecaster AutoPacific said that despite the require of Ford for cash, he is in doubt that the selling of PAG is a positive thing since the Ford’s board could decide to hang on to at least some of the brands if the offers are not that great.
