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4x4 News Land Rover looking for new owner (again) By Simon Ward-Hastelow Published: 13th Jun 2007 Original article: http://www.difflock.com/magazine/4x4_News/Land_Rover_looking_for_new_owner_again.shtml

 Land Rover

Ford Motor Co. is seeking buyers for its Volvo, Jaguar and Land Rover brands in Europe as the money- losing automaker tries to focus on North America

Ford, which lost $12.6 billion last year, has hired Goldman Sachs Group Inc. and Morgan Stanley to arrange the sale. The plan is known internally as 'Project Swift'' a reference to the speed at which Ford wants to make a sale.

Selling the brands would end a 20-year initiative to expand sales of luxury autos by acquiring European companies. Since 1998, before Michigan-based Ford bought Land Rover and Volvo, the company's own Lincoln unit has plunged from No. 1 in U.S. luxury sales to seventh.

"This company desperately needs focus in terms of preserving its capital and concentrating its management resources" said John Casesa, managing partner of Casesa Strategic Advisors LLC in New York. "It currently has too many mouths to feed"



 The automaker's North American automotive operations were the primary source of last year's record loss. The unit has been hurt by declining sales of pickup trucks and sport-utility vehicles, Ford's main source of profit.

Among the European luxury brands, Volvo has been profitable and Land Rover turned profitable under Ford. Jaguar has had unspecified losses.

Wider Loss

The brands make up Premier Automotive Group, whose losses widened to $2.32 billion last year. The figure includes costs considered one-time expenses, such as job cuts.

Spokesman John Gardiner said Ford would neither confirm nor deny speculation about a sale but the company's shares rose 16 cents to $8.40 on the New York Stock Exchange. Up 12 percent this year.

Ford, the world's third-largest automaker, hinted that the brands might be sold when it announced in August that it planned to find a buyer for UK-based Aston Martin. Since then executives have said Ford continues to evaluate its assets and has no current plans to sell any of the other European brands.

Automotive News, citing unnamed sources, reported today that Ford is seeking buyers for Volvo, Jaguar and Land Rover. Reuters, citing sources it didn't identify, said HSBC Holdings Plc also was among the investment banks hired by Ford to explore options including a sale of Jaguar and Land Rover.

No Discussions

Jon Moulton, the venture capitalist who tried and failed to buy carmaker MG Rover, denied a report that he wants to purchase Premier. The report, in the London-based CityAM newspaper, said Moulton was preparing a £3billion-pound bid for the group. "It's not on our deal list" Moulton, managing partner of Alchemy Partners LLP, said. "There have been no discussions.''

Aston Agreement

In March, Ford agreed to sell Aston to a group of investors led by UK auto-racing champion David Richards for $848 million. The company bought a controlling stake in Aston Martin in 1987 and the remainder of the luxury sports-car maker in 1994. Aston is also part of Premier.

Nasser's Strategy

Under Jacques Nasser, Ford's chief executive officer from 1999 until October 2001, the company formed the Premier group to oversee the European brands. The luxury strategy was embraced by Chairman William Clay Ford Jr., even after he deposed Nasser in October 2001 and took on the CEO post. Of the brands, Jaguar has been the primary problem. Ford in 2004 announced a Jaguar restructuring that included closing a UK plant, firing 1,150 employees, scrapping a target to build 200,000 vehicles a year and exiting Formula One auto racing.