Mike Jung
09-02-2006, 12:18 AM
Ford explores sale of Aston Martin brand
Car appeared in James Bond movies
U.S. auto giant trying to free up cash
Sep. 1, 2006. 01:00 AM
TOM KRISHER
ASSOCIATED PRESS
DETROIT—Ford Motor Co. said yesterday it is exploring the possible sale of all or part of its iconic Aston Martin sports car brand as the auto maker works to free up cash to pay for its North American turnaround plan.
British-based Aston Martin is best known for its cars' appearances in James Bond movies and makes about 5,000 cars a year. They cost from $135,000 (Canadian) to $360,000 each.
Ford said no decisions have been made about its other luxury car brands, which include Jaguar, Land Rover and Volvo.
"As part of our ongoing strategic review, we have determined that Aston Martin may be an attractive opportunity to raise capital and generate value," Bill Ford, the auto maker's chairman and chief executive, said in a statement.
He said the Aston Martin's dealer network, design and size are different from other Ford brands and the most logical choice for possible sale.
He said no decisions have been made about its other Premier Automotive Group brands.
"We continue to be encouraged by Jaguar's progress and by the strength and consumer appeal of the Jaguar, Land Rover and Volvo product lineups," he said.
Ford shares rose 10 cents (U.S.) to close at $8.37 in New York.
Aston Martin has its headquarters, research and production facilities in Gaydon, England. Last month the company celebrated production of its 30,000th car.
Ford bought 75 per cent of the company in 1987 and acquired full ownership in 1994, Ford spokesman Tom Hoyt said. In 1992, he said the company made only 46 vehicles, but now makes about 5,000 cars per year.
He didn't reveal a potential sales price.
Kip Penniman, an analyst with KDP Investment Advisors in Montpelier, Vt., said any sale of Aston Martin would be more about Ford trying to focus on its core brands rather than raising capital.
"They're certainly not desperate for capital," he said. "I think what they're trying to do is pare down their product portfolio so they can achieve a better focus on the brands that are their mainstays.''
At the end of June, Ford said it had $23.6 billion in cash.
Penniman said Ford does not report Aston Martin earnings separately from its own, so it would be difficult to judge how much the company contributes to Ford's bottom line. But the amount would be "immaterial."
The sale makes sense because Aston Martin vehicles have unique platforms and don't share many features with other Ford vehicles, Penniman said.
Dearborn, Mich.-based Ford's "Way Forward" plan, launched in January, calls for shedding 25,000 to 30,000 jobs and closing 14 plants by 2012 to help return its North American automotive operations to profitability.
What are they crazy ?
What's next, Land Rover ?
Car appeared in James Bond movies
U.S. auto giant trying to free up cash
Sep. 1, 2006. 01:00 AM
TOM KRISHER
ASSOCIATED PRESS
DETROIT—Ford Motor Co. said yesterday it is exploring the possible sale of all or part of its iconic Aston Martin sports car brand as the auto maker works to free up cash to pay for its North American turnaround plan.
British-based Aston Martin is best known for its cars' appearances in James Bond movies and makes about 5,000 cars a year. They cost from $135,000 (Canadian) to $360,000 each.
Ford said no decisions have been made about its other luxury car brands, which include Jaguar, Land Rover and Volvo.
"As part of our ongoing strategic review, we have determined that Aston Martin may be an attractive opportunity to raise capital and generate value," Bill Ford, the auto maker's chairman and chief executive, said in a statement.
He said the Aston Martin's dealer network, design and size are different from other Ford brands and the most logical choice for possible sale.
He said no decisions have been made about its other Premier Automotive Group brands.
"We continue to be encouraged by Jaguar's progress and by the strength and consumer appeal of the Jaguar, Land Rover and Volvo product lineups," he said.
Ford shares rose 10 cents (U.S.) to close at $8.37 in New York.
Aston Martin has its headquarters, research and production facilities in Gaydon, England. Last month the company celebrated production of its 30,000th car.
Ford bought 75 per cent of the company in 1987 and acquired full ownership in 1994, Ford spokesman Tom Hoyt said. In 1992, he said the company made only 46 vehicles, but now makes about 5,000 cars per year.
He didn't reveal a potential sales price.
Kip Penniman, an analyst with KDP Investment Advisors in Montpelier, Vt., said any sale of Aston Martin would be more about Ford trying to focus on its core brands rather than raising capital.
"They're certainly not desperate for capital," he said. "I think what they're trying to do is pare down their product portfolio so they can achieve a better focus on the brands that are their mainstays.''
At the end of June, Ford said it had $23.6 billion in cash.
Penniman said Ford does not report Aston Martin earnings separately from its own, so it would be difficult to judge how much the company contributes to Ford's bottom line. But the amount would be "immaterial."
The sale makes sense because Aston Martin vehicles have unique platforms and don't share many features with other Ford vehicles, Penniman said.
Dearborn, Mich.-based Ford's "Way Forward" plan, launched in January, calls for shedding 25,000 to 30,000 jobs and closing 14 plants by 2012 to help return its North American automotive operations to profitability.
What are they crazy ?
What's next, Land Rover ?