Land Rover up for sale

[Tony F]

Just heard on the radio that Ford are to sell off Land Rover and Jaguar.

More news here http://news.bbc.co.uk/

[ChrisW]

http://news.bbc.co.uk/1/hi/business/6743669.stm

Not an official announcement from Ford as yet, is this the sounding of the death knell?

[Boggert]

Cool.... If we all chip in a tenner we may just get it!

I just hope and pray its not going the same way as Rover.

[Tony F]

True, looking at the BBC News site it appears to be the unions that have made an announcement not Ford:

"Jaguar and Land Rover jobs fears  
 
Workers have every reason to worry about job losses, analysts say
Union leaders have voiced concerns about the decision of US carmaker Ford to put its British luxury car marques Jaguar and Land Rover up for sale.

Dave Osborne, national officer of the Unite union, said its "prime concern" was the job security of workers.

Jaguar has about 10,000 staff at sites in Coventry, Birmingham, and Liverpool, while Land Rover employs about 9,000 in the West Midlands and Warwickshire.

Ford has been selling assets in a bid to offset falling sales and profits.

The company is expected to make an official announcement in the next few days. "

[v8kenny]

Should this not be moved to the "for sale" section ?  :lol:

[datalas]

Should this not be moved to the "for sale" section ?  :lol:

No, we wouldn't be able to reply to it then ...

In seriousness, Ford are hemorrhaging money at the moment and lost I think it was $121 million last year,  it's not surprising they'd try to sell a division which is easy to sell off.  If you think about it,  they're both reasonably recent additions to the ford family and don't (or haven't) adopted the ford brand as yet, so getting rid of them isn't going to be as logistically difficult as say selling the ford transit :)

Also, don't forget that both are European companies by and large, where as Ford are bound to protect their core business (the states) before anything over here.

Considering that I think land rover managed to make a profit last year I'd imagine someone will buy them,  after all, if you're ford and wanting to recoup some badly needed cash you're not going to try to flog a lemon.

I guess they'll end up being owned by a Russian conglomerate :?

[Evilgoat]

Should this not be moved to the "for sale" section ?  :lol:

 they're both reasonably recent additions to the ford family and don't (or haven't) adopted the ford brand as yet, so getting rid of them isn't going to be as logistically difficult as say selling the ford transit :)

*cough*x-type*cough*

[V8MoneyPit]

Both brands have now built up a decent reputation after poor times in the past. I don't think there will be any trouble finding a buyer who wants to keep them going.

Jaguar are now regularly in the top few makes for customer satisfaction. A far cry from the '70's and '80's.

Ford have done well with both brands. They have injected money and have lifted the profile of both Jaguar and LR.

It will be interesting to see what happens over the next few days.

[Thrasher]

Hmmmm....so let me recall ...

Jaguar used to make sports cars - now they make diesel estates.
Land Rover used to make utility vehicles - now they make sports cars...

Something somewhere is very odd.

[Eeyore]

Last year, the losses at Ford stretched into the billions of dollars, but given the cost of developing new models smome proftiability fluctuations are expected.

Sad fact of the matter is that in the US Ford has survived by making money from it's finance department, not from it's manufacturing - which isn't really a plum way of runnin' a manufacturin' company..

Despite having to pay for the development of the Freelander 2 and amortizing the costs of the T5 platform, Land Rover made a return - not to shabby, all things considered. Jaguar didn't fair quite so well, but with paying for two vehilce development programmes in tough, low volume sectors, it's not entirely suprising.

LR could be a good buy for someone - not sure who though. Ford have done the place a lot of good (and Ford Europe makes a healthy profit, too). Maybe with the shift towards greener product lines, Ford don't see a rosy future for luxury saloons or SUVs - the two markets that are getting hit the hardest Stateside.

If it was my money going into LR, I would scale back development on fashionable vehicles (and possibley rationalise product lines a bit) and pay heed a little more to what has been a core market for 50 years. Fashions change, and 4x4s will go out of fashion. The industrial and military market will always want a suitable vehicle - and that's the one trick I think Ford have missed.

As an aside, did anyone else realise the new Focus cost $4 billion to develop and tool? Making cars ain't cheap!

Cheers
 8)
Eeyore

[V8MoneyPit]

Hmmmm....so let me recall ...

Jaguar used to make sports cars - now they make diesel estates.
Land Rover used to make utility vehicles - now they make sports cars...

Something somewhere is very odd.

 :lol:  :lol:  :lol:

Yes, indeed! Jaguars first 'proper' car was, though, a sporting saloon. And that is what they have always excelled at. The vast majority of Jaguars have been sporting saloons. Their current line up still maintains that image IMHO. Even if there are a few oil burners in the mix!

As for the current LR line up...... the Range Rover is to blame for that!! And all the X5's, M class Mercs, Chayenne's, etc also owe everything to the RR. So 'posh' landies are hardly a new thing. Not quite sure where the new Defender fits into the range though..... my jury is still out on that one  :D

[Eeyore]

This just in:

BREAKING NEWS: UK [updated 15:50BST]: Ford denies Jaguar/Land Rover sold yet
12 June 2007 | Source: just-auto.com editorial team

Despite numerous media reports to the contrary, Ford has made no firm decision on selling the luxury Jaguar and Land_Rover brands, the automaker told just-auto on Tuesday afternoon.

London-based spokesman John Gardner said that things had "hardly changed" since the initial flurry of news reports on Monday following a City newspaper report, subsequently denied, that private equity firm Alchemy Partners was set to buy the brands for GBP3bn.

Gardner reiterated that Ford was assessing all of its strategic options, and reviewing all of its operations.

"We're not ruling anything in or out," he said.

Gardner confirmed, however, that Ford was working with its financial advisers to establish the "best future for Jaguar and Land Rover" and stressed that a sale would not necessarily be the final outcome.

However, Gardner declined to say whether or not Ford was currently considering any firm offers for the two brands.

Earlier today, the BBC reported that Land Rover and Jaguar workers are again facing job loss uncertainties after a union leader voiced concerns about Ford's reported decision to sell the brands.

According to the broadcaster's website, Unite union national officer Dave Osborne said its "prime concern" was the job security of workers.

Jaguar has about 10,000 staff at sites in Coventry, Birmingham, and Liverpool, while Land Rover employs about 9,000 in the West Midlands and Warwickshire, the report said.

The BBC noted that Ford has been selling assets in a bid to offset falling sales and profits and said the automaker was expected to make an official announcement in the next few days.

BBC business editor Robert Peston reported that Ford had told UK members of parliament (MPs) it was still some way from doing a deal but expects strong interest from private equity firms.

Separately, the Associated Press (AP) quoted local politician Lorely Burt, who represents Solihull, as saying that MPs were told on Monday night that Ford was "looking at all the options which may or may not include a sale." That has since been confirmed by Ford's Gardner.

The view was also echoed by Geoffrey Robinson, representing Jaguar's base in Coventry, who, according to AP, said speculation about a sale was "was not news in the sense that ... it was announced some time ago that they would be looking to do this."

"It seems to have moved on a whole gear now that they do have certain groups earmarked who might go forward and make specific bids," Robinson reportedly told BBC radio.

"Ford have got some huge problems on their own, really huge facing survival really on their hands. They actually don't have the management capability, never really had it, to make a success of Jaguar. And Jaguar could potentially be a great success story, as could Land Rover," said Robinson, who was chief executive of Jaguar Cars in 1974-75.

Yesterday, Alchemy Partners denied a report in the City AM newspaper that it was about to lodge a GBP3bn bid for Ford. The automaker did not directly deny a sale was planned soon, however.

Alchemy chairman and founder Jon Moulton on Tuesday told the BBC that there was uncertainty surrounding jobs at the two firms - and unions should be worried. "They would be right to be concerned," Moulton said.

"At the moment it is absolutely anybody's guess what the medium and long-term situation will be for jobs in those plants," he added.

Unite's Osborne said the union could not see why Ford would want to sell the businesses.

"We find it difficult to understand why Ford would want to sell a successful, growing and environmentally improving brand like Land Rover," he told the BBC.

Osborne added that Jaguar "was a significant player in the luxury market and one that Ford has invested heavily in. We are very concerned to hear these reports and we are seeking an urgent meeting with Jaguar and Land Rover. Our prime concern is the job security of our members."

The BBC noted Monday reports that Ford had chosen Goldman Sachs, Morgan Stanley and HSBC to advise it on the sale of Jaguar and Land Rover.

Jaguar, Land Rover - and Volvo - are all part of Ford's Premier Automotive Group (PAG).

The British luxury sports car maker Aston Martin was also part of this group but, last March, was sold to a UK-led business group for £479m ($924m).

Analysts have wondered for some time what Ford might do with Land Rover and Jaguar, neither of which has performed well, the BBC said.

Both Jaguar and Land Rover have steadily shed staff in recent years as they restructured their UK manufacturing facilities.

Land Rover workers at the company's Solihull plant in 2004 agreed to a new, more efficient work practices as part of a new 'road map' for the company's future.

However, the automaker subsequently decided the plant had not met the agreed efficiency targets and, last year, transferred production of the redesigned top-selling entry-level Freelander to the Jaguar X-type plant at Halewood near Liverpool (which was running below capacity due to disappointing X-type sales), requiring some of the 8,000 Land Rover shop floor workers at Solihull to either relocate or accept severance packages.

Separately, Jaguar, also in 2004, announced plans to end car production at its famous Browns Lane plant in Coventry, with 400 voluntary redundancies, and and move XKS/R and XJ production and 425 jobs to the Castle Bromwich S-type factory.

Jaguar also axed 750 mostly white-collar staff as 'back office' work was merged with Land Rover. The plan left about 300 jobs at Browns Lane, where workers make wood finishes.

Ford also is on schedule with its 'Way Forward' plan, intended primarily to return its North American automotive operations to profit, and that involves the axing of thousands of both blue and white collar jobs and the closing of a large number of factories.

[thermidorthelobster]

The media have described Jaguar and Land Rover as loss-making (somewhere in the few hundred millions I think).  But in fact Land Rover is rather profitable.  Unfortunately, Jaguar currently loses much more than Land Rover makes.

[muckmoses]

So we once again have a situation where Land Rover are proping up a failing car company, using engines and transmitions etc from Jaguar.

Land Rover was a great marketing play on Rover somehow Land Jaguar does not have the same ring.

[kizz81]

land rover and jaguar should be joined up i think because range rover needs the jag engine...
my mum n dad both have jags and i have been in a simular age ford that cost twice the amount of my mums x-type and it was no way near as good the ford was shocking! i would prefer to ride in my defender its miles comfier than a ford!

cheers kieran

[07DefenderSeb]

I think Ford would quite like to keep Land Rover, but in order to sell loss-making Jag, they have to sweeten the deal with LR.

If i were them, i'd lose Volvo, not LR.

[Eeyore]

With the amount of money that Volvo makes and it's input into advanced manufacturing, I'd definately keep Volvo, Mazda, Land Rover and Jag and sell off Ford North America instead! The seem to drop the most cash!  :lol:  

Jag just needs a bit of rationalisation and it could be a healthy goer again. They made leaps and bounds in terms of quality, so it's not an unfeasible ask.

Cheers
 8)
Eeyore

[William]

Ford will never loose volvo, they are simply the best veihcle in the world in all aspects. What they should do is sell jaguar separately but allow rights from both companies to the share technology. I rather like land rover being in fords hands