Pending Aston Martin Sale

[barondw]

LONDON (Reuters) - Ford Motor Co (NYSE:F - news). could announce the sale of its Aston Martin luxury performance cars unit for more than 450 million pounds ($865 million) as early as this week, a source familiar with the matter said on Monday.

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Formula One team Prodrive, working with Egypt's Naeem (NAHO.CA) investment bank, is frontrunner to buy the business although other bidders such as UK buyout firm Doughty Hanson are still in the process should talks fall through, the source said.

The timing of the deal could also yet slip, the source added.

Doughty Hanson and Syrian-born property tycoon Simon Halabi also submitted second-round offers for Aston Martin in an auction being run by investment bank UBS AG (UBSN.VX), sources familiar with the matter said last month.

Ford said last year it would sell all or part of Aston Martin to raise funds for other businesses.

Aston Martin is on solid financial footing, a top Ford official said in January, adding that sales of the British car made famous by the James Bond spy movies increased by around half last year to about 6,500 units.

Ford declined to comment.



Neil: Is it better off being out of Fords hands.

Dave

 

[ROCMAN]

I've always like Aston's. Now all they have to do is work on reliability.:wink

LONDON (Reuters) - Ford Motor Co (NYSE:F - news). could announce the sale of its Aston Martin luxury performance cars unit for more than 450 million pounds ($865 million) as early as this week, a source familiar with the matter said on Monday.

ADVERTISEMENT

Formula One team Prodrive, working with Egypt's Naeem (NAHO.CA) investment bank, is frontrunner to buy the business although other bidders such as UK buyout firm Doughty Hanson are still in the process should talks fall through, the source said.

The timing of the deal could also yet slip, the source added.

Doughty Hanson and Syrian-born property tycoon Simon Halabi also submitted second-round offers for Aston Martin in an auction being run by investment bank UBS AG (UBSN.VX), sources familiar with the matter said last month.

Ford said last year it would sell all or part of Aston Martin to raise funds for other businesses.

Aston Martin is on solid financial footing, a top Ford official said in January, adding that sales of the British car made famous by the James Bond spy movies increased by around half last year to about 6,500 units.

Ford declined to comment.



Neil: Is it better off being out of Fords hands.

Dave

 

[Neilda]

An Egyptian owner?

Abdul Martin? :lol


As an Aston owner, and I'm sure many owners feel the same way, Aston would be better off in the hands of Ford. It is Ford that have made Aston what it is today - a World Class marque. The current model line up, V8 Vantage, Vantage Roadster, DB9, DB9 Volante and Vanquish have all been feted in just about every article written.

Previously (and I have Astons from 30 and 40 years ago) Aston was an outdated manufacturer and they would have struggled in the new and even more competitive automotive world. Ford reversed this decline - more, Ford pushed them uphill.

However I am not familiar with the state of Ford's finances and perhaps they need to sell - but for me, that's a great shame.

 

[Empty Pockets]

However I am not familiar with the state of Ford's finances and perhaps they need to sell - but for me, that's a great shame.

Basically, Ford has "mortgaged the farm" with zillions of dollars in loans to see them thru their present corporate 'hard times'.
The sale of AM will pbly pay the interest on same for a day or two... mebbe.:skep

 

[barondw]

An Egyptian owner?

Abdul Martin? :lol

However I am not familiar with the state of Ford's finances and perhaps they need to sell - but for me, that's a great shame.

Neil

Abdul Martin, no; Harrods didn't change their name with Al Fayed.

Ford took a huge loan and had to literally mortgage everything, as Empty Pockets indicted. They had to use every asset they had including their properties and buildings for security. Thus if they do not raise money and start reducing costs, thus making a profit, they could be in extremely critical condition, if they are not already there.

They are holding to the position that Jaguar is not for sale and then add, currently not for sale.

Thanks for you insights.

Dave

 

[dbk]

As an Aston owner, and I'm sure many owners feel the same way, Aston would be better off in the hands of Ford. It is Ford that have made Aston what it is today - a World Class marque. The current model line up, V8 Vantage, Vantage Roadster, DB9, DB9 Volante and Vanquish have all been feted in just about every article written.

Previously (and I have Astons from 30 and 40 years ago) Aston was an outdated manufacturer and they would have struggled in the new and even more competitive automotive world. Ford reversed this decline - more, Ford pushed them uphill.

However I am not familiar with the state of Ford's finances and perhaps they need to sell - but for me, that's a great shame.

I agree completely. Aston went from the absolute nadir a car company can reach (42 total units produced in 1992 :eek ) to being a company that produces several thousand absolutely gorgeous, classic, and modernized vehicles annually today. Even the leap from DB7 to Vantage to DB9 and AMV8 has been massive. Best looking cars on the road today - Ian Callum and Henrik Fisker will be remembered as the great car designers in this era.

It's sad to see it go, but apparently the rift between AM and the people at the parent company involved enough philosophical differences to make it the most logical divestiture. Beyond just getting a quick billion out of the deal, the relationship has been termed "frosty" as of late, even before the talk of a sale began. This manifested itself most clearly at the NAIAS, where the Aston stand was literally two cars in front of a cardboard background, with no personnel manning it. How's that as a public "bite me" to Dearborn? Ouch.

Oh well. As long as the company retains the employees they have providing direction today, I don't think it matters all that much who owns it. They'll suffer in some ways, gain in others...

 

[dbk]

They are holding to the position that Jaguar is not for sale and then add, currently not for sale.

My guess is that that position largely depends on this car:

Clearly Jaguar has been a complete disaster up to this point. The X-type was a colossal disaster, and carrying the capacity to build 200,000 units when you build 110k in one of the most expensive labor markets in antiquated facilities is NOT a good idea :lol

But that car is a stunner, and is a very thinly veiled version of the new S-Type. Add in this beauty:

And all of the sudden Jaguar has a gorgeous, modern, compelling lineup. Definitely make or break.

If it were me though? I'd sell it. It's bled red too long.

 

[Empty Pockets]

They also need to "up" the H.P. in ALL their cars so they can literally KEEP UP with everybody else (wunna the reasons the "X" type flunked, IMHO).:rolleyes


That sdn looks like they took from BMW & Volvo on the front - and almost pure Aston on the rear. 'SWEET CAR! (The "gills" aft of the front wheels need work though...ugh! They look like sumbuddy just decided to cut out a piece of the fender & slapped 'em in there as an after thought.)

 

[dbk]

They also need to "up" the H.P. in ALL their cars so they can literally KEEP UP with everybody else (wunna the reasons the "X" type flunked, IMHO).:rolleyes


That sdn looks like they took from BMW & Volvo on the front - and almost pure Aston on the rear. 'SWEET CAR! (The "gills" aft of the front wheels need work though...ugh! They look like sumbuddy just decided to cut out a piece of the fender & slapped 'em in there as an after thought.)

The gills on the CX-F do suck. That's my only criticism. They are half-assed versions of the one on the XK and the Portfolio. The rest is excellent. Love the headlamps, grille, beltline....mmm....

As for the power, I've had an S-Type R and an 05 XJ8. The XJ was more than adequate in the guts department (tremendously smooth motor, and the car overall was miles ahead of the previous gen as a driving experience. I think it's beautiful in a distinctly British manner, but obviously it's a bit too similar to the old car) and the R was flat out awesome. That car would pull to it's limiter and hold it with ease. Just a great, great car for a DD. Not flashy, not trying to be a sports car. Just 390hp of swift, silent, haul-ass.

The X-Type was a poor concept from the start. Jaguar is not, nor will it ever be BMW.

 

[Neilda]

I am not familiar enough with Ford's financial position to take a view on the sale, but £450m doesn't sound a lot for Aston Martin. I hear Hanson revised their offer to £350m because of pensions and costs related to safety and engineering tests that were previously provided and paid for by Ford.

That puts AML on a P/E of about 8.5 which to me sounds low. Factor in that Ford had originally pitched the sale at between $1 -2bn and I'm unsure why they'd sell. If as Dave says, they mortagaged to the hilt to buy AML, I wonder what materially changed?

If I were an American I would be irritated that a foreign car company was potentially going to cost US jobs - but as AML are in profit, I'm not sure that's the case. However they may have slipped on some covenants somewhere - and, hey, I don't know the full picture.

From my perspective, it's a shame. Ford resurrected a legend in Aston Martin, which sounds familiar in these waters.

 

[Empty Pockets]

If I were an American I would be irritated that a foreign car company was potentially going to cost US jobs

Shoot, Neilda, what's new? NAFTA and CAFTA have already cost the U.S. job mkt big time as it is anyway. Our gov't sure isn't looking out for "Joe Average".
And, as far as U.S. auto makers are concerned, if one were to walk into ANY domestic dealership and yell "BONZI!!!!" (or, "Ola!" ...or whatever), half the parts & half cars in there would jump to attention. There really ISN'T a "domestic car" - or much of anything ELSE - built in this country anymore.

 

[Neilda]

It's the same in the UK too - Rolls Royce is owned by BMW, Bentley by VW, Rover by the Chinese.....

The UK once had a thriving industrial heartland - my grandfather ran a steel business in Birmingham (England!), nothing exists of it now.....

Right, that's got us nice and gloomy!

I'm taking the day off work tomorrow and, if the sun shines, shall take out America's finest for a blast around the neighborhood! :biggrin

 

[barondw]

DBK

You are partially right in your statements about Jaguar. Yes it has been a disaster up to now. But regardless of what any new model does it will still be a disaster when you look at the total money FoMoCo has invested. They will never show a profit from their foolish spending spree on this marque.

It is estimated that in addiiton to the original cost of $2 billion they have "invested" somehwere in the range of an additional $ 20-30 billion with no positive financial results based on people that watch the auto industry very closely. Just plain nuts IMO.

Dave