The squeeze in the credit markets could become a factor in Ford Motor Co.'s attempts to sell its Jaguar and Land Rover brands, CEO Alan Mulally said Wednesday.
“It absolutely is an issue,” Mulally said. “Raising money is a key part of anyone's plan to buy anything right now.”
So far the credit squeeze hasn't slowed down the Jaguar-Land Rover sales activity, Mulally said. And he expects the credit problem will settle down.
Ford is talking to a handful of bidders about selling the pair of British luxury brands. They are believed to include several private equity groups, plus a pair of Indian automakers.
Ford executive Lewis Booth ruled out announcing a sale at the Frankfurt auto show or at the end of September, as has been rumored. Instead, Ford aims to finalize a deal by late this year or early next year, said Booth, executive vice president overseeing Ford of Europe and the Premier Automotive Group.
PAG includes Jaguar, Land Rover and Volvo, which Ford also is reviewing for a possible sale. The company sold the Aston Martin brand earlier this year.
The reason for shedding the PAG brands, Booth said, is Ford's limited resources. “One is cash; the other is management time,” he said.
While that reasoning can be applied to Volvo, too, the decision is more difficult when considering the Swedish brand, Booth said. “It's more integrated into our business,” he said.
