Ford Motor Co. officials have confirmed published reports that the Dearborn automaker is discussing the future fate of its Jaguar and Land Rover brands, which could involve a sale of one or both divisions.
Officials at the Dearborn automaker confirmed that it has had meetings with members of the British Parliament in which the future operations of the luxury brands Jaguar and Land Rover were discussed. A report on the British Broadcasting Corp. Web site late Monday said an announcement on the fate of the two brands could be made within the next few days.
On Tuesday, a Ford representative told the Free Press that the automaker has been reviewing the operations of the two luxury brands for a year.
“Ford Motor Co. has been assessing a number of strategic options for all of our operations,” said John Gardiner, with both Ford Europe and Ford’s Premier Automotive Group in London. “That review is continuing and Ford is actively investigating its options. We’re not ruling anything in or anything out and we are working with our financial advisers to determine the best future for Jaguar and Land Rover.”
Jaguar and Land Rover are part of the PAG family of luxury brands, which also features Volvo and Lincoln. Ford acquired Jaguar in 1989 and Land Rover in 2000. Former PAG brand Aston Martin was sold in March to a British-led group of investors for the equivalent of about $924 million.
Gardiner added that Ford was review its position on Jaguar and Land Rover, but that there was no timetable for making on final decision.
Ford, which lost a record $12.7 billion last year, is in the midst of a major restructuring effort that will result in closing several assembly plants and idling shifts across North America. In addition, the company will cut about 37,000 union jobs and 14,000 salaried positions.
Meanwhile, Ford posted a loss of $282 million in the first quarter of this year, which was a narrowing of the $1.4-billion loss recorded during the same three-month period in 2006.
The possible sale of Jaguar and Land Rover first surfaced in reports in the Financial Times, in which the newspaper said Ford had named three banks that could be involved in a possible deal for the brands.
The BBC also said a separate news report determined that the private equity firm Alchemy Partners was said to be “lining up” an offer for Jaguar and Land Rover. However, it isn’t clear whether the latest speculation on the sale of Jaguar and Land Rover might include Volvo.
“Volvo hasn’t been in part of the discussions (for possible sale) in the U.K.,” Gardiner said. “But it is fair to say that it has come up in relation to the review of all of our operations.”
Last month, Ford officials denied rumors that it was looking to sell its popular Volvo division to BMW.
At the time, the company issued a statement saying it was not in discussion with any parties regarding the sale of Volvo. The statement went on to say “we have seen this kind of speculation for the past year, as Ford Motor Co. has been assessing our operations and portfolio – as any good company does and we will continue to do.”
