Ford has had enough with its Jaguar and Land Rover brands isn’t something new to you people as the company’s plan to sell the two non-profitable brands became public a month ago. If any of you doubted that it was some kind of a rumor, the confirmation is now obvious, as Ford has set July 19 as the last day to accept bids for the two British brands.
This would be more off a ‘who will bell the cat’ scenario as the bids are expected to come from private equity bidders for we all know the state of the large car makers and a new challenge under such circumstances for them could mean, a suicidal act.
The private players who have already made an entry include Cerberus Capital Management, Ripplewood Holdings and One Equity Partners. Interestingly the last name mentioned in this list includes Jac Nasser, former chief executive of Ford; it was during his stay at the Ford Office that the two British brands became a part of Ford Motor Co.
Probably an indication that if the One Equity Partners manage to secure the claim, Jac Nasser could play an active part in resurrecting the two brands, but then again the verdict depends on how good the bid would be.
Ford has plans to sell the two brands together, but then they even have agreements made to sell them separately, either way this would be a very testing task for the tottering company.
Although the deadline for the bid is going to close soon but then the handover will take time, as the company hasn’t prepared the full documentation.
I mentioned in the beginning that the big names aren’t prepared to risk their fate by taking over the British Brands but it no way means that the private players will have a smooth ride. These Brands have been recognized with one many problems in the past, especially Jaguar, as it still is a loss making ally for Ford, Rover though has improved in the recent past. All in all, whoever secures the deal will have to work out of their skins to see these monikers bringing in money for them.
