Jaguar and Land Rover...
Jaguar and Land Rover both face significant challenges in the years to come
Though the move is yet to be made official, the American company has revealed its plans to government ministers, and explained that three banks, including Goldman Sachs, Morgan Stanley and HSBC will advise it during the sale.
The move comes as Ford continues to restructure its global business, and follows the sale of Aston Martin to a private consortium and the dissolution of the Premier Automotive Group which not only managed Aston, Jaguar and Land Rover, but Volvo too.
Jaguar and Land Rover both face significant challenges in the years to come. Jaguar’s slow sales are a result of high prices in the USA and a comparatively narrow product line up. Land Rover is currently profitable, but will need large scale investment to meet increasingly strict emissions legislation.
Ford bought Jaguar in 1989 for ÷£1.6 billion, and Land Rover in 2000 for ÷£1.8 billion. In private it is rumoured that it had been talking to both Fiat and BMW about a the sale. Both firms have now indicated that they are not interested.
It is most likely that the eventual buyer will be a private finance firm like that which bought Aston. Alchemy partners, which launched a failed bid for MG Rover in 2000, has already been linked to the two firms.
Mike Rutherford"s view