Ford Sells Aston Martin

Discussion in 'American Cars' started by Jadotch, Mar 13, 2007.

  1. #1 Jadotch, Mar 13, 2007
    Last edited by a moderator: Apr 25, 2016
    Aston Martin sold to UK-led group
    Luxury car firm Aston Martin is heading back into British hands after being sold by Ford for £479m ($924m).

    Oxford-based Dave Richards, boss of motorsport firm Prodrive, is heading the UK-led consortium buying Aston. Kuwaiti investors are also involved.

    Ford is selling off the marque - made famous by James Bond - as it tackles its own financial woes, but the group is holding onto a £40m stake.

    Ford bought a 75% stake in Aston Martin in 1987, and bought the rest later.

    Aston Martin will remain at its purpose-built factory in Gaydon in Warwickshire, which employs 1,800 people.

    'Incredible opportunity'

    Mr Richards - who is making his investment in a personal capacity - is a former accountant who was a co-driver in professional car rallies and has been described as the "Richard Branson of motorsport".

    His company Prodrive already runs the Aston Martin racing team in the sports car series around the world, as well as the Subaru world rally team.

    "This is an incredible opportunity - Aston Martin is one of the world's most iconic brands," he said.

    "We are confident we now have all the right ingredients to take Aston Martin to even greater heights."

    Also in the consortium is John Sinders, a banker in finance and shipping who spends his time between Texas and Dubai.

    "The dream for me was to own an Aston Martin, never to own part of the company. It's a dream come true," Mr Sinders told the BBC.

    Two Kuwaiti companies - Investment Dar and Adeem Investment - complete the group.

    'Tremendously exciting'

    Aston Martin chief executive Ulrich Bez said the partnership was "a tremendously exciting opportunity".

    "It is a new beginning which will give the company the opportunity to attain an even higher level of excellence," he said.

    "This next stage in the company's history promises to be the most exciting yet."

    Mr Richards' consortium also said that earlier speculation that Prodrive may brand its cars Aston Martin when it enters Formula One racing next year was completely unfounded.

    Analysts have said that the greatest challenge for the new owners will be whether they have deep enough pockets to fund the car models needed to keep the business competitive against its top-end rivals.

    Six months ago Ford put the marque back up for sale in response to its financial problems.

    Ford lost more than $12bn in 2006, and has had to take out a $23bn mortgage to cover its restructuring.

    It said the sale was "good news" for both Ford and Aston Martin.

    http://news.bbc.co.uk/2/hi/business/6442101.stm
     
  2. wonder how this will effect Jag, isn't Ford selling that, too?
     
  3. I think they should have kept Aston and sold Jag. Aston is in the black and growing steady...Jag is drowning in red ink and losing market share rapidly! Another reason why Ford management is [email protected]#&ed up!!!
     
  4. Um, not to point out something *TOO* obvious, but who would buy a company drowning in red ink?

    You're not a CEO, are you? <A BORDER="0" HREF="http://www.supercars.net/PitLane?displayFAQ=y"><IMG BORDER="0" SRC="pitlane/emoticons/wink.gif"></A>
     
  5. One that could see various synergies, and the opportunity to get assets at a very VERY cheap price. But, the buying company would have to have its own parts bin...as I'm sure that Ford wouldn't allow future models to share in the same parts as its own.
     
  6. I'm so glad the rumors of Luis Vitton or whatever #%$gy French company it was had got it weren't true. It being back in British hands (even if the Arabs have a good slice of the pie) is awesome IMO.

    As for why they didn't sell Jag, probably because they figure it has more promise overall. Jaguar could, if run correctly, sell WAY more cars than AM ever can simply because they don't only make sports cars. Also if you sell something in the black you get more money for it. They probably got more for AM than they could for Jag, when Jag has the potential to be worth much more.
     
  7. I don't necessarily see how Aston Martin can grow, with only 1800 workers, they can't produce too many cars in a year and with each car's price tag well over $100,000, most of their series probably don't make any profit.

    When you bring in the price of Research and development, then manufacturing, and labor, It would be quite difficult for Aston to bring in much money at all.

    Jaguar on the other hand has cars from $50,000, which are quite popular among older Americans and the upper middle class. They just need to design a new car, like the XJR, possibly cheaper, and they would be in the show again.
     
  8. what exer51 and StealthGPrix said
     
  9. I dont care.
     
  10. That new CF or whatever the hell it is that's replacing the S-Type is definitely shaking things up. It's a little on the weird-as-hell side IMO, but at least they're trying to change things up. If it goes over well it could do a lot fo good for them. I just hope they don't get all radical with the XJ. The XJ is their bread and butter. It's been selling ok for 40 years now with only a slow evolution, so I see no need to change it. Just experiment around with new models.
     
  11. Same here, about Ford
     
  12. I just hope they won't have financial problems.
     

Share This Page