Ford ready to sell Aston Martin

[jorismo]

FORD ANNOUNCES AGREEMENT TO SELL ASTON MARTIN


DEARBORN, Mich., March, 12, 2007 – Ford Motor Company [NYSE: F] announced today it has entered into a definitive agreement to sell Aston Martin, its prestigious sports car business, to a consortium comprised of David Richards, John Sinders, Investment Dar and Adeem Investment Co. This transaction is the result of Ford's decision, as announced in August 2006, to explore strategic options for the Aston Martin business as the company restructures its core automotive operations and builds liquidity.

The sale is expected to close during the second quarter and is subject to customary closing conditions, including applicable regulatory approvals. The transaction values Aston Martin at £479 million ($925 million). As part of the transaction, Ford will retain a £40 million ($77 million) investment in Aston Martin. Other terms and conditions specific to the sale are not being disclosed at this time.

"The sale of Aston Martin supports the key objectives of the company, to restructure to operate profitably at lower volumes and changed model mix and to speed the development of new products," said Alan Mulally, Ford's President and chief executive officer. "From Aston Martin's point of view, the sale will provide access to additional capital, which will allow Aston Martin to continue the growth it has experienced under Ford's stewardship. Today's announcement is good for Ford Motor Company, good for Aston Martin and good for the UK. We wish Aston Martin every possible success for the future."

The new owner of Aston Martin is a consortium comprised of: David Richards, founder and chairman of Prodrive, a world-leading motorsport and automotive technology company; John Sinders, an avid Aston Martin collector and a backer of Aston Martin Racing; and Investment Dar and Adeem Investment Co, international investment companies headquartered in Kuwait.

Ford Motor Company, a global automotive industry leader based in Dearborn, Mich., manufactures or distributes automobiles in 200 markets across six continents. With more than 280,000 employees and more than 100 plants worldwide, the company’s core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo and Mazda. The company provides financial services through Ford Motor Credit Company.
Source: Ford Media Services

Well, they finally made up their minds. At least it ain't that purse guy...

[henk4]

and with Prodrive aspiring F1 for next season, we could well see Aston Martin back there too, although their F1 history is short and unhappy.

[Ferrer]

and with Prodrive aspiring F1 for next season, we could well see Aston Martin back there too, although their F1 history is short and unhappy.

I hope they do better than the last british manufacturer in F1...

About the sale itself I think it's positive that Prodrive has been in the end the winner, they know how to do cars...

[Coventrysucks]

I hope they do better than the last british manufacturer in F1...

McLaren? Williams?

About the sale itself I think it's positive that Prodrive has been in the end the winner, they know how to do cars...

David Richards owns Prodrive.

A consortium, of which David Richards is leader, now owns Aston Martin.

If David Richards buys a washing machine for his family, it doesn't mean that Prodrive has bought a washing machine.

Aston Martin is still the same company it was a week ago, with the same personnel, the same factories, the same engineers and designers, the same suppliers - it just happens to be owned by someone else.

[Ferrer]

McLaren? Williams?

Alright the last british road car manufacturer which doesn't make supercars and is actually owned by an american company and is loosing a lot of money because their cars look dated. Is now clearer...?

David Richards owns Prodrive.

A consortium, of which David Richards is leader, now owns Aston Martin.

If David Richards buys a washing machine for his family, it doesn't mean that Prodrive has bought a washing machine.

Aston Martin is still the same company it was a week ago, with the same personnel, the same factories, the same engineers and designers, the same suppliers - it just happens to be owned by someone else.

Yes, but Prodrive have developped the DBR9 and DBRS9 and performance package for the V8 Vanatage. I guess that now Pordrive and Aston Martin could be able to work more closely, and if it happens that's a good thing in my opinion.

[Kitdy]

If David Richards buys a washing machine for his family, it doesn't mean that Prodrive has bought a washing machine.

Aston Martin is still the same company it was a week ago, with the same personnel, the same factories, the same engineers and designers, the same suppliers - it just happens to be owned by someone else.

But, the ownership yields considerable power over the direction that the company takes. IE, the ownership decides exactly what happens, as they own the company - the owners can also decide how much they want to get involved - my bet is the Kuwaitis will leave it up to Richards to run the show, and Richards will probably realize that things are going well at AM and leave them largely alone, if not enhance them.

If some idiot owner buys AM and tells them to do some bad idea (like make an SUV) the company has to do it - it's the owner's company. I think Ferrer is just trying to say that it is good that a car enthusiast company has bought AM ensuring that their rich tradition of producing fine autos continues.

[Coventrysucks]

But, the ownership yields considerable power over the direction that the company takes.

But, which is no way to start a sentence, that isn't relevant to the point I was making.

Aston is still Aston. It is still the same management in charge of the same workers in the same factory building the same cars.

Over time, no doubt, there will be changes in overall strategy and direction, and possibly in terms of suppliers and the like, now that Aston isn't tied into Ford's "Grand Scheme", and yes, there probably will be a close relationship with Prodrive.

The fact that Richards is in charge of both Prodrive and the people that now own Aston doesn't mean that Gaydon will shut down and Aston production will start up next to the Impreza fettling bays, or that the Prodrive engineers will charge into the Aston factory and rout the incumbent engineers in a scene reminiscent of the Crimson Permanent Assurance.

They are different companies doing different things - one is a manufacturer of large numbers of high-status sports cars, one is an engineering consultancy and builder of race cars.

[Jack_Bauer]

David Richards on the prospect of Aston Martin in Formula 1...

People have put two and two together and got six. This is something personal to me and has nothing to do with Prodrive. Our plan was always to go into Formula 1 in partnership with an existing team, and the plan is still to do that.

Looks like we won't be seeing Aston Martin F1 anytime soon. Personally I think that's a good thing for the brand. If they were to enter the sport and get slaughtered like Jaguar did then it would be potentially very damaging for the company. Best just to stick to what Aston have been doing so well under Ford recently: making desirable and exclusive luxury sportscars.

[Cotterik]

So aston is british again? sounds good to me!

[Jack_Bauer]

So aston is british again? sounds good to me!

Well, half British half Kuwaiti actually. But close enough.

[drakkie]

Ford could really use the money. I hope for them that they made a nice profit on it.

[nota]

I cant see F1 involvement helping the Aston Martin brand - look what that did for Jaguar

Same brand as it was yesterday - except for reaping the full backing and massive resources of the still huge Ford Motor Company, to keep productionising and professionalising the next-gens of Aston Martins

[Pando]

I think it was a good turnout, even if the price was a bit higher than expected.

[Prius]

I can understand why they are doing this. Ford is in the red, so Alan Mulally decieded to cut away all the fat to get to the beef, per-say. Since exotic car makers like Aston are almost never profitible, it will have to go. I heard that some middle eastern company is looking into buying them. I heard that Mercury may also be next in the cutting line. I won't be suprised if Land Rover and Jaguar could be going too. They too are not very or barely profitible, at least in the states, and in Ford's current situation, if it is losing money, it will have to go. That is now Carlos Ghosn turned around Nissan, and it seems that Alan Mullaly is taking a similar approach.

[jediali]

exotic car makers like Aston are almost never profitible,

aston martin is in good shape hence sellable by ford, jag and LR are not in excellent shape hence not as easy to sell..or so i read