Chrysler Group, Land Rover and Jaguar?
By Michelle Krebs June 18, 2007What an interesting concept: a car company that sells Chrysler, Dodge and Jeep models as well as Land Rover sport-utes and Jaguar cars.
It is a possibility, according to the Financial Times in London. The newspaper reported over the weekend that Cerberus Capital Management Group, which is set to close on its purchase of Chrysler next month, has expressed interest in bidding on one or both of the luxury brands put up for sale by Ford.
Another familiar name popped up in regard to Land Rover and Jaguar. Jac Nasser, former Ford CEO, reportedly is heading a study of the brands on behalf of buyout firm One Equity Partners.
And Automotive News reports rumors have former Ford exec, David Thursfield, head of Cerberusâ automotive units, leaving the firm. Thursfield had told the trade publication some time ago that he felt it was inappropriate for him to be involved with a Cerberus-owned Chrysler, given his long tenure at Ford. Maybe the addition of Land Rover and Jaguar will lure him to stay.
Nasser apparently was a suitor for Aston Martin, sold by Ford in March. Interestingly, it was Nasser who accumulated the luxury marques for Ford and pulled them under the Premier Automotive Group umbrella, now being dismantled by Ford. He saw PAG as a way for Ford to capitalize on booming luxury-car sales, a vision now proven flawed. PAG, largely due to Jaguarâs immense losses, has been socked with high warranty costs, unfavorable exchange rates and high raw-materials costs.
Thursfield, a Brit, also had a hand in Fordâs luxury brands having top jobs at Ford of Europe and later heading Fordâs international operations.
For its part, Ford reportedly wants to sell the two brands as a pair. The Wall Street Journal quotes sources who put the cash Ford would receive from their sale at $1.3 billion to $1.5 billion.
Of course, no one is commenting on any of the rumors. In fact, Ford is rather ticked that the rumors of the Jaguar/Land Rover sales leaked out, catching the automaker off guard.
Meantime, the Financial Times reports news of Cerberus and One Equity Partnersâ interest in the U.K.âs âheritageâ brands likely âwill fan a gathering backlash against private equityâ as Brits anticipate a possible consolidation of facilities, offshoring of some production and slashing of jobs. The two companies employ 16,000 people combined.
Ford faced an easier time selling Aston Martin to Arab and U.S. investors because the consortium was led to David Richards, a well-regarded British automotive entrepreneur. Richards has been mentioned as a suitor for Jaguar and Land Rover as well.
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