Sale of Jaguar and Land Rover closer

Jul 27 2007 by Tony McDonough, Liverpool Daily Post

Halewood operations, where the Jaguar X-Type and new Freelander 2 are being built on the same production line (200)

THE possible sale of Ford’s Jaguar and Land Rover brands moved a step closer yesterday although the company insisted a deal was still not definite.

Last week, Ford said it had received several expressions of interest in the brands and yesterday added it was now exploring the potential sale “in greater detail”.

More than 2,000 workers at the company’s Halewood plant in Merseyside, which makes both Jaguar and Land Rover models, are anxiously waiting to discover whether or not they will soon be working for a new owner.

“We are pleased with the positive expressions of interest in the business we have received and in the strength and quality of the interested parties,” the company said in a statement.

It is believed that at least four private equity groups as well as giant Indian company Tata have expressed interested in buying Land Rover and Jaguar in a sale that could fetch as much as £1.5bn.

If a sale goes ahead, a buyer would have to purchase both companies. Ford now describes the two businesses in the one title – Jaguar Land Rover (JLR).

Ford said the objective of any sale would be to enable Ford to concentrate on its core business strategy, while ensuring JLR had the ownership, technology and investment structure it needed to allow it to reach its full potential.

The company went on: “Ford fully understands its responsibilities not only to its employees but also to its local communities, and it has demonstrated on a number of occasions that it takes these responsibilities seriously.

“Ford recognises the significant connections between Ford Motor Company and JLR in terms of component supply, engineering and manufacturing and any potential sale would need to take full account of this.

“We are committed to ensuring that we maintain very close ongoing communications with our union colleagues during the process to determine the best future for Jaguar Land Rover and Ford Motor Company.”

Ford yesterday surprised analysts by reporting a profit for the second quarter of 2007 of around £375m, compared to a loss for the same period last year of just over £150m.

The company’s Premier Automotive Group (PAG), of which JLR is a division, reported a pre-tax profit of £70m for the three month period, against a loss of more than £80m last year.

tonymcdonough