Bye bye Aston Martin
03-13-2007, 12:17 PM
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Bye bye Aston Martin
Ford sells Aston Martin for $848 million
SOUTHFIELD, Michigan: Ford Motor, seeking to raise cash after a record loss last year, said Monday it would sell Aston Martin, its profitable luxury sports car unit, for $848 million to investors led by David Richards, a British racing champion.
The transaction values Aston Martin, manufacturer of James Bond's preferred car, at £479 million, or $925 million. Ford will retain a $77 million stake. Richards, founder of Prodrive, a British maker of components for race cars, will be joined in the investment by the U.S. banker John Sinders and two Kuwait-based financial firms.
The sale ends a six-month search for a buyer and two decades of Ford control of Aston Martin. Ford bought its initial stake in the British automaker while on its way to posting a then-record profit for 1987. Ford posted a loss of $12.7 billion last year, the most in its 103-year history.
SOUTHFIELD, Michigan: Ford Motor, seeking to raise cash after a record loss last year, said Monday it would sell Aston Martin, its profitable luxury sports car unit, for $848 million to investors led by David Richards, a British racing champion.
The transaction values Aston Martin, manufacturer of James Bond's preferred car, at £479 million, or $925 million. Ford will retain a $77 million stake. Richards, founder of Prodrive, a British maker of components for race cars, will be joined in the investment by the U.S. banker John Sinders and two Kuwait-based financial firms.
The sale ends a six-month search for a buyer and two decades of Ford control of Aston Martin. Ford bought its initial stake in the British automaker while on its way to posting a then-record profit for 1987. Ford posted a loss of $12.7 billion last year, the most in its 103-year history.
03-13-2007, 02:45 PM
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NMO - your thread title is a little misleading. Aston Martin isn't going away; it's just not owned by Ford anymore. They will still have a small stake in the company and from all that I've read, the current management team at AM will remain in place for the time-being.
Ford did a lot for the Aston Martin brand, but it was time for them to let go and let another financier with fewer fiscal problems move AM to the next level. Considering that the new owners include David Richards from Prodrive, I see this as a win for AM.
Ford did a lot for the Aston Martin brand, but it was time for them to let go and let another financier with fewer fiscal problems move AM to the next level. Considering that the new owners include David Richards from Prodrive, I see this as a win for AM.
03-13-2007, 05:56 PM
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Bummed, but bring on OU!
This isn't a fire sale. This is taking profits where they can be found to fund the turnaround. Selling it's stake in Mazda would be stupid. If anything a larger stake makes sense.
Ford has nothing to do with the day to day operations, or even most of the long term operations at Mazda (just look at Mazda's concept cars...Ford would never consider something so ridiculous). Mazda, Ford and Volvo are in symbiotic relationship. Take ford away, and you lose the world platform benefit. Ford's use of these platforms significantly reduces the cost of production for all 3 makes. Ford is who makes Mazda so competitive.
Look at the big picture before making your wishes.
Ford has nothing to do with the day to day operations, or even most of the long term operations at Mazda (just look at Mazda's concept cars...Ford would never consider something so ridiculous). Mazda, Ford and Volvo are in symbiotic relationship. Take ford away, and you lose the world platform benefit. Ford's use of these platforms significantly reduces the cost of production for all 3 makes. Ford is who makes Mazda so competitive.
Look at the big picture before making your wishes.
03-13-2007, 08:42 PM
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Originally Posted by Wilson
I don't see it that way. Mazda would be just fine without Ford.
Anyone ever seen the P1?
-Cody
03-13-2007, 09:45 PM
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Bummed, but bring on OU!
Originally Posted by Wilson
I don't see it that way. Mazda would be just fine without Ford.
The Mazda 3 would cost about $2-3000 (guestimate) more than it does, which would make it much less appealing when compared to its competitors. Not forgetting the CX-7 or Mazda 6, which also share platforms across brands. As it is, Ford does not meddle with Mazda. The alliance Ford created has benefited Mazda greatly. Mazda was insignificant just a few years ago, now they are actually becoming a serious (more serious at least) competitor on the world stage.
03-13-2007, 09:59 PM
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Ford sold Aston to a very capable group and with Ulrich Bez staying on as CEO, they can only get better. Ford also has to be given a lot of credit for Aston's comeback in recent years, so Ford is not always bad.
03-13-2007, 10:04 PM
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Originally Posted by Easy_E1
Aston Martin didn't need Ford anyway.
Now, they don't need Ford any more. Not in spite of, but because of Ford.
03-13-2007, 10:51 PM
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I think this is going to be a good step for AM, I cant wait to see what new cars come out of the production lines. Im sure that this is going to push them even higher up in the world. Kudos to Ford for reviving AM and now passing them on.
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