'Automaker needs money from Jaguar, Land Rover sale'
The head of Ford Motor Co.'s European operations said today it is too soon to say if Ford would keep a stake in its Jaguar and Land Rover units, but a full sale is what the cash-hungry automaker wants.
By Agencies |
DETRIOT: The head of Ford Motor Co.'s European operations said today it is too soon to say if Ford would keep a stake in its Jaguar and Land Rover units, but a full sale is what the cash-hungry automaker wants.
"We're selling the business because we need the money and we need the focus," Lewis Booth, executive vice president of Ford's European units, said during a webcast from the Frankfurt auto show.
"We're not going out with the intention of keeping an equity stake."
The automaker lost $ 12.6 billion in 2006 and has said it expects to burn up to $ 15 billion (euro10.8 billion) to $ 16 billion (euro11.52 billion) in cash before returning to profitability in 2009.
Booth made no announcement about the sale of the units, but said the Dearborn, Michigan, automaker has been pleased with the interest and quality of the bidders. He said Jaguar and Land Rover probably would be sold and expects a decision late this year or early in 2008.
The chairman of India's Tata Group said last month his company is interested in acquiring the units. Ratan Tata said Jaguar and Land Rover could help expand the Tata Motors unit's worldwide reach and reduce its dependence on the Indian market, which currently accounts for more than 90 per cent of its sales.
Ford has not said how much it wants for the combined units, but analysts have estimated they could be worth about $ 1.5 billion (euro1.08 billion).
Booth today said that Ford expects to conclude its strategic review of the Volvo car maker for potential sale by the end of this year.
"We're selling the business because we need the money and we need the focus," Lewis Booth, executive vice president of Ford's European units, said during a webcast from the Frankfurt auto show.
"We're not going out with the intention of keeping an equity stake."
The automaker lost $ 12.6 billion in 2006 and has said it expects to burn up to $ 15 billion (euro10.8 billion) to $ 16 billion (euro11.52 billion) in cash before returning to profitability in 2009.
Booth made no announcement about the sale of the units, but said the Dearborn, Michigan, automaker has been pleased with the interest and quality of the bidders. He said Jaguar and Land Rover probably would be sold and expects a decision late this year or early in 2008.
The chairman of India's Tata Group said last month his company is interested in acquiring the units. Ratan Tata said Jaguar and Land Rover could help expand the Tata Motors unit's worldwide reach and reduce its dependence on the Indian market, which currently accounts for more than 90 per cent of its sales.
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Ford has not said how much it wants for the combined units, but analysts have estimated they could be worth about $ 1.5 billion (euro1.08 billion).
Booth today said that Ford expects to conclude its strategic review of the Volvo car maker for potential sale by the end of this year.
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