Saturday, November 14, 2009
Ford's Remaining Pag Brands Valued At About $9 Billion
Ford Motor Co. could raise a remarkable $ 9 billion of its remaining luxury brands. Luxury brands that make up the Premium Automotive Group include Jaguar, Land Rover and Volvo Cars. However, analysts at Merrill Lynch and John Murphy said the move to sell luxury brands is unlikely in the short term. Monday, Ford announced that it had concluded an agreement to sell its British sports car - Aston Martin - to U.S. $ 925 million for a coalition of racing entrepreneur David Richards, a couple of Kuwait based investment company, and banker John Sinders. The company also reiterated it had no plans to sell its luxury brands, despite continuing speculation that such a move could come if the restructuring of auto racing in jeopardy. Ford has not disclosed the results of its luxury brands. However, in its entirety as part of the Premium Automotive Group, the second a loss of 327 million USD last year. "The maximum allocated Aston indicates that other PAG brands can be a valuable source of liquidity for Ford, although the commentary repeated the company indicates that they are not for sale," Murphy said in a note to clients of Merrill. He added: "However, given the potential need for liquidity in the coming year, all options are on the table in the future, especially if (the renovation of the Ford) is not significantly accelerated or fails. Murphy estimated that the combined sale of Jaguar and Land Rover would be valued at $ 1.3 to $ 1.5 billion. He added that a sale of Volvo could raise about $ 8 billion. Murphy said the sale of Jaguar would be "more likely" alternatives given the recent difficulties of the luxury brand. However, he will be combined with Land Rover, to make it more attractive to potential bidders. Jaguar Cars Limited is a British manufacturer of luxury cars based in Browns Lane factory in Coventry, England. The main rivals are the Audi, BMW, Cadillac, Infiniti, Lexus and Mercedes-Benz. Currently, the brand is introducing a new design philosophy to attract more customers. Land Rover is a British all terrain SUV and producer, based in Solihull, England, and this brand is popular for its high performance outside - road vehicles. Land Rover is such a success that has made its founder Rover. Volvo Cars, however, is a manufacturer of Scandinavian luxury car, which was founded in 1927. The brand produces machines ranging from cars, SUV, sedan and coupe. He got a reputation for comfort, durability, robustness and security. The reputation was established due to careful monitoring in the choice of sophisticated automotive parts. As a matter of fact, even the Volvo exhaust has passed a rigorous selection of materials and increase the process of improving the quality of the product lines of the car.
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