Posted on Thursday 20 September 2007
Final bids for the two premium brands were to be due at the end of this month, but Ford has now extended the deadline by two weeks. Credit issues are suspected as the root cause for the delay.
No official reasons were given for the move, but the bidders are thinking it’s planned to give them more time to find credit in what is becoming an increasingly tight global market. Six different groups are believed to have filed bids for the soon-to-be ex-Ford premium marques, so the problem isn’t lack of demand.
Of the groups that initially expressed interest, two were Indian car makers. While Tata is still in contention for the purchase, Mahindra has pulled out. Other potential buyers include One Equity Partners LLC - the private equity arm of JPMorgan Chase, and Cerberus Capital Management, LLC, which recently bought Chrysler for US$7.4B.
Analysts believe the U.S. Federal Reserve decision on Tuesday to lower bank borrowing rates will help those bidder secure the financing they need, despite the volatile nature of the automotive industry. Nevertheless, the trouble Ford is having off-loading Jaguar and Land Rover may be why the blue oval is conducting a “strategic review” of its Volvo arm before deciding to sell.
Thanks for the information, but it does not come as a surprise.
I think , taking over of Land Rover , by other’s will definetly reduce the quality of the masterpiece vehicle.
it will only spoil the vehicle
( as they reduce the amount of money spend on R & D )
I THINK ONLY BRITISH CAN MANUFACTURE THESE VEHICLES WITH PERFECTION & QUALITY.
Any way, thankyou ford, for giving us a wonderful machine.
Regards
Bipin