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.
