Ford Motor Co. is taking several measures to raise cash after last year’s record loss, will sell its profitable Aston Martin luxury sports-car unit for as much as $850 million to a consortium of investors. The consortium is led by the British motor-sport entrepreneur David Richards. His consortium is believed to have held talks with investors from the U.S. and Middle East, including Egypt’s Naeem Capital. However, as of now the group’s final makeup is not clear.
The US auto manufacturer is being forced to sell off the luxury sports car brand in an endeavor to patch up its balance sheet, the company is expected to hold on to a share of around 15 percent. The prospective sale is crucial for Ford, which in January reported a $12.7-billion net loss for 2006, largest ever, and is process to restructure itself as a smaller, more competitive company in the wake of waning U.S. market share.
According to reports, a Kuwaiti conglomerate is supporting the consortium led by David Richards, the British accountant turned motor-racing boss. The takeover will be led by Richards’s Prodrive business, which specializes in enhancing the performance of racing cars. Prodrive had taken to develop cars for Aston Martin Racing about three years back.
In recent times, investment funds from the Gulf region are keen to branch out and have been buying up assets in UK including Madame Tussauds, P&O and Veridian, the main electricity supplier in Northern Ireland. Dubai International Capital owns a $1 billion stake in DaimlerChrysler and Abu Dhabi’s Mubadala Development Co owns 5% of Ferrari.
Ford had taken a controlling stake in Aston Martin in the year 1987 and attained full ownership in 1994. The company has planned to sell the company almost six months back. Moreover, the sale of Aston Martin has prompted speculations taking rounds over the future of Jaguar. Ford had acquired Jaguar in 1989, but has since the brand is running in heavy loss on the investment. Last year, Ford was compelled to invest further into the company to maintain its existent in their aegis.
