Ailing Ford will explore selling assets, possible alliances with other automakers

Ford Motor Co. has hired a mergers-and-acquisitions expert to lead a review of its business units as the automaker struggles to restore its North American operations to profitability.

Ford's decision to hire Kenneth Leet, a former investment banker for Goldman Sachs and Bank of America, was first reported in the Wall Street Journal Wednesday. Leet will report directly to Chairman and CEO Bill Ford Jr. and is expected to begin by taking a close look at the company's money-losing Jaguar brand.

The move also comes as Ford braces for a possible alliance between rival General Motors Corp. and the Nissan Motor Co.-Renault SA partnership, according to sources familiar with the move.

The decision to explore the sale of some Ford assets or possible alliances with other automakers was prompted by unexpectedly severe financial headwinds in the North American market, Ford sources said.


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MercBasher - 8/2/2006 5:22:41 PM

+1 Boost

Anyone know what Kenneth Leet has been doing since leaving Goldman and BOA ? Let's hope he's qualified in strategic thinking and not just in asset disposals.

courtstone - 8/3/2006 9:26:07 AM

+1 Boost

Wow, what will happen if Ford and GM merge?

woood - 8/4/2006 11:37:50 PM

+1 Boost

In simple terms, Rethink "Ford, a World Class Car Company in the No. 2 Spot Worldwide". This line must be remembered at all costs in future planning. A merger at this point would be disastrous for any car company. Fix whatever needs to be fixed forst and then discuss mergers and alliances and selling plants, etc. You can't raise money in order to lose some more of it. Cut loses first.