Ford May Sell Luxury Brands to Former Chief Nasser, People Say

Ford Motor Co., restructuring after a $1.44 billion first-half loss, is in talks to sell some luxury- auto brands to an investment group led by former Chief Executive Officer Jacques Nasser, four people familiar with the discussions said.

The discussions focus on Jaguar and Land Rover, said one of the people, who didn't want to be identified because the negotiations are private. The talks are with JPMorgan Chase & Co.'s One Equity Partners LLC, where Nasser is senior partner for mergers and acquisition, the people said.

Nasser, fired by Ford five years ago, created the company's Premier Automotive Group, including European brands Jaguar, Land Rover and Volvo. As late as 2004, Ford was counting on the group to generate one-third of its automotive profit by this year. Ford says Premier will lose money this year.

``The people at Ford are feeling highly vulnerable right now, and when you feel vulnerable, you put everything on the table,'' said David Cole, chairman of the Center for Automotive Research in Ann Arbor, Michigan.

Ford, the world's third-largest automaker, has said it's considering a range of strategic options after losing money in seven of the last eight quarters in North America, its biggest market. On Aug. 2, it hired former Goldman Sachs Group Inc. mergers-and-acquisition specialist Kenneth Leet as a strategic adviser.

Volvo Excluded

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nybimmer - 8/26/2006 7:06:51 PM

+1 Boost

Ford should keep Volvo as its not only a compartively profitable, volume brand (and essentially a competitor on the low-end to Jag and Land Rover) - but Volvo S80 and S40 architecture underpins Fords 'good' cars - the Ford 500, various new SUV's, new Focus, Mazda3, etc.

Aston is a great halo brand which they should keep and which they can extend.

Agent63 - 8/26/2006 7:46:33 PM

+1 Boost

No more volvo mixed with Aston!. The baby Aston resembles a volvo to me. I know they share parts bins. :-)

Ford should start building quality cars. More effort in the fine finishing to attract more buyers who look into Dodge or Chrysler.

I think the only premium brand they should keep is their own lincoln. They shouldn't have to worry about Aston Martin, Jag, or LR. They should concentrate on their house brands before thinking of buying all these premier companies. "Learn to help yourself before you help others"

urbansouljah - 9/11/2006 7:00:29 PM

+1 Boost

Nasser had a great plan to push Jaguar's volume to 200,000 cars annually but then Ford fired him and ruined the whole plan by cancelling new models and engines that he planned for Jaguar/Land Rover.