1. Ford is looking to sell Jaguar and Land Rover to
(a) Eliminate the risk of further losses from antiquated manufacturing facilities in Britain, onerous labor pacts, and a bloated workforce. (For the year ended Dec 31, 2006, Land Rover sales are down 13% and Jaguar down 36.5%)
(b) Use cash from the sale to accelerate its North American restructuring
2. It wants to sell the brands as a package since the engineering, purchasing, and distribution of the two brands have become interdependent as Ford has tried to find efficiencies running the businesses. Jaguars and Land Rovers are even manufactured at a common plant today.
3. It may reduce the number of far-flung dealers it has selling Fords in one retail channel and Lincoln Mercury vehicles in another. It may shut down Mercury and sell Fords and Lincoln in one channel. A second distribution channel could be Volvo and Mazda.
Dispose of products revenues with uncertain to save on their unproductive expenses
[Click here for full story at: BUSINESSWEEK.COM]
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