Ford Expecting Five Bids for Jaguar, Land Rover; May Close Fewer Plants

Ford expects a minimum of five bids when its formallly puts luxury brands Jaguar and Land Rover on the auction block this week, Reuters reports. Ford has been employing a strategy of selling off its luxury holdings in order to focus on its core U.S. business since March of this year, when it sold its stake in Aston Martin (full story). Among the expected bidders are Indian carmaker Tata Motors, buyout firms One Equity, Ripplewood and TPG, as well as British financier Guy Hands's Terra Firma. A sixth, unnamed bidder has also been mentioned. Ford hopes to have Jaguar and Land Rover sold by early 2008. The company reported record losses in FY2006 and doesn't expect to turn profitable until 2009 at the earliest. In other news, there are reports Ford is considering closing less U.S. plants if the UAW will offer it greater cost savings, during its current contract negotiations with the union. The UAW has already concluded deals with GM (full story) and Chrysler (full story), and is looking to gain job security for it members from the struggling Ford. Ford currently has plans to close 16 U.S. factories.

Sources: Reuters I, II
Commentary: Chrysler, UAW Reach Tentative Agreement, Ending Strike • GM Closing in on Deal with UAW • Goldman Lowers Estimates for GM, Ford; Raises Magna
Stocks/ETFs to watch: F, TTM. Competitors: GM, DAI, TM, HMC
Earnings call transcript: Ford Q2 2007

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