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Aston Martin sold

Robertb

Yas Marina
Joined
1 Sep 2003
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8,404
AFXU
12 Mar 2007 13:34
<Sorry previous link not available after migration>
Ford sells major stake in Aston Martin
DETROIT (AP) - Cash-strapped Ford Motor Co. has sold a controlling stake inthe iconic Aston Martin brand, raising $925 million to help fund its turnaroundplan. Aston Martin, made famous by its exotic sports cars appearing in James Bondmovies, now will be run by a consortium of investors, including racing mogulDavid Richards, John Sinders and Kuwaiti firms of Investment Dar and AdeemInvestment Co. Ford officials announced the sale Monday at Aston Martin's headquarters inGaydon, England. The sale is expected to close in the second quarter, and Fordwill retain a $77 million stake in the sports car maker.Copyright 2007 Associated Press. All rights reserved. This material may not bepublished, broadcast, rewritten, or redistributed.

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Migration info. Legacy thread was 124032
 
So AM is worth a £1bn then. Hopefully will continue to thrive.

Migration info. Legacy thread was 124034
 
Now, i'm no Alan Sugar, but to be selling the only part of your business that is making money, at half of what it is worth doesnt seem like the business deal of the year to me........? :?

Edited to say - it is the biz deal of the year if your buying said co ! :D


Migration info. Legacy thread was 124035
 
[quote:dW2iCOnBE3="Previous poster"]Quote: Originally posted by Fuchs on 12 March 2007Now, i'm no Alan Sugar, but to be selling the only part of your business that is making money, at half of what it is worth doesnt seem like the business deal of the year to me........? :?

[/QUOTE]


Actually there's a lot of sense in it - if you're hemoraging money as Ford are, the place you can most increase value in is the failing bits - so by selling Aston, you gain cash to inject into the failing bits and gain the management focus to sort the troubles out - it's a logical, yet bloody brave move for the blue oval - good on them.

If you're a listed company, you can only raise cash via debt (costly) or new rights (stock) issues - if you're paper is trading too low then it's impossible to issue new stock for cash ('cos no one can see the profit in it, so no one buys!) - so by refocussing and turning round the rest, the value goes up, the stock goes up, you raise more money. It's kind of like cutting the limb off to save the rest of the body really.

As for Aston - this is truly superb news - Richards is renowned to be an absolute perfectionist - so this can surely only mean good things for the marque.

And with Pro-Drive's entry into F1 - perhaps it'll be the Aston wings on the car? :wink:

Philip

Migration info. Legacy thread was 124038
 
But why not sell off / get rid of a part of your empire that is not making money, then you dont need to sell off the money making part?

Could it not be seen as a short term fix? Surely the money raised by selling AM is only going to support the bad part(s) of Ford for so long?






Migration info. Legacy thread was 124042
 
This is really good news for Aston. As Phillip says it is a ballsey but very logical move by Ford. In times like these you need to focus on your core business, if selling off profitable bits around the periphery gives you the cash to effect change in the core then it is what the Ford board must do to meet their obligations to shareholders.

The new investors look good, some strong individuals and some quasi PE companies with good track records and if needed down the track deep pockets. Whilst they will drive Aston hard in terms of returns this will IMHO only be positive for the consumer. Personally the reason why I have Stuttgart's finest as my daily drive and not Gaydon's is the "why should I pay to do their R&D complaint" I hear from many Aston drivers. If they now focus on quality and having a finished/complete product as I think they will with Dave Richards then they will attract people like me.

I will however make a prediction that within 2 years Aston launch a car that will be for them what the Boxster was for Porsche. The valuation of £1Bn is probably about right given what has been reported in terms of sales and goodwill. Over the last 5 years the brand has become considerably more valuable, as new investors they will be looking to realise the value of that brand and my guess is that a small, sports coupe or roadster targeted at the US market will be what they go for.

Migration info. Legacy thread was 124044
 
An update

AFXU
12 Mar 2007 14:51
<Sorry previous link not available after migration>
Ford sells Aston Martin to Richards-led consortium, retains stake UPDATE
(adds comment) LONDON (AFX) - Ford Motor Company has announced the sale of its Aston Martindivision to a consortium consisting of international motor-racing entrepreneurDavid Richards, US banker John Sinders and Kuwait's Investment Dar and AdeemInvestment Co, for 479 mln stg. The new owners said they would build on Aston Martin's brand and products,starting with the launch of V8 Vantage Roadster tomorrow and continuing with thedevelopment of a new four-seater model. Aston Martin's chief executive Dr Ulrich Bez welcomed the new owners,saying: 'We have a deal and we have a good one.' Bez, who has agreed to stay at the company for another five years, saidthere would be no major changes in Aston Martin's plan to be the number oneprestige car company in the world. Aston Martin provides 'the best jobs in the Midlands', he said,and there will be no major impact on production. 'The architecture, engineand structure is all Aston Martin,' he said. 'There are literally nomajor parts from Ford.' Ford, which is retaining a 40 mln stake, had invested a lot of money inAston Martin, Richards said, and under its ownership Aston Martin had increasedthe number of cars built to 7,100 last year compared with 800 in 2000. The investment in the brand will continue, he said. 'We start from avery good base,' he said. 'The scale of the major shareholders givesan idea of how much they will be able to invest.' Bez said the company had definitely decided to put the four-door Rapide intoproduction. 'By the end of the decade it will hit the market,' hesaid.The company plans to build between 1,000 and 2,000 of the new model a year,requiring additional investment at its Gaydon factory, Bez added. Aston Martin will continue to expand its global dealership network, Bezsaid, particularly in Russia and in the Asia-Pacific region. The sale is expected to close during the second quarter and is subject tocustomary closing conditions, including applicable regulatory approvals, Fordsaid. As part of the transaction, Ford will retain a 40 mln stg (77 mln usd)investment in Aston Martin. Other terms and conditions specific to the sale arenot being disclosed at this time. Richards also declined to divulge the equitysplit of the consortium. 'The sale of Aston Martin supports the key objectives of the company,torestructure to operate profitably at lower volumes and changed model mix and tospeed the development of new products,' said Alan Mulally, Ford's Presidentandchief executive officer. 'From Aston Martin's point of view, the sale will provide access toadditional capital, which will allow Aston Martin to continue the growth it hasexperienced under Ford's stewardship.' Ford reiterated that its Jaguar and Land Rover divisions are not for sale,although 'it continues to review all businesses'[email protected]/rarCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including byframing or similar means, is expressly prohibited without the prior writtenconsent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX NewsLimited

Migration info. Legacy thread was 124049
 
Previous poster said:
Quote: Originally posted by Fuchs on 12 March 2007
But why not sell off / get rid of a part of your empire that is not making money, then you dont need to sell off the money making part?

Because if it's loss making, it's very, very, very hard to sell :D

Also, I'm pretty sure they've taken the view that there's not much more they could generate from Aston without MORE cash being put in (four door concept into production etc.)

Previous poster said:
Quote: Originally posted by Fuchs on 12 March 2007
Could it not be seen as a short term fix? Surely the money raised by selling AM is only going to support the bad part(s) of Ford for so long?

I'm sure they've got a strategy for using the cash - when you're turning a company around you don't so much need cash as a heavy hand to control the costs.

Philip

Migration info. Legacy thread was 124051
 
Previous poster said:
Quote: Originally posted by Fuchs on 12 March 2007

But why not sell off / get rid of a part of your empire that is not making money, then you dont need to sell off the money making part?

Could it not be seen as a short term fix? Surely the money raised by selling AM is only going to support the bad part(s) of Ford for so long?



True it may only be a short term fix but its more difficult to sell the loss making bits of the business and the shareholders want some return so Ford were basically in a corner with limited options

Migration info. Legacy thread was 124057
 
imagine the size of Dave Richard's conservatory !!

Migration info. Legacy thread was 124251
 
Brilliant buy IMHO. Still not sure about the product but wasn't Aston recently voted the "coolest brand in the World "?. Wouldn't mind buying a few shares myself .... as I'm sure I'll never be able to afford to run one of the cars.


Migration info. Legacy thread was 124261
 
Press release accepted, I still can't help worrying about R & D though. From one of the worlds top three manufacturers to '5 blokes in Banbury'.
I really hope the can pull it off long term, its great to refer to Aston as British.
What Dave Richards wants to do is another Subaru job. Really raise the profile by success so the entire world wants one.

Migration info. Legacy thread was 124269
 
I used to live in Banbury and I can tel you some of the finest minds in England are based there! :wink:

Migration info. Legacy thread was 124287
 
Previous poster said:
Quote: Originally posted by paeffman on 12 March 2007
What Dave Richards wants to do is another Subaru job. Really raise the profile by success so the entire world wants one.

Um - he didn't do too bad with this one :wink: :D

aston-dbr9-02.jpg


Migration info. Legacy thread was 124299
 
Drool - all the world will want one of these - AM V8 Vantage Roadster...

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Migration info. Legacy thread was 124302
 

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