From Detroit Free Press
Ford Motor Co. could raise more money for its restructuring plans if it’s able to find a buyer for its Jaguar, Volvo and Land Rover brands, analysts said earlier this week.
Ford, working its way through a massive restructuring plan in an attempt to return to profitability, hired Goldman Sachs Group Inc. and Morgan Stanley to pursue the sale of the three Premier Automotive Group (PAG) brands, Bloomberg News and Automotive News reported, citing sources familiar with the strategy.
Analysts say the sale of the European luxury brands would make sense because they would stop the potential losses by the group, commonly known as PAG, and could provide more cash to fund the Dearborn, MI-based automaker’s restructuring plans.
"It stops potential losses that historically have plagued that unit," said automotive analyst Kevin Tynan of Argus Research. "But it also frees up capital to fund the restructuring."
Ford lost $12.6 billion last year. Premier Automotive Group’s losses were $2.32 billion.
Ford spokesman Tom Hoyt declined to comment on the reports.
Ford hinted at the possible sale of the group last year when it announced plans to sell Aston-Martin. Ford sold Aston Martin in March for $848 million.
Copyright (c) 2007, Detroit Free Press
