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Will the Way Forward Rid Ford of Land Rover, Jaguar and Volvo?



It was only three months ago that Jaguar was to remain in Ford's PremiereAuto Group portfolio, but a recent uncovering by Automotive News Europe, and another report by the Detroit News shows that this is definitely not the case. As a matter of fact, it appears that Ford is closing down the entire PAG division, putting Jaguar, Land Rover and Ford on the block shortly after selling off Aston Martin. Last year, PAG, as a group, lost $327 million. To be clear, while a premium division, Lincoln is not part of PAG despite initially being clumped into the group.

In the report, Automotive News stated that several months before Alan Mulally, president and chief executive officer of Ford made his statement with regards to Jaguar in April that Ford was in talks with Fiat over two of the PAG brands. Fiat became interested in both Jaguar and Land Rover for the technologies they possess and for their position in the
If Ford were to sell any PAG brand, Jaguar would go first if a buyer could be found. (Photo: Jaguar)
marketplace. Land Rover would've been ideal, as none of Fiat's five brands offer any off-roading products. Fiat also liked the idea of Jaguar's aluminum platform technology, plus its V6 and V8 engines. The fact that the Italians were interested in both brands would have also solved the problem about separating the two tightly intertwined Britishnameplates, not to mention that it would be an established outlet for Fiat to sell vehicles in North America.

In the end, the talks between the two companies broke down simply because the overall net loss generating combination of Jaguar and Land Rover would have damaged Fiat's credit rating.

According to sources, Ford will be keeping sale consultants
Fiat nearly purchased the Jaguar-Land Rover duo, but didn't follow through in order to save its credit rating. (Photo: Land Rover)
Morgan Stanley and Goldman Sachs on board in their continuing search for potential suitors.
And who might those suitors be? The Nissan-Renault partnership was rumored to be a possible buyer for Jaguar and Land Rover, though it announced yesterday morning that the benefits of owning a luxury brand were non-existent in the short term. Nissan also owns Infiniti, and knows how difficult it is to lure buyers away from traditional German brands in the high-end sedan segments where Jaguar currently fights for attention.
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