Ford, perhaps inspired by Daimler’s apparent clean divorce from Chrysler, is seeking similar relief from the relentless losses spewing out from its British luxury subsidiary Jaguar.
But experts in Europe don’t see any white knights emerging to buy Jaguar, or Land Rover. If a savior does appear in the form perhaps of a private equity grouping, Ford might have to stump up a prodigious amount of cash to clinch the deal.
Earlier this month, Ford said it had asked investment bankers to test the reaction in the marketplace if Land Rover and Jaguar were put up for sale, signaling that its patience had finally snapped. Initial reaction pointed to the difficulties Ford will face. Pan-European newsletter Automotive Industry Data headlined its latest issue like this.
“Home for clawless cat wanted. Ford may be about to throw limping Jaguar and Land Rover to the wolves.”
The wide range of estimates of the money such a sale would raise—from Merrill Lynch’s $1.3 billion to Citigroup’s $8 billion—reflects differing opinion about the worth of the two British
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