Ford buys Rover

[red_rover]

From BBC website

BBC said:

Ford to buy Rover brand name from BMW
Mon Sep 18, 2006 2:12 PM BST

FRANKFURT - Ford will exercise its right to buy the Rover brand name from BMW, a spokesman for Ford's Premier Automotive Group (PAG) said on Monday.

"We feel it is in interests of our Land Rover business to have the Rover brand," the spokesman said, adding Ford had informed BMW about its decision on Monday.

"We are acquiring it and we're not looking to sell it. We believe it is a valuable asset for us," the spokesman said, declining to give any financial details.

BMW had no immediate comment.

PAG also includes the Jaguar, Volvo and Aston Martin marques.

Ford bought Land Rover from BMW in 2000 and had the rights to buy the Rover brand name, which BMW said last month it had agreed to sell to an unspecified partner.

Chinese media reports have said top Chinese carmaker SAIC had agreed to buy the brand name. SAIC has the design rights to two Rover models which it bought from failed British carmaker MG Rover before MG Rover collapsed last year.

SAIC is making its own cars based on the Rover platform, hoping the sell them one day to developed markets including Europe.

Fantastic news IMO. Cherry picking SIAC can't access the Rover marque after todays sale. Rover is now back at home in Solihull with LandRover. Even if the Rover marque isn't used again, at least it can rest in peace with what dignity it has left.

[Twin Turbo]

So, Rover's a valuable asset and Aston Martin isn't?

I hope they only pay a tenner for it.

[red_rover]

SAIC haven't got any tooling. All they ended up with was a set of blue prints and some IPRs.

SAIC knows that in China and most other countries, Rover was still (rightfully) seen as a Premium marque and remembered for the good old days.

SIAC wanted Rover more than the other Marques. It had intentions of selling back into Europe under the Rover marque. If you read the quote, you will see that SIAC had almost bought Rover off BMW, but Ford got just bought it in time due to a clause Ford had made with BMW when BMW sold Rover group off.

Edited by red_rover on Monday 18th September 20:19

[Platinum]

Oh good, a half 'decent' bit of news for once from that saga.

[Platinum]

Twin Turbo said:

So, Rover's a valuable asset and Aston Martin isn't?

I hope they only pay a tenner for it.

I imagine its just to secure the name, just a one off payment?

[red_rover]

anonymous said:

[redacted]

Well, it's Nanjing then - I know those trucks did not leave empty....

Yeah - Nanjing took the 25/45 lines and power train. Longbridge still has the (new and expensive) Paint shop and the Rover 75/MG ZT line.

[danhay]

If Ford sell off Jaguar, then having the Rover brand would allow them to sell a slightly more upmarket version of a future Mondeo in the mould of the X-Type?

[red_rover]

Hmmm, I don't think that would be a good idea. The Rover marque has been critisised(wrongfully) for using Honda bases let alone Ford (no offence to Ford cars!).

I think if Rover was to be re-released it would have to be developed to the quality of the Rover 75 but aimed to be a carry on from either the P5 or P6.

[DrDeAtH]

Ford.... the new british leyland.... (just not all british)

[GavinPearson]

I was extremely pleased by this.

It is going to stop an awful lot of expensive legal wrangling with SAIC so it has to be a good thing.

SAIC will have to brand their cars and sell them on the basis of what they are, not on a brand they bought to give them some false heritage.

[speedy_thrills]

Hasn’t Ford just announced that the former chief executive of Boeing will be joining the company?

[costanzo427]

Twin Turbo said:

So, Rover's a valuable asset and Aston Martin isn't?

I hope they only pay a tenner for it.

Aston supposedly reported profits for the first time in 40 years this year, and ford winds up canning them??? but, hey, Rover looked like a great investment!Wow, what a topsy-turvey world we live in these days!

[smilerbaker]

anonymous said:

[redacted]

Yeah - Nanjing took the 25/45 lines and power train. Longbridge still has the (new and expensive) Paint shop and the Rover 75/MG ZT line.

did they? I hear Honda got in there first and took all the 45 gear out as it was there's

All Nanjing got was the 25 and 75

[anonymous-user]

I think you're all missing the point here. Ford needs "Rover" like a hole in the head because they've already got more than enough brands for mainstream cars. However, acquiring the Rover name strengthens their position with the "Range Rover" brand. Particularly when selling Range Rover..... The buyer of Range Rover would have the certain knowledge that they can produce any kind of car they like without getting into name infringement disputes with another manufacturer.

City Rover anyone?

[Podie]

5 USA said:

I think you're all missing the point here. Ford needs "Rover" like a hole in the head because they've already got more than enough brands for mainstream cars. However, acquiring the Rover name strengthens their position with the "Range Rover" brand. Particularly when selling Range Rover..... The buyer of Range Rover would have the certain knowledge that they can produce any kind of car they like without getting into name infringement disputes with another manufacturer.

City Rover anyone?

Replace "Range" with "Land" and I'd agree with you...

[BoRED S2upid]

Why?

They are in $900million debt or something. Is buying Rover going to help them that much?. I hope they haven't paid much for it. I wouldn't.

[anonymous-user]

Podie said:

Replace "Range" with "Land" and I'd agree with you...

Sounds fair to me!

[Podie]

anonymous said:

[redacted]

$900M - I bet that won't even cover this year's interest payments and pension shortfall for the year.

I should think if one or two banks closed credit facilities down or required repayment ahead of schedule, they could be in serious trouble and Chapter 11 would follow VERY quickly.

FMC are buying the name - it's an option they took when BMW asset stripped the operation.

If FMC are looking to sell of PAG (or parts of) then the added ability to build under another brand name may help the sale.

Ford Credit is still making a profit, which is currently bailing out FMC... even though they are at Junk Bond status. The majority of analysts suggest that unless serious actions are taken, FMC will be dead in five years.

In the shorter term, I'd be stunned if some sort of securitisation hasn't been going on...

[Fire99]

anonymous said:

[redacted]

FMC are buying the name - it's an option they took when BMW asset stripped the operation.

If FMC are looking to sell of PAG (or parts of) then the added ability to build under another brand name may help the sale.

Ford Credit is still making a profit, which is currently bailing out FMC... even though they are at Junk Bond status. The majority of analysts suggest that unless serious actions are taken, FMC will be dead in five years.

In the shorter term, I'd be stunned if some sort of securitisation hasn't been going on...

Hi Podie..

Yeah thats what i heard from 'a friend on the inside'..
A bit off topic but what about GM? Aren't they in more strife than FMC?

I always have in my mind that cause FMC are such a huge US institution, no matter what someone somewhere would bail them out.. Perhaps the reality is that no firm is immune from going skint..

[Podie]

anonymous said:

[redacted]

you mean of the Ford Credit monies - I thought that there's also going to be some fun when they realise that the buy back future value being put on the cars they are financing is higher than the market value of the cars at lease end....

There are other assets than just cars...