Ford may shed luxe brands, refocus

The automaker reportedly is actively shopping its premium Volvo, Jaguar and Land Rover brands, news that comes just months after unloading the prestigious Aston Martin nameplate.

Selling the remaining members of its Premier Automotive Group, which has its North American headquarters in Irvine, would end Ford's 20-year effort to expand its sales of luxury cars by buying European automakers.

A handover likely won't register with many American motorists, given Ford's arm's-length relationship with its foreign brands.

"Very few people actually knew that Ford owned Jaguar or Land Rover or even Volvo," said Dick Messer, director of the Petersen Automotive Museum.

A sale would allow Ford, which lost $12.75 billion last year, to focus on getting its core North American business in order, analysts said.

In terms of generating cash, "a sale isn't going to make or break Ford," said automotive analyst John Novak of Morningstar Inc. "But it would simplify the company's structure and allow management to focus on the problems that ultimately will make or break the company."

Ford hired two investment banks to handle the possible sale after holding unsuccessful talks with Italian automaker Fiat earlier this year about a possible sale of Jaguar and Land Rover, trade publication Automotive News reported.

A spokesman at Dearborn, Mich.-based Ford said the company wouldn't comment on speculation regarding a possible sale.

Whether a sale would be good for the three brands depends on who buys them, said Tom duPont, publisher of the duPont Registry, a luxury lifestyle chronicle.

He doesn't see Toyota Motor Corp., General Motors Corp. or another mass market car maker as a good fit.

"It's a little bit like trying to sell Godiva Chocolate to Hershey," duPont said. "They're both candy, but they speak to an entirely different audience."

Ford sold most of its stake in Aston Martin, a British company known for making small batches of very expensive high-performance cars, to a consortium of investors that included a noted British racing mogul and a well-known car collector. The match bodes well for the future of Aston Martin, duPont said.

The ranks of potential buyers for Volvo, Jaguar and Land Rover include Chinese or South Korean automakers looking to upgrade their image, analysts said, or possibly a private equity buyer with an itch to manage a prestige auto brand.