For Sale: Jaguar and Land Rover

Ford Motor Corp, the world’s third largest automaker, has been planning to have its iconic British brands – Jaguar and Land Rover – sold. The company hired investment banks Goldman Sachs and Morgan Stanley to have the sale arranged.

Land Rover is hoped to make a profit, but Jaguar has been losing for years. That urges the company to give it up. Speculations persist, saying that the US automobile company is in early-stage talks with several potential buyers. Fiat and Renault dismissed the speculation that they are considering the purchase of the British marques.

Last year, Jaguar and Land Rover lost $12.6bn (£6.3bn), making a huge financial drain on Ford. That would be a big reason for Ford to get them offloaded.

Previously, Ford was even reported briefing with British politicians regarding its plan to sell the brands.

Ford’s Premier Automotive Group (PAG) is partly made up of the two brands along with Volvo. Volvo, however, is not though to be sold at this point. And, since Jaguar and Land Rover share production facilities, it would hard for Ford to dispose the brands separately.

Considering that the company wants a quick sale, Ford named it “Project Swift”. The company has already sold another PAG marque – the popular Aston Martin – to two Kuwait investment companies.

In 1989, Ford bought Jaguar for $2.5 billion. And, in 2000, it has taken Land Rover for $2.7 billion.