Under Financial Pressures – Ford Motor Company
May 31st 2007spoilerkingBlogroll
Ford the world famous auto maker seems to be in trouble with its financial affairs. The luxury line up of cars brand is responsible for huge loss which summed up to US $327 million in the last year.
Sale of Austin Martin bagged US $925 million. But at the same time it gave rise to a speculation that the company might opt to sell other premium brands like Volvo, Land Rover and Jaguar.
As per experts the luxury range of Ford cars might be worth $9.0 billion. The sale of Jaguar and Land Rover would be the last resort for the company to salvage itself out of the financial crises in case its restructuring plan fails to bring the company into profitability.
The Ford Company official have denied such speculations and seems to be all set to complete the restructuring plan and to bring the company into profitability. But the auto industry experts feel that if plan to bring the company back to its feet fails; the sale of the Ford Company’s premium brands would be unavoidable.
Mr. Murphy, an analyst from Merrill Lynch says that the in case of sale the expected amount fetched by the company from sale of Land Rover and Jaguar would amount to US $ 2.8 billion and in case of sale of Volvo the car maker might fetch US$8.0 billion
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