Politics

Politics

Ford Motor Co agrees to sell Aston Martin luxury sports car unit

13 March 2007 12:24 (UTC +04:00)

Ford Motor Co. has agreed to sell a majority stake in its Aston Martin luxury sports car division to a group of investors led by David Richards, founder and chairman of Prodrive, a motorsport and automotive technology company in the United Kingdom.
The sale, valued at $925 million, is expected to close during the second quarter, according to a news release.
Ford will retain a $77 million investment in Aston Martin, the release said.
The other buyers are John Sinders, who Ford describes as an "avid Aston Martin collector and a backer of Aston Martin Racing," and Investment Dar and Adeem Investment Co., two international investment companies based in Kuwait.
The deal allows Ford to raise a significant amount of money for its restructuring effort, yet maintain its ties with the brand, this person said. It also returns Aston Martin to British ownership at a time when other famed British car brands have fallen into foreign hands.
Analysts have said an Aston Martin deal could clear the way for Ford to sell its other British brands, like Jaguar and Land Rover, even though Ford, based in Dearborn, Mich., has said it is not interested in doing so.
Aston Martin, based in the U.K., has produced high-performance sports cars since 1914.
In 1987, Ford acquired a 75 percent stake in the company, and it took full ownership in 1993. Aston Martin is part of Fordâ€™s Premier Automotive Group, which also includes Jaguar, Land Rover and Volvo.
Aston Martin, which sells only about 100 cars a month in the U.S., gained popularity in the 1960s as James Bondâ€™s slick, multi-gadgeted mode of transportation, and was featured in the popular Bond film "Casino Royale" late last year.
Aston Martin was founded in London in 1913. Ford bought 75 percent of the brand for an undisclosed amount and took full ownership in 1994 as it opened a new factory for the brand in Bloxham, England. /APA-Economics/