Ford (F) Sale Of Jaguar And Rover Does Nothing For Company

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By Douglas A. McIntyre Published
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It now appears imminent. Ford (NYSE: F) will sell its Jaguar and Rover brands to India’s Tata Motors. According to the FT, "The sale is expected to have a price tag of about $2bn and will include a pledge by Ford to contribute to the two brands’ pension fund, and by Tata to continue buying engines from Ford."

The deal is a side-show and it does almost nothing for Ford. The company’s shares are under $6, down from over $17 in early 2004. The firm’s North American operations continue to lose money. Domestic market share is off to 15% and will probably fall this year.

Auto sales in the US are being revised down to 14.95 million by JD Powers. In 2007, that number was 16.1 million.

Ford may want to see if Tata would buy the entire company.

Douglas A. McIntyre

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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