This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/6743669.stm
The article has changed 7 times. There is an RSS feed of changes available.
| Version 4 | Version 5 |
|---|---|
| Jaguar and Land Rover jobs fears | Jaguar and Land Rover jobs fears |
| (about 4 hours later) | |
| Union leaders have voiced concerns about the decision of US carmaker Ford to put its British luxury car marques Jaguar and Land Rover up for sale. | Union leaders have voiced concerns about the decision of US carmaker Ford to put its British luxury car marques Jaguar and Land Rover up for sale. |
| Dave Osborne, national officer of the Unite union, said its "prime concern" was the job security of workers. | Dave Osborne, national officer of the Unite union, said its "prime concern" was the job security of workers. |
| Jaguar has about 10,000 staff at sites in Coventry, Birmingham, and Liverpool, while Land Rover employs about 9,000 in the West Midlands and Warwickshire. | Jaguar has about 10,000 staff at sites in Coventry, Birmingham, and Liverpool, while Land Rover employs about 9,000 in the West Midlands and Warwickshire. |
| Ford has been selling assets in a bid to offset falling sales and profits. | Ford has been selling assets in a bid to offset falling sales and profits. |
| Waiting game | |
| At the moment it is absolutely anybody's guess what the medium and long-term situation will be for jobs in those plants Jon Moulton, Alchemy Partners Have your say on sale plans | |
| An official spokesman for Prime Minister Tony Blair's office said that it had been in touch with Ford over the company's plans. | An official spokesman for Prime Minister Tony Blair's office said that it had been in touch with Ford over the company's plans. |
| "We still believe that both Land Rover and Jaguar are highly successful companies and will have a highly successful future," the spokesman said. | "We still believe that both Land Rover and Jaguar are highly successful companies and will have a highly successful future," the spokesman said. |
| Ford said that it had been looking at its options for a year, and that it was neither setting a timeframe for any decision, nor ruling out any options. | Ford said that it had been looking at its options for a year, and that it was neither setting a timeframe for any decision, nor ruling out any options. |
| Merrill Lynch analyst John Murphy said that the sale of Jaguar and Land Rover could raise as much as $1.5bn for Ford. | |
| Ford's shares climbed 0.1% to $8.41 in New York after the news. | |
| 'Job security' | 'Job security' |
| BBC business editor Robert Peston said that the company had told MPs it was still some way from doing a deal. | BBC business editor Robert Peston said that the company had told MPs it was still some way from doing a deal. |
| Ford expects strong interest from private equity firms, he added. | Ford expects strong interest from private equity firms, he added. |
| Unite's Mr Osborne said that they could not see why Ford would want to sell the businesses. | Unite's Mr Osborne said that they could not see why Ford would want to sell the businesses. |
| In the case of Jaguar, Ford has turned a sleek cat into a groggy moggy Robert Peston, BBC business editor class="" href="http://www.bbc.co.uk/blogs/thereporters/robertpeston/2007/06/fords_failed_marriage.html">Read Robert's analysis in full Ford is in the process of a massive restructuring, and the firm reported a loss of $282m for the first three months of 2007. | |
| "We find it difficult to understand why Ford would want to sell a successful, growing and environmentally improving brand like Land Rover," he said. | "We find it difficult to understand why Ford would want to sell a successful, growing and environmentally improving brand like Land Rover," he said. |
| Mr Osborne added that Jaguar "was a significant player in the luxury market and one that Ford has invested heavily in". | Mr Osborne added that Jaguar "was a significant player in the luxury market and one that Ford has invested heavily in". |
| "We are very concerned to hear these reports and we are seeking an urgent meeting with Jaguar and Land Rover. | "We are very concerned to hear these reports and we are seeking an urgent meeting with Jaguar and Land Rover. |
| "Our prime concern is the job security of our members." | "Our prime concern is the job security of our members." |
| Uncertainty | Uncertainty |
| Jon Moulton, the chairman and founder of one of the private equity firms that is rumoured to be interested in Jaguar and Land Rover, said that there was uncertainty surrounding jobs at the two firms and unions should be worried. | Jon Moulton, the chairman and founder of one of the private equity firms that is rumoured to be interested in Jaguar and Land Rover, said that there was uncertainty surrounding jobs at the two firms and unions should be worried. |
| "They would be right to be concerned," Mr Moulton told the BBC. | "They would be right to be concerned," Mr Moulton told the BBC. |
| Ford sales in the US have been dented by Japanese rivals | |
| "At the moment it is absolutely anybody's guess what the medium and long-term situation will be for jobs in those plants," he added. | "At the moment it is absolutely anybody's guess what the medium and long-term situation will be for jobs in those plants," he added. |
| On Monday, press reports speculated that Mr Moulton's private equity firm Alchemy Partners was ready with a £3bn bid for Jaguar and Land Rover. | On Monday, press reports speculated that Mr Moulton's private equity firm Alchemy Partners was ready with a £3bn bid for Jaguar and Land Rover. |
| Mr Moulton told the BBC that Alchemy had not made contact with the companies over a possible bid. | Mr Moulton told the BBC that Alchemy had not made contact with the companies over a possible bid. |
| He said that despite their losses, the brands were still attractive, and he expected interest from US private equity firms, such as Apollo, Cerberus and Blackstone, as well as Far Eastern and Middle Eastern car manufacturers. | He said that despite their losses, the brands were still attractive, and he expected interest from US private equity firms, such as Apollo, Cerberus and Blackstone, as well as Far Eastern and Middle Eastern car manufacturers. |
| Cat fight | |
| BBC business editor Robert Peston said that Ford would be lucky if it got back the money it paid for the two luxury marques. | BBC business editor Robert Peston said that Ford would be lucky if it got back the money it paid for the two luxury marques. |
| Ford bought Jaguar for £1.6bn in 1989, followed by the £1.7bn purchase of Land Rover in 2000. | Ford bought Jaguar for £1.6bn in 1989, followed by the £1.7bn purchase of Land Rover in 2000. |
| "Apart from the £3.3bn it paid for the two businesses, it has ploughed in hundreds of millions of pounds of investment and swallowed substantial trading losses," he added. | "Apart from the £3.3bn it paid for the two businesses, it has ploughed in hundreds of millions of pounds of investment and swallowed substantial trading losses," he added. |
| Mr Peston said that Ford's time with Jaguar "has ended in failure". | Mr Peston said that Ford's time with Jaguar "has ended in failure". |
| "In the case of Jaguar, Ford has turned a sleek cat into a groggy moggy," he said. "It's all a bit sad." | "In the case of Jaguar, Ford has turned a sleek cat into a groggy moggy," he said. "It's all a bit sad." |
| Land Rover is a much stronger and more profitable business than Jaguar, and Mr Peston said that there are question marks over whether or not Jaguar has a long-term future. | |
| The worry for workers at Jaguar is that should the two companies be sold together, then there was no guarantee "that a new owner would not shut down most of Jag's manufacturing capacity". |