FoMoCo Announces Aston Martin Sale
Nearly a year ago Ford announced that it would begin exploring options for its Aston Martin brand. Now, in the midst of a massive restructuring effort, the Ford Motor Company says it has found a buyer for Aston Martin and announced the sale today.
The consortium of buyers is made up of three different parties: David Richards, founder and chairman of Prodrive, a leading motorsport and automotive technology company; John Sinders, an avid Aston Martin collector and a backer of Aston Martin Racing; and Investment Dar and Adeem Investment Co, international investment companies headquartered in Kuwait.
A Ford era DB7 Zagato
The sale is expected to close during the second quarter with a selling price of around $925 million. As part of the transaction, Ford will retain a $77 million dollar investment in Aston Martin.
Fords chief executive and President Alan Mulally explained the sale as way for Ford to stay on track for its restructuring, “the sale of Aston Martin supports the key objectives of the company, to restructure to operate profitably at lower volumes and changed model mix and to speed the development of new products,” He went on to emphasize how the deal was helping out everyone involved, “from Aston Martin’s point of view, the sale will provide access to additional capital, which will allow Aston Martin to continue the growth it has experienced under Ford’s stewardship. Today’s announcement is good for Ford Motor Company, good for Aston Martin and good for the UK. We wish Aston Martin every possible success for the future.”
The Early Years: A beautiful DB2
This seems like a logical move on Ford’s part. Streamlining the company and putting the focus on cars for the masses seems like a pathway to success. As for Aston, I’m glad to see the brand stay alive, and it is nice that the new owners are enthusiasts as well as business men. Maybe this will help the company get back in touch with their small business roots. This is one deal where everyone could indeed come out a winner.
-Bill Mertz
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