Ford to decide what to do with troubled brands aka jaguar
http://www.nytimes.com/2006/08/02/busine...nyt&emc=rss
DEARBORN, Mich., Aug. 2 - With losses mounting in its North American operations, the Ford Motor Company plans to bring in a strategic advisor to review of its automotive operations and decide which businesses Ford should keep or sell, people with direct knowledge of the company's plans said today.
The advisor, Kenneth Leet, will focus on underperforming brands, such as the luxury carmaker Jaguar, these people said. They insisted on anonymity because Mr. Leet's appointment is not yet public.
He also look at whether Ford should explore alliances with other companies, like the proposed deal between General Motors, Renault and Nissan, these people said.
The hiring of Mr. Leet, a former official with Goldman Sachs and Bank of America who has years of investment banking experience, was first reported by the Wall Street Journal.
A Ford spokesman, Oscar Suris, declined comment on the report. "We don't have anything to announce at the moment," Mr. Suris said.
Mr. Leet will become an advisor to Ford's chief executive, William Clay Ford Jr., who is trying to move more urgently on the company's efforts to restructure its North American operations, which lost $1.6 billion before taxes last year.
In January, Ford unveiled a plan called the Way Forward, under which it said it would cut 30,000 jobs and close 14 plants by 2012. Mr. Ford said last month that the company would speed up and expand the program, and that additional steps would be announced within 60 days.
However, the company's financial situation is deteriorating fast, due in part to declining sales of pickup trucks and sport utility vehicles, which make up the bulk of Ford's North American revenue.
Although industry analysts have predicted that Ford could lose about $3 billion before taxes in North America this year, one internal forecast shows the automaker's pre-tax losses could be as high as $5 billion, according to people with direct knowledge of the report.
The figure is based on worst-case factors such as $100 a barrel oil prices, higher interest rates and a fall off in consumer spending. Ford does not issue public predictions of its financial results, and Mr. Suris declined comment on the $5 billion estimate.
Word of Mr. Leet's hiring came one day after July sales reports showing that Toyota passed Ford for the first time to rank as the No. 2 automaker in the United States.
Last month, Ford surprised Wall Street by posting a $123 million second-quarter loss, on top of a first-quarter loss. Analysts expect Ford to lose money again in the third quarter.
DEARBORN, Mich., Aug. 2 - With losses mounting in its North American operations, the Ford Motor Company plans to bring in a strategic advisor to review of its automotive operations and decide which businesses Ford should keep or sell, people with direct knowledge of the company's plans said today.
The advisor, Kenneth Leet, will focus on underperforming brands, such as the luxury carmaker Jaguar, these people said. They insisted on anonymity because Mr. Leet's appointment is not yet public.
He also look at whether Ford should explore alliances with other companies, like the proposed deal between General Motors, Renault and Nissan, these people said.
The hiring of Mr. Leet, a former official with Goldman Sachs and Bank of America who has years of investment banking experience, was first reported by the Wall Street Journal.
A Ford spokesman, Oscar Suris, declined comment on the report. "We don't have anything to announce at the moment," Mr. Suris said.
Mr. Leet will become an advisor to Ford's chief executive, William Clay Ford Jr., who is trying to move more urgently on the company's efforts to restructure its North American operations, which lost $1.6 billion before taxes last year.
In January, Ford unveiled a plan called the Way Forward, under which it said it would cut 30,000 jobs and close 14 plants by 2012. Mr. Ford said last month that the company would speed up and expand the program, and that additional steps would be announced within 60 days.
However, the company's financial situation is deteriorating fast, due in part to declining sales of pickup trucks and sport utility vehicles, which make up the bulk of Ford's North American revenue.
Although industry analysts have predicted that Ford could lose about $3 billion before taxes in North America this year, one internal forecast shows the automaker's pre-tax losses could be as high as $5 billion, according to people with direct knowledge of the report.
The figure is based on worst-case factors such as $100 a barrel oil prices, higher interest rates and a fall off in consumer spending. Ford does not issue public predictions of its financial results, and Mr. Suris declined comment on the $5 billion estimate.
Word of Mr. Leet's hiring came one day after July sales reports showing that Toyota passed Ford for the first time to rank as the No. 2 automaker in the United States.
Last month, Ford surprised Wall Street by posting a $123 million second-quarter loss, on top of a first-quarter loss. Analysts expect Ford to lose money again in the third quarter.
