Cerberus, the US hedge fund that will be taking control of Chrysler from DaimlerChrysler (DCX) is looking at buying the two luxury divisions that The Ford Motor Company (F) has on the block. The two brands are Range Rover and Jaguar.
The deal could make some sense. Without it Daimler association, Chrysler will not be affiliated with a parent that has a luxury brand (Daimler owns Mercedes). While a bid might face some opposition in the UK where the two brands are based, the opportunity of putting the two companies could be compelling in terms of cost savings and marketing. The British are not anxious to see any jobs cut by a new owner.
But, if Cerberus plays its cards right, it could own three auto operations that would give it a full spectrum of brands running from $100,000 luxury cars to pick-ups and SUVs to inexpensive sedans.
In other words, a real car company.
Douglas A. McIntyre