What If Ford (F) Can’t Sell Jaguar And Rover

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The Wall Street Journal writes that Ford (F) may have trouble selling Jaguar and Rover due to "uncertainty over how the European Union will apply new regulations on carbon-dioxide emissions." Because the two luxury car brands tend to burn more gas and release more pollutants than a small Toyota, the EU rules may hurt them more than other car companies.

Ford had hoped to get over $5 billion for the units, but press reports now say that it is unlikely that they will fetch north of $3 billion.

Ford would like to have the money to help its finance losses in North American and also potentially set up a fund with the UAW to cover health benefits. Ford would like the employee obligation off its books, but it may have to contribute over $20 billion to such a fund.

Ford does have another option, particularly with Jaguar, which has been rumored to lose as much as $1 billion a year. It could close the company and sunset the venerable brand.

Then emissions would not be a problem

Douglas A. McIntyre