What If Ford (F) Can’t Sell Jaguar And Rover
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…
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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
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Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.
McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.
His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.
A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.
TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.
McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.