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Analysts say yes because Jaguar and Land Rover, two other luxury brands Ford's Premium Automotive Group, are not attracting the kind of bids the troubled had hoped. At least, that's what pundits are saying. And Ford needs the cash.
We all know that Ford is bleeding. The company lost $12.6 billion last year and has been closing plants and cutting jobs left and right. In short, they need money to finance their restructuring plan.
And part of that plan involves the United Auto Workers. According to the San Diego Union-Tribune, Ford's selloff plans coincide with the upcoming union talks. It could be that all these sales are in preparation to "shore up cash" in case the negotitions don't go as planned. The UAW may not go, for example, a possible proposal to assume healthcare liabilities from the Detroit Three. And it's well-known that the struggling union will not give up its controversial job bank without a fight. Ford, like Chrysler and General Motors, may simply need all that cash to prevent a strike which could cripple the automakers.
Our take? Ford should go ahead and sell all the PAG brands for some needed cash. However, it should make sure it has access to the Volvo chassis platforms, for example, for several years so it can build the safe cars the brand is so well known for. Besides, Ford can always turn around and buy Volvo, or another luxury brand, once it has more cash.
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