In 1992, Aston Martin, the British sports car brand made famous by James Bond, sold only 46 cars. Last year, sales rose to a record 7,000, more than 152 times the 1992 figure.
By nearly all accounts, Aston Martin is a Ford Motor Co. success story, a shining star for the struggling auto giant that acquired a controlling stake in the British company two decades ago and full ownership in 1994.
So why would Ford, which lost $12.7 billion last year, sell a healthy company that makes a profit?
Ford needs cash to cover losses expected into 2009, but it already has mortgaged its factories to secure a $23.4 billion line of credit. The $848 million it will get for Aston Martin is small change when compared with the $17 billion Ford expects to burn up before returning to profitability in two years or so.
"At a certain level, I think you have to say that this disposal is kind of symbolic," said Stephen Cheetham, a senior analyst with Sanford C. Bernstein Ltd. in London. "They were selling as much of the family silver as is salable."
There's also a practical reason, said Gregg Lemos-Stein, a credit analyst for Standard & Poor's in New York.
Aston Martin, while profitable, didn't fit into Ford's long-term survival plan for cost savings from developing multiple models worldwide on the same underpinnings, Lemos-Stein said. Aston Martins, which cost upward of $110,000, sell because they are unique.
"The sale of Aston Martin makes sense because Aston Martin does not share much in terms of platforms or engineering with the other Ford assets," Lemos-Stein said.
Ford's chief executive officer, Alan Mulally, said in a statement that the sale supports Ford's turnaround plan, which involves cutting factory capacity and rolling out new cars and trucks at a faster pace.
The sale, which the companies said had a total value of $925 million, is expected to close sometime in the second quarter. Ford will retain a $77 million stake in the company, which it put up for sale in August.
Aston Martin will now be controlled by a consortium of investors, including racing mogul David Richards, John Sinders, and the Kuwaiti-based international companies Investment Dar and Adeem Investment Co.
Richards is founder and chairman of Prodrive, a British racing and automotive technology company that runs Aston Martin's international sports car racing team. Sinders, from Houston and Dubai, is an Aston Martin collector and Aston Martin Racing team backer.
Richards is heading the consortium and has a personal stake in Aston Martin, although like the other investors, he would not say how much of the company he will own. Richards will join Aston Martin's board as nonexecutive chairman and will be involved in the strategic direction of the business, he said Monday.
Aston Martin Chief Executive Officer Ulrich Bez will continue to lead the company's management team, Aston Martin said.
Richards predicted only modest sales growth for Aston Martin in coming years, but said the company will remain true to its roots as an iconic British luxury sports car
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