Ford's Luxury Brands Bleed Money, But Aren't For Sale
Ford (F) announced Q3 earnings today and blood ran in the street of Detroit once again. The loss from continuing operations was $1.2 billion. Ford's premier car group, its luxury car operation, lost $593 million before taxes. These are the high priced cars, the ones that are supposed to have high retail and big profits. Someone forgot to mention that to Ford.
Jaquar and Land Rover are part of the premier group. These brands seem to have lost money forever, but Ford will not sell them.
As Ford's US share drops like a Winter sun from its current 17% to a a figure Ford thinks will be the bottom, 14%, any sane investor would think that the No.2 US car company would want to sell Jaguar, even for a dollar.
Maybe no one will pay that much.
Douglas A. McIntyre can be reached at douglasamcintyre@247wallst.com. He does not own securities in companies that he writes about.
Jaquar and Land Rover are part of the premier group. These brands seem to have lost money forever, but Ford will not sell them.
As Ford's US share drops like a Winter sun from its current 17% to a a figure Ford thinks will be the bottom, 14%, any sane investor would think that the No.2 US car company would want to sell Jaguar, even for a dollar.
Maybe no one will pay that much.
Douglas A. McIntyre can be reached at douglasamcintyre@247wallst.com. He does not own securities in companies that he writes about.
posted by douglas mcintyre at 12:34 PM
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