Fiat Tells Ford No Thanks to Land Rover and Jaguar Purchase
European newspapers are reporting this morning that Fiat tried to buy Land Rover and Jaguar from Ford, but an agreement regarding the proposed sale could not be reached. At least part of the reason for reluctance on Fiat’s part was potential damage to their improving long-term credit rating. Neither Ford nor Fiat would comment on the sale reports.
Fiat may still come back to the deal – it is thought that Fiat is interested in the Land Rover Group because of their strong SUV lineup and their U.S. dealer network. Fiat could use the dealer network to re-launch the Alfa Romeo brand in the U.S. Their interest in Jaguar is for the Jaguar RWD platform and the excellent V6 and V8 engines.
Ford has retained investment bankers to facilitate the sale of their luxury PAG group and is thought to be actively shopping all three brands in the PAG group – Volvo, Jaguar, and Land Rover. Rumors of BMW buying Volvo were rampant last week, but came to nothing. Still, Ford’s financial situation is not getting any better, so a sale of one or all of the three brands seems to be in the cards.