12 Mar 07 17:27
Aston Martin's topsy turvey history has taken what looks like a turn for the better: the British company has been sold by cash-strapped Ford to a consortium headed by Prodrive chief David Richards.
Dr Ulrich Bez, the key player in Aston's recent success under Ford, will stay on as chief executive. The four-door Rapide will go into production before the end of the decade, and the Gaydon plant in Warwickshire will expand, with the prospect of new jobs. More dealerships will continue to open around the world.
The sale - which values Aston Martin at £479 m - involves Ford keeping a £40m stake in the company, which it has owned since 1994, and includes an agreement to continue supplying engines and some other components. The formalities should be completed in the second quarter of 2007.
Lewis Booth, head of Ford's Premier Automotive Group and Ford of Europe, told a press conference at Gaydon this afternoon: 'For Ford this is a bittersweet day. We are sorry to end our day-to-day relationship with Aston Martin, but we are delighted to see the Aston team with a great future ahead of them.'
The money for the deal comes from two Kuwaiti companies: Investment Dar, the largest listed investment company in the Gulf, and Adeem Investment, Kuwait's fastest-growing investment, corporate finance and asset management company.
The driving force behind the deal was John Sinders, a banker in finance and shipping, based in Texas and Dubai. He's also an Aston collector and a backer of the Prodrive-run Aston racing effort, whose drivers include Dr Bez himself. Despite the existing Prodrive-Aston connection, it is in a personal, non-Prodrive capacity that Richards takes on his new role as Aston's non-executive chairman. Prodrive's imminent move into Formula 1 will definitely not be branded Aston Martin.
Richards said: 'John Sinders contacted me about six months ago with what seemed to me an extraordinary idea and said he would find a group of investors. I have long held a passion for Aston Martin motor cars but passion alone isn't enough in this business. Car businesses require long-term investment. You can't just come in and out. Our two investors understand what's required and I believe they will be with us for a long time.'
Dr Bez said: 'We have a deal and we have a good one. We are all grateful to Ford for enabling us to flourish, to grow to the level we are at now. I have committed to run the company for another five years. The company will continue to develop without a principal change of direction in the near future. What we will change is the speed at which we develop.'
He said there would be new models beyond the Rapide - he mentioned the name DBX, but politely batted away requests for details - and he stressed that they would continue to be sports cars. He explicitly ruled out a move into the SUV market and said a hybrid powertrain was not on the cards. Instead, work was underway on finding ways of improving Aston fuel economy: 'Our cars are low and light, but of course we have to work hard to improve this step by step.'
Aston Martin Vanquish
Bez predicted: 'Sports cars will be the last survivors of the automotive art.' He also said: 'In 2010 we will still be cool but we will also be the best prestige brand in the world.' Growth markets included Asia, Germany, Russia and America.
Aston made a profit and built 7,010 cars last year, compared to 800 in 2000; the workforce has grown from 1,200 in 2000 to 1,800 today. Bez said he expected the Rapide to contribute 1,000-2,000 extra sales.
Production of the Vanquish at Newport Pagnell will cease this autumn, when the DBS will arrive as the company's new 'halo' model. Meanwhile, 4Car will be driving the latest addition to the range, the V8 Vantage Roadster, this week.
And what does the sale mean for Aston's neighbours in Gaydon, Land Rover and Jaguar?
Booth said: 'Nothing has changed. Jaguar and Land Rover are not for sale.' But he added: 'We continue to review our businesses.'
