Aston
Martin Goes On The Block
Before Jaguar
Appartently,
owning the ‘James Bond’
brand has serious appeal
to everyone except Ford
Motor Company. It seems
the bidding makes sense
on both sides of the
fence. Ford Motor Company
is struggling to ‘right’
their boat for some
time and Aston Martin
is losing money like
Mike Tyson, but the
bidding public may get
a luxury brand bargain
(If you call Billionaires
‘public’). The surprise
is that Jaguar is still
not up for grabs, although
we’ve been saying Aston
would go first for months.
Top bids for Aston Martin
may exceed $1.2 Billion,
which seems like a lot
but not when you consider
the losses it has racked
up, more than $500 Million
in 2005 and this year
will finish just as
bad. What went wrong?
Besides the fact that
American car companies
have a horrible track
record when it comes
to marketing a luxury
brand car, hum, nope
that’s about it.
Jaguar
on the other hand is
doing well, strong sales
across the board. Jaguar,
in our opinion, my have
dealt Aston Martin the
final blow because the
new XK looks remarkably
similar to the Aston
models and Americans
only spend big bucks
for luxury cars that
really separate themselves
in the market place.
At least, that’s the
latest trend. Cadillac
has learned this lesson
well and is chasing
the younger money, Lincoln
still can’t figure it
out, Acura lost to Lexus
for this reason and
history is constantly
repeating itself. Heck
Chrysler even dressed
itself up all pretty
and attracted Daimler
to come in and buy them
out so it could enter
the luxury market (In
this case, Mercedes
is the loser, but Chrysler
won big).
Jaguar has always remained
on its’ own territory
and for this reason,
may even survive the
slaughter to stay with
Ford. This would be
a great deal for Jaguar
because Ford has done
wonders for the British
mark, markedly improving
reliability and quality.
The math makes the case
even stronger;
Most European cars count
on the U.S. for nearly
60% of their business,
Jaguar is no different,
however, Aston Martin
sold only about 1300
of its’ 4500 yearly
total to the U.S. market.
Jaguar somehow, has
been able to maintain
its’ appeal in the U.S.
market while Aston Martin
has floundered.
Jaguar
has taken some lumps,
but their current model
line-up has done well
and their recent introduction
of the 2007 XK will
do well because to Americans
it will seem a bargain
Aston Martin. What the
new owners of Aston
will do to re-establish
that separation from
Jaguar should interesting,
but as always, the customer
will win in the end.
Let the battle of the
Brits begin…so long
as Jaguar wins.