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Non-Tech : FORD (NYSE:F) -- Ignore unavailable to you. Want to Upgrade?

To: Michael Sinclair who wrote (446)	3/18/2000 5:48:00 AM
From: Michael Sinclair	Read Replies (1) \| Respond to of 1065

Additional information from Jac Nasser: ************************************************ In an environment of industry consolidation, it's important to ensure Ford Motor Company maintains its competitive advantage as we work to become the world's leading consumer company for automotive products and services. Earlier today, I sent you a note about our plans to acquire Land Rover from the BMW Group. Let me explain in greater detail what this acquisition could mean and how it will fit into our long-range strategy. Key factors considered in the Land Rover agreement were: * Brings a strong, well-established and complementary brand under the Ford Motor Company umbrella * Further strengthens the Premier Automotive Group * Reinforces Ford's truck leadership globally and builds upon Ford's tough truck image * Provides opportunity for our dealers to distribute Land Rover with Jaguar where it's not already done -- enhancing both brands by emphasizing their shared British heritage * Offers opportunities to increase revenue and improve financial results by leveraging Ford's global resources and distribution We concluded Land Rover is a strong, well-recognized premium brand that will generate improved profitability and revenue while broadening our image and customer base. The Wall Street Journal put it this way: "By adding another premium brand to a stable that already includes Jaguar, Volvo, Lincoln and Aston Martin, Ford aims to show that profits, not volume, define industry leadership..." But more importantly, adding Land Rover to our portfolio gives us even more opportunities to serve customers worldwide. Land Rover sales for this year are projected at about 200,000 vehicles, and that's potentially 200,000 new customers. Our acquisition includes the entire Land Rover line of vehicles -- Range Rover, Discovery, Freelander and Defender, plus: * A modern truck assembly plant in England with an annual capacity of 240,000 units * Research and engineering, administration and sales and marketing organizations for the truck business * International distribution network of 1,800 dealers worldwide The acquisition does not include the passenger car business or any assumption of debt by Ford. The reasons we believe this is a strong move for Ford are: * Increased Land Rover volumes by leveraging Ford's global product development resources and distribution * Economies of scale -- driven by material efficiencies, purchasing and system/component consolidation We expect to close the transaction by the second quarter -- although the acquisition is subject to definitive agreements between Ford and BMW, due diligence and regulatory approvals. Wall Street's response to our announcement has been positive. Stephen Girsky, one of the leading auto analysts, said Land Rover "brings a premium brand, little customer overlap and plenty of opportunities for synergies." Land Rover presents the opportunity to add another global brand to our portfolio, increase potential for profitable growth, broaden our image and customer base and strengthen the Premier Automotive Group. Together, that adds up to an excellent strategic fit, with opportunities for greater shareholder value. An inspired global team -- customer-focused and shareholder driven, Jac