Prodrive buys Aston Martin (from ? to !)

[Pilgrimage]

My concern would be for the continuing brand (and car) development.
Will there be enough £ & $ to develop new models?

[andy97]

Originally Posted by davyboy

Not sure I agree Andy... I do not think they meandered into SUV territory to showcase their technical competence. Having taken a belt and braces approach to rationalize the business by focusing solely on the 911, they were well aware of how vulnerable they were in producing one model of car to appeal to a single type of buyer and also how important SUVs were to their US market. I hate the Cayenne, but a lot of people with plenty of money love it and its been a big success for Porsche.

I don't recall suggesting that they "meandered" into the Cayenne. It was hard nosed business decision designed to make money. Perhaps instead of using the phrase, "The SUV project was not aimed at helping them survive, it was to expand the brand desirability in the US" I should have made it clear that they were increasing sales in an important US sector to expand the business. The investment in Cayenne was not about survival, as someone else suggested, it was about expansion and, I would argue that part of that was to demonstrate their capabilities to a non traditional Porsche owning customer.

Anyway, back to AM & Prodrive. DR is a good businessman & has not made too many mistakes (have there been any? ISC, perhaps?). The purchase of AM is a step up but the Porsche business model over the last 5 years or so is as good a one to follow (and adapt) as any.

[old man]

Originally Posted by andy97

Porsche has recently massively increased its stake in the whole VW group and may well take it over completely - Audi, Seat, Skoda, Lamborghini & Bugatti and all. Not really the actions of a car company doing things just to survive.

This is interesting information that I have heard some "bar room" comments about but not spotted a definative write up, got any suggestions where I might look?

Any info an relative market capitalisation of Porsche and VAG

[andy97]

Originally Posted by old man

This is interesting information that I have heard some "bar room" comments about but not spotted a definative write up, got any suggestions where I might look?

Any info an relative market capitalisation of Porsche and VAG

Reported extensively in recent editions of "911 & Porsche World" Magazine - can't remember the issue but it was only in the last few months. Porsche already holds seats on the VAG Board.

Also found these links:

http://www.iht.com/articles/2007/02/14/business/vw.php

http://news.bbc.co.uk/1/hi/business/6152584.stm

[gttouring]

HOLY CRAP
and for 500 million pounds sterling!!!

that's a lot of cash- i never knew David Richards and Prodrive were THAT wealthy,
so ASTON MARTIN is now firmly British Again, and in the hands of one of the most fearsome racing groups in the sport...will this mean Aston Martin will show up in F1?

[Woolley]

Dave Richards is definitely the man to make this work, and hats off to him for even trying. The 30% Ford stake is wise, as by assisting with R&D they gain credibility and a good return on their remaining investment. DR gets a prestige racing brand, and has the capability of running the racing side at a profit rather than a drain, and may I suggest that an AM badge on the Prodrive designed supercar would be quite a good fit?

I can't support what he's done to WRC, but in every other venture he's a top man and has remained a thoroughly decent human being too - quite an acheivement when compared with his peers. I truly hope this is a success.

[andy97]

Originally Posted by gttouring

HOLY CRAP
and for 500 million pounds sterling!!!

that's a lot of cash- i never knew David Richards and Prodrive were THAT wealthy,
so ASTON MARTIN is now firmly British Again, and in the hands of one of the most fearsome racing groups in the sport...will this mean Aston Martin will show up in F1?

I doubt if they are THAT rich - almost all deals like this are financed by someone else - Banks, or in this case Egyption backers (allegedly). And there will be a return required on the investment.

With the Egyptian backers and with with Ford retaining a 30% stake, they are hardly "firmly British" but I'll take it for now!

[old man]

DR is obviously a shrewd guy for whom I have a very high regard and I am personally delighted at this move that puts the marque closer to what it has always been, a sports car with racing in it's blood. I started as a Student Apprentice with David Brown Group in the 1950s when they owned Aston/Lagonda and they built them in Leeds so I have an emotional link with the marque.

On another subject from post #29, I for one was not aware of just how close VW - Audi and Porsche are and the links provided in that post make fascinating reading. Audi in LMP1, Porsche in LMP2 makes a lot more sense now, sorry if I am a bit slow on the uptake on that count, thanks Andy

[Mal]

If you read the bottom two paragraphs of this article you will realise that there potentially is no shortage of money available as in a roundabout way the money is from the Saudi Arabia's vast oil cash reserves.

http://www.grandprix.com/ns/ns18856.html

[AU N EGL]

Originally Posted by Pilgrimage

My concern would be for the continuing brand (and car) development.
Will there be enough £ & $ to develop new models?

There is always enough money, just not to those who dream about buying one.

[Dennis.Doyle]

While I'm sure Dave Richards has got his head screwed on after converting BAR into works Honda, the business side of it is all a bit tedious.

Though Prodrive isn't directly involved in the deal let's just hope for AM winning Le Mans again eh?

[duke_toaster]

Someone mentioned R and D - Prodrive have a model that they could just alter the looks of and sell as an Aston - the P2. The only issue is that it is based of Subaru parts, not Ford as the current cars are with the Duratec V12.

[rdjones]

Someone I know works at Prodrive, this is what he has said on another forum. Latest rumour is that Ron Dennis is to sell Mclaren to Mercedes and use the money to buy Prodrive (+ it's available slot on the F1 grid to run the Mclaren 'B' team from the old Mclaren factory). Dave Richards then invests his share of the prodrive sale into buying Aston Martin.

[JAG]

So if Prodrive own the Aston brand, they could build on the success of the DBR9 and build an Aston branded prototype, which could be more attractive to potential teams, in terms of sponsorship and resale value, than a generic Lola or Zytek.

[HORNDAWG]

Originally Posted by rdjones

Someone I know works at Prodrive, this is what he has said on another forum. Latest rumour is that Ron Dennis is to sell Mclaren to Mercedes and use the money to buy Prodrive (+ it's available slot on the F1 grid to run the Mclaren 'B' team from the old Mclaren factory). Dave Richards then invests his share of the prodrive sale into buying Aston Martin.

Actually he already sold off a big hunk some time back! http://tentenths.com/forum/showpost....6&postcount=78

L.P.

[HORNDAWG]

Originally Posted by JAG

So if Prodrive own the Aston brand, they could build on the success of the DBR9 and build an Aston branded prototype, which could be more attractive to potential teams, in terms of sponsorship and resale value, than a generic Lola or Zytek.

I thought that it was Dave Richards with backing, aside from Prodrive, that was trying to swing the deal!

From BBC News

His company, Prodrive, already runs the Aston Martin racing team in the sports car series around the world, as well as the Subaru world rally team. However Prodrive itself will probably not be involved in the consortium bid.

http://news.bbc.co.uk/1/hi/business/6433349.stm


L.P.

[chernaudi]

Well, all I can hope is that Richards/Prodrive(or who ever is involved) can now get over the hump and win Le Mans. Why else isn't Prodrive not running factory DBR9s this year? This deal was obviously in the works for a while.

And a word on the Porsche/VAG deal. Porsche owns about 25% of VAG. And Ferdinand Peich(who is Ferdinand Porsche's grandson and Ferry's nephew) is probably the eldest surviving member of the Porsche family. And he started his carrer with Porsche's racing program(the 908 and 917), then went to Audi(was pivital in the development of quattro and TDI), then became head of VAG in 1993 until his retirement in late 2002. He's still very high ranking on VW/Porsche's advisory boards, and is the majority owner of both companies the last time I looked.

[AstonGeoff]

It's been said before, but it was never AMR's intention to run a full program in any of the series. The idea was to build and sell a number of DBR9's to be run by existing teams. This has worked for FIA GT's and LMS, but sadly no one in the US came forward to run them against the 'vettes. Last years efforts by AMR in the ALMS was done purely on a race by race basis and they were getting funding from wherever they could.

David Richards appears to be trying to put a deal together outside of Prodrive to buy AML, which is very sensible given that Prodrive has been pretty much profitable since he set it up, whilst AML hasn't! The money for his purchase of AML is allegedly coming from the Middle East.

I recently (last year) read an artice on Ron Dennis and his plans for retirement, so i would be surprised if he decided to buy Prodrive!

But we are talking about Motorsport and the car industry, so anything can, and probably will, happen!

[AstonGeoff]

At Last!!!!!

It's finally been confirmed....

http://news.bbc.co.uk/1/hi/business/6442101.stm

[Tim the Grey]

Just got a copy of the Press Release here...
DEARBORN, Mich., March, 12, 2007 – Ford Motor Company [NYSE: F] announced today it has entered into a definitive agreement to sell Aston Martin, its prestigious sports car business, to a consortium comprised of David Richards, John Sinders, Investment Dar and Adeem Investment Co. This transaction is the result of Ford's decision, as announced in August 2006, to explore strategic options for the Aston Martin business as the company restructures its core automotive operations and builds liquidity.

The sale is expected to close during the second quarter and is subject to customary closing conditions, including applicable regulatory approvals. The transaction values Aston Martin at £479 million ($925 million). As part of the transaction, Ford will retain a £40 million ($77 million) investment in Aston Martin. Other terms and conditions specific to the sale are not being disclosed at this time.

Note it's Dave Richards, NOT ProDrive that are the buyers?
How significant is that I wonder?

[HORNDAWG]

Originally Posted by Tim the Grey

Just got a copy of the Press Release here...
DEARBORN, Mich., March, 12, 2007 – Ford Motor Company [NYSE: F] announced today it has entered into a definitive agreement to sell Aston Martin, its prestigious sports car business, to a consortium comprised of David Richards, John Sinders, Investment Dar and Adeem Investment Co. This transaction is the result of Ford's decision, as announced in August 2006, to explore strategic options for the Aston Martin business as the company restructures its core automotive operations and builds liquidity.

The sale is expected to close during the second quarter and is subject to customary closing conditions, including applicable regulatory approvals. The transaction values Aston Martin at £479 million ($925 million). As part of the transaction, Ford will retain a £40 million ($77 million) investment in Aston Martin. Other terms and conditions specific to the sale are not being disclosed at this time.

Note it's Dave Richards, NOT ProDrive that are the buyers?
How significant is that I wonder?

It is quite significant as a wholly different entity, and business concerens, is involved in the decision process!

I think the best scenario for Sports Car fans is if Ron Dennis bought Prodrive (or a large%) and negotiated to run under the AM badge(McLaren/Merc # 2) by ceding the current AMR division to AM. Then Dave Richards and the consortium could bring it in house and use it as an advertising tool in the U.S.(still their largest market) and to write it off the books (taxes)!

This would give Prodrive funds for the WRC and Australian V8 S.C., create a solid AM/ Prodrive F-1 team and give AMR full factory backing!

L.P.

[Tim the Grey]

That sounds remarkably Byzantine...
So it's possibly correct!

I gave up understanding how companies really work along time ago. When you start digging, you find things to worry you!

Thanks for the thoughts.

[vorsprung]

from the press conference
On the question of F1, Richards said that there was no chance of AM going into F1. "People have been adding 2+2 and making six. Prodrive may partner with existing team, but AM will continue with sportscar racing."

http://www.pistonheads.com/gassing/t...0&t=366346&h=0

[Tom908V12]

I would really have wished Aston-Martin would go to Endurance in LMP1 rather than in F1 !!!

[HORNDAWG]

from the press conference
On the question of F1, Richards said that there was no chance of AM going into F1. "People have been adding 2+2 and making six. Prodrive may partner with existing team, but AM will continue with sportscar racing."

Originally Posted by vorsprung

http://www.pistonheads.com/gassing/t...0&t=366346&h=0

I find it somewhat funny that the words sound,and possibly mean, so much different from seperate sources!

From BBC News
Mr Richards' consortium also said that earlier speculation that Prodrive may brand its cars Aston Martin when it enters Formula One racing next year was completely unfounded.

http://news.bbc.co.uk/1/hi/business/6442101.stm

L.P.