Ford likely to delay Jaguar announcement

Ford Motor Co. probably will not name the preferred bidder for its Jaguar and Land Rover units until early in January, sources said today.

Others who had been briefed on the talks said that Indian automaker Tata Motors Ltd. could be given preferred bidder status as early as Friday.

But other sources said no such announcement was expected as negotiations continue between Tata and Ford officials.

“It sometimes takes a bit longer than you expect,” one source said.

Ford executives have said they expect to announce the sale of the two British automakers early next year.

Tata is vying with another Indian automaker, Mahindra & Mahindra Ltd., as well as US private equity firm One Equity Partners LLC, for the units. Earlier this month they had submitted bids that ranged from 1.5 billion to 2 billion, said one source.

A preferred bidder designation would mean that Ford is focusing negotiations on one suitor.

Cash-hungry Ford, which lost 12.6 billion last year but earned 88 million in the first nine months of 2007, has been looking to sell Jaguar and Land Rover.

It has mortgaged its assets to borrow money to stay operating and expects to burn up 12 billion to 14 billion until 2009, when it plans to return to sustained profitability.

Jaguar and Land Rover have been hit by unfavourable exchange rates and high production costs in Britain.

Ford bought Jaguar for 2.5 billion in 1989 and Land Rover for 2.7 billion in 2000, joining them with Aston Martin and Volvo to form its Premier Automotive Group. Ford has not said how much it wants for the combined units.

Earlier this year Ford completed the sale of its controlling stake in Aston Martin for 931 million in cash and preferred stock.

Ford has said it plans to keep Volvo for now, fixing its cost structure and making it a more premium brand.