Aston Martin is Up For Sale
With premium automakers like Bentley, Porsche, Land Rover, and Lamborghini all being snatched up by more mainstream automakers, like Volkswagen and, dare we say, Tata, it is pretty obvious that it’s tough going for independent, niche automakers. Even Ferrari, which is doing extremely well so far in 2012, has a parent company in Fiat S.p.A.
Aston Martin is one of the few niche automakers that is almost going it alone, as Ford only holds a 15-percent share in the premium sports car company and the rest is shared between privateer David Richards, and Kuwaiti investment firms Investment Dar and Adeem Investment Co. Of those three, Investment Dar owns the majority of the company, which sits at 68 percent.
According to reports from Bloomberg Businessweek, Investment Dar is searching for a new home for Aston, but having a rough time selling the brand. It is trying to sell its share of the company for the same $800 million that it bought the company for just five years ago. One possible buyer is Mahindra & Mahindra Ltd., the current owner of SsanYong, but it appears as if Mahindra is not in the market to blow that kind of cash on the British automaker.
Another potential suitor, which is a bit of a surprise, is Toyota. The Japanese automaker actually went as far as to hire an outside auditor to do a week-long survey on the possibility of buying Aston Martin. From the looks of things, that audit didn’t turn out too well, as that happened two months ago and there is still no movement by Toyota.
As expected, Toyota and Mahindra declined to comment on the situation, and Investment Dar outright denied the claims that Aston is up for sale. Regardless of denials and lack of confirmation, the debt that Aston Martin has accumulated – about 1.37 billion dinars ($4.9 billion at the current exchange rates) – via an Islamic bond needs to be paid off and selling the company may be the only option.
Short of that, we may see Aston Martin go the way of the dodo bird…
Source: Bloomberg Businessweek