You wont believe whos buying Aston Martin

[GTO]

So its old news that Ford is selling Aston. But guess who is the buyer? Louis Vuitton!!

What the hell does a luxury goods maker (of IMHO garish handbags) know about running a car company? What next? Gucci buying Jaguar?

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[Sam Kapasi]

Actually these are just sensationalism.

Aston martin will be acquired by the LVMH group that handles some fantastic luxury goods items - including spirits Moet and Chandon, Dom Perignon and Glenmorangie. Also mechanical wonders such as Chaumet, Zenith and Tag Heuer. At the end of the day Louis Vuitton is one of their many major brands.

The sensationalism has succeeded. Now would you be equally annoyed if the news said "Tag Heuer to acquire aston martin?"

[ajmat]

According to the FT - following exerpt of an article quoted below. Whatever it is, there looks like no car manufacturer taking it on:

Ford Motor is on Wednesday expected to receive revised offers from a handful of remaining bidders left in the auction for Aston Martin, the sports carmaker it is attempting to sell for more than £450m.

These are thought to include Simon Halabi, the property tycoon, and buy-out group Doughty Hanson. Magna, the Canadian car parts group, and a consortium including James Packer, the Australian media billionaire, may also lodge bids.

However, the continuing involvement of Permira is uncertain, while rival buy-out groups that have dropped out include Alchemy, Texas Pacific Group and One Equity, the JPMorgan private equity business that counts Jac Nasser, former Ford chief executive, as a senior partner.

www.ft.com

[abdul 65 amg]

Hyundai is on the list too they would buy Aston Martin or Jaguar bceause they need a luxury brand in their group

[Sam Kapasi]

Originally Posted by abdul 65 amg

Hyundai is on the list too they would buy Aston Martin or Jaguar bceause they need a luxury brand in their group

Hyundai has more than one brand in their group?? I didn't know that.

[iraghava]

Originally Posted by Sam Kapasi

Hyundai has more than one brand in their group?? I didn't know that.

Hyundai & Kia are part of the same group.

[vinod]

if Louis vuitton bags aston martin....it'll be interesting to see how they design the exteriors and interiors.

[v1p3r]

LVMH is a luxury brand conglomerate. Just because they acquire AM doesn't mean they will design cars for them.

[GTO]

Now would you be equally annoyed if the news said "Tag Heuer to acquire aston martin?"

Absolutely. Making and selling cars, especially in todays dynamics, is a lot different than selling booze, watches or handbags. This is more so with a brand like Aston Martin which cannot get away with just an average product.

If they still go ahead, I would think a car company will have the engineering inputs with LV doing that they are best at. Marketing high end brands.

[v1p3r]

Well, it's a bit like Benetton running an iconic F1 team. They didn't design the cars or the engines. They run the management. And good managers can manage anything, given a few fixed parameters.

[tifosikrishna]

Now would you be equally annoyed if the news said "Tag Heuer to acquire aston martin?"

A watch company showing interest in automobiles is not new. We have a precedent in swatch trying to produce a small car, nonetheless, it turned out to be a fiasco.

regards
Tifosi.

[Aditya]

I was praying that Dr. Ulrich Bez would buy Aston Martin. He has really transformed the company from a financial debacle to the most wanted brand that they are today.
What the hell would Louis Vuitton know about making cars?

[aniguchisan]

Controversial move. Hope it works out for the better, and doesn't lead to a diminishing image of AM.

[Sam Kapasi]

Originally Posted by Aditya

What the hell would Louis Vuitton know about making cars?

Originally Posted by v1p3r

LVMH is a luxury brand conglomerate. Just because they acquire AM doesn't mean they will design cars for them.

Originally Posted by v1p3r

Well, it's a bit like Benetton running an iconic F1 team. They didn't design the cars or the engines. They run the management. And good managers can manage anything, given a few fixed parameters.

Exactly C3PO's point with him.
A business investment conglomerate doesnt make things, it just generates and harnesses profit made from a good engineered product. The business house does not need to know how to run the business in question technically.

Does Ratan Tata know how to make soap, salt and steel?

Did Reliance learn how to operate a communications, investment and insurance and half a city's electrical company by making suit pieces?

An intelligent business conglomerate can run any good business, by hiring the people that know how to make things that work well. By providing a stronger backbone, money for further R & D, money to promote and market products and overall financial stability.

That's why an automobile company would sell. Not because their cars are bad or they dont sell. So that they can have the financial backing to make better cars and market them well. Not to sell out, but to progress.

Atleast that is the intention of the sale. I agree, that sometimes it leads to a company losing the very identity that created admirers. Products turning more mainstream than cutting edge and underground. Everyone wants to make money.

IMO AM's sale to LVMH could go either way. Maybe more cutting edge, maybe more mainstream/luxury oriented. But either way, they will definitely sell more cars than before.

[Sam Kapasi]

It may also interest you to know that Tag(heuer) Mclaren made some cutting edge, very high end speakers, DVD players, amplifiers and electronics.