One of the most prestigious manufacturers in Britain's motor industry, Aston Martin, has been put up for sale by Ford as part of the troubled American company's efforts to restructure and streamline its empire.
Ford, owner of Aston Martin since 1994, said it was "exploring strategic options" for the luxury sports car maker "with particular emphasis on a potential sale of all or a portion of the unit".
The announcement means uncertainty for Aston Martin's 1,700 staff at Gaydon, Warwickshire, and Newport Pagnell, Buckinghamshire, who produce cars costing between £80,000 and £175,000 each.
Aston Martin has grown steadily in recent years: its output has reached 4,500 cars a year, compared with 46 vehicles in 1992. Its cars have featured in recent James Bond films and a new V8 Vantage model with a top speed of 175mph has been well received by critics.
Tom Hoyt, a Ford spokesman, said that Aston Martin was profitable but that it was only a tiny part of the US group, which has 100 plants and 300,000 employees worldwide: "Aston is a highly valued luxury brand but it is not as visible as it might be within Ford."
He added that a sale was by no means a certainty: "You shouldn't take this as any kind of a final step, it's really just a first step we're taking here."
Ford has struggled to cope with high fuel prices and weak demand for cars in its home market, where sales of its sports utility vehicles have been particularly poor. The company lost $1.3bn (£683m) in the first half of the year.
Ford's chairman, Bill Ford, appointed Kenneth Leet, a prominent Wall Street banker, to advise him on strategic options last month. Among Mr Leet's given tasks has been a review of the luxury brands within the company's Premier Automotive Group.
Aston Martin prides itself on its handmade components with details including individually stitched leather seat covers. Insiders say that, as a highly specialised business, the company has few synergies with the rest of Ford, in contrast with marques such as Jaguar and Land Rover, which share many processes.
Many industry experts have been expecting Ford to sell Jaguar, which has been loss-making in recent years. In contrast Ford's chairman seemed to give the Coventry business a vote of confidence yesterday. In a statement concerning the Premier Automotive Group, Mr Ford said: "We have made no decisions, as our review of strategic alternatives continues. However, we continue to be encouraged by Jaguar's progress and by the strength and consumer appeal of the Jaguar, Land Rover and Volvo line-ups."
Aston Martin was founded in 1914, in a west London workshop, by two entrepreneurs, Lionel Martin and Roger Bamford. Its recent success has been fuelled by the increasing number of millionaires at the top of the international wealth pile.
Three-quarters of Aston Martin's cars are exported from Britain: about 35% are shipped to America, 35% sent to continental Europe, and 5% head for the rest of the world.
One American auto analyst, who declined to be named, said the business was worth "hundreds of millions of dollars" with much of the value in the prestige factor. "It's microscopic as far as sales revenue and profits are concerned but it's a very large billboard with James Bond on it that is a serious marketing tool. It's a prestige name that a Peugeot or a Fiat might be interested in."
Dave Osborne, national officer of the T&G union, said: "Aston Martin is an iconic brand and is rightly prized by Ford. Whilst the future for Aston Martin is under review, our priority as always is the safeguarding of members' jobs."
Backstory
Entrepreneurs Roger Bamford and Lionel Martin founded Aston Martin 92 years ago. By the second world war the firm's output had grown to 140 cars a year. The marque began a long link with James Bond appearing in the film Goldfinger in 1964. The firm had US and British owners until bought in 1984 by the oil baron Peter Gauntlett. In 1987, Ford bought a 75% stake and took full control seven years later. The first purpose-built factory, at Gaydon, opened in 2003.
