From Yahoo:

DETROIT (Reuters) - Ford Motor Co. is considering going private, USA Today newspaper reported on Thursday, citing a "source with direct knowledge of the discussions."

That would give the automaker time to restructure operations outside the glare of critics, the article on the paper's Web site said.

"The family is willing to look at anything," USA Today quoted the source as saying. Top executives have said they are looking at every option available to turn Ford around, including selling off brands such as Jaguar, entering into partnerships with other automakers, slashing its work force and closing more plants, the article said.

A Ford spokesman said: "That is speculation. And we don't comment on speculation."

Earlier in August, Ford said it hired mergers and acquisitions expert Kenneth Leet as an adviser to Chief Executive Bill Ford Jr. to explore strategic alternatives for the automaker. The Ford family owns about 5 percent of Ford's shares and controls about 40 percent of the voting power through a separate class of stock.

"I think that speculation exists because it's possible," Argus Research analyst Kevin Tynan said of the article. "And with where the market is right now, private equity could come in and snap Ford up pretty quickly. But would it do Ford any good? I don't think so."

The Dearborn, Michigan-based company, which has not gained U.S. market share since 1995, is under pressure to speed up cost-cutting efforts after a $254 million loss in the second quarter and worse-than-expected July U.S. sales.

Ford's U.S. vehicle sales have fallen almost 10 percent through July, a month in which Japanese rival Toyota Motor Corp. outsold Ford for the first time.

Battling shrinking U.S. market share and rising costs, Ford has said it will accelerate its turnaround plan, dubbed the "Way Forward," to respond to weakening U.S. demand for fuel-hungry trucks and SUVs amid high gasoline prices.

The automaker also last week said it would cut fourth-quarter production to its lowest level in 25 years.

Shares of Ford were up 13 cents, or 1.7 percent, at $7.89 in Thursday afternoon trade on the New York Stock Exchange.

NO BENEFITS IN GOING PRIVATE?
"It looks as if financially it would be something they could do," Margaret Patel, senior vice president at Pioneer Investments said of the USA Today article. "What they would accomplish by becoming a private company as it relates to cars I'm not really sure. Except for being out of the public eye, I don't know that there would be material benefits," Patel said.

Peter Morici, a professor of business studies at the University of Maryland, said going private would not solve Ford's fundamental problems.

"The labor cost and stale product issues would remain. Going private could actually hasten the demise of Ford if it removed market pressures to deal with these issues," he said.

Separately, some newspapers reported on Thursday that Bill Ford had called Carlos Ghosn, who heads both Renault SA and Nissan Motor Co. Ltd., to discuss a possible alliance.

The reports said Ford had recently called Ghosn to say that if ongoing alliance talks among Nissan, Renault and General Motors Corp. faltered, Ghosn should consider talking to Ford instead of GM.

Limited teams of GM, Renault and Nissan executives are currently studying the possible benefits of an alliance and are expected to report back to Ghosn and GM CEO Rick Wagoner by mid-October.

"Whether they go private, or change management, it won't do anything," Tynan said. "Ghosn could turn around Nissan because he could just go in and start throwing stuff to the curb. But here, you have to deal with the United Auto Workers union. You cannot just slash jobs and close plants."

Ford has acknowledged courting Ghosn for a senior post at the automaker, an offer that Ghosn declined.

One obstacle to a Nissan-Renault alliance with Ford could be the controlling stake that the Ford family has in Ford Motor, analysts said.

Ghosn has said that he would want to take a substantial stake in GM under a potential alliance. A similar deal with Ford would require the support of the founding family, which controls the board through ownership of a separate class of stock.
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Warren

 

If they think a Renault Alliance will save them, Jesus, sell their stock now...they are FU.CKED.

 

I highly doubt that's going to happen. Besides, everything they discussed in the article won't change the fact that they build less than stellar vehicles. A new work force won't change their suspension design or chassis rigidity or fit and finish or engines. They'll use the same engineers and designers - they'll only possibly change out the assemblers at the factory.

Bottom line - it saves them money but doesn't really change the cars they make. Ultimately, they'll still be losing market share.

 

On a somewhat related note, I saw in the local paper this past weekend, they are discounting new Eddie Bauer Expeditions $14,000 OFF sticker. Stickers around $42,000, they are selling them for $28k.

Wonder if it's $14k off and 0% interest for 72 months? Hell, I might even be interested in a new Expedition.

 

Ford might go private? I wish they would keep all their corny commercials to themselves, too

 

I knew they were discounting but not THAT much. Almost worth it...but not quite.

 

wow, $14k off a turd. I have a bunch in the backyard, my dogs make, that I will sell for half that.

 

E-mailed a tool at a local Ford dealer asking about $14k off plus the 0%. Surprise, surprise, he hasn't responded in over a day. Ford sucks.

 

you guys do realize that the adds in the paper arnt from ford but form local dealerships right?

and that that they arnt actually discounting all of thier expeditions that much. its just a typical add. i promise if you read the fine print it will say something to the effect of:

"only on stock number xxxxxx"

or

"plus destination, dealer document fees, 2000 dollar surcharge and with 72 month financing"


or some other such bullshit.

 

I e-mailed the actual dealer who placed the ad. It wasn't the only dealer either who had $14k off. They apparently can't give away the Expeditions. The ad said "many in stock at this discount"

It didn't say that I could do the $14k off and the 72 month 0% financing at the same time. It's probably either/or a combination of the two.

I'm well aware of all the BS sales tactics dealers try to pull including bait and switch.