Russians eye bid for Midland car firms

Jul 31 2007 By Jon Griffin, Birmingham Mail

THE Russian company which has transformed the fortunes of LDV in just a year could be planning another Midland swoop - on Jaguar and Land Rover.

Reports from Europe say GAZ has "expressed interest" in buying the Ford-owned firms, as the race for the two Midland groups hots up.

Speculation that GAZ could be in the frame for Jaguar and Land Rover comes amid a major turnaround in fortunes for LDV since the Russians bought the Washwood Heath van manufacturer.

The van maker has virtually doubled production to around 300 vehicles a week since the takeover, just 18 months after the company collapsed into administration.

Up to 80 new jobs have been created while the firm is set to return to profitability after going bust in December 2005 with debts of tens of millions of pounds.

GAZ has so far refused to confirm or deny the reports circulating in a Frankfurt-based auto magazine WirtschaftsWoche.

The Russian company, part of Oleg Deripaska's Basic Element investment group, has said in the past that it wants to expand via mergers and acquisitions.

Ford announced last week that it was now talking "in greater detail" to interested parties over the potential sale of Jaguar and Land Rover.

It is believed that at least four private equity groups have already expressed interest in buying the two firms for up to £1.5 billion.

Ford said it was pleased with the "positive expressions of interest" in the businesses and in the strength and quality of the would-be buyers.

The US car giant said it was "now exploring in greater detail the potential sale of the combined Jaguar Land Rover business to selected parties who have expressed interest."