TPG has emerged as a surprise bidder for Jaguar and Land Rover, the British luxury car brands that are being sold by Ford, The Times has learnt. The American private equity firm is understood to have submitted an expression of interest by this week's deadline.
Ford said last month that it was working with HSBC, Goldman Sachs and Morgan Stanley on the best options for the premier marques.
The heavily indebted No 2 American carmaker has already sold its Aston Martin sports car brand for 450 million and is evaluating options for Volvo, its profitable Swedish unit.
Alan Mulally, Ford's chief executive, is under pressure to turn around the huge losses at the business. Ford is cutting 12 per cent of its US workforce.
Land Rover has said it expects to be profitable this year, but Ford has struggled to make money with Jaguar.
The brand remains the biggest drag on the results of Ford's Premier Automotive Group. Last year, the unit's losses more than trebled to $327 million from $89 million in 2005.
Ford reports second-quarter results on Thursday and executives are expected to update the market on the sale of the two brands, although a sale is not thought to be imminent.
As well as TPG, other private equity firms including Cerberus, Ripplewood and One Equity Partners, were expected to register their interest by Thursday's deadline. Tata Motors, of India, is also believed to be interested in bidding, sources said.
It is understood that Ford hopes to select at least two final bidders in the next couple of weeks to begin due diligence.
Although Ford would prefer to sell the two brands together ' they share components and production facilities ' it is prepared for separate sales, sources said. However, they added, Ford may have to pay or assume some liabilities to get Jaguar off its books.
It is believed that Ford wants to find a buyer that would preserve the Jaguar and Land Rover heritage and jobs in the UK. "We've been here a long time. We understand our responsibilities toward our businesses and our employees," a Ford spokesman was quoted as saying earlier this week.
Land Rover employs 8,300 people in the UK and 11,500 worldwide, while Jaguar has about 7,000 in Britain and 10,000 worldwide.
