Will Superior Land Rover Go Belly Up?

Superior Land Rover may see its days numbered… or will it? Some say that the future for Land Rover is uncertain as Ford nears its decision about what to do with its ownership of Jaguar and Land Rover.

Some of this controversy stems from reports in the Wall Street Journal about the financial impact on Jaguar and Land Rover of new carbon-dioxide regulations in Europe and how big a stake Ford might be willing to retain in the brands. Will Ford bear the brunt of re-tooling and recalibrating these brands to meet new stringent fuel-economy regulations?

The U.K. government has warned Jaguar and Land Rover that they could be forced out of business, depending on how new carbon-dioxide regulations in Europe are written. A group of U.S. dealers in the U.S. have raised concerns with Ford about the brand falling into the hands of an auto maker known for low priced cars.

Merril Lynch & Co. estimate this year the combined sale of the Jaguar and Land Rover brands would raise $1.3 billion to $1.5 billion. Ford acquired Jaguar for $2.5 billion in 1989 and Land Rover for $2.75 billion in 2000. Ford has put them up for sale as it seeks to refocus on its Ford brand. It also wants to focus more specifically on its North American business efforts according to the WSJ.

Does this mean the demise of the local Superior, CO Land Rover dealership? Hard to say. It would definitely be terribly inconvenient for the large number of Boulder area residents that have had the convenience of the Superior location for servicing their Rovers. Up until a few years ago, locals had to trek to central/south Denver for dealership service and sales.

It would be a disappointing thing to see what has become a well built, high-end SUV brand disappear and it would be a nasty hit to the local Superior community to lose the business of the luxury brand dealership which sits quietly in the center of Rock Creek.

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