Europe South Asia Asia Pacific Americas Middle East Africa BBC Homepage World Service Education



Front Page

World

UK

UK Politics

Business

Sci/Tech

Health

Education

Sport

Entertainment

Talking Point
On Air
Feedback
Low Graphics
Help

Monday, July 13, 1998 Published at 10:14 GMT 11:14 UK


Business

Audi sells Cosworth Racing to Ford

Some Ford cars are powered by Cosworth engines

Volkswagen subsidiary Audi has announced it is selling Cosworth Racing to US car giant Ford only hours after sealing a deal to buy it from Vickers.

The German car group paid £117m ($190.8m) for the Cosworth engine-making group as part of the deal to buy Rolls Royce Motor Cars from Vickers.

But it has decided to sell the racing division to Ford, allowing the 30-year relationship between the American and British companies to continue.

The financial details of the sale have not been disclosed.

Racing heritage

Audi will retain the engineering, development, casting and manufacturing operations at Cosworth - part of which makes engines for Rolls-Royce and Bentley cars.

The deal will end reported concerns at Ford that the sale of Cosworth to the VW group could have jeopardised its long collaboration with the engines maker.

Cosworth is key to Ford's high profile motorsport successes, on which it builds much of its marketing operations.

Cosworth Racing will continue to be based in Northampton.

Martin Whitaker, motorsport director for Ford of Europe said: "Cosworth has played a significant role in Ford's motorsport heritage and we are delighted with the outcome of the negotiations."

"The agreement will allow Cosworth Racing to continue to draw on Ford's global engineering capabilities in meeting our commitments in Formula One, Indycar and Touring Car Racing."

Crucial deal

Vickers confirmed its sale of Cosworth to Audi late on Saturday night, saying it would use the proceeds to support its marine technology, turbine components and defence systems.

Sir Colin Chandler, chairman of Vickers, said: "Vickers has secured excellent value from the sale of Rolls Royce Motor Cars and Cosworth at a time when prospects for these businesses indicate that they will benefit from a strong new automotive industry owner.

"Moreover, within the Volkswagen Group, both Rolls Royce and Cosworth will be able to grow and expand their unique blend of British engineering expertise."





Advanced options | Search tips




Back to top | BBC News Home | BBC Homepage | ©


Business Contents

Your Money
Market Data
Economy
Companies
Business Basics
E-Commerce
Relevant Stories

10 Jul 98 | The Company File
BMW leaves Rolls-Royce powerless

03 Jul 98 | The Company File
End of the road for Rolls-Royce deal

05 Jun 98 | The Company File
BMW, the jilted suitor





Internet Links

Cosworth Website


The BBC is not responsible for the content of external internet sites.




In this section

Microsoft trial mediator welcomed

Vodafone takeover battle heats up

EU fraud: a billion dollar bill

NatWest bid timetable frozen

No longer Liffe as we know it

France faces EU action over electricity

Inquiry into energy provider loyalty

The growing threat of internet fraud

Christmas turkey strike vote

Brown considers IMF job

Train robbery game hope for SCi

From Sport
League to rule on Sky shares

Mannesmann fights back

Online share dealing triples

Chinese imports boost US trade gap

Pace enters US cable heartland

The rapid rise of Vodafone

Storehouse splits up Mothercare and Bhs

Brown's bulging war-chest

The hidden shopping bills

Europe's top net stock

House passes US budget

Rate fears as sales soar

Safeway faces cash demand probe

Mitchell intervenes to help shipyard

Maxwell pledge to pensioners

Power cuts spark union warning

New factory creates 500 jobs

Drugs company announces 300 jobs

Oil reaches nine-year high

'Asian management culture must change'

US 'prepared for Millennium Bug'

Gucci on a spending spree