Ford dumps Kwik-Fit, CTA in cash race

August Cole, wrote this piece for CBS.MarketWatch.com we thought you might like to read it here.

Aug. 12, 2002

DEARBORN, Mich. (CBS.MW) - Ford Motor said Monday it's selling domestic and European maintenance and repair operations as part of a corporate drive to raise $1 billion by year's end.

The No. 2 automaker, which turned a rare profit last quarter amid a drastic restructuring, will sell Europe's Kwik-Fit for $500 million -- the same amount as a corresponding charge against earnings.

Though CVC Capital Partners will take control of Kwik-Fit, Ford holds on to 19 percent of the unit and plans to take a $500 million third-quarter charge for the sale.

CTA will go to a private American investor for an undisclosed sum.

"Although these are good businesses, they don't align with our back-to-basics strategy. These sales further signal the progress that Ford is making on key parts of our 'Revitalization Plan,'" said vice president of business strategy Martin Inglis. Until this summer, 31-year Ford veteran Inglis had been CFO, but he stepped aside in May to make way for veteran Allan Gilmour.

The deals should be completed by the fourth quarter, the company said.

After the bell, Ford said late Monday that Chairman and CEO Bill Ford Jr. and Gilmour signed off on the company's financial reports as required by the Sarbanes-Oxley Act. For most companies, that deadline is Aug. 14. Ford did not say if it would expense employee stock options.

"Honesty and ethical behavior have been bedrock values of Ford for nearly 100 years and we do not compromise the integrity of our financial reporting, our business practices or the products and services we provide to our customers," said Bill Ford Jr. in a statement.