Private equity group eyes Ford brands - source

NEW YORK, Aug 25 (Reuters) - A private equity arm of JPMorgan Chase&Co. is eyeing some of Ford Motor Co.'s luxury brands, a source familiar with the matter said on Friday.

The private equity group, One Equity Partners LLC, where a former Ford chief executive, Jacques Nasser, is a partner, is interested in parts of Ford's Premier Auto Group, the source said, but talks are at a very early stage.

The Premier Auto Group includes the Jaguar, Land Rover, Volvo and Aston Martin brands.

One Equity Partners declined comment on the matter. A Ford spokesman said, ''We do not comment on speculation.'' Nasser was ousted as Ford CEO and president in October 2001 amid mounting troubles at the automaker. His departure came shortly after Ford reported a 2 million third-quarter loss on top of a loss in the previous quarter.

He joined One Equity Partners in 2002, according to the company's Web site.

Ford, based in Dearborn, Michigan, is under pressure to speed up cost-cutting efforts after a 4 million loss in the second quarter and worse-than-expected July U.S. sales.

Ford's U.S. vehicle sales have fallen almost 10 percent percent through July, a month in which Japanese rival Toyota Motor Corp.

outsold Ford for the first time.

Battling shrinking U.S. market share and rising costs, Ford has said it will accelerate its turnaround plan to respond to weakening U.S. demand for fuel-hungry trucks and SUVs amid high gasoline prices.

One Equity Partners, established in 2001, manages billion of investments and commitments for JPMorgan Chase&Co. in direct private equity transactions, according to its Web site.

Separately, Ford on Friday said Robert Rubin, a member of Citigroup Inc.'s Office of the Chairman, has resigned from Ford's board of directors.

Rubin, who served as U.S. Treasury secretary under President Bill Clinton, told Ford Chief Executive Bill Ford in a letter: ''As the board undertakes its upcoming review of strategic options, Citigroup's multifaceted relationship with Ford could raise a question whether my relationship with Ford and Citigroup creates an appearance of conflict.'' Ford's shares rose 2.5 percent to .97 in pre-market trading on the Inet electronic brokerage system.

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