With the European economy crashing and niche automakers dropping like flies, engineering firm Cosworth is putting itself up for sale.
Make no mistake about it: the European economy is in the toilet. And the ramifications for the continent's automotive industry are far-reaching. Just look to the recent bankruptcies declared by De Tomaso, Gumpert, Melkus, Artega and Lola. Now it seems that Cosworth is in trouble, too. Cosworth primarily makes racing engines, currently powering the HRT and Marussia F1 teams, having previously provided engines to Red Bull, Williams, Benetton, McLaren, Lotus and countless more in Formula One and other racing series.
Cosworth's business, however, extends far beyond Formula One and even the other racing engines it has made over its 54-year history. Cosworth has engineered and built road-car engines for Ford, Subaru, Mercedes-Benz, Rolls-Royce, Aston Martin, Audi and Opel, among others. These days it's also partnered with Kahn to upgrade Range Rovers, and has a series of show cars it's been working on for the upcoming SEMA show with the likes of Hyundai and Ford. Now Cosworth isn't declaring bankruptcy at this point. It is, however, reportedly putting itself up for sale with aerospace companies touted as potential buyers.
The move comes after the British engineering concern canceled plans to float its shares on the stock market, a plan which failed because of - you guessed it - the state of the European economy. It's the same sorry state of affairs that has Ford and Mini pulling out of the World Rally Championship and has Lamborghini and Bentley's plans for high-end SUVs in jeopardy. The financial situation in Europe had better recover fast or who knows what could be next.