SAN FRANCISCO (MarketWatch) -- Ford Motor Co. is preparing to inject 500 million pounds ($935 million) into Jaguar, the loss-making luxury car maker it acquired in 1989, the Sunday Times of London reported.Ford needs to have Jaguar self-sufficient, or make radical changes. If people don't want to buy Jags, but would rather buy BMWs, Mercedes, and Lexus, maybe a re-evaluation of Jaguar is necessary. Maybe Jaguar needs to be platform engineered with Ford of Europe's vehicles, like a European Lincoln? Or maybe Aston Martin, Land Rover and Jaguar should be spun off as an independent company, to pursue their British-ness.
Jaguar, maker of the XK, XJ, S-Type and X-Type, lost 601 million pounds ($1.1 billion) in 2003 amid spending on product development, worse-than-expected sales and a plunge in the U.S. dollar versus the British pound. That loss included a 533 million pound write-down in the value of its assets, the newspaper reported.
It could be called British Motor Works, or BMW for short.
Market analysts have been saying for some time that the luxury market will grow faster than the bottom end, so Ford definitely needs a player at the table. Maybe it isn't with Jaguar, maybe it will have to be Volvo.
FORD MOTOR COMPANY DECEMBER 2004 U.S. SALES
December CYTD %
2004 2003 Change
Sales By Brand
Ford ... 2,778,678 2,894,347 -4.0
Mercury ... 193,534 202,257 -4.3
Lincoln ... 139,016 158,839 -12.5
Jaguar ... 45,875 54,655 -16.1
Volvo ... 139,067 134,586 3.3
Land Rover ... 35,506 39,035 -9.0
Motor Company 3,331,676 3,483,719 -4.4