Ford to Offload Jaguar ?

[csv8]

NEW YORK (Aug. 2) - Ford Motor Co. is launching a strategic review of operations such as the Jaguar brand, that may lead to asset sales or alliances with other companies, the Wall Street Journal reported on Wednesday, citing people familiar with the situation.


Kenneth Leet, who led mergers and acquisitions teams at Goldman Sachs Group Inc. and Bank of America Corp., will spearhead the effort for Ford , the report said.


Leet is reporting to Ford Chairman and Chief Executive Bill Ford , who is under pressure from the automaker's board to take more dramatic steps in his restructuring efforts, the report said.


An announcement about Leet is expected later today, the paper reported, but a spokesperson for Ford could not be reached for comment. A Jaguar spokesman in England declined comment and referred all questions to Ford's U.S. headquarters.


Last month, Ford, which has been working to slash costs and stem market-share losses, reported an unexpected second-quarter loss of $123 million.


Ford started a restructuring program six months ago that include closing 14 plants and cutting up to 30,000 factory jobs in North America.


Ford is facing challenges overseas as well, particularly in its money-losing British luxury car unit Jaguar. Jaguar was bought 1989 and Ford has struggled to make money on the brand.


Ford's Premier Automotive Group of European premium brands including Jaguar swung to a pre-tax loss of $162 million for the second quarter from a pre-tax profit of $17 million.


It blamed currency headwinds as favorable hedge contracts expired, higher reserves for warranties and lower market share at Swedish brand Volvo ahead of new model launches.


In an interview with Reuters on July 20, CEO Bill Ford said Jaguar will take time to turn around, but he was considering all options for the brand.

[Ohio XB]

I hope Ford unloads Jag and Aston Martin at least. Both were purchased when Nasser was Pres. and was just more things he did wrong. Jag is too much of a drain on Ford as far as investment money goes. That money needs to be used in the more core divisions.

As for Aston, they are just to small a niche company for Ford to bother with.

The truck division of Land Rover that Ford also acquired while Nasser was Pres. seems to be doing better, but I wouldn't mind seeing it go away either.

Steve

[jim1606]

Funny really all of the brands you sed ford should drop are all english :(. Landy are doing well and need ford aston are perfect for ford to give ford a bit of class and jag although it is losing money should stay with them. Either peugeot or renault are interested in jag so they can further there luxury market share in europe and i am a lil afraid if ford sells jag then its true britishness will be lost. the new XK is of things to come and it is a big step in the right direction so i ope they keep thm!

[Perana]

Aston actually make the most profit per car out of all of the companies under the ford umbrella so I can't see them being sold.

[Homer1]

Originally Posted by jim1606

Funny really all of the brands you sed ford should drop are all english :(. Landy are doing well and need ford aston are perfect for ford to give ford a bit of class and jag although it is losing money should stay with them. Either peugeot or renault are interested in jag so they can further there luxury market share in europe and i am a lil afraid if ford sells jag then its true britishness will be lost. the new XK is of things to come and it is a big step in the right direction so i ope they keep thm!

I agree, Ford should be thinking more about offloading and updating the utter crap they have on sale in the US than offloading Jag. At least Jag and Aston makes cars that are desirable and give Ford a boost in image, unlike the Crown Vic, US spec Focus, and the monstrosity SUVs like the Expedition which will struggle with todays oil prices.

[Fairlane]

No I think Ford should keep PAG intact. Whilst Jaguar doesnt turn a profit, the technology developed with the massive cash injection Ford puts in goes to Landdrover (think V8/Diesel), Aston Martin (engines) and even Lincoln (floorplans/suspension) in the US.

If ford should ditch a brand, they really should get rid of Mercury- Mercury is completely pointless.

[The Stylist]

I think it would be a bit of an knee-jerk response if they did off-load Jaguar soon. Ford should look at how the new XK performs sales wise as it represents a new direction in Jaguars design philosophy. There is also a new S-Type around the corner that should reinvigorate the British luxury brand.

BTW who ever said that Ford should get rid of Aston Martin needs to wash their mouth out, or preferably be banned from the forums.

[vztrt]

Originally Posted by Fairlane

No I think Ford should keep PAG intact. Whilst Jaguar doesnt turn a profit, the technology developed with the massive cash injection Ford puts in goes to Landdrover (think V8/Diesel), Aston Martin (engines) and even Lincoln (floorplans/suspension) in the US.

If ford should ditch a brand, they really should get rid of Mercury- Mercury is completely pointless.

100% agree. Jag's R&D is why Ford should keep them. B series IRS comes from Jag. Maybe Ford America should work on making quality cars whose engines aren't a potential fire risk, or SUV dont roll at 45km/h. Jag are making some really nice cars and I reckon will turn a profit as well as give input into other cars designs.

[Abacus]

Originally Posted by Fairlane

No I think Ford should keep PAG intact. Whilst Jaguar doesnt turn a profit, the technology developed with the massive cash injection Ford puts in goes to Landdrover (think V8/Diesel), Aston Martin (engines) and even Lincoln (floorplans/suspension) in the US.

If ford should ditch a brand, they really should get rid of Mercury- Mercury is completely pointless.

Yes I agree with this. At least some quarter of the Ford empire is developing cutting edge technology that might filter down to the more mass market lines.

[HSE2]

I am a big fan of the English cars having owned a few examples over the years so when Ford purchased each of these companies I was one happy boy. Ford has been good for all of them. Aston, Jaguar and Land Rover. It would appear that it’s the English companies that are the concern. Jaguar not turning a profit. Land Rover with an entire portfolio of SUVs that under the projected climatic conditions could end in disaster and Aston who don't add volume and don't provide a tangible marketing advantage directly to the blue oval.

Not to mention that each of these companies and adding Volvo are linked at the hip with current and future engineering cross pollination.

Selling these companies I would imagine might have implications on FOAs ability to source ZF transmissions at the cost they currently enjoy or at least that was the media’s take on the availability of ZF for the falcon based on global purchasing power.

The Pag group would account for a large portion of ZF patronage and it may not stop at just ZF.

Not to mention our man Geoff is at the helm of Jaguar so it looks like he has his work cut out. By all reports the new XK is a ripper of a car, perhaps under powered (Ford global issue) and has sold out this year’s allocation in more then one market.

Best of luck Geoff as this looks like a bigger task then FoA was and it sounds like the knives are out.

[vztrt]

Originally Posted by HSE2

Not to mention our man Geoff is at the helm of Jaguar so it looks like he has his work cut out. By all reports the new XK is a ripper of a car, perhaps under powered (Ford global issue) and has sold out this year’s allocation in more then one market.

Best of luck Geoff as this looks like a bigger task then FoA was and it sounds like the knives are out.

Geoff saved Fords ***, he should be able to do it for Jag.
Isn't the new XK model the lighest and has the fuel efficency of a 6?

[HSE2]

Originally Posted by vztrt

Geoff saved Fords ***, he should be able to do it for Jag.
Isn't the new XK model the lighest and has the fuel efficency of a 6?

I think this task might be a bit more of a challenge then the one he faced here but I share your optimism and hope.

Yes Jaguar uses a unique (to pag) and high tech bonding of the aluminium chassis similar to aircraft construction.

[new2ford]

The most progressive move Ford could make is to get rid of all its American brands - well OK I'll make a concession, transfer Mustang production to Australia.

[jim1606]

To be honest ford have sort of shot themself in the foot over here cause we tend to buy more cars if they are built in england and ford have shut down there dagenham factory they shut down browns lane jag factory and i predict landy production wil move soon if sales pick up above a certain amount. But aston will stay put. i think we would abandon ford if they moved production out of the UK

[GasoLane]

Kinda hard to work out what Ford Management in Seppoland think. I mean they sold Ford's truck div to Mercedes and bought Volvo's truck div.

Maybe we should be thankfull they never bought Volvo's car div, we'd never live that down... Imagine FPV badges on a Volvo! Would it stand for Ford's Pension Vehicle?

[T3ts50]

Originally Posted by GasOLane

Kinda hard to work out what Ford Management in Seppoland think. I mean they sold Ford's truck div to Mercedes and bought Volvo's truck div.

Maybe we should be thankfull they never bought Volvo's car div, we'd never live that down... Imagine FPV badges on a Volvo! Would it stand for Ford's Pension Vehicle?

Ford did buy Volvo a while ago.

[GasoLane]

Originally Posted by T3ts50

Ford did buy Volvo a while ago.

I sit corrected

[ondori]

they just need to start making more 'world wide models'

Its great that ford got the Volvo name, with out this' ford wouldn't have the world wid e hit the ST/XR5t

[GJR]

I own a ford and work as a mechanic at a volvo dealership if ford usa didn't have volvo proping them up there might not be a ford motor campany any more.

[vztrt]

Yeah I wouldn't bag Volvo anymore, since Ford bought them they've made some great cars and used their R&D.

[new2ford]

Originally Posted by jim1606

To be honest ford have sort of shot themself in the foot over here cause we tend to buy more cars if they are built in england and ford have shut down there dagenham factory they shut down browns lane jag factory and i predict landy production wil move soon if sales pick up above a certain amount. But aston will stay put. i think we would abandon ford if they moved production out of the UK

But there's virtually no car manufacturing of any brand in UK any more jim. Does this mean nobody in UK buys cars any more?!

[S3SR]

Originally Posted by new2ford

But there's virtually no car manufacturing of any brand in UK any more jim. Does this mean nobody in UK buys cars any more?!

if FORD just hand over a Ford GT40 to jerremy clarkson and myself... then maybe ford will improve..hey

[jim1606]

Originally Posted by new2ford

But there's virtually no car manufacturing of any brand in UK any more Jim. Does this mean nobody in UK buys cars any more?!

We maybe don't have any home owned car companies anymore, rover is now Chinese. jag landy and Aston are now American as well as vauxhall but we need the cars to be produced in our country for the economy. Peugeot, Vauxhall and jag have all shut down there factories hence their public image drops dramatically. Peugeot has seen a massive sales deficit of the 206 which has stoppebeing produced here. and although vaixhall hasn't officially shut the luton factory yet it will not be long and poor sales will follow. we still buy cars but cars that were produced here and then get taken away with the companies saying that producing cars here is not profitable when Honda Toyota and Nissan can produce nearly al of their range here and still make a massive profit takes the p***!

[new2ford]

Originally Posted by jim1606

We maybe don't have any home owned car companies anymore, rover is now Chinese. jag landy and Aston are now American as well as vauxhall but we need the cars to be produced in our country for the economy. Peugeot, Vauxhall and jag have all shut down there factories hence their public image drops dramatically. Peugeot has seen a massive sales deficit of the 206 which has stoppebeing produced here. and although vaixhall hasn't officially shut the luton factory yet it will not be long and poor sales will follow. we still buy cars but cars that were produced here and then get taken away with the companies saying that producing cars here is not profitable when Honda Toyota and Nissan can produce nearly al of their range here and still make a massive profit takes the p***!

Well we all know that a combination of poor management and political stupidity (corruption?) brought down the British car industry but at least if the Japs are there that produces jobs. What sort of production output do Toyota Honda and Nissan have there?

Isn't it one of the biggest ironies that most of the world's cars nowadays have the front wheel drive transverse engine layout pioneered by the British motor industry? How does Britain manage to lose hold of things it leads the world in? Never ceases to amaze me.

[jim1606]

Remember British Leyland, i cant because i wasnt born but it was the biggest motor company in the world (via size not output) but not reading the market made them fail and that is like every other british manufacturer they all loose sight of what matters. But MG Rover failed because of poor management and corruption.

[new2ford]

Gosh you're young Jim. My first job was with BMC (that's before British Leyland!). One of the things they torpedoed was the Australian operation which was profitable and progressive. Leyland Australia were (as usual ahead of their time) talking to Toyota about a joint venture and it was all going well until Lord Stokes stuck his head in and upset the Japanese by basically saying there was no way he was going to go in with some orientals. I think that's the last we heard here of Lord Stokes or the British motor industry! I'm sure Ford have learnt from all these lessons of history!

[Bossxr8]

Jaguar are on the way back with a whole heap on money spent on new models. If they backed out now before the profits started to roll in they would be stupid. New XK has sold out for months in advance. Aston Martin are making profits now too. Give it a year and Jaguar will be back in the black.

[jim1606]

Originally Posted by Bossxr8

Jaguar are on the way back with a whole heap on money spent on new models. If they backed out now before the profits started to roll in they would be stupid. New XK has sold out for months in advance. Aston Martin are making profits now too. Give it a year and Jaguar will be back in the black.

But theyve have tonnes of money spent on them. The X-Type the S-Type the all new XJ which looks exactly like the old on. I know they are being more radical now but i really hope they arnt too late.

[GasoLane]

Originally Posted by jim1606

But theyve have tonnes of money spent on them. The X-Type the S-Type the all new XJ which looks exactly like the old on. I know they are being more radical now but i really hope they arnt too late.

You dont live near Brown Lane do you Jim Jag's main problem in the 'good ole days' was the prince of darkness... LUCAS!!

As for Jag's, been there done that. Last one was a '78 XJ 12 with a manual conversion (Supra 5 spd) ... great fun, be very 'wearing' on rear tyres!...

[jim1606]

No i dont live near browns lane lol i live in lincs. Jag should reinvent them selves ford europ did so i am sure they can do it to jag.