Ford may sell Jaguar

Thursday, August 03, 2006

American parent company losing millions
Jaguar in the red, despite new XK
Ford 'reviewing the business'

Despite the allure of the XKR, Jaguar is still not making money

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Jaguar's XKR might have been one of the British motor show stars, but the firm is still in trouble - and it could be sold by parent company Ford.

The American giant has just announced net losses of $254m (£135m) for the second quarter - and it has brought in a former investment banker to review all of its car brands and study the possibility of mergers with other firms.

Jaguar lost over £400m in 2004, and last year Ford pumped £1.2bn into the brand to keep it afloat. However, sales are continuing to drop and investment in future models appears to be waning, too - only the saloon version of the 2008 S-type is under development, potentially denying the sales boost an estate version could provide.

Ford has declined to comment on the potential sale of Jaguar, but a spokesman told the BBC, 'Bill Ford has said that everything is on the table. We are reviewing the business.'