Ford Bails Out Jaguar again........

[csv8]

Ford bails out Jaguar with £1.2bn
Workers cheer as first Jaguar XJ rolls off production line in Birmingham
Jaguar hopes the 2006 launch of its XK model will boost its fortunes
US carmaker Ford has pumped a further £1.2bn into its UK subsidiary Jaguar to keep the luxury car maker afloat.

The money will come from the sale of preferred shares to its US owner, Jaguar said.

This week Jaguar posted a pre-tax loss of £429.3m for 2004, blaming tough market conditions and a £173m write-down of investments.

Carmakers worldwide have been suffering amid slowing global growth, high raw material costs and fierce competition.

"The recapitalisation underlines Ford's commitment to Jaguar, despite recent rumours," Jaguar spokesman Don Hume told BBC News.

Recent press speculation has suggested that Ford is considering offloading the Jaguar business.

Mounting losses

Mr Hume added that the £429.3m ($746.4m) loss for 2004 "underlined" why the company took the drastic action of closing its Browns Lane factory in Coventry.


Clearly we've made progress, but we will not break even by 2007
Don Hume, Jaguar

However, the accounts were an improvement on 2003 when it revealed it was £601.1m in the red, mainly as a result of one-off charges £534m.

Much of the latest recapitalisation will go on paying off the 2003 and 2004 charges.

Reports added that part of the Ford cash will be used to reduce the £350m deficit in Jaguar's pension fund.

Meanwhile, the latest accounts do not include the cost of the recent shake-up of Jaguar's operations which are expected to come in at £75m for 2005.

Jaguar executives have hinted that the firm remains deeply in the red and losses are likely to continue amid "intensely difficult" market conditions.

The company, which has plants at Castle Bromwich in Birmingham, Whitley in Coventry, Halewood in Liverpool and Gaydon in Warwickshire, has already abandoned hopes of breaking even in the UK by 2007.

"Clearly we've made progress, but we will not break even by 2007," Mr Hume added.

Tough market

Jaguar is still lumbering under the weight of falling sales, high raw material costs and soaring wage bills - its wage bill surged to more than £1bn in 2004 from £740m a year earlier, The Independent said.

The paper added that without Ford's cash, Jaguar would no longer be a going concern as by 31 December 2004 it had "negative shareholder funds of £748.8m".

Jaguar S Type
Ford bought Jaguar for £1.6bn in 1989

On the other side of the Atlantic times are also tough for parent company Ford.

In October it reported a third quarter loss of $284m, and it is currently struggling in a tough US car market which is beset by high petrol prices and reduced consumer spending.

Next month it is expected to announce huge job cuts and factory closures in North America to tackle rising losses at its US business.

Ford has struggled to make money with Jaguar since it bought the group for £1.6bn in 1989.

The luxury carmaker is part of Ford's Premier Automotive Group (PAG) which includes Volvo, Land Rover and Aston Martin.

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[Redrum]

Jaguar, not worth keeping imo. Aston Martin yes. :

[HOON69]

thats alot of dosh to splurge
hope they dont do it again next year or ford might need the help

[XR8putts]

I'm more worried about how Ford Oz has to get clearance from Ford US just to go ahead with the all new Falcon.

[red_hotxr6]

At least FORD seems to be financial compared to G.M.H.lol :

[Falcon Freak]

When will the global automotive industry learn that the British can no longer make cars? Car companies have purchased all these famous names over the years to find that the British auto companies are basket cases and that the products they are building are not a patch on past glories.

Ford has pumped so much into Jaguar since the 1989 purchase with ambitious plans to make the marque grow. 16 years later there are many new Jaguar models. The problem is that the only thing Jaguar about these models is the name. Not enough people want to buy them when the Germans and Japanese build beter luxury cars. Hence why Ford closed one of the Jaguar plants and cut the work force. If the this trend continues then more cuts will be required in future.

FF

[buickman]

My first job was a apprentice with a Jag dealership in the early 70's. So I have a soft spot for them. Even though the early ones had lucas elect problems leaked oil all the time & filling the auto trans through the inside passager side with carpet pulled up

Series1 E -type fully restoredif I had the money.

The V12 mtrs what a nightmare to work on.

But if Ford cannot make money on it like BMW with Rover then its time to of load the company

[MO]

Look out ....China will own them soon!!!!!!

[red_hotxr6]

Is it true that 80% of the jaguar is hand made. And if it is wouldnt this mean that it costs more to produce one of these things.?

[Iphido]

Jaguar is a money pit. There are so many many problems with jaguar. UK manufacturing. Excessive and expensive manufacturing processes. Poor quality. Poor design. Lean manufacturing doesn't really seem to exist in Jaguars world.

Fords little experiement is failing, they aren't being ruthless or efficent enough. Get the bloody cars right. Make them look, feel and drive like cutting edge presige luxury cars should.

Its amazing that FoMoCo throws good money after bad on Jaguar, but trying to throw good money after good money here in Australia is a difficult task indeed.

If Geoff didn't go over an steal the money for the territory it proberly would have been used to create some stupid Jaguar varient no one would buy or some new fat yank tank.

[MO]

Originally Posted by red_hotxr6

Is it true that 80% of the jaguar is hand made. And if it is wouldnt this mean that it costs more to produce one of these things.?

They used to be but I don't think so since the 80's

[MO]

Originally Posted by Iphido

Jaguar is a money pit. There are so many many problems with jaguar. UK manufacturing. Excessive and expensive manufacturing processes. Poor quality. Poor design. Lean manufacturing doesn't really seem to exist in Jaguars world.

Fords little experiement is failing, they aren't being ruthless or efficent enough. Get the bloody cars right. Make them look, feel and drive like cutting edge presige luxury cars should.

Its amazing that FoMoCo throws good money after bad on Jaguar, but trying to throw good money after good money here in Australia is a difficult task indeed.

If Geoff didn't go over an steal the money for the territory it proberly would have been used to create some stupid Jaguar varient no one would buy or some new fat yank tank.

Maybe there are too many variants out there of any make....maybe we should go back to the original Ford any colour you like as long as its black.

[RAREV8]

[QUOTE=Falcon Freak]When will the global automotive industry learn that the British can no longer make cars? Car companies have purchased all these famous names over the years to find that the British auto companies are basket cases and that the products they are building are not a patch on past glories.

I think that that is a sweeping and uneducated opinion. I agree that Jag and many other luxo British manufacturers are running into financial trouble but The UK is responsible for many of the most ground breaking cars and motoring technologies around
Arial Atom? TVR? (any) Marcos?

There are many specialist car manufactures there and Arial are a good example of a company who had to close their doors but years later have reopened them with a frighteningly good product.

These are niche market products but no other country in the world has relaesed that amount of luxury / quirky(!!) manufacturers.
Jensen, Bristol and Morgan are other good examples and whilst none of them are going to take over the world as perfect examples of how to build cars in this day and age, it'll be a dark day when such beautiful machines no longer grace our roads because everyone wants an asian built luxury car :gren:

P.S, I know there arent many here but there are still plenty in the UK on the roads!

As far as the British no longer being able to build cars, have a closer look at many of the F1 development teams and while you are there, check some of Fords development teams, Tickford, Cosworth, etc.....as far as I'm aware, there is still a good amount of British involvement in Aussie motor industry.

This is not a rant on how good the british are as I have 2 aussie Fords and live here, I wouldnt have it any other way but I just wanted to give a little reminder of some(!!) useful UK things!

[jspec_sti]

[QUOTE=scottishxc]

Originally Posted by Falcon Freak

When will the global automotive industry learn that the British can no longer make cars? Car companies have purchased all these famous names over the years to find that the British auto companies are basket cases and that the products they are building are not a patch on past glories.

I think that that is a sweeping and uneducated opinion. I agree that Jag and many other luxo British manufacturers are running into financial trouble but The UK is responsible for many of the most ground breaking cars and motoring technologies around
Arial Atom? TVR? (any) Marcos?

There are many specialist car manufactures there and Arial are a good example of a company who had to close their doors but years later have reopened them with a frighteningly good product.

These are niche market products but no other country in the world has relaesed that amount of luxury / quirky(!!) manufacturers.
Jensen, Bristol and Morgan are other good examples and whilst none of them are going to take over the world as perfect examples of how to build cars in this day and age, it'll be a dark day when such beautiful machines no longer grace our roads because everyone wants an asian built luxury car :gren:

P.S, I know there arent many here but there are still plenty in the UK on the roads!

As far as the British no longer being able to build cars, have a closer look at many of the F1 development teams and while you are there, check some of Fords development teams, Tickford, Cosworth, etc.....as far as I'm aware, there is still a good amount of British involvement in Aussie motor industry.

This is not a rant on how good the british are as I have 2 aussie Fords and live here, I wouldnt have it any other way but I just wanted to give a little reminder of some(!!) useful UK things!

Well said mate. Also add Aston Martin to your list. Absolute gun cars.

[vztrt]

Maybe Ford see a future in Jag, otherwise they wouldn't bail the brand out.

I love some of the British cars and I hope Jag stay on and become profitably for Ford.

[RAREV8]

Originally Posted by vztrt

Maybe Ford see a future in Jag, otherwise they wouldn't bail the brand out.

I love some of the British cars and I hope Jag stay on and become profitably for Ford.

I assume that they must- on the other hand, Ferrari bailed Maserati out and it cost them dearly- now they are all Fiats!!

Its sad but the majority of supercar maufacturers are owned by companies who make their money out of box-shifting large quantities of blandsmobiles in order to raise revenue for the luxury market cars

Just on another note, I thought that I'd include this link to a more unusual but quite amazing british muscle weapon...and yes, the price tag is almost offensive!

http://www.bristolcars.co.uk/BristolFighter.htm

This cars output increases as its speed does, i.e, it forces induction at higher speeds allowing more ponies! nice.

These guys are the last luxury supercar maufacturer that is wholly independent. They only have one showroom which is near where i lived when in london...odd looking cars but I have to love them!

[RAREV8]

For Ford fans, look up Noble cars too- they are Ford powered supercars that are frighteningly fast and very sexy. MG's Mustang powered models are pretty mean too..... :sm_headba

[M14A-Mclaren]

To quote James May, "Traditionally, the jaguar that follows the Aston is always a better car, all the way back to the 50's"

Originally Posted by Falcon Freak

When will the global automotive industry learn that the British can no longer make cars? Car companies have purchased all these famous names over the years to find that the British auto companies are basket cases and that the products they are building are not a patch on past glories.

Ford has pumped so much into Jaguar since the 1989 purchase with ambitious plans to make the marque grow. 16 years later there are many new Jaguar models. The problem is that the only thing Jaguar about these models is the name. Not enough people want to buy them when the Germans and Japanese build beter luxury cars. Hence why Ford closed one of the Jaguar plants and cut the work force. If the this trend continues then more cuts will be required in future.

That is complete utter trash IMO, just because Jaguar aren't doing so well doesn't mean that the British car industry sucks as a whole.

[Iphido]

British car industry sucks as a whole

Just jaguar? British car industry has been in quick decline since before WWII.. Actually the whole british manufacturing industry has been indecline for a long while.

Name a profitable british car manufacturer and you really struggle. Nissan is the only company that operates a mass production line for autos in the uk. And they have been losing money for years.

Its just too expensive to do mass manufacturing in the UK.

Hey don't freak out, the same thing is now happening in Germany, more and more german car manufacturers are making cars overseas. Its started in the USA as well but they are far more protective.

[outback_ute]

The problems with Jaguar aren't just to do with manufacturing. They have missed the mark with a lot of their product design recently (really for the last 20 years). They have improved a lot since Ford has been in control, but the new XJ and the X-Type are far too conservatively styled for today's market, and the S-Type wasn't right in the execution of the front styling & also too small inside (esp back seat & boot to a degree) to do really well in the US which is always going to be the most important market for a car of this type.

Don't forget that Aston Martin doesn't make money either. I am pretty sure Land Rover has consistently though.

[RAREV8]

Originally Posted by outback_ute

The problems with Jaguar aren't just to do with manufacturing. They have missed the mark with a lot of their product design recently (really for the last 20 years). They have improved a lot since Ford has been in control, but the new XJ and the X-Type are far too conservatively styled for today's market, and the S-Type wasn't right in the execution of the front styling & also too small inside (esp back seat & boot to a degree) to do really well in the US which is always going to be the most important market for a car of this type.

Don't forget that Aston Martin doesn't make money either. I am pretty sure Land Rover has consistently though.

Correct. landrover have been making good money recently (although owned by BMW) and have also been re-climbing the ranks of the luxury 4 wheel drive market quite well-especially with the release of the new sports model and a supercharged V8.
However, as I mentioned before, many of the more boutique style companies are showing profit, albeit whilst many are under ownership of larger parent companies.

[RAREV8]

[QUOTE=Iphido]Just jaguar? British car industry has been in quick decline since before WWII.. Actually the whole british manufacturing industry has been indecline for a long while.



Quick decline over a period of nearly 70 years? Yet still has more car maufacturers than any other country?

Prior to WWII the automotive industry had only been in existence for about 40 years and it wasnt until the '20s that any mass produced vehicles hit the market....I dont think that I need to spell out who/what that was.......

[csv8]

scottishxc..Bristol Fighter reminds me of a Jensen Interceptor, in styling.

[Falcon Freak]

Originally Posted by scottishxc

I think that that is a sweeping and uneducated opinion.

So I assume your scottish background allows you to make unbiased opions about the british automotive industry?

FF

[RED_EL_XR8]

Originally Posted by scottishxc

Correct. landrover have been making good money recently (although owned by BMW) ................

Nice of BMW to let Ford use the Land-rover on their homepage isn't it? I'd suggest re-checking on that fact at least.

[RAREV8]

Originally Posted by RED_EL_XR8

Nice of BMW to let Ford use the Land-rover on their homepage isn't it? I'd suggest re-checking on that fact at least.

Very sorry! Did Landrover just use the BMW diesel powerplants? (TD5)I'm very happy to find that out....dont know what I was thinking! :

[RAREV8]

Originally Posted by Falcon Freak

So I assume your scottish background allows you to make unbiased opions about the british automotive industry?

FF

No way!!
Naturally I'm biassed towards a country that manufactures such wonderful cars over the years- but my god, the UK has produced way more than its fair share of donkeys too!

Too many to list (Austin Rustin-aptly named) :

However, I think that most of my comments have been reasonably accurate (apart from the glaring faux-pas regarding the Landies!! What a tool!) and I would go into bat for anything that I believe in- hence my support of old Aussie Fords. I dont think that these are too uneducated or sweeping?!

Also, whilst I am fairly patriotic, Scotland has no proper car manufacturers at all!

[RAREV8]

Having been exposed to the UK car market (lived there most of my life) and having a huge interest in it gives me a slight advantage as far as the lesser known but often superb marques that there are over there and this being a forum of car fanatics, I thought I 'd take the opportunity to point some of these out.

If this was a British forum, you can be sure that I'd be boasting the merits of the Aussie Fords! _2:

[Bossxr8]

Originally Posted by Iphido

Jaguar is a money pit. There are so many many problems with jaguar. UK manufacturing. Excessive and expensive manufacturing processes. Poor quality. Poor design. Lean manufacturing doesn't really seem to exist in Jaguars world.

Fords little experiement is failing, they aren't being ruthless or efficent enough. Get the bloody cars right. Make them look, feel and drive like cutting edge presige luxury cars should.

Its amazing that FoMoCo throws good money after bad on Jaguar, but trying to throw good money after good money here in Australia is a difficult task indeed.

If Geoff didn't go over an steal the money for the territory it proberly would have been used to create some stupid Jaguar varient no one would buy or some new fat yank tank.

Jaguar just topped the JD Power customer satifaction ratings in the US, which proves quality has improved massively in the last few years. They have been bagged for being too retro, which probably has a bearing on sales, but they plan on changing this, as quality is now not a problem like it used to be.

[DRU842]

Originally Posted by Bossxr8

Jaguar just topped the JD Power customer satifaction ratings in the US, which proves quality has improved massively in the last few years. They have been bagged for being too retro, which probably has a bearing on sales, but they plan on changing this, as quality is now not a problem like it used to be.

I'm glad someone raised this issue & volumes are up despite being nowhere near forecasts.
The other item that gets lost it the cross corperate world that Jaguar lives in at Ford, is their engineering & development that is being used throughout the broader Ford group.
Engines at Land Rover & Aston Martin, chasis at Lincoln Aston Martin, rear suspension - Control Blade (everywhere!), transmissions - ZF.
Its hard to factor these items & what they bring to the 'family' in $ terms but the input is significant.