Is Ford selling Jaguar out??????????
Discussion
Monday, September 20, 2004
Jaguar is being forced to reshape the company under Ford ownership, according to a company news release.
Speaking on behalf of Jaguar, Jim Padilla, Ford's chief operating officer and chairman of its automotive operations said “the actions we're taking...while difficult, are absolutely necessary to set Jaguar back on the right path and ensure a strong and sustainable business for the future."
In automanufacturingspeak, that’s not good news.
Jaguar is part of Ford's Premier Automotive Group, which also includes Volvo, Land Rover and Aston Martin. It reported a pretax loss of $362 million in the April-June second quarter, after posting a profit of $166 million a year earlier.
One must ask, how can a company go from a profit of $166 million to a $362 million loss in one year, by essentially keeping the product line the same????????????????
Ford’s restructuring of Jaguar includes, but is not limited to the following:
• Introduction of a diesel engine in the XJ range.
• Introduction of an all-aluminum XK sports car. The all-aluminum XK, codenamed X150, will go on sale in early 2006.
• Closing down the classic Jaguar plant at Browns Lane, England.
As part of its restructuring plan, Ford is pulling Jaguar from Formula 1 at the end of 2004.
Ford, which owns Jaguar, will sell also sell off its Cosworth engine subsidiary.
"Jaguar's presence in Formula One has been a valuable marketing and brand awareness platform particularly outside our main markets of the U.S. and the U.K." Joe Greenwell, Jaguar chairman said in a statement, "However it was our collective view that it is time for Jaguar Cars to focus 100 percent on our core business."
Jaguar, whose drivers are Australia's Mark Webber and Austria's Christian Klien, is seventh in the F1 championship with 10 points.
In 82 F1 races, Jaguar has only had two podium finishes — third place in 2001 and 2002 by Eddie Irvine 3 and has led only two out of 7,500 contested.
Of particular note to Volvo fans, is the selling of the renowned Cosworth engine subsidiary. With Jaguar ailing, and Cosworth available, Ford made a decision to send the business to Yamaha. This decision was obviously made by the accounting department, sadly. When it comes to overhead cam injected V8 engines, Cosworth has about as much design savvy as anyone. Too bad we didn’t get a Cosworth designed, Jaguar built, DOHC injected V8 in the XC90.
Dogsharks
Jaguar is being forced to reshape the company under Ford ownership, according to a company news release.
Speaking on behalf of Jaguar, Jim Padilla, Ford's chief operating officer and chairman of its automotive operations said “the actions we're taking...while difficult, are absolutely necessary to set Jaguar back on the right path and ensure a strong and sustainable business for the future."
In automanufacturingspeak, that’s not good news.
Jaguar is part of Ford's Premier Automotive Group, which also includes Volvo, Land Rover and Aston Martin. It reported a pretax loss of $362 million in the April-June second quarter, after posting a profit of $166 million a year earlier.
One must ask, how can a company go from a profit of $166 million to a $362 million loss in one year, by essentially keeping the product line the same????????????????
Ford’s restructuring of Jaguar includes, but is not limited to the following:
• Introduction of a diesel engine in the XJ range.
• Introduction of an all-aluminum XK sports car. The all-aluminum XK, codenamed X150, will go on sale in early 2006.
• Closing down the classic Jaguar plant at Browns Lane, England.
As part of its restructuring plan, Ford is pulling Jaguar from Formula 1 at the end of 2004.
Ford, which owns Jaguar, will sell also sell off its Cosworth engine subsidiary.
"Jaguar's presence in Formula One has been a valuable marketing and brand awareness platform particularly outside our main markets of the U.S. and the U.K." Joe Greenwell, Jaguar chairman said in a statement, "However it was our collective view that it is time for Jaguar Cars to focus 100 percent on our core business."
Jaguar, whose drivers are Australia's Mark Webber and Austria's Christian Klien, is seventh in the F1 championship with 10 points.
In 82 F1 races, Jaguar has only had two podium finishes — third place in 2001 and 2002 by Eddie Irvine 3 and has led only two out of 7,500 contested.
Of particular note to Volvo fans, is the selling of the renowned Cosworth engine subsidiary. With Jaguar ailing, and Cosworth available, Ford made a decision to send the business to Yamaha. This decision was obviously made by the accounting department, sadly. When it comes to overhead cam injected V8 engines, Cosworth has about as much design savvy as anyone. Too bad we didn’t get a Cosworth designed, Jaguar built, DOHC injected V8 in the XC90.
Dogsharks
..........and furthermore.............with the money Ford supposedly saved by going to Yamahaha, now they can spend millions trying to persuade the buying public it's a good one, all the while, standing by and watching Jaguar and Cosworth going down the tubes.
Sad isn't it, watching corporate accountants.
Sad isn't it, watching corporate accountants.
Jag won't disappear. But the hard times I feel are primarily due to the $ exchage rate. No one in the USA is going to shell out twice as much for a 'foreign' car as they are for a domestic, in this patriotic wave they are in, during the build up to the elections. I spend alot of time in the USA and apart form the X-type, there aren't too many new top end Jags driving around. You can't depend on just one market.
Lets get the XK out there, diesil XJ and for crying out loud make the F-type, the world wants it. Then again it might infringe on that bus called a Ford GT.
G
Lets get the XK out there, diesil XJ and for crying out loud make the F-type, the world wants it. Then again it might infringe on that bus called a Ford GT.
G
triple7 said:
Jag won't disappear. But the hard times I feel are primarily due to the $ exchage rate. No one in the USA is going to shell out twice as much for a 'foreign' car as they are for a domestic, in this patriotic wave they are in, during the build up to the elections. I spend alot of time in the USA and apart form the X-type, there aren't too many new top end Jags driving around. You can't depend on just one market.
G
The entire range of Jaguars are priced at ridiculously low prices right now - $299/month to lease an X-Type for 3 years with about $2500 down.
The S, XJ and XK are also competitively priced.
Yes the exchange rate is killing profit, but having a retro styled car when retro is starting to become passe in that market is not going to get sales. Right now Cadillac and BMW sales are strong, and their styling is 'bold'.
When Lyons ran Jaguar, each variant was 'bold' for the time, plus they sold in tiny volume. Ironically a late XJ40 would probably do rather well right now.
Here in Detroit where you'd expect to see nothing but domestic vehicles there are an absolutely incredible number of foreign cars so I don't think it's a patroitism thing. It's not that the cars aren't good - they are. But if the styling is too rich for the image you wish to project you might pick something more ordinary.
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