Topic: Jaguar lost $715 million in '06

[articsteve]

DETROIT (Reuters) -- Ford Motor Co.'s troubled luxury brand Jaguar lost more than $715 million last year and is expected to lose $550 million in 2007, the Detroit News report today.

The newspaper said the numbers were part of an internal analysis presented to executives last week. Ford does not detail Jaguar's financial performance in its financial reports.

According to the analysis, Jaguar is projected to lose more than $300 million in 2008 and is not expecting a profit for several years.

A Ford spokesman could not be immediately reached for comment.

Ford bought Jaguar, an iconic British brand known for its leaping jaguar hood ornament, for $2.82 billion in 1989 but has struggled to make money with the brand since.

The No.2 U.S. automaker has invested heavily in Jaguar over the years and has pulled back on an earlier strategy to make the luxury brand more appealing to mass market buyers.

Wall Street analysts are keen to see Ford sell Jaguar as they feel the troubles at the brand is a distraction for Ford, which is in the midst of restructuring its North American operations.

Ford CEO Alan Mulally told reporters at the Detroit auto show earlier this month that the brand was not for sale.

Jaguar Managing Director Bibiana Boerio said during the same show that she is focused on resurrecting Jaguar's vehicle lineup and does not worry about a possible sale of the company.

Jaguar's sales were down nearly 32 percent for 2006 in the United States, the company's largest market.

Ford's luxury division, called the Premier Automotive Group, is expected to post a loss for 2006. Jaguar remains the biggest drag on the division's results.

Me thinks Ford is going to dump Jag.  Estimate losses for 2007-2008 are at the best extremely wishful thinking.  Ford can't keep covering these losses 

[UmroAyyar]

Ford has repeatedly injected money into Jaguar. Their criteria seems to be that its losing less money now and the projected losses are decreasing by the year.

Aston Martin redeemed itself, is profitable and is on the market now. Jaguar has showcased some interesting concept vehicle. Selling it at a loss now doesn't seem to be an option Ford wants to exercise. There doesn't seem to be a good incentive for Ford to give it away yet.

[Giant Dwarf]

Yeah, that's a shame.  I imagine a lot of that huge financial burden for the past year is based on the costs surrounding the launch of the new XK.  By all the reports I've read, it's a wonderful machine too. 

With so many horrible quality ratings over the past years and cars that should be real 'bread n' butter' products like the X-type and S-type being so dated versus the competition, it's no wonder they're suffering so badly. 

[safristi]

Never sign on the dotted line till ya sleep on it...............FORD EXECS were asleep at the switch on that purchase..prolly HI on weak English beer and HOSPITALITY... like BMW buying ROLLS and then losing it to VW via a loophole..buying GUCCI & ROLEXES when yer bread and butter is backpacks & Seiko's is a BAD MOVE......but Hey it made the TOP GUYS FEEL GOOD...so wot price EGO.......Billions in the end for FORD...

[Arthur Dent]

I really like Jaguars but man you can't expect to say in business with numbers that like.

[safristi]

No Worries ARFUR.....they WON"T... ............dearly beloved we are gathered here to interr the Ecurie Ecosse team.....LeMans Jags...E Types and D types...dust brakes to dust brakes...earthy shattering cars..to the sad sorrowful
hard earth of Detroit Michigan......I think I'm gonna LOSE IT....

[Arthur Dent]

if they'd make the F-type and priced it right it might have been a different story but you are right its a question of when not if.

[Giant Dwarf]

Never sign on the dotted line till ya sleep on it...............FORD EXECS were asleep at the switch on that purchase..prolly HI on weak English beer and HOSPITALITY... like BMW buying ROLLS and then losing it to VW via a loophole..buying GUCCI & ROLEXES when yer bread and butter is backpacks & Seiko's is a BAD MOVE......but Hey it made the TOP GUYS FEEL GOOD...so wot price EGO.......Billions in the end for FORD...

BMW didn't lose Rolls... they lost Bentley, didn't they? 

And here I thought you knew about your British cars.  Pff... too much time spent in the Lotus position with yer head up yer scone I guess.

[safristi]

My ROLLS are delivered FRESH ...daily with a Cappucinno semi Soy latte lite toucha cinnamon..fresh grated nutmeg..shade grown early picked Ethiopian South facing Somalia hating slightly green beans with a hint of insousiance and TRANS FATTY ACIDS out the Wazoo  best place fer them......Mmmmmmm Coco Pops....

[Arthur Dent]

Never sign on the dotted line till ya sleep on it...............FORD EXECS were asleep at the switch on that purchase..prolly HI on weak English beer and HOSPITALITY... like BMW buying ROLLS and then losing it to VW via a loophole..buying GUCCI & ROLEXES when yer bread and butter is backpacks & Seiko's is a BAD MOVE......but Hey it made the TOP GUYS FEEL GOOD...so wot price EGO.......Billions in the end for FORD...

BMW didn't lose Rolls... they lost Bentley, didn't they? 

And here I thought you knew about your British cars.  Pff... too much time spent in the Lotus position with yer head up yer scone I guess.

I believe it was VW that bought Rolls/Bentley then found out the Rolls Aero guys owned the name rights ... which BMW bought under their nose. 

[safristi]

ROLL S CUNHARDLY complain folk are coughing their guts Up onna Q E II......