Ford to Drop Cat & Dog?

M.D. Holloway · 06-12-2007, 10:49 AM

Ford Confirms Jaguar, Land Rover Review
By Robert Barr, Associated Press Writer
Manufacturing.Net - June 12, 2007

LONDON (AP) - Ford Motor Co. said Tuesday it was reviewing its position on Jaguar and Land Rover, and union officials pressed for more information amid reports that the two brands were up for sale.

John Gardiner, a spokesman for Ford's Premier Automotive Group which includes the two brands, said Ford had been reviewing all of its operations for a year.

''We are working with our financial advisers on the best options for Jaguar and Land Rover, and nothing is ruled out,'' Gardiner said. He added that there was no time frame for making a decision.

Ford's review of the two brands comes as it is struggling to return to profitability in the face of fierce competition from Asian automakers and changing tastes for more fuel-efficient models in its key North American market. It is slashing thousands of jobs and plans to close plants to cut costs.

Prime Minister Tony Blair's office said it was in touch with Ford about the review.

''We still believe that both Land Rover and Jaguar are highly successful companies and will have a highly successful future,'' the prime minister's official spokesman said.

British lawmaker Lorely Burt, who represents Solihull, home to Land Rover's assembly plant, said legislators were told Monday night that Ford was ''looking at all the options which may or may not include a sale.''

''We are very concerned to hear these reports and we are seeking an urgent meeting with Jaguar/Land Rover,'' said Dave Osborne, national officer of the Unite union.

''We find it difficult to understand why Ford would want to sell a successful, growing and environmentally improving brand like Land Rover, and a marque like Jaguar, which is a significant player in the luxury market and one that Ford has invested heavily in.''

Land Rover and Jaguar are part of Ford's Premier Auto Group, which also includes Volvo. Ford sold Aston Martin, another part of the group, for $848 million in March, with some analysts saying the luxury brand did not fit into Ford's long-term survival plan for cost savings from developing multiple models worldwide on the same underpinnings.

Ford posted a narrower loss of $282 million for the first quarter. The Premier Automotive Group reported a record pretax profit of $402 million for the quarter due largely to Volvo.

Ford bought Jaguar in 1989 and Land Rover in 2000. The two business have about 19,000 employees in Britain.

Geoffrey Robinson, a legislator representing Jaguar's base in Coventry, said speculation about a sale ''was not news in the sense that ... it was announced some time ago that they would be looking to do this.''

''It seems to have moved on a whole gear now that they do have certain groups earmarked who might go forward and make specific bids,'' Robinson told BBC radio.

dd74 · 06-12-2007, 02:53 PM

I agree with Wayne. But Jaguar lost its identity with no help from Ford as many of the four-door Jaguars were misidentified as a Taurus.

It's too bad. I like the Jags, but Ford taking them over lost some of the allure those cars had. If Ford must keep a luxury brand maybe they should consider dropping Lincoln-Mercury.

kaisen · 06-12-2007, 03:08 PM

The XK and XJ are decent cars with good styling identity, but..... they just aren't special enough when there are so many great choices. The other Jags are forgetable. Their dealer arm isn't up to par with other luxury marques (Lexus, BMW, etc.)

Land Rover/ Range Rover is suffering the same fate as all other SUVs except when it's all your brand sells, life sucks (ask Hummer). Their reputation for (lack of) quality can't be helping.

Ford should sell them. Unfortunately, Ford *should* have sold them when they were worth something.

PAG = dead brands walking

dd74 · 06-12-2007, 03:56 PM

I find it interesting how the British PM and a lawmaker from Solihull where the Land Rovers are made, is getting involved in this. One would think Bush might get involved with so many American jobs leaving the states for foreign countries.

MRM · 06-12-2007, 04:04 PM

Jaguar and Land Rover lost their identity a generation ago. Ford just made them more bland and fungible than previously imaginable. They would be so much better off with a hedge fund who bought them out, ran them as a niche, exclusive marque, and formed strategic partnerships with the big automakers for research and development; sharing the overhead but bringing their own ideas and performance specs to the table. Think the F car empire.

dd74 · 06-12-2007, 09:25 PM

Quote:

Originally posted by MRM
They would be so much better off with a hedge fund who bought them out, ran them as a niche, exclusive marque, and formed strategic partnerships with the big automakers for research and development; sharing the overhead but bringing their own ideas and performance specs to the table.

Isn't this what Mazda did/is doing?

72doug2,2S · 72doug2,2S's Garage

Revitalised E-type = profits

legion · 06-13-2007, 10:28 AM

Jags were also notoriously unreliable until Ford took them over. I guess they lost all of their British Mystique when they started working.

K. Roman · K. Roman's Garage

Quote:

Originally posted by legion
Jags were also notoriously unreliable until Ford took them over. I guess they lost all of their British Mystique when they started working.

Now that is funny!

onewhippedpuppy · 06-13-2007, 02:15 PM

Quote:

Originally posted by dd74
Isn't this what Mazda did/is doing?

While Mazda does have original (and better) cars than Ford, dig deep enough and you'll find the platform sharing. Mazda just does a lot better job of putting the pieces together.

on2wheels52 · on2wheels52's Garage

Like I'm qualified to offer an opinion on Ford/Jaguar, but this layman has difficulty understanding the synergy between these two. What kind of positive were they expecting?
Jim

onewhippedpuppy · 06-13-2007, 06:14 PM

As a prestige marque, the Jaguar name is tough to beat. Too bad they tried to Lincoln-ize it, and make them fancy Fords. I knew they were in trouble when I heard they were sharing a platform with Lincoln, and using Ford corporate switchgear.

Joeaksa · 06-14-2007, 02:55 AM

Have owned a XJ for almost 40 years and one of the new S-Types for 5 years now. Love the S-Type and its really a nice car with a good following.

The cars were terrible from 1987 to about 1993 or so. Took a few years of Ford ownership to get things reliable again and now with few exceptions the cars are very nice.

Hope that Ford does not sell Jag and continues making it into a moneymaker.

onewhippedpuppy · 06-14-2007, 03:42 AM

I think that Ford has made some worthwhile improvements to Jag, but that they need to observe more of a hands-off philosophy if they want to turn a profit. Compared to the competition, nearly all of Jag's products are average to mediocre. They really aren't a standout in any field. I think Ford has attempted to apply their corporate philosophy, which doesn't even work well for Ford.

They just need to give them some money, and tell them to design the best cars in their class. Leave them alone, nobody wants their Jaguar to resemble a Ford.