EU:Jaguar re-evaluates strategy, slashes long-term volume hopes - Ford Forums

Stacy94PGT · 10-08-2004, 07:55

Jaguar re-evaluates strategy, slashes long-term volume hopes
MARK RECHTIN | Automotive News and BRADFORD WERNLE | Automotive News Europe

PARIS -- Awash in red ink, Jaguar Cars has abandoned its long-term goal of selling 200,000 vehicles a year globally.

The chastened outlook follows parent Ford Motor Co.'s announcement last month that it would close Jaguar's historic Browns Lane factory and sell Jaguar's Formula One racing team.

Jaguar produces about 125,000 cars annually.

Company executives declined to say what they believe is a realistic production target.

"Jaguar's strategy is being re-evaluated. We're not going to be a 200,000-unit car company," said Mark Fields, executive vice president in charge of Ford's Premier Automotive Group, in an interview at the Paris auto show.

"That business model didn't offer a high chance of achieving profit. We're going to be a more focused and smaller company than we were a few years back."

Joe Greenwell, president of Jaguar and Land Rover, said: "I don't want a situation where year-over-year sales are up, but we have substantial losses. We don't want to wind up with unsold stock because that leads to residual value issues and other reputational issues."

The 200,000 goal was announced in 1997 when Jacques Nasser was CEO of Ford and current President Nick Scheele ran Jaguar. The goal was part of the decision to create the X-Type sedan, which proved a disappointment.

Premier does not break out financials for each brand. But sources have revealed that Jaguar lost close to $800 million in the first half of 2004. U.S. sales this year through August were down 11.5 percent to 31,899 compared with the same period of 2003.

Ford COO Jim Padilla did not rule out any steps to turn Jaguar around.

"Nothing is off the table," he said. He declined to elaborate.