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Tuesday, June 12, 2007

Ford Fighting off the Jaguar

 Ford is looking to sell Jaguar and Land Rover from its subsidiary focussed on luxury cars.  They will probably keep Volvo which is returning profits, but Jaguar and Land Rover will likely be sold.  Land Rover has made some turn around improvements, but Jaguar did not benefit from Ford ownership.

Ford ownership and part sharing strategies decreased the value of the brand and sales have slipped from 60,000 units to 20,000 units per year as a result.  Ford has sunk billions of dollars into the deal and will do well to sell the units for $2 billion total.  They need to do this however for the cash and to get back to basics.

Going forth, Ford is expected to focus on what it knows best; building and selling mass-market cars, pick-ups and SUVs.

Source: BBC NEWS | Business | Jaguar sale could secure Ford's future