Jaguar XK: will it be French?
Could Jaguar go French? According to one report, Renault has made an offer for the loss-making Ford division -- which has lost money ever since Ford bought it in 1989.
Ford has already turned down an offer for Volvo from the French carmaker -- the once-Swedish marque is Ford's most profitable subsidiary, after all. But Volvo and Aston Martin, which together with Jaguar constitute Ford's Premiere Automotive Group, have been dragged down by Jaguar's losses. So Ford's unlikely to rid itself of Volvo but selling Jaguar in exchange for a pile of cash could be a more tempting proposition.
The rationale for the move expressed by Carlos Ghosn, Renault's new boss, is concern over Renault's dependence on sales in western Europe, where Renault's market share is under ten per cent this year. He's worried about the French market in particular and wants to broaden both the company's product range and global scope.
And among the best ways to do this is to launch luxury cars as they make a lot more money per car than any number of Clios, Twingos or Meganes. And if he doesn't have to sell them under the Renault badge, so much the better: that name has not troubled the top end, badge-conscious car buyer for some time. So far in 2005, the Renault Laguna lost 20 per cent market share despite a recent facelift, and the Vel Satis, which was to have been Renault's flagship, bombed badly -- it was just too quirky.
We should know more in February, when Ghosn is due to announce Renault's plans.