Monday 18th September 2006

Jaguar's fate remains undecided

And Aston Martin deal is ancient history

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Critical element: Jaguar XK

Jaguar's position within Ford remains indeterminate despite rumours that Ford has ruled out selling it, according to the FT.

The Blue Oval has yet to decide Jaguar's fate, reckons the report, saying that Ford described stories about a decision having been made as "premature". Jaguar lost a stonking £426 million in 2004 but insiders at Ford have been encouraged by recent moves to turn that around, according to the FT story. The reception accorded the new XK and XKR will play a large part in that decision.

A decision's likely to be made once Ford's new CEO, Alan Mulally -- who used to head Boeing -- has his feet properly under the table and has scrutinised the figures.

Aston deal a year old

The FT also reports that the decision to sell Aston Martin -- which last year made an undisclosed profit for the first time in 40 years -- was made almost a year ago. It stemmed not so much from the financial problems which Ford was then, as now, grappling, but more from a recognition of two incompatible cultures. One of them makes prestigious exclusive cars, the other cranks out cars by the million.

However, it seems that there won't be a management buy-out. Instead, AM boss Dr Ulrich Bez, who nursed AM into its current, strong position, foresees himself and the existing management team continuing to run the company. It would be owned by an outside investor with Ford and the current management owning minority stakes -- which would provide them with vital votes on the board.

[Fruitcake]

You can't help but feel that Jaguar's current state is a lot to do with Ford's greed and Jaguar having a heritage as rich or richer than Aston's.

I feel that Jag was being delibarately hald back so as not to tread on AM's toes when the raft of new cars came out, a la Maserati and Ferrari. If this is the case, then is Ford really the best company to have even a say in Jag's future, as stated in the article?

I think not and to be honest, I would very much like to see Jaguar run totally independently from Ford, finally allowed to fulfil its ambitions as the modern chapter in the leaping cat's history.