Jaguar gears up cash bid

Published on Wednesday 5 January 2005 11:30

LUXURY car maker Jaguar has confirmed it is seeking a fresh cash boost from United States parent Ford after reporting heavy losses for 2003.

Jaguar revealed it took a 534 million charge to cover a writedown on the firm’s investments after losing 601.1m in 2003, almost double the previous year.

The previously-undisclosed figure, lodged with regulators late last month, left the famous British marque with a "negative net worth" of 322m, a Jaguar spokesman said.

"The Jaguar business was recapitalised in 2003 and a programme of future recapitalisation has been agreed," the spokesman added. However, he refused to comment on how the recapitalisation would be carried out.

Jaguar last year announced plans to cut more than 1100 jobs as it scales back production and shifts car manufacturing from Coventry to Castle Bromwich, Birmingham. Car giant Ford bought Jaguar in 1989 for 1.6 billion, but the UK firm has been unable to keep pace with larger rivals in the premium car sector amid a slump in Stateside car sales.

Jaguar chief executive Joe Greenwell said in November the brand would lose hundreds of millions of pounds this year and not break even until 2007.