Ford Motor Co. said on Wednesday it had no plans to sell its loss-making British luxury car subsidiary Jaguar Cars, and said it expected profits overall for its European businesses in 2006.
“No, it is not an option,” Lewis Booth, the head of Ford of Europe and the carmaker’s Premier Automotive Group (PAG) told reporters when asked if a Jaguar sale was possible.
Booth said he saw sales at Jaguar stabilizing at around 85,000 units a year, but declined to repeat Ford’s previous forecasts that it would break even by 2007.
“We are going to do what we said we would do and continue to work on the cost side,” Booth said on the sidelines of the Geneva car show.
Ford said in December it had injected another 1.2 billion pounds into Jaguar to cover heavy losses and investment writedowns, the second in two years.
Ford bought Jaguar in 1989 for 1.6 billion pounds but has struggled to make money with the brand, part of PAG. PAG also includes Volvo, Land Rover and Aston Martin, which are all expected to turn a profit this year.
Ford last year cut 1,150 Jaguar jobs in England, scaled back production at the Browns Lane plant in Coventry and shifted output to another factory near Birmingham.
Booth said both PAG and Ford of Europe would be profitable in 2006, but declined to give more detailed forecasts.
Ford is on a new product offensive in Europe, where it is facing stiff competition from Asian carmakers. Booth predicted strong growth in Russia and Turkey, but its biggest market in the UK faced tougher conditions.
“The UK is a bit of a worry at the moment,” Booth said.
Ford has said it will slash up to 30,000 jobs and shed more than a quarter of its production capacity in North America as it struggles with a deepening financial crisis, prompted by decades of U.S. market share losses.