Ford Injects $2.1Bn Into Jaguar
Ford Motor Co. has injected another £1.2 billion ($2.1 billion) into Jaguar Cars to cover heavy losses and investment writedowns at its British luxury car subsidiary, the company said on Friday.
The move marks the second time within two years that the number-two U.S. carmaker has had to recapitalize Jaguar, which has battled weak sales.
“The £1.2 billion is correct as a recapitalization,” Jaguar spokesman Don Hume said, confirming press reports.
“It takes the form of preference shares issued to Ford Motor Co. If nothing else it underlines, despite recent rumors, Ford’s ongoing commitment to Jaguar,” he added, but would not comment on whether more such operations might be needed.
Jaguar‘s unconsolidated British operations made a pretax loss of £430 million in 2004 including an asset impairment charge of £173 million. That narrowed its 2003 loss of £601.1 million including an impairment charge of £534 million.
The U.S. group does not break out separate profit statements for Jaguar, which in September declined to repeat its earlier forecast that it would break even by 2007.
Source: Reuters.
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