UK's JCB Interested in Buying Jaguar

[Atomic]

UK's JCB Interested in Buying Jaguar

Reuters, August 24, 2006

LONDON -- British construction machinery group JCB said today that it was interested in buying loss-making carmaker Jaguar from U.S. owner Ford Motor Co.

"I have expressed an interest in the purchase of Jaguar because I believe it is a very strong brand with great potential which at this moment I believe is not being realised," JCB Chairman Anthony Bamford said in a statement.

The Financial Times newspaper reported Bamford would only want to buy Jaguar if Ford was prepared to split the loss-making carmaker from Land Rover.

Ford's Premier Automotive Group (PAG) declined to comment.

Ford bought Jaguar in 1989 for 1.6 billion pounds ($3.03 billion) but has struggled to make money with the brand, part of PAG. PAG also includes Volvo, Land Rover and Aston Martin.

Bamford, who was quoted in the newspaper as saying Jaguar would need downsizing if he bought it, said in the statement he would not comment further.

Analysts and bankers have pointed to wealthy Russian businessman Nikolai Smolensky, who bought British sports car company TVR in 2004, as a possible buyer for Jaguar.

Private equity buyers and mass carmakers eager to move upmarket in search of higher margins could also emerge as buyers, they have said.

Ford said on Aug. 2 it expects PAG will be unprofitable in 2006, based on recent sales trends.

Ford said in December last year it had injected another 1.2 billion pounds into Jaguar to cover heavy losses and investment writedowns, the second recapitalisation in two years.

Ford in 2004 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.

On Wednesday, JCB's Dieselmax beat its own land speed record for diesel-powered cars, reaching 350.092 miles per hour a day after breaking a three-decade-old record.

your thoughts?

[Submariner]

Guys...i've started a paypal for the sole reason of buying Jaguar...please donate.  

BTW...interesting donations will be accecpted...you know, 401k's, house titles, hot sisters of forum members.  :D  

[Raza]

Smolensky is so close to losing one troubled British make, what in his mind would make him think "Let me try another one"?

[TBR]

I don't know about this, does JCB have the resources to keep the level of engineering at Jaguar as high as it has been at late? (primarly the aluminum chassis/body, plus the ultra-smooth V8s).

[MrH]

I don't know about this, does JCB have the resources to keep the level of engineering at Jaguar as high as it has been at late? (primarly the aluminum chassis/body, plus the ultra-smooth V8s).

Maybe I'm in the minority, but I never thought the V8's jaguar was putting out was all that great.  They may be smooth, but they don't seem to produce all that spectacular numbers.

The only thing that seems to be working in Jaguar's favor these days are their aluminum chassis.  Let's hope those don't go down the drain too if JCB ends up buying Jaguar.

[Submariner]

I don't know about this, does JCB have the resources to keep the level of engineering at Jaguar as high as it has been at late? (primarly the aluminum chassis/body, plus the ultra-smooth V8s).

Maybe I'm in the minority, but I never thought the V8's jaguar was putting out was all that great.  They may be smooth, but they don't seem to produce all that spectacular numbers.

The only thing that seems to be working in Jaguar's favor these days are their aluminum chassis.  Let's hope those don't go down the drain too if JCB ends up buying Jaguar.

Drive an XJ.  It may not be putting down wild power, but the lightweight body + the six speed makes it a quick car.  

[93JC]

I don't know about this, does JCB have the resources to keep the level of engineering at Jaguar as high as it has been at late? (primarly the aluminum chassis/body, plus the ultra-smooth V8s).

Probably not. They'd probably have to buy engines from Ford in the short term, which isn't really a good idea.

[nickdrinkwater]

Does that mean the next S-Type will have an optional front Shovel and Stabilisers?  Here is a Spy Shot of the car, caught during a brochure photoshoot aimed at portaying it as a go anywhere, family crossover model, and showing a change in direction from a luxury saloon to a serious off roader for the S-Type.

[Raza]

Does that mean the next S-Type will have an optional front Shovel and Stabilisers?  Here is a Spy Shot of the car, caught during a brochure photoshoot aimed at portaying it as a go anywhere, family crossover model, and showing a change in direction from a luxury saloon to a serious off roader for the S-Type.

Ooh, retro.  

[850CSi]

Jaguar's a sad story, really.

If they made a competitive S-Type, I think they'd become profitable again.

[Raza]

Jaguar's a sad story, really.

If they made a competitive S-Type, I think they'd become profitable again.

I don't know about that.  The midsize segment isn't anyone's profit leader, as far as I can tell.