Jaguar out of F1?

[Buzz Billsberry]

Car production is to end at Jaguar's historic Brown's Lane factory in Coventry but some work will continue there, parent firm Ford has confirmed.

The assembly of Jaguar models will transfer to the nearby Castle Bromwich plant, with 400 voluntary redundancies.

Many of Brown's Lane's 2,500 workers will move to Castle Bromwich but 310 staff will remain in Coventry to make wood finishes for Jaguar models.

Ford also said Jaguar would pull out of Formula One at the end of the season.

About 750 jobs will be lost as a whole across the Jaguar Group, Ford said.

"This is a huge emotional blow to Coventry," said Nick Matthews of the Warwick Manufacturing Group at Warwick University.

"Jaguar is in Coventry's DNA and vice versa. It is like losing a friend or a member of family."

Jay Nagley, an analyst at Spyder Automotive, said the factory's closure would have "big implications" for the rest of Jaguar's UK operations, casting doubt over the future of its Castle Bromwich factory.

"Their production figures are simply not high enough," he said.

Huge losses

Jaguar has seen demand for its models drop in the US, a key market, and has been looking at how to reduce costs.

Jaguar has been responsible for huge losses across the company and probably cost Ford more than £100m ($178m) in the second quarter, according to the BBC's Jeff Randall.

Ford recently mulled the idea of closing its Land Rover plant in Solihull, Birmingham, only to reach agreement with unions on a plan to make it more competitive and safeguard 8,000 jobs.

During those negotiations, Ford management said that they wanted to make Land Rover as competitive as the company's Jaguar operations within three years, and as competitive as other global car makers within five years.

Ford has said that Brown's Lane is "one of Ford's best plants in terms of quality".

However, demand for the top-of-the-range cars has fallen, dented by a weak dollar, forcing the company to rethink its strategy.

Radical answer?

Jaguar cars are made at three sites in the UK and all have been producing at less than capacity. The other two plants are at Castle Bromwich, in the West Midlands, and Halewood on Merseyside.

Critics say they should be made at one central plant instead, possibly abroad.

The dollar's weakness against sterling makes it very difficult to sell Jaguar cars in the US, which accounts for 50% of their market.

The radical answer may be to switch production to the US, a move that would enrage workers at the historic plant where Sir William Lyons moved Jaguar production to back in 1950.

Ford reported a $362m second-quarter pre-tax loss for its Premier group, which includes Jaguar as well as Land Rover, Aston Martin and Volvo models.

[Fat Albert]

Whether you like or loath Bernie, todays news indicates exactly why the manufacturers should NEVER get control of F1...

Couldn't Ford have sacked 2000 accountants/marketing consultants/customer research clowns, at $50,000 apiece thats the $100m a year they've been spending on Jaguar...

Ford have lost the plot, just look at the new Focus, a bean counter's special if ever I saw one

[studbuckle]

goodness me! doesn't anyone read anything except the first posting?!!      

They are selling up the F1 team AND Cosworth Racing AND from what Sideshow Bob says probably the WRC team as well  

Yes, we do

BUT we also have our own source of information and according to those the WRC progam is not finaliased but liely to cloes. The F1 team in its Jaguar form is going but FORD as a team may be their only Sporting focus (no pun)

[Martin Keene]

Isn't there something in the F1 rules that stats anything less than 10 teams and the top teams have to run 3 cars...

[peterg]

Well I'm sorry but I can't see FORD taking over the Jaguar F1 team if their intention is to cut costs it just doesn't make any sense      

[adhawkins]

Nope, just read an article that said Ford couldn't afford to. They're trying to sell Jag Rac and Cosworth as 'going concerns'.

Red Bull are being named as a potential buyer for Jag Rac...

Andy

[ChrisG]

“After a thorough review over many months Ford Motor Company has decided it can no longer make a compelling business case for any of its brands to compete in Formula One,” Greenwell continued. “Having reached this decision our focus has turned to securing the best future for our Formula One businesses and our employees in these businesses going forward. We are therefore putting our Formula One businesses up for sale. “

The above was from "Chairman and CEO Jaguar and Land Rover", Joe Greenwell taken from F1 Live website, so Id agree with you Peter, looks like it will either be bought out wholesale or just shut down completely.  

[Buzz Billsberry]

Well I'm sorry but I can't see FORD taking over the Jaguar F1 team if their intention is to cut costs it just doesn't make any sense      

But Pete that's what their whole stratagy is based upon 'Not making sense'. Its coporate etiquette at boardroom level, you know ...muppetry

Buzz

[peterg]

I stand corrected, Buzz    

[studbuckle]

I hate to say it but Buzz has a point.

Interview with Malcolm Wilson says that he was trying to keep the WRC project going despite Ford moving its funding to F1....

But he's Cumbrian and I should never listen to Cumbrians

(dont tell Carla)

[peterg]

There had been whispers in recent weeks that the Detroit giant was considering re-branding the team as Ford - but chief technical officer said this idea had been discounted. He explained: "We looked at rebranding the team Ford but it did not create a compelling business argument."

Ford have insisted that there are several buyers interested in the team but could not guarantee that a sale would go ahead. Parry-Jones said: "If it does not, we would be forced to face a closure scenario but we're not thinking about that at the moment."

Of the decision to sell Cosworth and the likely effect it would have on Minardi and Jordan, Parry-Jones added: "Supplying subsidised engines for teams is no longer possible.  We have talked to Jordan and Minardi and we intend to work with them to find a solution."

[Fat Albert]

I suspect that the team decision has more to do with closing Brown's Lane and the union response across Ford than the success or otherwise of the F1 team and its marketing spinoff.

I just wish that the number of people who sit around big company board tables was directly proportional to its success

Ford can't justify competition budgets in relation to marketing, you're having a turkish, why else would anyone buy a Ford?

[peterg]

why else would anyone buy a Ford?

'cos they're cheap....and nowadays reasonably well made if not very exciting.

As someone wrote recently, "the old theory that racing improves the breed and what wins on Sunday sells on Monday is outdated"

[DickieB]

I can understand not re-branding it Ford.  After all no-one would believe that any F1 parts/technology could ever be incorporated into Ford road cars.  

[StuartMackay]

IMO you only have to look at which products create profit for Ford ....Transit and possibly Land Rover/Volvo in Europe, SUVs/ Trucks and Ford Credit in US....... to see why they have to stop the cash haemorrhaging by moving out of products/ventures which are not contributing to long term profitability and protecting their share price.

FWIW......It would be nice to keep Ford in Rallying and Cosworth going as I believe they could produce exciting road cars for general sale like they did in the 70's and 80's...trouble is Peugeot/Citreon, VW/Audi and the Japs (Subaru/Honda/Toyota) now offer the "inspirational" cars for the young market that Ford once controlled.......

Ford is in real danger of falling out of the Top 3 manufacturers and must be worrying about a take over if Ford of Europe doesnt stop losing vast amounts of cash.....