Ford's outbound premium brands are understood to have made $1bil in 2007
14 January 2008

The new owners of Jaguar & Land Rover will take control of a business that’s turned its balance sheet around by one billion dollars in the last twelve months, according to word on the Detroit show floor.Land Rover is understood to have made a profit of around $1.2b in 2007 while Jaguar reduced its losses to around $100m thanks to cost-cutting and concentrating on fewer, more profitable sales.The numbers are a big improvement over 2006, when the businesses combined lost $500m.According to Jag boss Geoff Polites: "Our financial position is much, much better than many people think."The turnaround means that the new owners of JLR, most likely to be Tata Motors of India, will shortly take control of a business that’s turned the corner, for a sum of around $3b.It also makes the future of a Tata Motors-owned Jaguar and Land Rover more secure, by giving the Indian company a sold financial base to make the heavy investments needed to keep the product line filled-up.

In the short term product plan: Jaguar XJ, Range Rover

Making heavy demands from Tata for cash investment in the short term will be the next Jaguar XJ (codenamed project X351), and new Range Rover.Land Rover engineers are understood to be re-thinking the architectural structure of the new Range Rover, which had been planned to switch to all aluminium construction. Weight savings of up to 40 per cent in the body-in-white were expected to transfer into a 200kg saving in the current steel-bodied car’s kerb weight of 2600kg.Cost considerations are now understood to be forcing engineers to look at a hybrid steel/alloy architecture. However, because new hybrid powertrains are in development, Land Rover believes it can hit CO2 and fuel economy savings regardless, without making such big breakthroughs in kerb weight savings.

Julian Rendell

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Comments
8

16 January 2008

Thats good.

I drive a black XJ!

Do I win anything for a witty response?

21 January 2008

Ford would be stupid to sell up now JLR are in the black. Especially as the LRX is coming and the Jaguar XF and new XK are here along with the Land Rover Freelander. There is also the new XJ and possibly X-type replacements coming. Why sell when your in the middle of a new product program, especially with a potential joint venture with Alfa and Maserati. I think they should keep JLR and see if the recovery plan works out before even considering selling!

21 January 2008

I too find it hard to believe Ford are seriously considering selling these two in the first place and even harder to believe now they have shown what real potential they have in the future. Any compnay that can turn round a billion in twelve months must be a sure fire banker for future profit making. Add in the Ford Europe profit and you have a very good business.

Maybe Ford should look to sell off it's American arm instead!!!!!

21 January 2008

Is everyone getting a tad sentimental here?

21 January 2008

[quote Jon Hardcastle]

yes.

[/quote]

Group hug - group hug.

1 February 2008

So business is sentimental now? Must be alot of sentimental people if figures and maths are sentimental.

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