The big cat lost Ford $715 million last year, and won't turn a profit until after 2008
25 January 2007

The full extent of Jaguar’s perilous financial situation was revealed yesterday. The British car-maker is reported to have lost a massive $715m in 2006 according to an internal analysis document prepared for senior Ford executives, and leaked to American journalists. However, those losses are expected to decrease over the coming years, down to $550m in 2007 and $300m in '08.

Worse still, US analysts are predicting that Ford will post the biggest loss in its 103-year history for 2006. The final figure is expected to top the $7.39bn loss recorded in 1992.

Ford’s new CEO, ex-Boeing boss Alan Mulally, told reporters at the recent Detroit show that ‘Jaguar was not for sale at this time’. This was widely interpreted as meaning that Jaguar was going to get the chance to re-establish itself with the new XK coupe and convertible and the XF saloon.

Even so, the revelations about Jaguar’s position will make concerning reading for Ford's top men, and will send a chill through the West Midlands. Jaguar received a massive $1.2bn cash injection in late 2005 from parent company Ford, and is clearly far from a position where it could pay that money back.

With total production in 2006 down to just 75,000 cars, Jaguar’s survival prospects look more bleak now than they have in years. Although the replacement for the ageing S-type saloon is just 12 months away from the showroom, Jaguar’s sales in the all-important North American market are in freefall. From a high of 61,000 sales (half of which were X-types) in 2002, Jaguar hit 21,000 units last year, after sales of the core XJ, XK and S-type models halved, and X-type sales fell to just over 5000 units.

Hilton Holloway

Join the debate


6 May 2016
It's sad to think about such an illustrious company floundering like it is. It's going to come up about a decade since this article and hopefully all the damage from the last depression will be repaired before this next one hits us! And we are already on the precipice of the next one too!

Add your comment

Log in or register to post comments

Find an Autocar car review

Driven this week

  • Dallara Stradale
    The Stradale is the first road-legel car from Italian motorsport constructor Dallara
    First Drive
    16 March 2018
    The motorsport constructor's first road car is inspired by Lotus minimalism. Does it thrill on road and track?
  • Hyundai i30 N
    Standard spec is good so paint colour is our car’s only option
    First Drive
    16 March 2018
    What’s Hyundai’s first hot hatch and N-brand debutant really like? Let’s find out
  • Porsche Boxster GTS
    This is the new GTS version of the Porsche Boxster
    First Drive
    15 March 2018
    The 718-generation Boxster is our favourite roadster of the moment – so is this new GTS variant worth the extra outlay?
  • BMW 5 Series
    First Drive
    15 March 2018
    The BMW 5 Series is top of the mid-exec pack, but is there still room for a diesel saloon in everyday family life?
  • Audi A7 front
    First Drive
    14 March 2018
    The new Audi A7 Sportback looks the part, but how does the new Mercedes-Benz CLS rival cope on UK roads? We find out