The Cat is Saved: Ford to Back Jaguar 100-Percent

There’s no denying it, recent times have been very difficult for Ford Motor Company. Its American arm is bleeding money,suffering from having a truck- and SUV-heavy product range in a time when cars and crossovers are key. It seems that things are starting to turn around with ex-Boeing man Alan Mulally at the helm, but there’s quite a way to go before all is right again in Dearborn. The situation is a better for Ford of Europe, and the Premier Auto Group as a whole isn’t doing too badly. Though the majority of Aston Martin was sold off for a sum just large enough to cover about a month’s worth of losses, Volvo and Land Rover remain quite healthy thanks to their premium image and appealing product range.

The final member of the PAG family is Jaguar and, unfortunately for the leaping cat, times have been horribly rough. The X-Type, the car that was supposed to put Jaguar on the map with production of 200,000-plus units annually, has flopped miserably, while older models such as the S-Type and XJ areconstantly and futilely being facelifted with little success. Even with the fresh XK sports car, Jaguar hasn’t stopped sharp declines in sales. Between 2002 and 2006, the brand’s sales have slid by 62-percent, which is nothing but bad news. Ownership confidence was shaken further when Jaguar recalled every single XJ it made for model years 2006 and 2007 late last year.

Prior to the sale of Aston Martin, it was almost certain that Ford would have rid itself of the money pit that was Jaguar; the situation even got to the point where analysts suggested that Jaguar was worthless, and that a sale could’ve only taken place if Ford paired it up with profit-making Land Rover. It was a real shame too, considering the rich heritage that the Jaguar name carries. This is all in spite of the fact that Jaguar has turned its act around in other ways. It might be hard to believe given its historically poor quality, but todayJaguar ranks amongst the best for dependability and satisfaction in JD Power and Associates various studies.

Nevertheless, Mulally recently put any rumors of an impending Jaguar sale to rest in an interview with The Car Connection saying, “Jaguar is on a really good plan,” and that, “we’re 100-percent behind them, and that’s why we’re investing in them.”

Jaguar executives decided to restructure the brand not so much as a British version of BMW, Audi or Mercedes-Benz, with a large variety of models, but rather as a maker of high-end niche products, a strategy that is capable of turning profits. It seems that Jaguar has great potential as shown by its C-XF Concept vehicle and the forward-thinking RandD team that developed such features as the pedestrian airbag protection system featured on the XK.

A secure future under Ford’s wing, and with that security, greater innovation in styling should help Jaguar solve their sales problems, and with that, enjoy a quick return to a better state of financial health.