Zut alors! Renault’s bid for Jag fails

Newswheel staff :: 23 January 2006 :: Filed under Ford, Jaguar, Renault

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Meanwhile, Ford prepares “Way Forward” announcement

As we reported previously, rumours in the French press suggest Renault has been poking around the hospital bed of Ford’s ailing English patient. But it’s the UK’s Sunday Times that has apparently put paid to the story. Renault’s efforts to relieve Ford of Jaguar have failed.

The Sunday Times reckons Ford and Renault suits got together last year to discuss the possibility of a handover following another piss poor year for Jaguar in 2004, including a loss of £429.3 million. Clearly, Jaguar would fit very nicely into the Nissan / Renault stable. After all, the Franco-Japanese group lacks a premium brand in Europe and head honcho Carlos “cost killer” Ghosn would love to get his paws on a high margin brand to go after BMW and Mercedes.

But it’s not to be. The Sunday Times doesn’t provide any details, simply claiming that “senior motor-industry sources” have indicated the deal will not go through. Given the £1.2 billion Ford recently pumped into Jaguar and the outright dismissal of the Renault rumours by execs at the Detroit show a week or two ago, Ford’s commitment to Jag is admittedly looking more convincing at present.

Meanwhile, an announcement from Ford on the next step in its “Way Forward” recovery plan is expected today. As well as the 25,000 blue-collar and at least 4,000 white-collar jobs due for the chop, industry analysts and chin scratchers alike speculate Ford could close its minivan business in the US. Add in the 20,000 jobs culled by Bill Ford four years ago and the result is a 42 per cent overall cut in Ford’s US assembly workforce since 2001. Ouch.

Linkage:
Sunday Times on Renault and Ford
Inside Line on Ford’s no-more-minivan plans
Autoblog on “Way Forward”