Report: Ford may sell Jaguar to Renault

Ford may have refused to sell its profitable Volvo unit to Renault, but a new report suggests that the company is now considering selling its struggling Jaguar division to the French automaker. Renault, which owns Nissan, is reportedly looking to acquire an upscale European brand to increases its competitiveness in the luxury segment. The report, published in the December issue of French magazine L'Expansion, refers to Jaguar acquisition plan as Renault/Nissan CEO Carlos Ghosn's "secret plan." In October, we reported that Renault had not given up on plans to acquire a premium marque. Renault is said to have approached Ford with an offer to buy Volvo, but Ford reportedly rejected that offer. While Volvo has been largely profitable for Ford, Jaguar has been plagued by continual loses since Ford acquired the brand in 1989. Recently, Ford CEO Bill Ford said the company's Premier Automotive Group -- which consists of Volvo, Jaguar, Aston Martin, and Land Rover -- would be profitable in 2006.