In a new white paper on the PAG restructuring at Ford, U.K. automotive research firm Trend Tracker suggests Ford should consider selling its Ford Credit finance arm, or even Volvo, before potentially selling its premium marques, Jaguar and Land Rover. In the paper, analyst, Michael Wynn-Williams, argues that using Land Rover to enhance a potential deal would do nothing to make Jaguar itself more attractive and would deprive Ford of two premium brands and not one. Caught in a market squeeze between the premium brands and the fast proliferating value brands, Wynn-Williams suggests Ford’s future lies with its own globally recognised premium brand. Ford should consider selling the Ford Credit finance arm, or even Volvo, before putting Jaguar on the block.
Wynn-William takes a look at the factors that lead to Jaguar’s present predicament, showing that Jaguar’s rumoured sale is the result of a “market-led failure.” Although product engineering is now “world-class,” the once provocative design has been “thrown away in a disastrous attempt to resurrect obsolete styling cues,” he says.
Wynn-Williams suggests: “Ford’s recovery strategy must now involve cutting costs by moving production to Jaguar’s biggest market, the United States. At the same time Ford should embolden Jaguar’s British product development skills so that it can once again seduce the market with authentic and forward-looking designs.”
“For Ford to let Jaguar go now would be the beginning of the end for both brands,” he added.
Regarding Volvo, Wynn-Williams says: “The Volvo Car division of PAG has made good profits for Ford, yet this is the one brand in the empire that most closely overlaps with the Ford brand itself: selling it would bring in $7bn at least.”



08/12, 12:51 PM
posted by:
wow
yeah sell away a profitable brand that has nothing but upside in the future. That would solve all of fords problems….. idiots
08/12, 12:51 PM
posted by:
JC2
Umm… no they shouldn’t sell Volvo.
Volvo in my opinion was a great buy, some people think they bought it for too much, I think they bought it for too little.
The only reason why they bought Jaguar was to reduce the competition for it’s luxury brands. They haven’t done much to help Jaguar in the long run, and Jaguar is falling apart. I would love to see Jaguar revived to it’s formal glory, but right now I don’t see that happening with Ford
I do agree with moving some manufacturing of Jaguar to the United States to reduce costs.
Volvo is fairly succsesful and brings good profits for Ford. Why should they sell it? In the long run Volvo will only help. Jaguar and Land Rover will not unless they do a major turnaround. Of course this is just my opinion, but that’s how I feel about it.
08/12, 12:59 PM
posted by:
Patrick
Sell Jag, keep volvo and Land Rover. Simple
08/12, 1:06 PM
posted by:
JC Whitless
Sell Mercury…
(actually, selling the Mercury brand to the chinese would be a grand idea)
08/12, 1:09 PM
posted by:
Jeremy
The guy who wrote that article is a moron.
Volvo is the ownly respected brand Ford has. Not too mention they are a good comp for SAAB (GM). Volvo owners are as likely to buy a Ford as a Chevy fan would buy an F150. What the hell was that guy talking about Ford and Volvo direct competition?
Jaguar can’t compete with other brands foreign or domestic. Only luxury cars as sad as Jags mighgt be Lincoln.
Problem is, what company would want to buy Jag?
08/12, 1:26 PM
posted by:
True
In the first line of the article it states, “…U.K. automotive research firm Trend Tracker suggests…”
If you take a look at Ford and Volvo offerings in Europe, there is a bit of overlap between high end Fords and entry level Volvos.
As for why would Ford sell a profitable brand such as Volvo? To make a profit and raise cash reserves. What kind of price do you think money-making Volvo will draw vs. money-losing Jaguar?
08/12, 1:37 PM
posted by:
Jeff Allen
The problems at Jaguar started when Ford insisted they use the Mondeo platform for the X-Type and Jaguar did an awful retro design for the S-Type. They badly need an SUV & the XK whilst beautful is for a select few. The fact is Ford has wasted the money it spent on Jaguar.
Land Rover started its climb back under BMW with the current Range Rover and this has put it in a much better position. The current line-up is superb and Ford would be mad to sell it particularly as the new Freelander II is about to come out.
Volvo still has the “older man” badge albeit it is profitable and has its place.
Ford should sell Jaguar & keep the other two.
08/12, 1:47 PM
posted by:
jay
No don’t get rid of Volvo! They overlap some but very little, only the highest equiped Fords and the very base Volvos are even comparable.
I totally agree with JC2. I duno about buying Jaguar just to ruin it, but I agree with his point of views.
08/12, 1:53 PM
posted by:
Patrick
Jeff Allen, don’t you mean Jaguar did an awful retro design on the XJ? Because the XJ is the one everyone agrees has a boring retro design, not the S-type. The S-type is just a mediocre car that’s utterly uninteresting. However, I agree with you 100% about Land Rover, it has a killer lineup and I see their products often, Volvo too is profitable. Seriously get rid of Jaguar, and PLEASE kill Mercury, that’s the poorest excuse for a badge-engineered brand since GMC
08/12, 2:24 PM
posted by:
Jon'O
I think some of you are missing the point. If these were stocks we would all agree that you buy low and sell high. Volvo is a great brand. I drove a 740 turbo years ago, but they will never be able to compete against the other European luxury brands because they are fwd. Jag has huge potential. Jag could compete against BMW one of these days. If GM can save Cadillac, Ford should certainly be able to save Jag. Ford should take a lesson from profitable car makers like Toyota, Honda, BMW, etc. who own only a few distinct brands rather than a GM style conglomeration.
A great line up would be as such:
Luxury Brand: Jaguar for cars/Land Rover for suv (combine all dealerships)
Middle Class Brand: Ford
Sell 70% of Volvo back to the Swedes. Keep some stock in Mazda. Kill Mercury and Lincoln. Sell Aston. Combine all Ford and Jag racing teams into Ford/Jaguar Racing so that the next gt and xk have serious roots.
08/12, 2:39 PM
posted by:
1c3d0g
Jon’O: that’s a really interesting perspective…it might work out very well for them if they do what you just wrote. Very interesting.
08/12, 2:56 PM
posted by:
jay
I think they should keep their stock in Mazda because Mazda is doing great currently.
They should keep Aston Martin they just made a (small) profit, and it’s sort of like a halo brand (that nobody knows it’s owned by Ford)
They should keep Land Rover as their luxury SUV segment.
They should keep Volvo because it’s profitable and I believe some if it’s cars share parts with Fords
I duno about Jaguar, I don’t think Ford will be the one to return it to it’s formal glory
08/12, 3:29 PM
posted by:
Anonymous
just sell up altogether
08/12, 3:55 PM
posted by:
Reza
Selling Volvo to Hyundai would be better. Now a days no one buys Jaguars and if Ford keeps Volvo They will both go down. If Ford sell Volvo, it will bring a good amount of cash and not only Volvo will get to spread its wings, but Ford will have the needed Money to save it self.
Selling Jaguar wouldn’t make any where close to what Volvo’s worth.
All in all, selling Volvo may seem stupid at the first glance, but logically its the best decision Ford can make.
08/12, 4:55 PM
posted by:
hal
Volvo is the only decent mass luxury brand Ford has – they would be stupid to sell it.
Jaguar could maybe be profitable as a super luxury brand like Rolls or Bentley in the $100k to $250k market but thats what Aston Martin/Lagonda is for.
Sell it to the Chinese and throw in LR to sweeten the deal.
08/12, 11:10 PM
posted by:
CPT
Sell Volvo….the jackass that wrote the article is clueless.
08/13, 1:03 AM
posted by:
al
dude these guys are crazy. Just since they are form U.K they dont want Jaguar and LR to disappear so they rather have Ford Fall with them. They know that its a very dumb idea specialy because Jaguar looses Ford Millions of $ every year and Volvo actaually makes them money.
08/13, 3:53 AM
posted by:
Dan
Anyone saying the problem is the quality of any of jag’s products needs to be corrected.
Every car Jag currently sells is excellent, with the possible exception of the X-type. The first S-types had teething problems, but MILLIONS have been put toward incremental improvements in that car continuously. The current model is a world away from the first ones. The new XJ’s failing is that it had to follow one of the the best looking sedans ever, the previous XJ. Dynamically it’s superior, and its almost as attractive, it just isn’t fresh. In 20 years, when you see the two together, say a 2006 and a 1996, it’d really be hard to love one and hate the other. The same argument could be made for the newest XK. If someone says “taurus” again, that person needs to go check out 1960s english roadsters to see the original inspiration and how the newest metal legitimately apes those shapes, not failed ’90s accord-fodder.
right, now that that’s straight….. selll JAG! Jag’s high-end models share little but drivetrains with Ford products, and I could understand the selling of Land Rover considering that it removes the need for Ford to give a flip about those drivetrains since the thunderbird and LS are dead, leaving Jag and Land Rover the only ones using those small-disp v8s. The v8 vantage’s engine is built by hand by aston martin and is therefore separate, regardless of its origins…
Jag needs independence to flourish. don’t replace the X and S types, new ownership should let the XJ and XK models to be supplemented with REAL jags, ones that should rise from the ashes of the F-type/ XK180 and R-coupe concepts. neglect the R-d6 hatch ideas, K? JAg needs to be the curvy feminine-shaped alternative to aston’s edges and shoulders….. An XJ8 ought to be the least sexy car they sell. they have a large coupe, give us a long, spacious tourer with steel frame at lower price point with NO sedan and a boxster-baiting roadster. duh.
08/13, 5:59 PM
posted by:
Renton
Volovo has neither languished nor flourished under Ford. Unlike SAAB, which was gang ass raped by GM and left product crippled.
They still are boring compared to their German counterparts.
08/13, 7:01 PM
posted by:
1c3d0g
Driving a Volvo, I’m immediately made aware how “mechanical” it feels. I don’t know if that’s a good or a bad thing, but it’s the only car manufacturer which I’ve felt that experience.
08/13, 11:44 PM
posted by:
akatsuki
Ford has several good brands: Aston, Mazda, and Volvo. Everything else they have is either crap or about to become so.
The best sale Ford could do would be to sell both Lincoln and Mercury. Lincoln is the deadweight brand that has really left Jaguar without a purpose at the low end. Mercury is complete garbage that nobody will miss. It, in fact, would only have value to the Chinese as a name as the brand’s equity is complete crap. Selling Lincoln would let them focus on Jaguar which even a monkey could fix if given the chance.
Jaguar should have a stable of five vehicles:
1. a new S-Type that doesn’t look so bloated.
2. a more modern XJ, retro will only carry you so far
3. a face-lifted XK without the Taurus oval (it may have been Jag to begin with, but it has been ruined)
4. the F-type concept car. Take a Boxster, copy it, and then skin it with the F-type’s body.
5. Jag high end SUV based on the XC90
Drop the X-type until you have perfected this lineup.
08/14, 12:54 AM
posted by:
Mathew
Volvo can never compete against its German competitors. Jaguar with a good lineup could do that. Volvo might be decently known in US and Europe. But in the rest of the world its still an unknown. Jaguar is much more loved and known than Volvo for sure. Have a look at the new S80. It just fails to create the impression of a new vehicle. Its so similar to the previous vehicle and the previous one was not a beauty to start with. With a decently selling XC in its lineup Volvo might find willing potential buyers as well.
08/14, 4:54 AM
posted by:
cimbria
I know they are desperate in G.B to save what’s rest of the auto industry, but this is just plain stupid. I think “..U.K. automotive research firm…” set the standard for this article. Trying to compare Jaguar with Volvo is one clue to that someone don’t know a thing about the auto industy.
So they buy Volvo and then seven years later they find that the Volvo models overlap the Ford lineup? Yeah right… Maybe it’s the other way around? Maybe they should market the Ford brand where it belongs, and that is together with non-premium brands like Opel, VW, Skoda, Renault, Nissan? Or maybe, they (like GM) should get rid of the brands that are losing money, and that is the U.S brands?
Mathew: So, if the Jaguar brand is so much more known and loved all over the world, why do the not sell any cars? Being loved doesn’t sell you any car… Jaguar is an enthusiast car. Like Porsche. They should not compete with volumes.
08/14, 6:52 AM
posted by:
1c3d0g
What the hell does the U.K have to complain about anyway? They still have “a purpose built €100M plant at Goodwood, West Sussex, England” producing the very elegant Phantom.
http://en.wikipedia.org/wiki/Rolls-Royce_Phantom_%282003%29
08/14, 8:15 AM
posted by:
Renton
1c3d0g — “Driving a Volvo, I’m immediately made aware how “mechanical” it feels. I don’t know if that’s a good or a bad thing, but it’s the only car manufacturer which I’ve felt that experience.”
I think if the mechanism is well done than it is a good thing. Bimmers are very mechanical sounding, the most of any modern car. They have always been this way. Very different from the isolation of a Lexus.
Since Volvos are not the precision German instruments that BMWs are, it may not be a good thing. If you do not care, then don’t sweat it.
08/14, 9:05 AM
posted by:
British_Rover
Jag cannot have a SUV. NO no no no no. No SUVs for Jag ever.
SUVs are what Land Rover is for.
08/14, 10:40 AM
posted by:
Jagyouare
I don’t think selling Jaguar (or Land Rover) is a good idea at all for Ford. Those two brands have a cachet and identity that will NEVER be present in a VOLVO or other Ford branded product. Jaguar, as a nameplate, is still a very valuable and recognized brand, which stands for luxury and sportiness. The brand, a la Cadillac, can be reclaimed and re-engineered. If properly done, Jaguar can be great again. As far as selling Volvo is concerned, I WOULD do that to raise money before I got rid of Jaguar or Land Rover. Why not sell Volvo and get alot of money for it now, while it is a profitable, therefore, saleable.
–Jagyouare
08/15, 2:04 PM
posted by:
StanFord
Yeah, that’s a geat idea… Just sell Volvo and (uselessly) plow any money made into Jaguar to try and make it into something it will NEVER be, a full-line luxury marque like BMW or Mercedes-Benz. Jaguar is a niche luxury-enthusiast nameplate like Porsche, Aston-Martin or Lotus and that’s likely all it’ll ever be. Could you see a Jaquar branded small car like the MB B200.. I cannot.
The guy who wrote that article must have alot of GM stock or is just some wishful thinking Anglophile and an idiot.