Ford gives Jaguar new cash boost

Jaguar today said a £534m (€756m) cash injection had been agreed with owner Ford to cover the cost of abandoning its growth plans last year.

The UK car maker will receive the funds to cover the write-down on its investments, which contributed to it losing £601.1m (€852.1m) during 2003.

It comes just a year after Jaguar received £260m (€368m) from Ford to cover losses at its UK luxury cars arm.

A Jaguar spokesman said: “The Jaguar business was recapitalised in 2003 and a programme of further recapitalisation has been agreed with Ford Motor.”

The company said in regulatory filings just before Christmas that its losses had almost doubled in 2003.

Jaguar has abandoned its long-term aim of producing 200,000 cars a year in favour of turning out the current level of between 120,000 and 130,000.

The changes are expected to take place by September.