JCB chief abandons bid to buy Jaguar

The chairman of digger firm JCB today appeared to have given up on buying British car manufacturer Jaguar from the Ford Motor Company.

Anthony Bamford told the Financial Times that he would not be pursuing his interest, as any sale would also involve Ford’s Land Rover operation.

He said: “I am not interested in buying the two together and am therefore not getting involved.”

Ford is currently considering future options for the luxury brands in its Premier Automotive Group, which also includes Volvo and Aston Martin.

Bamford and the profitable Land Rover business are so closely intertwined that if Ford decided to sell them it would be as a single unit.

Bamford reportedly held talks with Ford, but he concluded that the US car giant would be unwilling to separate Jaguar and Land Rover.

The chairman of Staffordshire, England-based JCB declared his interest in the company in August.

Bamford said at the time: “I have expressed an interest in the purchase of Jaguar because I believe it is a very strong brand with great potential, which at the moment is not being realised.”

Ford acquired Jaguar for £1.6bn (€2.4bn) in 1989 and has invested heavily in plants at Halewood, Merseyside, and Castle Bromwich in the West Midlands.

But it has struggled to cope with a slow motor market, fierce competition and spiralling raw material costs. Jaguar reported pre-tax losses of £429.3m (€638m) for 2004.

In December, Ford underlined its commitment to the car maker – amid rumours that it planned to sell the business – by ploughing £1.2bn (€1.8bn) into the firm.