Friday, December 23, 2005

British car firms: bad investment

I know that car firms are all having a tough time, but does anyone else think that British car firms seem to be particularly jinxed?
US carmaker Ford has pumped a further £1.2bn into its UK subsidiary Jaguar to keep the luxury car maker afloat.
The money will come from the sale of preferred shares to its US owner, Jaguar said.

This week Jaguar posted a pre-tax loss of £429.3m for 2004, blaming tough market conditions and a £173m write-down of investments.

When I say jinxed, what I actually mean is badly-run, over-taxed and over-burdened with regulation. How soon before Jaguar is shut down as well, eh?

Apparently, this year has been better than the previous two!
However, the accounts were an improvement on 2003 when it revealed it was £601.1m in the red, mainly as a result of one-off charges £534m.

These are pretty staggering amounts of money; how much can the shares that they are selling to Ford actually be worth? And how soon before they are totally worthless?

And will John Towers et alios be bidding to buy Jaguar any time soon...?

1 comment:

snooo said...

I don't think John Towers will allowed in a car auction room, let alone a corporate one.

He has a lot to answer for.

The very model of a modern scientific man

Your humble Devil was thoroughly amused by Neil Ferguson's fall from grace, and is very pleased to have found the time to outline Fergus...