Blog: Dave LeggettFord's PAG woes

Dave Leggett | 20 August 2004

I've just been speaking to a journalist at the BBC who was after some background on Ford, PAG, Jaguar and Land Rover. The heavily loss-making PAG brands have been on the back foot lately - Jag X-type inventory is said to be building as sales undershoot expectations and Land Rover has its long running productivity and quality issues. You may recall that PAG boss Mark Fields issued an ultimatum a few moths ago for the LR management and unions to put together a roadmap on the way forward or face job losses. He wanted it 'by August'. We're in crunch time. I'm told that a statement from Ford could be issued next week. Expect Jaguar to cut production of the X-type. Maybe there'll be something more positive to say about LR.

I also see the Jaguar plant closure option is in the news today. Certainly three assembly plants for total annual production of just 130K looks like a luxury and leaves Jaguar with output per employee way too high by industry standards. But shutting the plant that is, I guess, in the firing line, Browns Lane - where the XJ is made - wouldn't be operationally straightforward and would hit a lot of resistance. Plant closure for Jaguar has been strenuously denied before, but maybe the continuing losses are now causing people to think the unthinkable. 

Fields gets tough


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