Jaguar expects a further injection of capital from its owner Ford after reporting heavy losses for 2003, according to Reuters.
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Jaguar reportedly said it took a £534 million ($US1.02 billion) charge to cover a write-down on the company’s investments after losing £601.1 million in 2003, double the previous year.
The previously-undisclosed figure, lodged with regulators late last month, left Jaguar with a “negative net worth” of £322 million, a Jaguar spokesman told Reuters, confirming a Financial Times report.
“The Jaguar business was recapitalised in 2003 and a programme of future recapitalisation has been agreed,” the spokesman reportedly said.
Reuters said the write-down, reflecting Jaguar’s plans to scale back production after worse-than-expected sales, would only impact Jaguar’s UK accounts and would not impact US-based Ford’s earnings.
The spokesman refused to comment to Reuters on how the recapitalisation would be carried out. The FT reportedly said one option would be for Ford to convert some of the £490 million Jaguar owes to other Ford companies into equity.
