Ford plans to cut exports of its European luxury vehicles to the United States because of the weak dollar, Automotive News Europe reported.


But US dealers said reduced shipments have less to do with exchange rates than falling demand for some models.


The strong British pound and Swedish kronor are eating into the profits of Volvo , Jaguar , Land Rover and Aston Martin models sold in North America.


Meanwhile, US dealers are cutting orders for new cars, according to one Jaguar-Land Rover retailer who spoke on condition of anonymity.


Ford’s Premier Automotive Group “is looking at their order bank and not seeing any orders,” the dealer says. “If no one is ordering cars, why build and ship them? They’re getting killed on the (Jaguar) X-Type and (Land Rover) Freelander. With the support they are getting with incentives, it costs more for PAG to bring them over here than what we can make on them.”


X-Type and Freelander sales plunged in May in the United States. Jaguar sold 1,802 X-Types in May, down 18.9% a year ago, while. Freelander sales plummeted 56.4% to 389.


A Jaguar Cars North America spokesman says the company is negotiating with PAG headquarters in England about the number of vehicles to be cut, which models will be emphasised and how soon it will happen.


Matthew Taylor, managing director of Land Rover in England, said: “We’re sort of balancing off our supply. We’re down in sales performance in the US at the moment.”


A PAG spokesman said the luxury-car group won’t restrict US demand, but it won’t oversupply the market.