Ford loses $8.7b as Jaguar claws revenue

NEW YORK - Ford Motor revealed a dismal third-quarter net loss of US$5.8 billion ($8.74 billion) yesterday and cast blame partly on one-time charges related to its latest job-cutting campaign as well as on write-downs of assets, notably at its British prestige-car units, Jaguar and Land Rover.

It was the worst single-quarter loss suffered by Ford, the second-largest car maker in the United States, for 14 years.

It also included a pre-tax loss on ongoing operations in North America of US$1.98 billion, which is overwhelming any profits elsewhere. Ford also said it planned to restate results back to 2001 to correct accounting of derivative transactions.

The report exposes the drag still being exerted on Ford by both of its main British properties, for which the company took a pre-tax charge of US$1.6 billion.

Jaguar, in the midst of a restructuring that started in 2004, is still making losses.

Alan Mulally, Ford's recently appointed chief executive, said he had not yet decided whether to keep the Premier Automotive Group, which houses Jaguar and Land Rover as well as Volvo.

Ford's chief financial officer, Don Leclair, said yesterday that the car maker had received "many, many" inquiries from potential buyers for Aston Martin, but added that he did not expect to complete any sale of the marque this year.

- INDEPENDENT