Jaguar gets £534m cash boost from Ford

Jaguar has agreed a £534 million cash injection with owner Ford to cover the cost of abandoning its growth plans last year.

Jaguar has agreed a £534 million cash injection with owner Ford to cover the cost of abandoning its growth plans last year.

It comes just a year after the company received £260 million from Ford to cover losses at its UK luxury cars arm.

The company said in regulatory filings just before Christmas that its losses had almost doubled in 2003. No figures have been published for last year, but the group confirmed in November that it was unlikely to break even before 2007, despite ending car production in Coventry.

The spokesman declined to say how the additional funds will be made available to Jaguar or when they will be received. One option would be for some of the £490 million that Jaguar owes to other Ford companies to be converted into equity. The £534 million charge covers a write-down of Jaguar's investments and will only affect its UK accounts, leaving Ford's profits unaffected. (PA)