LONDON, Jan. 4 (UPI) -- Jaguar Cars and U.S. owner Ford Motor are negotiating the size and structure of a capital injection to keep the British carmaker afloat.
Last summer Jaguar abandoned its hopes of reaching U.S. sales goals and, as a result, took a $1.03 billion charge that plunged it into a heavy loss, the Financial Times reported Tuesday. The Ford unit also has closed a plant and cut 1,150 jobs.
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Jaguar reported a loss of $1.136 billion for 2003, almost double the previous year's losses.
Now the company has a negative net worth, said David Smith, a Jaguar director, and must recapitalize.
One possible form of recapitalizing would be to convert some of the $926 million Jaguar owes to other Ford Motor units into equity.