Just posted by an F1 junkie on the Ferrari List:
Jaguar to leave Formula One
‘Ford to exit F1 activities’
Jaguar and Ford to leave Formula One
Ford today announced the end their Formula One programme with Jaguar. The F1
squad will not be re-branded as Ford as previously rumoured, but in fact is
to be sold.
The unexpected announcement was made as Ford announced that it was ending
production of cars at a plant in Coventry, central England, with the loss of
more than 1,000 jobs because of weak demand for the up-market brand.
Cosworth engineering will no longer receive a Ford subsidy, throwing into
doubt the supply of engines to both Minardi and Jordan Grand Prix.
“Jaguar’s presence in Formula One has been a valuable marketing and brand
awareness platform particularly outside our main markets of the US and the
UK,” said Chairman and CEO Jaguar and Land Rover, Joe Greenwell. “However it
was our collective view that it is time for Jaguar Cars to focus 100% on our
“After a thorough review over many months Ford Motor Company has decided it
can no longer make a compelling business case for any of its brands to
compete in Formula One,” Greenwell continued. "Having reached this decision
our focus has turned to securing the best future for our Formula One
businesses and our employees in these businesses going forward. We are
therefore putting our Formula One businesses up for sale. "
Earlier this week, managing director David Pitchforth had voiced confidence
that the team would receive an increased budget for the 2005 season.
Providing Jaguar with the resources required to allow it to compete on a
level playing field with leading manufacturer teams like Ferrari and Renault
would have required a major cash injection that Ford would have found
difficult to justify at a time when it is cutting 1,000 jobs.
World champions Ferrari spend around 600 million dollars a year while
Jaguar’s 2004 budget was estimated at around 180 million dollars and their
performances reflect their limited funding. Current race drivers Christian
Klien and Mark Webber can both claim a best finish of sixth position.
A statement from Ford
Ford (to) exit from Formula One racing activities, including the sale of
those operations. The personnel reductions and the Formula One decision
together are estimated to result in a charge to pre-tax income of
approximately $450 million. Of this, it is expected that approximately $375
million of these charges are to occur this year, with the remainder
occurring next year.
Source AFP / Ford
//please trim quoted text to context only