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| New Land Rover production begins | |
| (30 minutes later) | |
| The first Land Rover model designed and built by car giant Ford is set to roll off the production line in the UK. | The first Land Rover model designed and built by car giant Ford is set to roll off the production line in the UK. |
| The Freelander 2 is being made at Jaguar's Halewood Factory on Merseyside and the success of the model is seen as vital to the economy of the region. | The Freelander 2 is being made at Jaguar's Halewood Factory on Merseyside and the success of the model is seen as vital to the economy of the region. |
| Ford, which bought the brand in 2000, is relying on the car to boost sales. | Ford, which bought the brand in 2000, is relying on the car to boost sales. |
| Ford's UK brands are under threat after its US parent - which reported a £3bn third-quarter loss - warned it could not support underperforming brands. | Ford's UK brands are under threat after its US parent - which reported a £3bn third-quarter loss - warned it could not support underperforming brands. |
| Widening losses | Widening losses |
| Last month, the US carmaker said that its UK brands - such as Jaguar and Land Rover which are held by its Premier Automotive Group (PAG) - were not for sale, despite predicting the group would not see profits in 2006. | Last month, the US carmaker said that its UK brands - such as Jaguar and Land Rover which are held by its Premier Automotive Group (PAG) - were not for sale, despite predicting the group would not see profits in 2006. |
| However, the declaration came ahead of its latest results which showed that losses at the US group had widened once again. | However, the declaration came ahead of its latest results which showed that losses at the US group had widened once again. |
| Really there's a question mark over whether Ford has enough cash themselves to actually hang onto Land Rover and Jaguar Professor David Bailey, Birmingham Business School | Really there's a question mark over whether Ford has enough cash themselves to actually hang onto Land Rover and Jaguar Professor David Bailey, Birmingham Business School |
| News that losses were almost 30 times higher than at the same time last year prompted new chief executive, former Boeing executive Alan Mulally, to declare the results "clearly unacceptable". | News that losses were almost 30 times higher than at the same time last year prompted new chief executive, former Boeing executive Alan Mulally, to declare the results "clearly unacceptable". |
| Ford's woes prompted Mr Mulally to warn that the group would no longer support its UK brands unless they showed signs of improvement. | Ford's woes prompted Mr Mulally to warn that the group would no longer support its UK brands unless they showed signs of improvement. |
| Since the news, speculation has been widespread that the US group could sell off its Warwickshire-based luxury brand Aston Martin. | Since the news, speculation has been widespread that the US group could sell off its Warwickshire-based luxury brand Aston Martin. |
| Ford - like its US rival General Motors - has suffered from lower sales, as higher petrol prices have led consumers to opt for more fuel-efficient Japanese cars. | Ford - like its US rival General Motors - has suffered from lower sales, as higher petrol prices have led consumers to opt for more fuel-efficient Japanese cars. |
| Uncertain future | Uncertain future |
| Professor David Bailey of Birmingham Business School also warned that the future of the UK division of Ford was "hanging in the balance". | Professor David Bailey of Birmingham Business School also warned that the future of the UK division of Ford was "hanging in the balance". |
| "Unless they improve dramatically they (Ford) can't guarantee that they can hang onto the UK brands," he told the BBC. | "Unless they improve dramatically they (Ford) can't guarantee that they can hang onto the UK brands," he told the BBC. |
| "Behind all of this is Ford's enormous restructuring problems - sales are down enormously in the North American market, they are looking to cut costs massively over they next two years. | "Behind all of this is Ford's enormous restructuring problems - sales are down enormously in the North American market, they are looking to cut costs massively over they next two years. |
| "Really there's a question mark over whether Ford has enough cash themselves to actually hang onto Land Rover and Jaguar," he added. | "Really there's a question mark over whether Ford has enough cash themselves to actually hang onto Land Rover and Jaguar," he added. |
| However, Professor Bailey added that Land Rovers tend to fare well in the European market and the new model could take sales away from BMW. | |
| The decision to manufacture the Freelander at Halewood marks a massive turnaround for the plant which once lost 300 days of production a year through strikes. | The decision to manufacture the Freelander at Halewood marks a massive turnaround for the plant which once lost 300 days of production a year through strikes. |
| Eddie O'Hara Labour MP for Knowlsley South - which includes Halewood - told the BBC the area was confident that the new Freelander was a "winner" and would be in production at Halewood for at least nine years. | Eddie O'Hara Labour MP for Knowlsley South - which includes Halewood - told the BBC the area was confident that the new Freelander was a "winner" and would be in production at Halewood for at least nine years. |