Jaguar is to pull out of formula-one racing from the end of the current season, the British manufacturer’s United States parent company, Ford, announced on Friday.
The unexpected announcement was made as Ford said it is ending production of cars at a plant in Coventry, in the central United Kingdom, with the loss of more than 1 000 jobs because of weak demand for the upmarket brand.
In a statement, Ford said its decision to withdraw the Jaguar brand from formula one is part of a strategy aimed at concentrating resources on getting the core business back on track.
The news is a severe blow to the Jaguar formula-one team. Earlier this week, managing director David Pitchforth had voiced confidence that the team would receive an increased budget for the 2005 season.
Ford already gain promotional exposure to formula one through their engine-supply deal with Jordan.
Providing Jaguar with the resources required to allow it to compete on a level playing field with leading manufacturer teams such as 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 about $600-million a year while Jaguar’s 2004 budget was estimated at about $180-million, and their performances reflect their limited funding.
Australian driver Mark Webber, who has scored all of Jaguar’s points this year, can claim a best finish of sixth position in the German Grand Prix in July. — Sapa-AFP