Experts predict Jaguar will be put up for sale

Former investment banker Kenneth Leet will advise chief Bill Ford about changes to the business, which may include the sale of ailing operations.

Mr Leet is also expected to look at whether Ford should pursue strategic alliances with other car firms.

Analysts have suggested that Ford could put its underperforming UK Jaguar unit up for sale following the review.

"Bill Ford has said that everything is on the table. We are reviewing the business," Ford spokesman Tom Hoyt said.

However, Mr Hoyt declined to give details of Mr Leet's potential plans.

Widening losses

The news came as Ford restated its recent second quarter loss, almost doubling its loss to $254m from the $131m previously stated.

The group blamed the rise on an increase in pension curtailment costs related to job cuts.

US-based Ford has been under pressure to restructure in the face of widening losses and declining vehicle sales.

Mr Leet previously worked at Bank of America and Goldman Sachs, leading their merger and acquisitions teams.

Ford bought Jaguar in 1989, but has since struggled to make any money from the company. Late last year, the luxury carmaker posted a pre-tax loss of �429.3m for 2004.

The UK subsidiary has been a major drain on Ford's resources. In December, it pumped �1.2bn into Jaguar to keep it afloat.

In a filing to US financial watchdogs on Wednesday Ford revealed it now expects its Premier Automotive Group segment - which includes Jaguar - to be unprofitable for 2006.

Sell-off?

Jaguar could be an attractive proposition for private equity buyers or mass carmakers eager to move their brands further upmarket.

Analysts suggest an "emerging market type" is the most likely buyer - although they warned Chinese firms were likely to wait to gauge the success of efforts to revive the MG Rover brand before considering a move for Jaguar.

Reports of a further shake-up at Ford come six months after the group unveiled its "Way Forward" restructuring plan.

Under the proposal, it said it would be cutting between 25,000 and 30,000 jobs and closing 14 factories by 2012.