FORD may sell Land Rover, the iconic maker of four-wheel-drive vehicles, along with Jaguar as part of a shake-up of its portfolio of upmarket British brands.

It is understood that Ford’s senior management, led by chairman and chief executive Bill Ford Jr, is considering packaging the two marques together and selling a majority stake to a financial investor.

Ford would retain a minority holding, and continue its technical and supply links with the two British carmakers. The Land Rover sale is one option being studied after the appointment last week of Kenneth Leet, a former Goldman Sachs and Bank of America banker, as special adviser to Bill Ford.

Ford said last week that no decisions on disposals had been taken, and banking sources said last night that it was not certain that Ford would part company with Jaguar. There was a possibility that it would be retained, but with reduced production and a concentration on exclusive luxury sports cars.

Bill Ford told staff in a memo last week that Leet would “explore strategic options”, but sources in Detroit pointed out that Leet’s expertise was in mergers and acquisitions, making it more likely Ford would look to sell assets, including Jaguar.

Ford bought Jaguar in 1989, paying £1.6 billion for what was then regarded as one of the most valuable upmarket car brands in the world. But it has struggled to make a success of the Midlands-based company, despite heavy investment.

Over the 17 years in Ford ownership, Jaguar has racked up trading losses of about £1.6 billion, according to Companies House filings. Ford has continually made those good by injecting fresh capital, most recently putting in £1.2 billion in December. Including the original purchase price, Ford has ploughed in at least £3.7 billion.

Ford is understood to have held exploratory talks about Jaguar with Renault, the French car group run by Carlos Ghosn, Hyundai, the aggressive Korean company, and an unnamed Russian car firm. The talks are not thought to have led to anything substantial.

But including Land Rover with Jaguar would sweeten the deal for any buyer. After a costly restructuring and heavy investment in new models, Land Rover is experiencing strong sales and, unlike Jaguar, is making money.

The two marques already have strong management and technical links, with the companies sharing senior executives and their products sharing engines and other components.

If Ford were to retain a minority stake, it would avoid the bad publicity in Britain that might result from an outright sale. It would also allow the American group to continue to benefit from the supply of technical expertise and components to the two British companies.

Bill Ford told staff in his memo last week that he planned to revisit his swingeing recovery plans for the company, which will lead to the closure of seven plants and the departure of nearly a quarter of the workforce. He said nothing had yet been decided “and we will not rush to judgments”.

A revised restructuring plan is expected to be announced in a couple of months. Bill Ford said the measures “may be difficult, but are necessary”.

If Jaguar were to be sold or scaled back, it would be a blow to the West Midlands motor industry, already reeling from the collapse last year of MG Rover.

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