LONDON -- Jaguar will cut production at all three of its UK plants to reduce financial losses.
Slow Jaguar sales were largely responsible for the $362 million (about E293 million) loss reported by Ford's Premier Automotive Group in the second quarter.
Jaguar, Land Rover, Volvo and Aston Martin make up PAG.
Don Hume, Jaguar spokesman, said the production cutbacks are one step, but there will be others.
"I think the core of that is still to come. The senior team is working on a plan for Jaguar's future," said Hume.
The production cutbacks will affect Jaguar's factories at Browns Lane, Castle Bromwich and Halewood.
Jaguar relies heavily on sales in the US and has been hit hard by the weak dollar.
Strong sales of Jaguar's new diesel-engine-powered X-type in Europe have offset some of the problems across the Atlantic. Jaguar sold 3,123 X-types in western Europe in July compared with 1,834 units in July, 2003.
But sales of the flagship XJ sedan have been slower than expected in Europe, due partly to the fact there is no XJ diesel yet. Jaguar sold 606 XJs in July compared with 796 the same month last year.
Mark Fields, PAG chairman, is heading the Jaguar turnaround. His team is also scheduled to announce a plan for the future of Land Rover's Solihull plant later this month.