LONDON -- Jaguar is in talks with its owner, Ford Motor Co., for an injection of capital, the Financial Times newspaper reported Tuesday.
The paper cited Jaguar director David Smith as saying heavy losses had left Jaguar with "negative net worth" of $617.7 million.
"We will obviously need to take further actions to recapitalize the company," Smith was quoted as saying. "We are working on that, and we will be doing something in the new year."
The report said Jaguar had taken a $1.01 billion charge to cover a write-down of the company's investments.
The newspaper quoted Smith as saying the write-down would only affect Jaguar's British accounts and would have no effect on Ford's profits.
The paper said it was not clear how the recapitalization would be carried out. It said one option would be for Ford to convert some of the $928 million Jaguar owes to other Ford companies into equity.
Ford bought Jaguar in 1989. Jaguar has not kept pace with larger rivals in the premium car sector amid a slump in U.S. car sales.