Business

With their profits squeezed, both Ford and General Motors are eager to strengthen their positions in the moneymaking high end of the luxury-car business. The automakers have fixed their gaze on Britain's Jaguar as the car of choice in the upscale market. Last week Ford declared that it may bid to buy Jaguar when the British government's restrictions on individual stakes in the firm expire at the end of next year. Ford currently controls 13% of Jaguar's stock.

Ford's salvo came as GM was negotiating a joint venture and minority stake in the successful but cash-strapped British carmaker. Now analysts expect that GM may be forced to try to buy the firm outright to prevent Ford from making a hostile raid. Should the battle between the two U.S. giants become heated, analysts predict, Jaguar shares currently valued at $2 billion might fetch as much as $2.9 billion.