Ford expects PAG profit in 2007
After losing money for three years, Ford expects its Premier Automotive Group to get profit in 2007. "We expect PAG to be profitable this year," said Ford CFO Don Leclair.
In 2006, the four European luxury brands lost $327 million before taxes. That brought their three-year losses to $1.15 billion. Jaguar has lost $500 million to $1 billion a year since 2001. Jaguar executives concede the unit likely will lose money in 2007 and 2008 as well.
Now the question is: Can Volvo earn more than Jaguar will lose? Volvo typically has earned $800 million to $1.2 billion a year. Land Rover has begun to eke out a slim profit. In 2006, an aging product line hampered Volvo’s performance, contributing to losses at the Swedish unit in the second and third quarters.
PAG’s lineup of new products "is being very well received," said Ford CEO Alan Mulally. "They are making tremendous progress, all of those brands, on their quality and productivity."
Source: Automotive News