U.S.A.:Upscale Fords hit mark - Ford Forums - Mustang Forum, Ford Trucks, Ford Focus and Ford Cars
LinkBack Thread Tools Display Modes
post #1 of 1 (permalink) Old 01-23-04, 06:57 AM Thread Starter
Registered User
Stacy94PGT's Avatar
Join Date: Feb 2001
Location: The Hills of North Georgia,USA
Posts: 7,859
U.S.A.:Upscale Fords hit mark

Aston Martin, Jag, Rover, Volvo add $164 million to coffers

By Eric Mayne / The Detroit News

Ford Motor Co.’s Premier Automotive Group — the automaker’s collection of European luxury brands — may finally be paying off.

The upscale nameplates — Aston Martin, Jaguar, Land Rover and Volvo — contributed $164 million in pretax profits to Ford’s coffers in 2003, beating a previous benchmark set in 2000, even though at that time PAG included the Lincoln brand.

Ford has never disclosed the group’s 2000 earnings, but says they were “modest.” It began breaking out PAG results in the first half of 2003. In 2002, the unit lost $740 million.

“That high-water mark (in 2003) will be exceeded this year,” Don Leclair, Ford’s chief financial officer, said Thursday. “We expect this to become a regular habit.”

Leclair reiterated that Ford expects the PAG to earn between $500 million to $600 million this year. In 2003, the group’s revenues climbed to $24.9 billion from $21.3 billion, even though worldwide unit sales fell to 752,000 from 771,000.

As part of Ford’s five-year revitalization plan, now entering its third year, the automaker is counting on PAG to provide 30 percent of its profits by mid-decade. That amounts to about $2.3 billion because Ford’s pretax profit goal for mid-decade is $7 billion.

Ford’s PAG strategy, devised by former CEO and President Jacques Nasser, has been criticized by some analysts as too expensive. But Leclair noted the group’s 2003’s earnings represent a $900 million turnaround.

“This time last year, we were reporting a loss,” he said. “We said we’d get it fixed and we have. That’s a credit to management here and at PAG. It’s basically an improvement at all brands.”

Mark Fields, chairman and CEO of PAG, remains unfazed by the lofty goals set for the brands. In addition to expanding product offerings, Fields has shepherded an intense waste-elimination initiative that contributed to Ford’s $3.2 billion reduction in operating costs last year.

PAG has uncovered savings in areas such as manufacturing and material costs.

“We did a study on door handles,” Fields said in an interview. “This one was pretty eye-opening. We had about six or seven competitors’ door handles, including our own. We realized very quickly, going through that analysis, we were paying significantly more for our door handles.

“In ’04, we will continue to attack those areas and make progress in those areas,“ Fields said.

My first car was a 67 Mustang Coupe, 2nd one was a 67 Cougar XR-7, 3rd one was a 66 Mustang Coupe. Why did I get rid of these cars for ? I know why, because I'm stupid, stupid, stupid.

My next Ford.....
Stacy94PGT is offline  
Sponsored Links

  Ford Forums - Mustang Forum, Ford Trucks, Ford Focus and Ford Cars > Fordforums Community > Latest Ford News and Racing News > Ford Worldwide News

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page
Display Modes
Linear Mode Linear Mode

Similar Threads
Thread Thread Starter Forum Replies Last Post
Lincoln Mark LT - industry's first luxury pick-up Stacy94PGT Lincoln 0 01-05-04 05:05 PM
Lincoln Mark X Concept: a statement of luxury Stacy94PGT Lincoln 0 01-05-04 04:47 PM
Mark Winterbottom Wraps-Up Konica Championship FPRXR-6 Ford Racing Across the Globe 5 08-03-03 10:26 PM
A CENTURY OF VISION: Fords built city, changed the world Stacy94PGT Ford Worldwide News 0 03-12-03 07:17 AM
Centennial Vehicles To Mark Ford's 100th RPO83 Ford Worldwide News 0 07-18-02 06:32 PM

Posting Rules  
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On

For the best viewing experience please update your browser to Google Chrome