Final year figures show Ford cuts losses; PAG makes £258m profit
24 January 2008

Ford slashed its global losses last year from £5bn ($9.9bn) in 2006 to £1.38bn ($2.7bn). The company said all of its automotive operations were profitable, with the exception of North America, which suffered a pre-tax loss of £1.8bn. However, North America did substantially reduce its red ink from last year's £3.08bn loss.Ford's Premier Automotive Group,­ made up of Volvo, Jaguar and Land Rover, made a profit of £258m compared to a loss of £176m in 2006.Although Ford doesn't break down the performance of the individual brands, it's thought Land Rover - one of the companies Ford is selling - provided the good news. Sources suggest that the 4x4 maker could have made nearly a £512m profit in 2007. Jaguar was thought have a made a small loss, however. Perhaps the biggest surprise was Volvo, which, despite selling over 400,000 relatively upmarket cars, managed to crash into the red in 2007. Around the rest of the world in 2007, Ford of Europe made £511m, Ford South America made £615m and Asia Pacific and Africa made just £20.5m. However, Ford's projection for 2008 suggest it will overall still be in the red, despite reducing costs by about £1.5bn - including more job losses - and spending £3bn on product development.The crucial North American market is expected to be hit by the turbulence in the American economy, with new car sales falling to 16 million units. 2007 US sales dropped almost 3 per cent to 16.14 million vehicles, the lowest since 1998.

Hilton Holloway

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6

25 January 2008

These are good results, all they need now is success in America, Asia and Africa. With products like the Egde they could just make it into the black soon.

28 January 2008

A point I made earlier on another thread. The Americans need to sort out whats wrong in their own back gardens. They have, in PAG, a group of companies that have shown the way with new models and design direction that the Yanks could do with taking notice of, yet all they do is sell off their best assets.

Maybe they should be run from Europe.

28 January 2008

They have made progress in resolving the issues they have around pensions and healthcare costs for former employees. It's a shame that they have had to do this, but they were facing huge liabilities which their current earnings could not support. Both PAG and Ford of Europe have more attractive and competitive product ranges than the American brands. I don't understand why Ford does not sell the Mondeo in the US when it would compare well against the American market Accord and Camry both of which sell very well. The spec could be changed and it could be built in a less expensive part of the world to help the bottom line.

Of course, I'd rather it was built in Europe.

28 January 2008

[quote Richard Lyle]I don't understand why Ford does not sell the Mondeo in the US when it would compare well against the American market Accord and Camry both of which sell very well.[/quote]

They used to up until 2000 (as the Ford Contour) but withdrew it due to poor sales.

30 January 2008

[quote SpecB]

They used to up until 2000 (as the Ford Contour) but withdrew it due to poor sales.

[/quote]

Probably due to the fact that it was not styled like a brick and come with a thumping 5 litre V8 as it's base engine!

Pri*ks

30 January 2008

[quote Jon Hardcastle]Probably due to the fact that it was not styled like a brick and come with a thumping 5 litre V8 as it's base engine![/quote]

Nor is it a pickup truck with a ladder chassis, cart springs and specific beer storage!

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