Ford's financial results for 2006 have been released today. It's emerged that the company lost more money last year than at any time during its 103-year history, racking up a massive $12.7bn (£6.44bn) deficit. But Ford of Europe was one of the few divisions to make a profit, up to $469m (£251m) from last year’s $396m (£201m).
This result will help safeguard Ford jobs in the UK and Europe, although the Premier Automotive Group (Aston Martin, Jaguar, Land Rover and Volvo) did less well, losing $327m (£166m). Jaguar’s massive losses contributed to this, although Aston Martin is profitable. Most of Ford's vast losses were due to restructuring costs in the US, such as closing plants and cutting jobs. But while the company expects its North American operations to continue making a loss this year, it said PAG should make a profit in 2007. "We fully recognize our business reality and are dealing with it,” said CEO Alan Mullaly. “We have a plan and we are on track to deliver."That plan involves closing 16 factories, renewing 70 per cent of North American product by next year and saving $5bn in costs. The aim is to return Ford to profitability by 2009.