(www.autoinsidernews.com) - Ford's CFO Don Leclair has announced that the automaker expects its struggling Premier Automotive Group (PAG) to turn a profit this year. Ford's PAG consists of the Volvo, Jaguar, Land Rover, and Aston Martin brands.
Ford's PAG lost $327 million in 2006 and $1.15 billion over the past three years. While the other brands have also been in the red, the big drag on the PAG's profits has been Jaguar, which has lost between $500 million and $1 billion yearly since 2001.
Over the last several years, Volvo has been the PAG's savior, with earnings as high as $1.2 billion per year. In 2006, Volvo's stale lineup hurt sales вЂ" and thus the brand's profitability. With the all-new S80 and new C30, Volvo is likely to return to its high earnings. Ultimately, the health and overall profitability of the PAG in 2007 relies mostly on success at Volvo, to make up for another year of losses at Jaguar, reports Trend.
If you think Ford is playing with numbers, Leclair made it clear that the sale of Aston Martin would not be included in the profit numbers.