Ford Applies Brakes to Luxury Car Unit

17 February 2003

Ford Motor Company plans to limit the expansion of its luxury car marques and focus instead on reducing costs.

Sales at the Premier Automotive Group – comprising Jaguar, Land Rover, Volvo and Aston Martin – increased 6.6% last year to 739,000, and the division is expected to swing back into the black in 2003. However, Ford wants to avoid over-expansion.

“We want to pace ourselves,” declared PAG chairman/ceo Mark Field. “We are going to moderate our growth because we have grown so fast in the past. You can't do that for an extended period of time because it stresses your people, stresses your organisation and stresses your distribution.”

The move coincides with a restructuring of the group to bring Jaguar and Land Rover under one management.

Data sourced from: Financial Times; additional content by WARC staff