Aston Martin saves Ford's finances

Profitable Europe digs Ford from financial hole

By PH Staff / Friday, 21 July 2006 / Loading comments

AM DB9: saving Ford

Ford's European division -- including Aston Martin -- seems to be propping up its parent, as the company reported a $123 million loss in its latest quarterly results.

The company's been hit, along with others, as US drivers start to switch from pickups and SUVs to vehicles with lower fuel consumption. In anticipation, Ford's already cut thousands of jobs and plans to close 14 plants.

But in Europe, Ford made a profit of $105 million before tax, though it could have been higher if its Premiere Automotive Group -- consisting of Aston Martin, Jaguar, Land Rover and Volvo -- hadn't lost $162 million. This was due, said Ford, to loss of market share at Volvo, despite growth and successful product launches at Aston Martin and Land Rover, and hopes of profits following successful launches of new Jaguars, XK and XJ.

Analysts don't expect the situation for Ford to change in the short term, although the company reckons it's investing in the development of lighter cars that use more efficient engines using a range of fuels.