Ford Motor Co. has turned the page on its “money-losing” Premier Automotive Group, according to a recent Detroit Free Press report. The company announced recently that an agreement had been reached with Tata Motors of India to sell Jaguar and Land Rover for $2.3 billion.
The DFP report says the move will allow Ford to stop pouring money into the luxury brands and focus on its primary business, which combined, lost $15.3 billion in the past two years. Only one quarter of that came from the its European luxury brands.
The Premier Automotive Group, formed in 1999 that includes Aston Martin, Jaguar, Land Rover and Volvo, lost $7.4 billion before taxes over the last seven years.
"Now, it is time for Ford to concentrate on integrating the Ford brand globally, as we implement our plan to create a strong Ford Motor Co. that delivers profitable growth for all," Ford Chief Executive Alan Mulally said in a statement.
After Ford pays $600 million to the Jaguar and Land Rover pension plans, the sale will net about $1.7 billion. Experts had been anticipating the sale since December.
Since purchasing Jaguar in 1989, Ford has sunk an estimated $10 billion into the British brand, while pushing it through a number of strategies that produced more difficulties than profit.
