Ford to separate PAG data

Chicago March 16, 2003; Jeremy Grant writing for the FT reported that Ford Motor Company will report earnings from its Premier Automotive Group of luxury brands separately from those of the parent company, exposing one of the US vehicle maker's largest units to investor scrutiny for the first time.

The move will be closely watched by investors because Ford is pinning much of its hopes for achieving an earnings target of 70 cents a share this year on an improved performance by the loss-making PAG brands, which include Jaguar, Land Rover, Volvo and Aston Martin.

The world's second largest manufacturer of motor vehicles said in a Securities and Exchange Commission filing on Friday that, as a result of a reorganisation of its global financial results reporting, it would strip out PAG and Ford's Asia-Pacific operations. It said that this would take effect in the first quarter.

PAG has always been buried in results from Ford's European operations.

The shift in earnings reporting policy is also important because Ford has said it wants its luxury brands to be providing one-third of total group profits by mid-decade.