Door shuts on Euro brands (Ford)

Door shuts on Euro brands (Ford)

Lester R. Marketing Week 2, November 2006, Start page: 26, No. of pages: 2

Purpose – to assess the future for Jaguar, Volvo and Land Rover in the light of pre-tax losses of £316m for the third quarter of 2006 by Ford’s Premier Automotive Group (PAG). Design/methodology/approach – lists the problems facing Ford and its PAG and considers the reasons why the marques have been performing badly. Findings – the deepening crisis at Ford has thrown fresh doubt on the future of its struggling PAG after the announcement that the company would no longer support brands that do not show signs of improvement. Reveals that Ford is suffering from its over-reliance on gas-guzzling pick-up trucks and sports utility vehicles (SUVs) in the USA, as consumers switch to smaller cars. Suspects that the components of PAG never fitted together and that Volvo should not have been included but it is loss-making Jaguar that is the real problem. Contends that selling all or part of PAG will not mask Ford’s wider problems – it has not had the management stability or strategic vision to know what to do with PAG and has made shorter-term, ad-hoc decisions with less-than-satisfactory results. Originality/value – considers that the coming months will be crucial to the future of the company as a whole.

Keywords: Car industry, Financial performance, Jaguar, Marketing strategy, Premier Automotive Group, Volvo