Ford £6.5 billion in the red

26 January 2007

  • Biggest loss in company's history reported
  • Jaguar not for sale but badly losing money
  • Restructuring in US accounts of most of the loss

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Ford finished £6.48 billion in the red in 2006 - the worst year in the company's history.

Although Ford of Europe continued to make a profit, up from £201 million in 2005 to £251 million last year, huge restructuring in the US plunged the company into the massive deficit.

The Premier Automotive Group (PAG) within Ford includes Aston , Jaguar Land Rover and Volvo, and this also made a loss of £166 million.

Jaguar is to blame for much of the PAG's deficit, a reported loss of £365 million, wiping out profits made by Aston .

While Ford is seeking a buyer for Aston , new Ford boss Alan Mulally said at the Detroit Motor Show that Jaguar was not for sale. It is not predicted to turn a profit for several years.

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