Volvo Loses $151m in First Quarter. Any Takers?
In years past, Ford resolutely refused to report earnings for the individual brands in its Premium Auto Group (PAG) (Jaguar, Land Rover, Aston, Volvo and, for ten minutes, Lincoln). And for good reason. The brainchild of former BMW suit and bon vivant Wolfgang Reitzle, PAG has been a financial sinkhole since day one. Now that Jag and Landie's gone to Tata Motors and Aston's been flogged to an unholy alliance of a Texan and the Kuwaitis, PAG consists of… Volvo. And today, for the first time ever, FoMoCo's broken out earnings in the Volvo unit. And the news ain't good. Yahoo!Finance reports that a year ago, Volvo posted a $94m profit in the first quarter. This year, they had a first quarter pretax loss of $151m. So why, when Volvo was making money, didn't they brag about it? And why, now that it's losing money, do they disclose the fact? It's just one more indication that Ford is building a case to justify putting Volvo on the auction block a la Jag and Land Rover. Adjö Volvo.