Premier Automotive Group
Encyclopedia
The Premier Automotive Group (PAG), was a group within the Ford Motor Company
which was formed in 1999 to oversee the business
operations of Ford's high-end automotive marques.
PAG grew to include responsibility for the Lincoln
, Aston Martin
, Jaguar
, Land Rover
and Volvo
brands. However, Lincoln and Mercury were returned to Ford direct control in 2002. By 2004, after spending (by one estimate) $17 billion building PAG, the press was questioning the purpose of the group.
After Alan Mulally
left Boeing
to become Ford's CEO in September 2006, the dismantling of PAG began. Aston Martin
was sold to a UK
-led group of investors headed by David Richards
in 2007. In September 2006, the Rover brand was secured from BMW
by PAG, to protect the Land Rover
brand. In March 2008, Jaguar
and Land Rover
were sold to Tata Motors
. In 2010, Ford sold Volvo Cars
, the last PAG brand, to the parent of Chinese carmaker Geely
for $1.8 billion.
, and its North American headquarters were located in Irvine
, California
. In 2001, the PAG office in the United States is the first Ford building, and the first building in Orange County
, to qualify for Leadership in Energy and Environmental Design
classification from the U.S. Green Building Council. When the headquarters first opened, some of its floors were each specifically dedicated to one of PAG's brands.
In late 2008, a deal was announced to lease the former PAG headquarters building in Irvine to the Taco Bell
restaurant chain. Although Ford planned to leave a small product development staff on the property, this was widely seen as the end of the PAG story and an ironic comment on the expensive failure of Ford's luxury-car strategy. The New York Times asked dryly, "Will they install a drive-up window?"
was a member of PAG until it was sold into private ownership on 12 March 2007 for £479 million.
division Lincoln
was part of the Premier Auto Group as well in the late 1990s, but was pulled out in 2002 as part of Ford's marketing strategy to separate its "import" marques from its domestic ones. During the creation of PAG, Lincoln's line-up received a complete overhaul, beginning with the 1998 redesign of the Lincoln Town Car
. The same year also saw the introduction of the Lincoln Navigator SUV
and in 2000 the Lincoln LS
, which shared its engines and platform with the Jaguar S-Type
, was introduced. All three cars were designed in Irvine, California
and were, according to many critics, heavily influenced by Jaguar
design themes. In both years 1998 and 2000 Lincoln was the best selling luxury car brand in the US. After Cadillac
surged back into the market in 2002, however, Ford pulled Lincoln out of the PAG in what is according to Jerry Flint
of Forbes Magazine an "impossible to make sense out of... strategy."
announced the purchase of the Rover brand name from BMW
. As part of Ford's initial purchase of Land Rover
in 2000, Ford had the option to veto the sale of the Rover name by BMW to any other company. BMW originally intended to sell the Rover name to Shanghai Automotive Industry Corporation, but had to wait 90 days to allow Ford time to discuss the deal. Ford decided in the end to buy the name outright. However, Ford did not plan to use the name in production, instead buying it merely to protect their use of the name Land Rover
.
Ford accepted the deal to sell Jaguar and Land Rover to the Tata Group
in March 2008 for £1.15 billion. As part of Ford's sale of Jaguar and Land Rover to Tata Motors
, the Rover brand name was included in the deal, as well as the Daimler
and Lanchester
marques.
Ford Motor Company
Ford Motor Company is an American multinational automaker based in Dearborn, Michigan, a suburb of Detroit. The automaker was founded by Henry Ford and incorporated on June 16, 1903. In addition to the Ford and Lincoln brands, Ford also owns a small stake in Mazda in Japan and Aston Martin in the UK...
which was formed in 1999 to oversee the business
Business
A business is an organization engaged in the trade of goods, services, or both to consumers. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to earn profit to increase the wealth of their owners. Businesses may also be not-for-profit...
operations of Ford's high-end automotive marques.
PAG grew to include responsibility for the Lincoln
Lincoln (automobile)
Lincoln is an American luxury vehicle brand of the Ford Motor Company. Lincoln vehicles are sold mostly in North America.-History:The company was founded in August 1915 by Henry M. Leland, one of the founders of Cadillac . During World War I, he left Cadillac which was sold to General Motors...
, Aston Martin
Aston Martin
Aston Martin Lagonda Limited is a British manufacturer of luxury sports cars, based in Gaydon, Warwickshire. The company name is derived from the name of one of the company's founders, Lionel Martin, and from the Aston Hill speed hillclimb near Aston Clinton in Buckinghamshire...
, Jaguar
Jaguar (car)
Jaguar Cars Ltd, known simply as Jaguar , is a British luxury car manufacturer, headquartered in Whitley, Coventry, England. It is part of the Jaguar Land Rover business, a subsidiary of the Indian company Tata Motors....
, Land Rover
Land Rover
Land Rover is a British car manufacturer with its headquarters in Gaydon, Warwickshire, United Kingdom which specialises in four-wheel-drive vehicles. It is owned by the Indian company Tata Motors, forming part of their Jaguar Land Rover group...
and Volvo
Volvo Cars
Volvo Car Corporation, or Volvo Personvagnar AB, is a Swedish automobile manufacturer founded in 1927, in Gothenburg, Sweden. It is owned by Zhejiang Geely Holding Group. Volvo was originally formed as a subsidiary company to the ball bearing maker SKF. When Volvo AB was introduced on the Swedish...
brands. However, Lincoln and Mercury were returned to Ford direct control in 2002. By 2004, after spending (by one estimate) $17 billion building PAG, the press was questioning the purpose of the group.
After Alan Mulally
Alan Mulally
Alan Roger Mulally is an American engineer and business executive who is currently the President and Chief Executive Officer of the Ford Motor Company...
left Boeing
Boeing
The Boeing Company is an American multinational aerospace and defense corporation, founded in 1916 by William E. Boeing in Seattle, Washington. Boeing has expanded over the years, merging with McDonnell Douglas in 1997. Boeing Corporate headquarters has been in Chicago, Illinois since 2001...
to become Ford's CEO in September 2006, the dismantling of PAG began. Aston Martin
Aston Martin
Aston Martin Lagonda Limited is a British manufacturer of luxury sports cars, based in Gaydon, Warwickshire. The company name is derived from the name of one of the company's founders, Lionel Martin, and from the Aston Hill speed hillclimb near Aston Clinton in Buckinghamshire...
was sold to a UK
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
-led group of investors headed by David Richards
David Richards (racing)
David Pender Richards CBE is the chairman of Prodrive and Aston Martin, and a former team principal of the BAR and Benetton Formula One motor racing teams. He lives with his wife, Karen, in Warwickshire and has three children....
in 2007. In September 2006, the Rover brand was secured from BMW
BMW
Bayerische Motoren Werke AG is a German automobile, motorcycle and engine manufacturing company founded in 1916. It also owns and produces the Mini marque, and is the parent company of Rolls-Royce Motor Cars. BMW produces motorcycles under BMW Motorrad and Husqvarna brands...
by PAG, to protect the Land Rover
Land Rover
Land Rover is a British car manufacturer with its headquarters in Gaydon, Warwickshire, United Kingdom which specialises in four-wheel-drive vehicles. It is owned by the Indian company Tata Motors, forming part of their Jaguar Land Rover group...
brand. In March 2008, Jaguar
Jaguar (car)
Jaguar Cars Ltd, known simply as Jaguar , is a British luxury car manufacturer, headquartered in Whitley, Coventry, England. It is part of the Jaguar Land Rover business, a subsidiary of the Indian company Tata Motors....
and Land Rover
Land Rover
Land Rover is a British car manufacturer with its headquarters in Gaydon, Warwickshire, United Kingdom which specialises in four-wheel-drive vehicles. It is owned by the Indian company Tata Motors, forming part of their Jaguar Land Rover group...
were sold to Tata Motors
Tata Motors
Tata Motors Limited is an Indian multinational automotive corporation headquartered in Mumbai, India. Part of the Tata Group, it was formerly known as TELCO...
. In 2010, Ford sold Volvo Cars
Volvo Cars
Volvo Car Corporation, or Volvo Personvagnar AB, is a Swedish automobile manufacturer founded in 1927, in Gothenburg, Sweden. It is owned by Zhejiang Geely Holding Group. Volvo was originally formed as a subsidiary company to the ball bearing maker SKF. When Volvo AB was introduced on the Swedish...
, the last PAG brand, to the parent of Chinese carmaker Geely
Geely Automobile
Zhejiang Geely Holding Group is a holding company and parent of Geely Automobile Holdings Ltd a private automobile manufacturer. Geely may often round out the top ten Chinese automakers....
for $1.8 billion.
Group structure
PAG was based in LondonLondon
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
, and its North American headquarters were located in Irvine
Irvine, California
Irvine is a suburban incorporated city in Orange County, California, United States. It is a planned city, mainly developed by the Irvine Company since the 1960s. Formally incorporated on December 28, 1971, the city has a population of 212,375 as of the 2010 census. However, the California...
, California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
. In 2001, the PAG office in the United States is the first Ford building, and the first building in Orange County
Orange County, California
Orange County is a county in the U.S. state of California. Its county seat is Santa Ana. As of the 2010 census, its population was 3,010,232, up from 2,846,293 at the 2000 census, making it the third most populous county in California, behind Los Angeles County and San Diego County...
, to qualify for Leadership in Energy and Environmental Design
Leadership in Energy and Environmental Design
Leadership in Energy and Environmental Design consists of a suite of rating systems for the design, construction and operation of high performance green buildings, homes and neighborhoods....
classification from the U.S. Green Building Council. When the headquarters first opened, some of its floors were each specifically dedicated to one of PAG's brands.
In late 2008, a deal was announced to lease the former PAG headquarters building in Irvine to the Taco Bell
Taco Bell
Taco Bell is an American chain of fast-food restaurants based in Irvine, California. A subsidiary of Yum! Brands, Inc., which serves American-adapted Mexican food. Taco Bell serves tacos, burritos, quesadillas, nachos, other specialty items, and a variety of "Value Menu" items...
restaurant chain. Although Ford planned to leave a small product development staff on the property, this was widely seen as the end of the PAG story and an ironic comment on the expensive failure of Ford's luxury-car strategy. The New York Times asked dryly, "Will they install a drive-up window?"
Management
- 1999–2002: Wolfgang ReitzleWolfgang ReitzleDr. Wolfgang Reitzle is a German businessman.After leaving his school in Ulm, Reitzle continued his education at the Technical University of Munich where he studied mechanical engineering and economics. In 1971, aged just 22, he became Munich's youngest ever "Diplom-Ingenieur" graduate.In 1976,...
- 2002–2005: Mark FieldsMark Fields (businessman)Mark Fields is Executive Vice President, Ford Motor Company; President, The Americas and an executive of the Ford Motor Company. As head of the Americas division, Fields was tapped to develop Ford's "The Way Forward" plan, an effort to repair the ailing automaker. He reports to Alan Mulally, the...
- 2005–2008: Lewis BoothLewis BoothLewis Booth is Executive Vice President and Chief Financial Officer of Ford Motor Company, a position he has held since November 1, 2008. He has responsibility for the company’s financial operations, including the Controller’s Office, Treasury and Investor Relations...
Aston Martin
Aston MartinAston Martin
Aston Martin Lagonda Limited is a British manufacturer of luxury sports cars, based in Gaydon, Warwickshire. The company name is derived from the name of one of the company's founders, Lionel Martin, and from the Aston Hill speed hillclimb near Aston Clinton in Buckinghamshire...
was a member of PAG until it was sold into private ownership on 12 March 2007 for £479 million.
Lincoln
Ford's luxury carLuxury vehicles
Luxury vehicle is a marketing term for a vehicle that provides luxury — pleasant or desirable features beyond strict necessity—at increased expense ....
division Lincoln
Lincoln (automobile)
Lincoln is an American luxury vehicle brand of the Ford Motor Company. Lincoln vehicles are sold mostly in North America.-History:The company was founded in August 1915 by Henry M. Leland, one of the founders of Cadillac . During World War I, he left Cadillac which was sold to General Motors...
was part of the Premier Auto Group as well in the late 1990s, but was pulled out in 2002 as part of Ford's marketing strategy to separate its "import" marques from its domestic ones. During the creation of PAG, Lincoln's line-up received a complete overhaul, beginning with the 1998 redesign of the Lincoln Town Car
Lincoln Town Car
The Lincoln Town Car is a full-size luxury sedan that was sold by the upscale Lincoln division of Ford Motor Company; it was produced from 1981 to the 2011 model years...
. The same year also saw the introduction of the Lincoln Navigator SUV
Lincoln Navigator
The Lincoln Navigator is a full-size luxury SUV built by the Ford Motor Company for its luxury division, Lincoln. Introduced as a 1998 model, production began May 14, 1997 with sales beginning in August. The Navigator was Lincoln's first SUV as well as its first four-wheel drive capable vehicle...
and in 2000 the Lincoln LS
Lincoln LS
The Lincoln LS is a mid-size, rear wheel drive sedan from Lincoln. For its production run from 1999 until 2006, it was based on the Ford DEW98 platform, which was shared with the Jaguar S-Type and Ford Thunderbird...
, which shared its engines and platform with the Jaguar S-Type
Jaguar S-Type
The Jaguar S-Type was a mid-size luxury/executive car that debuted at the 1998 Birmingham Motor Show and went on sale in spring 1999. The name is a revival of a previous Jaguar model, the S-Type introduced in 1963.-Overview:...
, was introduced. All three cars were designed in Irvine, California
Irvine, California
Irvine is a suburban incorporated city in Orange County, California, United States. It is a planned city, mainly developed by the Irvine Company since the 1960s. Formally incorporated on December 28, 1971, the city has a population of 212,375 as of the 2010 census. However, the California...
and were, according to many critics, heavily influenced by Jaguar
Jaguar (car)
Jaguar Cars Ltd, known simply as Jaguar , is a British luxury car manufacturer, headquartered in Whitley, Coventry, England. It is part of the Jaguar Land Rover business, a subsidiary of the Indian company Tata Motors....
design themes. In both years 1998 and 2000 Lincoln was the best selling luxury car brand in the US. After Cadillac
Cadillac
Cadillac is an American luxury vehicle marque owned by General Motors . Cadillac vehicles are sold in over 50 countries and territories, but mostly in North America. Cadillac is currently the second oldest American automobile manufacturer behind fellow GM marque Buick and is among the oldest...
surged back into the market in 2002, however, Ford pulled Lincoln out of the PAG in what is according to Jerry Flint
Jerry Flint
Jerry Flint was a senior automotive editor for Forbes Magazine, continuing as a columnist long after his official retirement in 1996....
of Forbes Magazine an "impossible to make sense out of... strategy."
Jaguar and Land Rover
On 18 September 2006, FordFord Motor Company
Ford Motor Company is an American multinational automaker based in Dearborn, Michigan, a suburb of Detroit. The automaker was founded by Henry Ford and incorporated on June 16, 1903. In addition to the Ford and Lincoln brands, Ford also owns a small stake in Mazda in Japan and Aston Martin in the UK...
announced the purchase of the Rover brand name from BMW
BMW
Bayerische Motoren Werke AG is a German automobile, motorcycle and engine manufacturing company founded in 1916. It also owns and produces the Mini marque, and is the parent company of Rolls-Royce Motor Cars. BMW produces motorcycles under BMW Motorrad and Husqvarna brands...
. As part of Ford's initial purchase of Land Rover
Land Rover
Land Rover is a British car manufacturer with its headquarters in Gaydon, Warwickshire, United Kingdom which specialises in four-wheel-drive vehicles. It is owned by the Indian company Tata Motors, forming part of their Jaguar Land Rover group...
in 2000, Ford had the option to veto the sale of the Rover name by BMW to any other company. BMW originally intended to sell the Rover name to Shanghai Automotive Industry Corporation, but had to wait 90 days to allow Ford time to discuss the deal. Ford decided in the end to buy the name outright. However, Ford did not plan to use the name in production, instead buying it merely to protect their use of the name Land Rover
Land Rover
Land Rover is a British car manufacturer with its headquarters in Gaydon, Warwickshire, United Kingdom which specialises in four-wheel-drive vehicles. It is owned by the Indian company Tata Motors, forming part of their Jaguar Land Rover group...
.
Ford accepted the deal to sell Jaguar and Land Rover to the Tata Group
Tata Group
Tata Group is an Indian multinational conglomerate company headquartered in Mumbai, Maharashtra, India. Tata Group is one of the largest companies in India by market capitalization and revenue. It has interests in communications and information technology, engineering, materials, services, energy,...
in March 2008 for £1.15 billion. As part of Ford's sale of Jaguar and Land Rover to Tata Motors
Tata Motors
Tata Motors Limited is an Indian multinational automotive corporation headquartered in Mumbai, India. Part of the Tata Group, it was formerly known as TELCO...
, the Rover brand name was included in the deal, as well as the Daimler
Daimler Motor Company
The Daimler Motor Company Limited was an independent British motor vehicle manufacturer founded in London by H J Lawson in 1896, which set up its manufacturing base in Coventry. The right to the use of the name Daimler had been purchased simultaneously from Gottlieb Daimler and Daimler Motoren...
and Lanchester
Lanchester Motor Company
The Lanchester Motor Company Limited was a car manufacturer based until 1930 at Armourer Mills, Montgomery Street, Sparkbrook, Birmingham, England. It operated from 1895 to 1955....
marques.