Premier Automotive Group
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The Premier Automotive Group (PAG) was an organizational division within the
Ford Motor Company Ford Motor Company (commonly known as Ford) is an American multinational automobile manufacturer headquartered in Dearborn, Michigan, United States. It was founded by Henry Ford and incorporated on June 16, 1903. The company sells automobi ...
formed in 1999 to oversee the
business Business is the practice of making one's living or making money by producing or Trade, buying and selling Product (business), products (such as goods and Service (economics), services). It is also "any activity or enterprise entered into for pr ...
operations of Ford's high-end automotive
marque A brand is a name, term, design, symbol or any other feature that distinguishes one seller's good or service from those of other sellers. Brands are used in business, marketing, and advertising for recognition and, importantly, to create an ...
s. The PAG was gradually dismantled from 2006 to 2011 with the divestiture of its constituent brands.


History

The Premier Automotive Group was formed in 1999 under then-CEO
Jacques Nasser Jacques Albert Nasser (Arabic: جاك نصر; born 12 December 1947) is a Lebanese Australian American business executive and philanthropist. Known for a management career at Ford Motor Company spanning several decades and continents, from 199 ...
. It grew to include responsibility for the
Lincoln Lincoln most commonly refers to: * Abraham Lincoln (1809–1865), the sixteenth president of the United States * Lincoln, England, cathedral city and county town of Lincolnshire, England * Lincoln, Nebraska, the capital of Nebraska, U.S. * Lincol ...
,
Mercury Mercury commonly refers to: * Mercury (planet), the nearest planet to the Sun * Mercury (element), a metallic chemical element with the symbol Hg * Mercury (mythology), a Roman god Mercury or The Mercury may also refer to: Companies * Merc ...
,
Aston Martin Aston Martin Lagonda Global Holdings PLC is an English manufacturer of luxury sports cars and grand tourers. Its predecessor was founded in 1913 by Lionel Martin and Robert Bamford. Steered from 1947 by David Brown, it became associated with ...
,
Jaguar The jaguar (''Panthera onca'') is a large cat species and the only living member of the genus '' Panthera'' native to the Americas. With a body length of up to and a weight of up to , it is the largest cat species in the Americas and the th ...
,
Land Rover Land Rover is a British brand of predominantly four-wheel drive, off-road capable vehicles, owned by multinational car manufacturer Jaguar Land Rover (JLR), since 2008 a subsidiary of India's Tata Motors. JLR currently builds Land Rovers ...
and
Volvo The Volvo Group ( sv, Volvokoncernen; legally Aktiebolaget Volvo, shortened to AB Volvo, stylized as VOLVO) is a Swedish multinational manufacturing corporation headquartered in Gothenburg. While its core activity is the production, distributio ...
brands.
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estimated that, by 2004, Ford had spent $17 billion building on acquisitions to form PAG. Lincoln and Mercury were returned to Ford direct control in 2002. Lincoln's headquarters had been merged into PAG's North American office, where it was run by a German executive who was based in London, England. The four other marques in the PAG, Aston Martin, Jaguar, Land Rover and Volvo, were essentially completely different car companies with their own unique markets and dealer networks, so there were few synergies that could be achieved by combining them under one division. Ford attempted to push these brands to share parts and engineering in order to cut costs. This made some vehicles too similar to mass-market Fords, notably the
Jaguar X-Type The Jaguar X-Type is a front-engine, all-wheel/front-wheel drive compact executive car manufactured and marketed by Jaguar Cars from 2001 to 2009 under the internal designation ''X400'', for a single generation, in sedan/saloon and wagon/estate ...
which was a capable compact executive car yet its reputation suffered mainly because it shared a platform with the
Ford Mondeo The Ford Mondeo is a large family car manufactured by Ford since 1993. The first Ford model declared as a "world car", the Mondeo was intended to consolidate several Ford model lines worldwide (the European Sierra, the Telstar in Asia and Austra ...
. While Volvo had been one of the more successful entry-level luxury brands in the United States with the
Volvo 740 The Volvo 700 series is a range of executive cars produced by the Swedish manufacturer Volvo Cars from 1982 to 1992. The 700 series was introduced in 1982 with the luxurious 760, followed two years later by the lower priced 740 which capitalize ...
/
940 Year 940 ( CMXL) was a leap year starting on Wednesday (link will display the full calendar) of the Julian calendar. Events By place Europe * The tribe of the Polans begins the construction of the following fortified settlements (Gi ...
and S70 when it was independent, it lost market share to the German luxury marques like BMW and Mercedes-Benz who had expanded their entry-level offerings extensively. When
Alan Mulally Alan Roger Mulally (born August 4, 1945) is an American aerospace engineer and manufacturing executive. He is the former President and Chief Executive Officer of the Ford Motor Company. He retired from Ford Motor Company on July 1, 2014. Ford ...
became Ford's president and CEO in September 2006, the Premier Automotive Group began to be dismantled. Ford sold 92% of
Aston Martin Aston Martin Lagonda Global Holdings PLC is an English manufacturer of luxury sports cars and grand tourers. Its predecessor was founded in 1913 by Lionel Martin and Robert Bamford. Steered from 1947 by David Brown, it became associated with ...
, to a consortium of investors, headed by David Richards in 2007. In September 2006, the rights to use the defunct Rover brand were secured from BMW by Ford to protect the
Land Rover Land Rover is a British brand of predominantly four-wheel drive, off-road capable vehicles, owned by multinational car manufacturer Jaguar Land Rover (JLR), since 2008 a subsidiary of India's Tata Motors. JLR currently builds Land Rovers ...
brand. In March 2008, Ford sold
Jaguar The jaguar (''Panthera onca'') is a large cat species and the only living member of the genus '' Panthera'' native to the Americas. With a body length of up to and a weight of up to , it is the largest cat species in the Americas and the th ...
and
Land Rover Land Rover is a British brand of predominantly four-wheel drive, off-road capable vehicles, owned by multinational car manufacturer Jaguar Land Rover (JLR), since 2008 a subsidiary of India's Tata Motors. JLR currently builds Land Rovers ...
to Indian carmaker
Tata Motors Tata Motors Limited is an Indian multinational automotive manufacturing company, headquartered in Mumbai, India, which is part of the Tata Group. The company produces passenger cars, trucks, vans, coaches, buses. Formerly known as Tata En ...
. In 2010, Ford sold the Swedish brand
Volvo Cars Volvo Cars ( sv, Volvo personvagnar, styled VOLVO in the company's logo) is a Swedish multinational manufacturer of luxury vehicles headquartered in Torslanda, Gothenburg. The company manufactures SUVs, station wagons, and sedans. The company's ...
, the last of the PAG, to the parent of Chinese carmaker
Geely Zhejiang Geely Holding Group Co., Ltd (ZGH), commonly known as Geely (吉利 "auspicious"), is a Chinese multinational automotive company headquartered in Hangzhou, Zhejiang. The company is privately held by Chinese billionaire entrepreneu ...
for $1.8 billion.


Management

* 1999–2002:
Wolfgang Reitzle Hans Wolfgang Reitzle (born 7 March 1949 in Neu-Ulm) is a German business executive. Early life and education After leaving his school in Ulm, Reitzle continued his education at the Technical University of Munich where he studied mechanical ...
* 2002–2005: Mark Fields * 2005–2008: Lewis Booth


Headquarters

The Premier Automotive Group headquarters were located at 1 Premier Place in
Irvine Irvine may refer to: Places On Earth Antarctica *Irvine Glacier *Mount Irvine (Antarctica) Australia *Irvine Island *Mount Irvine, New South Wales Canada *Irvine, Alberta * Irvine Inlet, Nunavut United Kingdom *Irvine, North Ayrshire, Scotla ...
,
California California is a U.S. state, state in the Western United States, located along the West Coast of the United States, Pacific Coast. With nearly 39.2million residents across a total area of approximately , it is the List of states and territori ...
. It is next door to the
Mazda North American Operations Mazda North American Operations (MNAO), which includes Mazda Motor of America, Inc., is Mazda Motor Corporation's North American arm, and constitutes the largest component of that company outside Japan. The company has its headquarters in Irvine ...
office, and is now the main office for
Taco Bell Taco Bell is an American-based chain of fast food restaurants founded in 1962 by Glen Bell (1923–2010) in Downey, California. Taco Bell is a subsidiary of Yum! Brands, Inc. The restaurants serve a variety of Mexican-inspired foods, includi ...
. The Premier Automotive Group office in the United States was completed in 2001 at a cost of $68 million. It was the first Ford building and the first building in
Orange County Orange County most commonly refers to: *Orange County, California, part of the Los Angeles metropolitan area Orange County may also refer to: U.S. counties *Orange County, Florida, containing Orlando *Orange County, Indiana *Orange County, New ...
to qualify for
Leadership in Energy and Environmental Design Leadership in Energy and Environmental Design (LEED) is a green building certification program used worldwide. Developed by the non-profit U.S. Green Building Council (USGBC), it includes a set of rating systems for the design, construction ...
classification from the
U.S. Green Building Council The U.S. Green Building Council (USGBC), co-founded by Mike Italiano, David Gottfried and Rick Fedrizzi in 1993, is a private 501(c)3, membership-based non-profit organization that promotes sustainability in building design, construction, and op ...
."Ford Opens PAG Headquarters In California" from autointell.com
/ref> When the headquarters first opened, some of its floors were each specifically dedicated to one of PAG's brands. The complex also included a separate product development centre. In late 2008, a deal was announced to lease the former PAG headquarters building in Irvine to the
Taco Bell Taco Bell is an American-based chain of fast food restaurants founded in 1962 by Glen Bell (1923–2010) in Downey, California. Taco Bell is a subsidiary of Yum! Brands, Inc. The restaurants serve a variety of Mexican-inspired foods, includi ...
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 ''The New York Times'' (''the Times'', ''NYT'', or the Gray Lady) is a daily newspaper based in New York City with a worldwide readership reported in 2020 to comprise a declining 840,000 paid print subscribers, and a growing 6 million paid d ...
'' asked dryly, "Will they install a drive-up window?"


Members


Aston Martin

Aston Martin Aston Martin Lagonda Global Holdings PLC is an English manufacturer of luxury sports cars and grand tourers. Its predecessor was founded in 1913 by Lionel Martin and Robert Bamford. Steered from 1947 by David Brown, it became associated with ...
was a member of PAG. Ford acquired an interest in Aston Martin in 1987 and had full control from 1991. It was sold on 12 March 2007 for £479 million. However, Ford retained a £40 million (8%) stake in Aston Martin.


Lincoln

Ford's
luxury car A luxury car is a car that provides increased levels of comfort, equipment, amenities, quality, performance, and associated status compared to moderately priced cars. The term is subjective and reflects both the qualities of the car and the ...
division,
Lincoln Lincoln most commonly refers to: * Abraham Lincoln (1809–1865), the sixteenth president of the United States * Lincoln, England, cathedral city and county town of Lincolnshire, England * Lincoln, Nebraska, the capital of Nebraska, U.S. * Lincol ...
, was part of the Premier Auto Group 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 Lincoln Town Car is a model line of full-size luxury sedans that was marketed by the Lincoln division of the American automaker Ford Motor Company. Deriving its name from a limousine body style, Lincoln marketed the Town Car from 1981 to ...
. The same year also saw the introduction of the Lincoln Navigator SUV and in 2000 the
Lincoln LS The Lincoln LS is a four-door, five-passenger luxury sedan manufactured and marketed by Ford's Lincoln division over a single generation from 1999–2006. Introduced in June 1999 for model-year 2000, the LS featured rear-wheel drive and near ...
, which shared its engines and platform with the Jaguar S-Type, was introduced. All three cars were designed in
Irvine, California Irvine () is a Planned community, master-planned city in South Orange County, California, United States, in the Los Angeles metropolitan area. The Irvine Company started developing the area in the 1960s and the city was formally incorporated on ...
and were, according to many critics, heavily influenced by
Jaguar The jaguar (''Panthera onca'') is a large cat species and the only living member of the genus '' Panthera'' native to the Americas. With a body length of up to and a weight of up to , it is the largest cat species in the Americas and the th ...
design themes. In both years 1998 and 2000 Lincoln was the best-selling luxury car brand in the US. After
Cadillac The Cadillac Motor Car Division () is a division of the American automobile manufacturer General Motors (GM) that designs and builds luxury vehicles. Its major markets are the United States, Canada, and China. Cadillac models are distributed i ...
surged back into the market in 2002, however, Ford pulled Lincoln out of the PAG in what is according to Jerry Flint of ''
Forbes ''Forbes'' () is an American business magazine owned by Integrated Whale Media Investments and the Forbes family. Published eight times a year, it features articles on finance, industry, investing, and marketing topics. ''Forbes'' also re ...
'' magazine an "impossible to make sense out of... strategy."


Jaguar

Ford made an offer for Jaguar stock in 1989. It was placed in Premier Automotive Group when it was formed. After acquiring Land Rover, Ford market Jaguar and Land Rover together and sold them off together in 2008.


Land Rover

Ford acquired
Land Rover Land Rover is a British brand of predominantly four-wheel drive, off-road capable vehicles, owned by multinational car manufacturer Jaguar Land Rover (JLR), since 2008 a subsidiary of India's Tata Motors. JLR currently builds Land Rovers ...
from BMW in 2000 after the break-up of the former
Rover Group The Rover Group plc was the British vehicle manufacturing conglomerate known as "BL plc" until 1986 (formerly British Leyland), which had been a state-owned company since 1975. It initially included the Austin Rover Group car business (comprisi ...
. On 18 September 2006,
Ford Ford commonly refers to: * Ford Motor Company, an automobile manufacturer founded by Henry Ford * Ford (crossing), a shallow crossing on a river Ford may also refer to: Ford Motor Company * Henry Ford, founder of the Ford Motor Company * Ford F ...
announced the purchase of the rights to use the
Rover Rover may refer to: People * Constance Rover (1910–2005), English historian * Jolanda de Rover (born 1963), Dutch swimmer * Rover Thomas (c. 1920–1998), Indigenous Australian artist Places * Rover, Arkansas, US * Rover, Missouri, US * ...
name. BMW had licensed the Rover name to
MG Rover Group MG Rover Group was the last domestically owned mass-production car manufacturer in the British motor industry. The company was formed when BMW sold the car-making and engine manufacturing assets of the original Rover Group to the Phoenix Consor ...
from 2000 until 2005, when MG Rover collapsed after a failed merger with SAIC. As part of Ford's initial purchase of Land Rover, Ford had the first option to purchase the Rover name if MG Rover Group ceased trading. Ford did not plan to use the name in production, instead buying it merely to protect their use of the name Land Rover. Ford sold Jaguar and Land Rover to
Tata Motors Tata Motors Limited is an Indian multinational automotive manufacturing company, headquartered in Mumbai, India, which is part of the Tata Group. The company produces passenger cars, trucks, vans, coaches, buses. Formerly known as Tata En ...
in March 2008 for £1.15 billion. As part of Ford's sale of Jaguar and Land Rover to Tata Motors, the defunct Rover brand name was included, as well as the Daimler and Lanchester marques.


Volvo Cars

Ford acquired
Volvo The Volvo Group ( sv, Volvokoncernen; legally Aktiebolaget Volvo, shortened to AB Volvo, stylized as VOLVO) is a Swedish multinational manufacturing corporation headquartered in Gothenburg. While its core activity is the production, distributio ...
's automotive division in 1999 while Volvo's commercial vehicles division became a separate company. Both share the use of symbols and trademarks.
Geely Zhejiang Geely Holding Group Co., Ltd (ZGH), commonly known as Geely (吉利 "auspicious"), is a Chinese multinational automotive company headquartered in Hangzhou, Zhejiang. The company is privately held by Chinese billionaire entrepreneu ...
was reported to have approached Ford in mid-2008 about a possible takeover of Volvo Cars. On 28 October 2009, Geely was named as the preferred buyer of Volvo Cars by Ford. On 23 December 2009, Ford confirmed that all substantive commercial terms for the sale to Geely had been settled. Geely signed a deal with Ford to acquire Volvo Cars for $1.8 billion on 28 March 2010 and closed the deal on 2 August 2010.


References

{{Ford Motor Company Ford Motor Company Luxury motor vehicle manufacturers Vehicle manufacturing companies established in 1999 Vehicle manufacturing companies disestablished in 2010 1999 establishments in Michigan 2010 disestablishments in Michigan American companies established in 1999 American companies disestablished in 2010 Defunct manufacturing companies based in Michigan