David Thursfield, head of Ford Europe is to assume control of Ford's Premier Automotive Group (PAG), the Ford Motor Company has announced. Thursfield is a noted cost-cutter and, along with Nick Scheele – whose PAG function he now takes - is credited with successfully turning round Ford's European operations.

PAG is expected to contribute a third of Ford's profits by mid-decade, according to Ford chairman and chief executive Bill Ford Jnr.

But analysts have already pointed to the ambitiousness of the PAG plans: the group suffers high operating costs and sales volumes will have to be substantially ratcheted upwards if the group is to deliver the goods.