Unlike its American counterpart, Ford's European arm is basking in the glow of black ink at its bottom line. Increased sales, better profitability and cut costs are at the core of the $997 million profit - almost double its $455 million profit in 2006. The unfortunate news: over half of that profit came from soon-to-be-sold Jaguar and Land Rover.

The bulk of the gain was made in the first three quarters of 2007, as fourth quarter profits were up just $5 million over 2006 numbers of $218 million. Revenue was up $1.6 billion year-on-year to $10.4 billion in 2007.

Ford's Premier Automotive Group (PAG) - composed of Jaguar, Land Rover and Volvo - was the real winner for Ford of Europe, netting a pretax profit of $504 million, up nearly 50% from $344 million in 2006. Reasons for the upswing: cutting costs, and higher profitability on Land Rover's models thanks to higher net pricing, which offset the damage done by the slumping American dollar and otherwise sluggish line up.

With the impending sale of Jaguar and Land Rover to India's Tata Motors, Ford of Europe will be sending a large share of its profits off for good. Despite a sharp downturn in the fourth quarter, the PAG managed $59 million in profit, although that was a shadow of the $174 million brought in over the same period in 2006. Volvo, the one member of the PAG staying on at Ford, just broke even for the fourth quarter.