Ford Market News

[kscarbel2]

Harsh Reality Forces Automaker Rivals Like VW, Ford to partner

Bloomberg  /  July 15, 2019

To understand how much strain the world’s leading auto manufacturers face as they make the daunting leap to the electric and autonomous vehicle age, just listen to their leaders.

“The business part of you wouldn’t do these things,” Ford CEO Jim Hackett said on Friday. That startling admission came after he had just inked a massive deal with German arch-rival Volkswagen to join forces to develop electric and self-driving cars.

The auto industry is being disrupted by increasingly stringent environment regulations mandating electric cars, while breakthroughs in driverless technology have the potential to upend the way humanity moves. That’s forcing carmakers to balance rivalry with survival.

“The leadership part of you requires that you do it,” Hackett said of partnering with the competition. “You have to invest in things that are uncertain, before they are ready, because when they are ready you can’t catch up.”

The collaboration commits Ford to build battery cars on a VW platform, while the German automaker invests $2.6 billion in the American company’s autonomous-affiliate Argo AI. That gives the startup an eye-popping valuation of $7.25 billion -- and the commercial launch of its robot rides is still two years off.

“This game will change, so economies of scale will be important,” VW CEO Herbert Diess said at a press conference Friday to announce the expanded tie-up with Ford. “Sharing tech and using standards will be important to succeed in the future.”

Ford’s one-upmanship with VW goes back decades -- from the German manufacturer’s founding in the run-up to World War II, to America’s hippie-era love affair with the Beetle and fuel-sipping Rabbit model during the oil shock era, and now trade wars that threaten to further politicize commercial battles.

But the shift to battery-powered cars and autonomous driving will require different tools than the ones carmakers have spent the better part of a century honing. It’s no longer just about building ever-more powerful engines and sculpting exterior sheet steel.

The Ford-VW deal is a bet on a coming age of electric-powered robo-cars that will take fresh approaches to competition, marketing and planning. And it will take money -- gobs and gobs of it.

While the deal will result in a new electric passenger vehicle from Ford in 2023 and Argo joining with VW brand Audi’s autonomous operation to deploy self-driving test vehicles in Europe next year, it’s really about ensuring each company’s survival well into the future.

“They’re looking at the longer term,” said Stephanie Brinley, auto analyst with IHS Markit. “These moves aren’t about 2025, these moves are about these companies trying to make sure they’re fully ready and capable for 2030 and 2040 and taking the steps you need to get that far down the road.”

Electrification will cost carmakers $225 billion through 2023, roughly equal to the industry’s annual total for capital expenses, research and development spending. Self-driving cars will soak up an additional $85 billion through 2025.

The partnership between Ford and VW shows how some companies are tackling the task with more urgency than others.

So far buyers aren’t exactly swarming showrooms to pick up electric cars. High prices, patchy charging infrastructure, and, with the exception of Tesla’s sleek models, unorthodox styling have made them a tough sell.

Likewise, the payoff in self-driving technology is years away and drivers remain resistant to turning over the wheel to a robot. But consumer habits are changing, as people rely less on ownership and turn to sharing apps, e-bikes and scooters for more of their transportation needs.

Cash-rich giants like Alphabet, Amazon and Apple have turned industries from phones to cameras to television upside down, and auto executives fear they could be next as cars become increasingly high-tech and software-dependent.

“The OEMs have to invest through this valley to get to the other side,” Mark Wakefield, a managing director with AlixPartners, said last month. “But investing -- or partnering to invest -- to get through that is a way to span the generational path.”

Jim Farley, Ford’s president of new businesses, technology and strategy, said the partnership with VW isn’t only about cutting costs. This collaboration could help accelerate each automaker’s trip through the profit desert Wakefield warns of.

“This is not only a capital efficiency play,” Farley said in an interview. “It’s absolutely leverage on our margins, especially in a place like Europe.”

Other automakers are also reinventing themselves. General Motors’s acquisition of the self-driving startup Cruise in 2016 for $581 million has turned out to be prescient. The automaker has since attracted three major outside investments totaling $6.15 billion. As of May, GM Cruise was valued at $19 billion when T. Rowe Price Associates Inc. joined earlier backers, Honda and SoftBank Vision Fund.

VW’s backing of Argo AI -- $1 billion in cash and another $1.6 billion for the value of its Autonomous Intelligent Driving unit that it’s contributing -- should put that self-driving startup on a similar path to attracting outside investment.

“Now that a valuation’s been set and with the potential of this relationship, it does set us up well for that,” said Bryan Salesky, Argo’s co-founder and CEO, a veteran of Google’s self-driving car program. “I’m sure that’s in the cards at some point in the future.”

Meanwhile, Fiat Chrysler Automobiles tried -- though it failed -- to build scale and gain access to electric-car technology through a merger with Renault, to make up for its dearth of battery-powered cars. Chairman John Elkann this week told Italian newspaper La Stampa that the attempt was “an act of courage” and would have allowed it to make better use of capital and more cars.

On the other side of the spectrum sits the Renault-Nissan-Mitsubishi Alliance, where tensions threaten to rip apart two decades of cooperation just at the moment it’s needed most.

Lack of a decisive strategy on electric cars this month also cost BMW CEO Harald Krueger a second term as leader, after he couldn’t unite a bickering board behind him. And Daimler’s new CEO Ola Kaellenius will have to dig deep on leadership skills to steer the Mercedes-Benz maker that’s endured four profit warnings in just over a year. Those two German automakers have partnered on a self-driving project they vowed earlier this month would see robot-piloted cars on highways by 2024.

Building a software stack for autonomous vehicles may cost a few billions of dollars, while maintaining it will cost billions more each year, VW’s Diess said in the joint interview with Ford’s CEO. “The times we are facing, we will get into resource problems” without the help of partnerships, he said. “Because it gets really, really expensive.”

[kscarbel2]

Car & Driver  /  July 15, 2019

Ford will offer a pickup version of the upcoming Bronco to compete with the Jeep Gladiator.

This is amusing given the Bronco SUV also will be based on the Ranger, meaning the Bronco pickup would be a pickup based on an SUV that is based on an identically sized pickup (the Ranger).

[kscarbel2]

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[kscarbel2]

 

[TS7]

Kscarbel could that be a Bronco two door short box pickup? They might be on to something, just like the first Bronco.

[kscarbel2]

Ford to add 1,200 jobs, shift in South Africa

Reuters  /  July 17, 2019

JOHANNESBURG -- The South African unit of Ford Motor Co. said Wednesday it would hire an additional 1,200 workers at one of its assembly plants, an increase of more than 25 percent, to add an extra shift and boost production.

The additional shift, which will increase output to 720 vehicles per day, is the result of a 3 billion rand ($215 million) investment in South Africa that was announced in 2017, aimed at increasing annual production to 168,000 units. 

Ford currently employs around 4,300 in South Africa at the plant in the Silverton suburb of Pretoria, which will add the extra shift, and at another site in the coastal city of Port Elizabeth. 

"The third shift will allow us to ramp up our production from the current 506 vehicles assembled per day to a peak of 720 units to satisfy the strong demand from customers in South Africa, as well as for our crucial exports to 148 markets around the world," said Ockert Berry, vice president of operations for Ford Middle East and Africa. 

Ford joins a number of other global automakers in ramping up production on the continent, where growth is expected while trade tensions threaten manufacturing operations elsewhere.

The South African arm Nissan Motor Co. also announced a similarly sized investment this year, increasing output at its local plant by 30,000 units, while BMW  production chief Oliver Zipse said earlier this month that it had moved some production from the U.K. as a result of Brexit, and that British plants no longer built South African components.

Around a third of Ford's locally produced vehicles are sold in South Africa and other sub-Saharan African countries, with the rest exported.

The additional shift will start in August and will be focused on the new Ranger, Ranger Raptor and Everest models. The locally-built Ranger is ranked as the top-selling pickup in Europe and leads light commercial vehicle exports.

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[Red Horse]

1 hour ago, kscarbel2 said:

Ford to add 1,200 jobs, shift in South Africa

Reuters  /  July 17, 2019

JOHANNESBURG -- The South African unit of Ford Motor Co. said Wednesday it would hire an additional 1,200 workers at one of its assembly plants, an increase of more than 25 percent, to add an extra shift and boost production.

The additional shift, which will increase output to 720 vehicles per day, is the result of a 3 billion rand ($215 million) investment in South Africa that was announced in 2017, aimed at increasing annual production to 168,000 units. 

Ford currently employs around 4,300 in South Africa at the plant in the Silverton suburb of Pretoria, which will add the extra shift, and at another site in the coastal city of Port Elizabeth. 

"The third shift will allow us to ramp up our production from the current 506 vehicles assembled per day to a peak of 720 units to satisfy the strong demand from customers in South Africa, as well as for our crucial exports to 148 markets around the world," said Ockert Berry, vice president of operations for Ford Middle East and Africa. 

Ford joins a number of other global automakers in ramping up production on the continent, where growth is expected while trade tensions threaten manufacturing operations elsewhere.

The South African arm Nissan Motor Co. also announced a similarly sized investment this year, increasing output at its local plant by 30,000 units, while BMW  production chief Oliver Zipse said earlier this month that it had moved some production from the U.K. as a result of Brexit, and that British plants no longer built South African components.

Around a third of Ford's locally produced vehicles are sold in South Africa and other sub-Saharan African countries, with the rest exported.

The additional shift will start in August and will be focused on the new Ranger, Ranger Raptor and Everest models. The locally-built Ranger is ranked as the top-selling pickup in Europe and leads light commercial vehicle exports.

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Everest-too bad we won't see it here.  Then again Ichecked out a 2020 Explorer yesterday.  VERY nice-starting with the RWD bias and north/south engine layout.  

[Maxidyne]

Regardless of which way the engine points and which wheels get driven first, the Michigan State Police tests gave the new Explorer very high marks as it outperformed a lot of sedans. That may bode well for the next generation Mustang which will be built on the same platform as the Explorer, though it's going to be an even more obese Mustang.

[kscarbel2]

Ford tells U.S. dealers to repair small-car transmissions for free

Michael Martinez, Automotive News  /  July 18, 2019

Ford Motor Co. has told its U.S. dealers to give free repairs to any Focus and Fiesta owners who complain about problems with the cars' PowerShift dual-clutch transmission, according to a memo obtained by Automotive News.

The offer, made after a Detroit newspaper published a lengthy report that said Ford knowingly launched the cars with faulty transmissions, lasts until Friday but could be extended.

In the July 12 memo, Ford says dealerships should "arrange to diagnose the vehicle and repair as necessary." The fixes can be applied to 2011-17 models, many of which are out of warranty. Previous class-action lawsuits have covered 2011-16 models with transmissions that customers complained would shudder, jerk and hesitate.

Dealers were told to expect another update by Friday.

The memo, first reported by the Detroit Free Press, followed a July 11 report by the newspaper that said Ford knew about the transmission defects yet sold them anyway. The automaker responded Wednesday, saying the report made "conclusions that are not based in fact."

Automotive News reported this month that former Ford CEO Mark Fields has been called to testify in ongoing litigation surrounding the troublesome gearboxes, which have haunted the automaker for years.

Ford reached a settlement in 2017 in a class-action lawsuit covering 1.9 million owners, but the deal is being challenged in California federal court on the grounds that not enough owners would be compensated. A separate mass-tort case involving thousands of customers is pending in Michigan.

[kscarbel2]

Ford's sales of medium trucks surge after production relocation to U.S.

Michael Martinez, Automotive News  /  July 22, 2019

DETROIT — A 2015 move by Ford to shift production of its biggest trucks to Ohio from Mexico and stop buying their powertrains from outside suppliers has opened a new profit pipeline for hundreds of dealers and helped sales reach their highest level in more than 20 years.

Combined sales of the F-650 and F-750 rose 83 percent in the first half of the year, according to Ford. The company said it had gained nearly 5 percentage points of share through April in the Class 6 and 7 chassis- cab segment. With almost 20 percent of the Class 6 and 7 chassis-cab market, the automaker now trails only truck manufacturers International and Freightliner.

The medium-duty trucks, commonly used by construction and utility companies, make the F-150 and even some Super Duty models look puny by comparison. But the number of Ford dealerships that have made room on their lots to sell the high-margin behemoths has risen 25 percent this year. About 500 dealers now service them, up from roughly 100 in 2015.

"It's been a big help to our bottom line," said Jeff McKee, general sales manager of Friendly Ford in Geneva, N.Y.

The store started selling and servicing the medium trucks last year after a facilities upgrade. He said it was a "natural progression" from selling Super Duty pickups and wishes the dealership had signed on sooner.

Sales of the trucks have been supplementing the higher-volume, more consumer-oriented end of the F-series lineup, becoming a vital growth area for dealers in a post-peak market as sales of personal vehicles slow. Ford, which has dominated the U.S. commercial vehicle market since the Reagan administration, achieved its best second-quarter medium-duty truck sales since 1997.

"It's such a positive story in terms of volume and revenue," says Kevin Koester, Ford's commercial truck brand manager. "The trucks that are coming to take care of things and keep society running are our bread and butter. We have to be invested in these vehicles."

Ford, which plans to freshen its medium trucks for the 2021 model year, credits the 2015 production shift for their recent success. Years before President Donald Trump began pushing for more U.S. manufacturing, Ford moved assembly of the F-650 and F-750 from Mexico to Avon Lake, Ohio.

‘Big bright spot'

It also replaced their Cummins engine and Allison transmissions with Ford-built powertrains. Aside from earning Ford some made-in-America brownie points with the UAW and politicians, the shorter transportation times from Ohio made it easier for retailers to stock the vehicles.

"In the past, you needed special certification to work on them," Koester said. "By bringing that all in-house, it opened our doors to a lot of dealers. For us, that benefit has been very clear and very positive."

Koester said the growing network of dealerships selling and servicing the F-650 and F-750 stretches across the U.S. It includes Galpin Ford in North Hills, Calif.

Galpin Ford last year hired a dedicated commercial fleet director to oversee its commercial business and plans to open a standalone facility to sell and service such vehicles in 2020.

Its investment already is paying off. Galpin sold nine medium trucks in all of last year. In the first half of 2019, it has sold 18.

"It's been a big bright spot," says Sean Butts, Galpin's commercial fleet director.

Butts said Galpin makes, on average, a $4,000 to $5,000 profit on each truck — six to eight times the contribution of a base model Fusion or EcoSport.

The dealership has tried to anticipate its customers' needs and has emphasized stocking ready-to-go studio trucks, used on Hollywood movie sets. Customers can buy the trucks, new or used, or rent them as needed. The trucks are built on F-650 chassis and outfitted with box bodies, lifts, electrical equipment and other items. They cost about $130,000 fully outfitted.

Personalized call center

Butts also has put dump trucks and studio trucks on the dealership's lot to help draw eyeballs. At least three buyers have said they came in because of those displays, he said.

"It's about listening to customers," Butts said. "We're competing with Freightliner and some other makes, but frankly, the customers in the L.A. market have been gravitating to F-650."

Ford has tried to make selling and servicing the vehicles as painless as possible.

Because dealerships no longer need additional certification to work on the powertrains, they can order parts through the standard Ford catalog.

There's also a personalized call center to help salespeople configure a truck to meet a customer's needs.

Ford offers dealerships access to trained service specialists who can answer questions and ensure their service centers have the necessary tools to work on the trucks. The automaker said not much is needed except special lifts that can handle the vehicles' weight.

Butts said medium-truck sales can trickle down through the rest of the showroom.

"If an owner-operator really likes it, it's going to steer him and his family to buying some personal vehicles as well," he said. "It's a big staple for us."

 

[kscarbel2]

Ford investing $50 million in Chicago to build hybrids

Michael Martinez, Automotive News  /  July 22, 2019

Ford is investing $50 million and converting 450 temporary union workers to full-time at its Chicago Assembly Plant as it converts a nearby modification center to handle final assembly of the electrified versions of its Explorer and Aviator crossovers.

The move, which takes effect in the fourth quarter, allows Ford to free the main line at Chicago Assembly for gasoline versions of both vehicles. The 200,000-square-foot modification center, about a mile from Chicago Assembly, previously handled the automaker's Police Interceptors. That work will move to another building.

The temporary workers being converted to full-time will come from the Chicago Assembly Plant and the Chicago Stamping Plant, and Ford plans to hire more workers to replace them.

Joe Hinrichs, Ford's president of automotive, told Automotive News Monday the move will allow the automaker to make up some production lost to the new models' launch curve and could lead to increased production in 2020.

The announcement comes a week after handshakes with the UAW to open what's expected to be tense negotiations over jobs, investment and wages. Ford has surpassed the $900 million it agreed to invest in Chicago Assembly as part of its 2015 contract.

One particular area of concern: use of temporary workers. The union wants more guarantees that those workers can reach full-time status.

"When we work together we can find creative solutions," Hinrichs said. "And this is a really creative solution."

Ford got the idea, Hinrichs said, after building some preproduction models of the Explorer and Aviator at the center.

Bodies will be shipped from the main assembly plant to the center, where they will go through final assembly. The products will then be shipped back to the assembly plant's customer acceptance line for a final check.

The Explorer and Aviator share a new rear-wheel-drive platform. The Explorer will come with a hybrid option while the Aviator will get a plug-in hybrid model, called the Aviator Grand Touring.

[TS7]

Ford has 500 dealers selling the F-650 up from 100 in 2015, Ford is doing something right. 500 dealers selling medium-duty trucks is why sales are up. They are going to want more and better trucks to sell. In 1997 Ford had the Cargo, some L- series, maybe B-series and larger F-series lineup to sell in medium-duty. Avon Lake built Cargo and bigger F medium-duty cab could make Ford the leader. I wonder what Ford is thinking? 

[kscarbel2]

If Ford offered the Allison and Cummins ISB once more, F-650 and F-750 sales would double as large fleets and municipalities once more became customers.

Bob, what is Avon Lake's medium-duty production capacity versus current production volume?

[Maxidyne]

Ford may have 500 dealers selling the big Fs, but after Ford has been out of the big truck business for over 2 decades, how many can handle air brakes, etc.?

[RoadwayR]

I don't know, I think Ford is doing as well as they want to with the Ford powertrain.  The 650 and 750 sell on price, adding a Cummins/Allison drivetrain might increase the price of the trucks considerably.  If the Ford was within a few dollars of a Freightliner M2 or a International MV, the Ford with it's old pickup truck cab and car dealer service network might be a tough sell against 'real' medium duty trucks.  But, as it is, Ford can undercut their competitors and distribute the truck through their existing dealer network due to in large part to the 650/750 drivetrain.  And, they have their own gasoline engine which gives them a unique product in class 6 and 7.  Ford is in a great position right now, but Chevy is looming large in their rearview mirror.  GM is going with the same philosophy with their new Silverado medium duty trucks, but leveraged  their development and manufacturing with Navistar.  More joint venture trucks are reported to be on the way and on top of that they have a great LCF line.  At last count Chevy had better than 400 medium duty dealers.  If I were Ford I would be more concerned with Chevy right now than International or Freightliner. 

[TS7]

I would guess every Ford dealer can and wants to sell all Ford trucks up to F-550. 500 Ford dealers can sell F-650 and F-750, I take that to mean they can do air brakes. 400 more dealers for F-650-750 in 4 years is a lot, Ford sees Chevy in the rear view mirror and put the foot to the floor. If I was Navistar I would worry about Ford. Ford put money in to the F-Max in Europe, why not a bigger better F- Series here? They seem to have the dealers that want to sell them. I would bet that the larger and older Ford Truck dealers are asking Dearborn about ISB and Allison. I still think that an Avon Lake built F-650 based Cargo would sell. Ford may never build a F-850 or FT-850, but who knows.       

[RoadwayR]

Not too sure International or Freightliner for that matter are all too concerned about Ford.  Only the lighter MV's an M2's compete with the F-650/750, and I think both of the truck manufacturers figure they can't compete with Ford on price in that weight class.  So, let Ford have those low margin fleet sales like U-Haul.  Now that International has a class 4/5 (that didn't cost them much!), they will earn conquest sales from Ford.  Nowhere to go but up, right?

As for Ford-Otosan, it seems like the only thing you can say with any certainty in the truck industry today is that we will never see a Ford-Otosan truck in North America.  As VW digs their fangs deeper into Ford's rear end, I figure soon the VW overlords will convince Ford management how much better off they would be if they gave their share of Otosan's truck business to Traton to form a 'strategic alliance'.  I say this in sarcasm, but..........  

Edited July 24, 2019 by RoadwayR

[TS7]

Roadway I think the real medium-duty market now is 19,500 - 26,000 GVW, non CDL. Ford  seems to have that covered, what do you think?

Edited July 24, 2019 by TS7

[RoadwayR]

39 minutes ago, TS7 said:

Roadway I think the real medium-duty market now is 19,500 - 26,000 GVW, non CDL. Ford  seems to have that covered, what do you think?

That certainly seems to be a growing market!  I think that growth drove NAV and GM to partner.  It's very price sensitive and high volume, so it's a natural for a traditional auto/light truck manufacturer.  Not to mention components sharing with light trucks.  Harder for NAV and DTNA to compete there without a partner.  Ford and FCA cover it well, and I think Ford's new F-600 will be a great product in there.  

[kscarbel2]

Ford Forecast Trails Estimates on SUVs, China; Shares Fall

Bloomberg  /  July 24, 2019

Ford issued an annual profit forecast that disappointed investors as the automaker rolls out new sport utility vehicles and struggles to compete in China’s slumping car market.

Adjusted earnings will range from $1.20 to $1.35 a share, Ford said Wednesday, below analysts’ average estimate for $1.39.

The second-largest U.S. automaker also missed projections for second-quarter profit, and its shares slumped in after-hours trading.

CEO Jim Hackett is leading an $11 billion overhaul aimed at reversing Ford’s fortunes by cutting thousands of jobs, reviving an aging line of SUVs and pickups and ditching slow-selling sedans.

Ford is losing money and market share in China, where the car market is contracting for the first time in a generation.

“The guidance was a disappointment, as Ford had previously signaled opportunity to improve in its most important regions -- North America, Europe, and China,” Dan Levy, an analyst for Credit Suisse, wrote in a note to investors. The second-quarter results are “a reminder that the path to improvement may be bumpy.”

Ford shares dropped 5.7% to $9.74 in after-hours trading after earlier falling as low as $9.46. The shares haven’t closed below $10 since June 26.

New versions of Ford’s Explorer and Escape SUVs debut this year, and it’s bringing back the Bronco off-roader in 2020. The company also just struck a deal with Volkswagen AG to jointly develop electric and self-driving cars.

A drop-off in shipments of the Explorer -- which is just ramping up production -- contributed to lower earnings and shrinking margin last quarter in North America, where Ford generates the bulk of its profit.

Ford lost $155 million before interest and taxes in China, with deliveries to dealers plunging 32% in the second quarter, as the company struggles with an aging product line. The carmaker has said it’s reducing inventory and trying to boost sales by introducing new or revamped models.

“We are seeing discreet signs of stability in our business in China even as the economy and the vehicle market are under recent and persistent stress,” Hackett said on a call with analysts. “We’re actively working on the design and launch of new products that will help us grow.”

Software Write-Off

The automaker also suffered a $181 million loss in its investment in a firm called Pivotal Software Inc., which caused the company to fall short of analysts’ estimates, Chief Financial Officer Tim Stone said.

Ford’s write-off of its entire stake in Pivotal, which the automaker acquired three years ago, is the latest misfire by Ford, which lost $65 million it invested in another “smart mobility” venture known as Chariot. Earlier this year, Hackett dismissed that as a learning opportunity. “This is a pivot for us, a bunch of things have been birthed from the Chariot experience,” he told reporters at the Detroit auto show in January.

[kscarbel2]

Ford results dented by restructuring, gives weaker-than-expected forecast

Reuters  /  July 24, 2019

DEARBORN, Michigan – Ford on Wednesday reported a lower-than-expected profit, weighed down by charges to restructure its units in Europe and South America, and the automaker gave a full-year earnings forecast that fell short of analysts’ expectations.

Ford shares fell as much as 7 percent in after-hours trading.

Virtually all of Ford’s second-quarter pre-tax profit came from North America - its most lucrative market - where highly-profitable pickup trucks drive margins for the Dearborn, Michigan-based automaker and its Detroit rivals, General Motors and Fiat Chrysler Automobiles.

The automaker also posted a small profit in Europe and a far smaller loss in China compared with the second quarter of 2018 as better pricing and new luxury models helped offset a poor performance in that market.

Ford’s second-quarter sales in China slid 21.7% in the second quarter after a first-quarter drop of 35.8%.

In April, Ford said it planned to launch more than 30 new models over the next three years to overhaul its vehicle lineup in China.

The automaker’s ongoing restructuring includes cutting costs and overhauling its product lineup in key global markets like China and Europe. The company said Wednesday it had so far only recorded $2.2 billion of the projected $11 billion in charges it previously said it would take for the global restructuring.

Last month, Ford said it would cut 12,000 jobs, close five plants and cut shifts at other factories in Europe by the end of 2020 in an effort to return that region to profitability.

In May, the company said it would eliminate about 10% of its global salaried workforce, cutting about 7,000 jobs by the end of August.

Earlier this month, Ford and Volkswagen said they will spend billions of dollars to jointly develop electric and self-driving vehicles, deepening a global alliance to slash development and manufacturing costs. The size and timing of the payoff from that alliance remain unclear.

Ford had previously not provided an earnings forecast for this year. The company said on Wednesday it now expects full-year earnings between $1.20 and $1.35 per share. Analysts have estimated the automaker will earn $1.39 per share this year, according to IBES data from Refinitiv.

Speaking to reporters, Chief Financial Officer Tim Stone said the company now expects adjusted 2019 pre-tax profit of up to $7.5 billion, compared with $7 billion in 2018.

“We have a long way to go ... to execute on our redesign,” Stone said. “We have a lot of work to do.”

For the first half of the year, Ford reported a pre-tax profit of $4.1 billion, meaning that the automaker will, at best, deliver a weaker pre-tax profit of $3.4 billion for the second half of 2019.

The No. 2 U.S. automaker posted a second-quarter net profit of $148 million, or 4 cents per share, down from $1.1 billion, or 27 cents per share, a year earlier.

Excluding one-time charges, the company earned 28 cents per share. Analysts had expected Ford to earn 31 cents a share.

Excluding a write-down of its stake in a software company, Ford said it would have earned 32 cents per share.

Revenue was flat at $38.9 billion, above the $35.07 billion expected.

[kscarbel2]

New 2020 Super Duty 7.3-liter V-8 to produce 430 hp, 475 lb-ft of torque

Michael Martinez, Automotive News  /  August 1, 2019

DETROIT — Ford Motor Co.'s newest offering on its Super Duty pickups -- a 7.3-liter V-8 gasoline engine -- will produce 430 hp and 475 pound-feet of torque.

Those figures rank best among V-8 gasoline engines in the category, although Ram's HD diesel engine keeps the overall power crown with 1,000 pound-feet of torque, an all-important measurement for large pickups that generally tow and haul heavy loads.

The new engine will debut on the F-250 and F-350 when the freshened vehicles go on sale this year.

"The 7.3-liter is designed for maximum durability in the harshest environments given that our customers live and work in these conditions every day," Joel Beltramo, Ford's manager for gasoline V-8 engines, said in a statement. "This engine has the largest displacement in its class and is designed to provide benefits in key areas like power, durability, ease of maintenance and total operating costs."

The engine will be mated to a new 10-speed transmission that is based on the gearbox used by the F-150 but upgraded for the larger trucks. F-650 and F-750 will continue to use a six-speed transmission.

The 7.3-liter joins a 6.2-liter V-8 gasoline engine, as well as an updated 6.7-liter Power Stroke diesel V-8. The automaker did not disclose power figures for the diesel engine.

Ford last redesigned the Super Duty for the 2017 model year, when it shed as much as 350 pounds by switching to an aluminum body.

The midcycle freshening comes as Ford shifts 90 percent of its capital allocation to producing pickups, vans and utilities. By 2020, roughly 75 percent of its lineup will be updated or new.

Ford also said Thursday that its power takeoff feature, which allows customers to mount accessory equipment to the transmission for more power, will come standard with its 6.7-liter diesel engine. It will remain optional on both other engines.

[kscarbel2]

• All-new 7.3-liter engine in Super Duty pickup cranks out best-in-class gas V8 output of 430 horsepower and best-in-class gas torque of 475 ft.-lb.
• The 7.3-liter engine is paired with the all-new 10-speed heavy-duty TorqShift^® transmission on Super Duty pickups and is designed for robust power, long-term durability and ease of service that truck owners demand in both personal and business applications
• Windsor-built engine will be an option on 2020 F-Series Super Duty pickup, standard on F-550, F-600, F-650 and F-750 Medium Duty trucks and E-Series, as well as F-53 and F-59 stripped chassis

DEARBORN, Mich., Aug. 1, 2019 – Ford F-Series, America’s best-selling truck for 42 years, is once again raising the bar for capability with its all-new 7.3-liter V8 gasoline engine. The 7.3-liter engine in Super Duty pickup cranks out best-in-class gas V8 output of 430 horsepower at 5,500 rpm and best-in-class torque of 475 ft.-lb. at 4,000 rpm.

No other competitor provides such a powerful and advanced gasoline engine in such a broad range of offerings – from Class 2 Super Duty pickups through Class 7 commercial trucks.

“The 7.3-liter is designed for maximum durability in the harshest environments given that our customers live and work in these conditions every day,” said Joel Beltramo, Ford manager for gas V8 engines. “This engine has the largest displacement in its class and is designed to provide benefits in key areas like power, durability, ease of maintenance and total operating costs.”

Based on decades of commercial engine experience, the 7.3-liter V8 delivers class-leading performance in a compact package. The 7.3-liter V8 features an overhead valve architecture that generates power low in the rev range to help get heavier loads moving sooner and with greater confidence. It also features a variable-displacement oil pump, extra-large main bearings, forged steel crankshaft for durability, and piston cooling jets to help manage temperatures under heavy load.

The all-new 7.3-liter will be available first in Super Duty F-250 and F-350 pickup models. It joins the 6.2-liter V8 gas engine in Super Duty’s lineup, along with the upgraded third-generation 6.7-liter Power Stroke^® diesel V8. Additional power and capability numbers, including Super Duty towing and payload ratings as well as power numbers for the upgraded 6.7-liter Power Stroke diesel will be announced later this year.

A dyno-certified version of the 7.3-liter V8 producing 350 horsepower at 3,900 rpm and 468 lb.-ft. of torque at 3,900 rpm will be standard on F-450 chassis cab, F-550, the new F-600, F-650 and F-750 Medium Duty trucks, and F-53 and F-59 stripped chassis models. The upgraded E-Series will also feature the 7.3-liter V8. An optional calibration intended to help customers reduce their fuel consumption will also be offered; more information will be made available at a later date. 

The 7.3-liter engine is paired with the all-new Ford-designed and Ford-built 10-speed heavy-duty TorqShift^® automatic transmission on all models except F-650 and F-750, which retain the heavy-duty 6-speed.

[kscarbel2]

Best-in-Class Power Takeoff Output Now Standard on 2020 Ford Super Duty Chassis Cab with Power Stroke Diesel

• Ford is making commercial 2020 F-Series Super Duty more valuable to fleets by including Power Takeoff (PTO) provision on Class 3-5 chassis cab trucks optioned with a 6.7-liter Power Stroke^® diesel
• Best-in-class stationary 300 lb.-ft. of PTO torque comes from the third-generation 6.7-liter Power Stroke® diesel working in combination with the all-new TorqShift^® 10-speed heavy duty automatic transmission
• Ford’s pioneering Live-Drive PTO allows commercial customers to power industrial equipment and accessories such as snowplows, generators and hydraulic units with the truck in motion

DEARBORN, Mich., Aug. 1, 2019 – New on the 2020 Super Duty Chassis Cab, Ford is proud to offer Power Takeoff (PTO) as standard with its 6.7-liter Power Stroke^® turbo diesel engine for auxiliary power needs on commercial vehicles. Combined, the 6.7-liter Power Stroke and all-new TorqShift^® 10-speed heavy duty automatic transmission with the power takeoff provision delivers best-in-class stationary torque of up to 300 lb.-ft. for commercial vehicle bodies that require direct-to-component or hydraulic body motor power. That’s 50 lb.-ft. more than the closest competitor.

“For a lot of our commercial and heavy-duty retail customers PTO power is the only way they can get a job done,” said Kevin Koester, Ford commercial vehicle marketing manager. “With more PTO torque on hand every task is easier and even bigger projects are now within reach.”

Power takeoff allows customers to mount accessory equipment to the transmission for auxiliary power from the engine to increase functionality in applications that require direct or hydraulic power, such as generators, cranes, wreckers, pumper trucks and boom lifts.

PTO provision will remain optional on 2020 Super Duty Pickup models and 7.3-liter gas V8 Chassis Cab models. Output with the TorqShift^® heavy-duty 6-speed automatic double-overdrive transmission for F-650 and F-750 trucks and Super Duty stripped chassis trucks will be announced at a later date.

If a job has to get done and stationary power won’t cut it, the 10-speed Heavy Duty Automatic features Ford’s pioneering Live-Drive Power Takeoff which allows customer to operate accessories when the engine is running whether the vehicle is in motion or stopped. This is critical for equipment requiring power on the move such as snowplows and dump trucks.

[Maxidyne]

The new gas engine is a testimony to the incompetence of Ford's current management- They probably wasted a hundred million dollars to develop the world's last big pushrod V8!