Ford Market News

[kscarbel2]

Ford lauds 'fantastic' effort at damaged BorgWarner plant, expects no impact on F-150

Michael Martinez, Automotive News  /  April 30, 2020

Ford Motor Co. dodged what could have been a serious disruption to the production of its most profitable vehicles, including the F-150 pickup.

The automaker, despite the coronavirus pandemic, had repair teams on the ground 12 hours after a tornado earlier this month ripped through a BorgWarner factory in Seneca, S.C., that supplies transfer cases to Ford's pickups and large SUVs.

Although Ford filed a notice with the Securities and Exchange Commission noting production could be disrupted, its head of manufacturing said Thursday he's not expecting any impact by the time Ford's factories — shuttered by the coronavirus — resume operations.

"The recovery that BorgWarner's been able to do, with us supporting them, has been fantastic," said Ford's chief manufacturing and labor affairs officer Gary Johnson. "I'm extremely confident that when we start up our systems in the U.S. and North America, BorgWarner will support them. The risk is dropping every day."

The supplier plans to resume limited production at the plant in early May. BorgWarner supplies transfer cases for the F-150, as well as the four-wheel-drive and all-wheel-drive versions of the Expedition, Super Duty, Explorer and Transit and the Lincoln Navigator and Aviator.

"We can't re-source it," Johnson said. "The decision was made to help retrofit the plant to make it viable to come back."

He said members of Ford's IT team helped rebuild computer rooms and other Ford workers helped repair the plant's roof.

BorgWarner employees have been routinely posting updates on Facebook about their many accomplishments at the site.

The company on Wednesday released this statement:

"BorgWarner can confirm that we are planning to resume limited production in early May at our ... facility which was impacted by a tornado in the early morning hours of Monday, April 13th. We have teams onsite working on necessary repairs to the facility to make this happen in a safe and efficient way. We appreciate the support of the Oconee community and the State of South Carolina, our neighbors and our customers during this time."

This isn't the first time Ford has scrambled to save F-150 production.

The company in late 2018 was among the first on site after a fire destroyed a supplier plant in Michigan that also supplied its prized pickup.

Workers pitched tents as they waited for access to the facility. Once inside, they extracted 19 large tools over 48 hours and moved them to other sites, at one point renting a rare Russian cargo jet to transport a heavy die to a plant in the U.K.

[Red Horse]

Quite an accomplishment when you look at the damage

[Maxidyne]

Ford can do amazing things in a crisis... Give 'em a couple months and they could probably come up with a pretty decent Class 8 conventional.

[Red Horse]

9 hours ago, Maxidyne said:

Ford can do amazing things in a crisis... Give 'em a couple months and they could probably come up with a pretty decent Class 8 conventional.

Hah-if only they still had the drawings for the original Louisville😎

[j hancock]

Ford has a focus problem.

Not talking about the the car either.  Ooops, that's gone too...

[kscarbel2]

Farley buys $1 million in Ford stock

Keith Naughton, Bloomberg  /  April 4, 2020

DETROIT -- Ford Motor Co. COO Jim Farley spent the equivalent of almost his entire 2019 salary to purchase $1 million of stock in a show of confidence in the automaker’s recovery prospects.

Farley, 57, earned $1.1 million in salary as part of a compensation package that totaled $8.36 million last year when he was president of Ford’s new business, technology and strategy. He was promoted to COO on March 1 in a management shakeup that included the abrupt departure of his chief rival, Joe Hinrichs.

Farley purchased 194,950 shares at an average price of $5.13 on April 30, according to regulatory filing Monday. The transaction increased his direct share ownership by 31 percent to 828,922. The stock is down 47 percent this year.

The carmaker has made clear that Farley is heir apparent to CEO Jim Hackett, 65, who has struggled to institute a sweeping $11 billion reorganization. Before the coronavirus closed Ford’s factories, Farley pledged to accelerate a turnaround at a company that has seen profits decline for three consecutive years.

“Everyone at Ford knows the situation we’re in,” Farley said February 26 at a Wolfe Research conference in New York. “I can see it on the faces of my colleagues and it takes me back to about 10 years ago. I’ve seen that look before.”

Farley’s challenges have only grown since. With North American factories shut since mid-March -- and no restart dates scheduled -- Ford is forecasting a $5 billion loss in the second quarter, following a $2 billion operating deficit in the first three months of the year. It burned through $8 billion in the first quarter, suspended its dividend, had its credit cut to junk and sold $8 billion in junk bonds.

Farley last week outlined how the company plans to resume production with safety protocols that include mandatory face masks, temperature checks, social distancing and closed common areas such as cafeterias. But he gave no timeline for reopening.

“We want to restart as soon as we can and do it safely,” Farley told reporters. “We’ve gone through so many things as a company for over 100 years, but this is really unprecedented.”

[Red Horse]

Well nice to see that kind of commitment.

[Maxidyne]

Sounds like a "hedging" strategy- If he gets fired Ford stock will probably go up!

[kscarbel2]

Even as crisis toll grows, Ford vows to be ‘aggressive'

Michael Martinez, Automotive News  /  May 4, 2020

DETROIT — Ford Motor Co. is projecting confidence that it can stick to an $11 billion restructuring plan and aggressively roll out new products even as it predicts the coronavirus crisis will sap billions from its balance sheet in the coming months.

Ford last week reported a $2 billion net loss in the first quarter and warned it could lose more than $5 billion in the second quarter from operations, largely because of the global pandemic that has halted vehicle production and disrupted business for more than a month.

"This is a tremendous opportunity for us as well," says Ford COO Jim Farley. "We have a great portfolio of products that are just about to come out. Are there adjustments to be made there? Yes, but the product strategy we've talked about has never been more important."

How the crisis is hitting the Detroit 3 will become clearer this week, when General Motors and Fiat Chrysler Automobiles are scheduled to report their first-quarter results. All three companies have been unable to generate revenue from North American vehicle production for more than a month.

Farley suggested Ford is assessing every part of its business in light of the virus outbreak.

"Are there businesses now with COVID hangover that need to be freshened, re-looked at, remade? The answer is everything's on the table," he said. "We want to be aggressive during the crisis."

CFO Tim Stone said the company had been on track to post adjusted earnings of $1.4 billion or more before interest and taxes in the first quarter. Instead, it suffered its second consecutive quarterly loss.

"Our objective is not just to withstand the crisis. We're ensuring the flexibility to continue to invest in our future," says Stone.

But some investments are already being pushed back or canceled.

Ford last week said a project with startup Rivian to develop an electric vehicle for the Lincoln brand would be shelved and that the launch of its autonomous vehicle commercial services, planned for next year, would be postponed until 2022.

Ford CEO Jim Hackett said Ford would continue putting money into "growth opportunities." Those include new products such as the upcoming redesigned F-150, Bronco SUV, Bronco Sport crossover and Mustang Mach-E electric crossover.

Hackett says that "even though we took measures to preserve cash, we are moving forward" on plans to introduce new products and invest in autonomy and electrification. "We're totally committed to it," he says.

Ford said it still can't provide full-year financial guidance because "today's economic environment remains too ambiguous."

Officials last week said the process of reopening plants and offices could take until early July, when it expects the last of its white-collar work force to return.

Ford detailed a number of safety measures it will implement in manufacturing facilities, including mandatory face masks, daily temperature checks and the closure of common areas such as cafeterias or fitness centers.

Outside of a modest profit in North America, Ford lost money in every region in the first quarter — including a $241 million loss in China.

Ford has resumed production there and plans to bring European facilities back online this week.

Stone said Ford's $35 billion in cash as of April 24 was sufficient to get it through the end of the year "with no additional vehicle wholesales or financing actions."

[Maxidyne]

Looks like the Fed's bailout of Ford sent the wrong message- Ford now fails to comprehend the gravity of their financial situation. Last week I damn near bought a Transit Connect, Ford killed that deal by pulling the 0% financing on that model. Instead of cutting prices to exchange metal for cash, Ford borrows at 9% so they can give out 0% loans, for a 6 year loan that's about a 25% discount that isn't being offered to cash customers, Ford and the Fed thinks that's how you make a profit. Other companies in the industry have noticed this trend, Hertz just missed a debt payment yet seems unmotivated to convert their inventory of 75,000+ late model used cars to cash... With the Fed and soon Treasury standing by with bailouts, why try to save the company? And for Ford, why fill the gaps in their offerings or merge with VW when the government will save you?

[kscarbel2]

Ford Bronco, Bronco Sport to feature multiple grilles

Michael Martinez, Automotive News  /  May 5, 2020

Customers in the market for Ford Motor Co.'s upcoming offroaders will have at least a couple grille options.

The automaker plans to offer three front-end designs for both the Bronco SUV and Bronco Sport crossover, according to Ford Authority. They'll reportedly be called "Modern," "Classic" and "Custom."

Spy photos recently posted on broncosportforum.com appear to show two of the three designs for the smaller crossover. Both the Bronco and Bronco Sport were scheduled to be revealed by now but have been postponed indefinitely due to the coronavirus crisis.

Uncamouflaged photos of both vehicles have already leaked. The photos show the word BRONCO stamped in the middle of each grille, flanked by the vehicle's classic round headlights.

Ford told suppliers this week it now plans to begin mass output of the Bronco Sport at a plant in Mexico on Aug. 31. Output was first planned to start on July 13 then pushed to Sept. 7 because of the coronavirus outbreak.

The Bronco will be built on a body-on-frame architecture shared by the Ranger midsize pickup, while the Bronco Sport will sit on the same unibody platform as the recently redesigned Escape and Lincoln Corsair.

Ford executives have vowed to make the Bronco highly customizable, with plans for hundreds of parts and accessories to boost dealers' bottom lines.

[kscarbel2]

Henry Ford III is rising to the top of a dynasty facing crisis

Keith Naughton, Bloomberg  /  May 14, 2020

When Wall Street analysts call Ford’s investor relations department these days, they’re likely to be greeted by Henry Ford himself.

It’s not the founder, of course, and it’s not a recording of him either. It’s Henry Ford III, the patriarch’s great-great grandson, who at age 39 has been thrust into the crucial role of liaison between the struggling automaker and its investors.

The III’s ascent -- along with that of his cousin, the 32-year-old Alexandra Ford English, just named to the board of electric-truck maker Rivian Automotive Inc. -- marks a coming of age for the fifth generation of the Ford dynasty. For all but 20 of its almost 117 years of existence, Ford has been led by a family member. And while critics lay much of the blame for the company’s current struggles on the Fords, the family sees Henry and Alexandra as their best hope of maintaining control for years to come.

“They’ve moving above the radar line now,” Jeffrey Sonnenfeld, associate dean at the Yale School of Management, said of the automotive heirs. “This is what they were destined for when they entered the company. When we look at their dads, they’re on the same trajectory, with at least one, if not both, ending up on the board.”

The changes come as the company endures another crisis, with losses mounting and North American factories idled in the face of coronavirus shutdowns. But as Ford shareholders gather for a virtual annual meeting Thursday, the founding family remains firmly in control, aided by a special class of stock that gives them 40 percent voting power.

That arrangement will once again come under scrutiny at the annual meeting. A shareholder proposal would strip the family of its special class of stock and go to a one-share, one-vote arrangement. A similar motion garnered 34 percent support of Ford shareholders last year. Some investors have long complained that super-power voting weighs down the value of publicly traded companies, while giving founding families sometimes unwarranted control.

Since Bill Ford became chairman in 1999, the automaker’s shares are down 91 percent, while the S&P 500 index is up 129 percent.

Unlike General Motors and Chrysler, however, Ford avoided bankruptcy in 2009.

And for all their problems, the Fords have earned a reputation for not meddling in the corporate decision-making process. “The Fords, in general, have a pretty good history of letting the executives run the company,” said Rob Du Boff, corporate governance analyst for Bloomberg Intelligence.

Henry Ford III and Ford English are likely years away, if ever, from assuming the uppermost leadership roles. Jim Farley, promoted March 1 to chief operating officer, is the clear heir apparent to current CEO Jim Hackett. But each is now moving through a variety of jobs at the company. Henry, known as “Sonny” among friends and family, was director of corporate strategy before taking the investor relations job. He is the son of Edsel Ford II, a board member and now a company consultant.

Ford English, the daughter of Bill Ford, assumed a corporate strategy position similar to the one previously held by her cousin, while also being named to the board of Rivian Automotive, the electric-truck maker in which Ford has taken a significant ownership stake.

Their seasoning is similar to what their fathers received while rising in the ranks in the 1980s and ’90s. Bill and Edsel Ford landed on the company’s board of directors in 1988 while still in their 30s and agitated successfully for more prominent roles as directors. Edsel eventually rose to president of Ford’s highly profitable credit unit before retiring in 1998, and Bill became company chairman in January 1999 and served as CEO from 2001 to 2006.

For Henry and Ford English, working in the family business may not have been preordained, but close to it. After graduating from Dartmouth in 2002 with a degree in history, Ford III taught middle and high school math and history.

Then in 2006, at the age of 25, he joined Ford in labor relations. He helped to negotiate a contract with the UAW, similar to Bill Ford’s first job at the company in 1979. Henry III went on to work in purchasing, dealer relations, as a vehicle program analyst and as global marketing manager for Ford’s high-performance sports cars, drawing on the company’s racing heritage highlighted in last year’s Academy Award-winning “Ford v Ferrari.”

“In the back of my mind, I knew I always wanted to work for Ford,” Henry Ford III told Automotive News in 2014. “Our family’s legacy and heritage are very important to me and I knew it was something I wanted to carry on.”

In investor relations, the young scion will face tough questions about Ford’s falling stock and growing losses.

“Investor relations is the best place that you can put somebody that you’re trying to groom for leadership because they are going to be dealing with complaints all the time,” Minow said. “It will give him a real reality check.”

Unlike some children of famous people, he has no qualms about using his name in business, recalled Los Angeles Ford dealer Beau Boeckmann. Ford III worked at his store selling cars during the summer of 2009 while getting an MBA from the Massachusetts Institute of Technology.

“When he walked through the door, he said I want to be called Henry Ford and have it on my nametag,” Boeckmann said. “Customers would say, ‘Wait a minute, your name’s Henry Ford, are you any relation?’ And he’d laugh and say, ‘Yeah, I’m Henry Ford III.’”

Ford English also tried out another industry after she earned a bachelor’s in human biology, physiology and neuroscience at Stanford and an MBA at Harvard. She worked in retailing in the merchandising divisions of Tory Burch in New York and Gap Inc. in San Francisco.

Her first job at Ford, in 2017 at the age of 29, was in a department helping to find new mobility solutions for crowded cities, and then she moved on to Ford’s self-driving vehicle unit.

“I was originally hesitant to join Ford because I don’t have a technical background and it’s a company built upon engineering,” Ford English said in a 2018 company-sponsored video. “But I knew what I could bring to the company and I was very aware of those skills.”

Joining the company and rising to the top are two different things, of course. Henry Ford II, the outsized and colorful leader of the company for 35 years until his 1981 retirement, once famously declared “there are no crown princes at Ford.”

The latest Henry has said he works hard not to appear “to have any sense of entitlement.” That may be what drove him to turn down an invitation to a Fourth of July party from dealer Boeckmann back in the summer of 2009. Instead, Henry III remained in the showroom all day, selling cars in the California heat.

“I said, ‘Hey Henry, why don’t you come join us for the family picnic?’ But he said, ‘Thank you, but I’m here selling cars,’” Boeckmann said. “He’s extremely humble and he is aware that he needs to work harder because of his name.”

[Maxidyne]

I watched the annual meeting, the best part was the ads they ran before the meeting- Some great production work. The meeting was totally predictable, with a script little changed from before Ford bonds fell to junk status and COVID-19 intervened- Ford is going full speed ahead with electric cars that now have no market and borrowing at 9% so Ford Credit can make 0% loans on $40k F150s. That business plan no longer works, but when the Ford family has supermajority voting rights this drunken with power management masquerading as an automaker could go on for years. Bill Ford already said "Hell No" to their best exit strategy, a sell out disguised as a face saving merger with VW Group.  With suppliers unlikely to push Ford into bankruptcy and even big institutional shareholders unable to bring Ford back to reality, how many years can Ford hang on as a "zombie" penny stock company making not even a million vehicles a year, some of which actually get sold and paid for?

[kscarbel2]

F-150, Bronco programs delayed 2 months

Michael Martinez, Automotive News  /  May 15, 2020

DETROIT — Plant shutdowns due to the coronavirus will result in roughly two-month delays for several of Ford Motor Co.'s key vehicle programs, including the redesigned F-150 pickup and new Bronco SUV, but a top executive said the automaker doesn't envision additional postponements.

"Given our inability to work in our assembly plants during the shelter-in-place restrictions, it will have an impact to program timing, in terms of the launches, but we expect the launch delays to be commensurate with the duration of the shutdown period," Hau Thai-Tang, Ford's chief product development and purchasing officer, said Friday in a Bank of America presentation.

Ford on March 18 said it would shutter its North American facilities as the coronavirus spread across the globe. It plans to resume limited production at most plants Monday.

Ford has already delayed public unveilings of the Bronco, Bronco Sport crossover and F-150 this spring.

The Bronco Sport, F-150 and Mustang Mach-E electric crossover are due in showrooms in the second half of 2020. The Bronco is expected to go on sale in early 2021.

Bronco Sport output was originally planned to start July 13 but then was pushed to Sept. 7 because of the coronavirus outbreak. Suppliers have been told production now will begin Aug. 31 at a plant in Mexico.

The vehicles represent popular, high-margin nameplates that Ford hopes are key to a financial turnaround.

Despite the delays, Thai-Tang said Ford planned no further postponements, even as money gets tight.

"We're not going to do any additional delay to these launches beyond the impact of COVID-19 as a mechanism to conserve cash," he said. "I know that's something some of the other OEMs are doing."

The virus has upended launch plans for a number of automakers.

Ford has said it has enough cash to make it to the end of 2020, even if none of its assembly plants resumed production.

In the case of the Bronco family of vehicles, Ford is betting not only on robust sales — it's targeting 200,000 in 2021 — but also revenue from a large number of accessories. Ford is hoping the Bronco subbrand can do for it what Jeep has done for Fiat Chrysler Automobiles.

"FCA has nine Jeep products; last time I counted, it accounts for at least half of their revenue and profit, all underpinned by the Wrangler," Thai-Tang said. "We think we have the same brand strength with Bronco and Mustang, and series like Raptor, that we need to really capitalize on. You're seeing the initial us dipping our toes in the water, but we think there's tremendous upside there."

[kscarbel2]

Ford plant worker tested positive for Coronavirus, sending thousands of factory workers home early after second day open

CBS Chicago  /  May 20, 2020

Chicago’s Ford assembly plant sent thousands of workers home early on Wednesday only two days after reopening because an employee tested positive for the novel Coronavirus.

The unexpected dismissal came after Ford reopened Monday. Production was set to resume Tuesday night.

Ford had implemented temperature checks, installed social distancing reminders and redesigned work stations for safety. Ford said the company has been cleaning and disinfecting all areas that the ill employee might have touched.

“I’m worried right now,” said employee Timothy Shy. “This is the second day, and we are already hearing about this.

Production was temporarily halted at part of the facility and the main plant.

“Social distancing doesn’t really work,” said employee Billy Cowart.

There are changes from the social distancing reminders outside to temperature checks and re-configured work stations inside. Ford provided a video highlighting some of the updated health changes COVID has brought along to their plants

“All these people are crowded and on top of each other,” said Michael Hopper while wearing his Ford issued face mask.

“I lost a brother to Coronavirus May 6th,” Hopper said.

Hopper along with others describes an experience inside the plant that doesn’t sound or look like the polished video.

“I cleaned my own workstation myself,” said Hopper. “How our jobs are set-up, if one person gets in the hole that would affect the person behind him.”

[Red Horse]

15 minutes ago, kscarbel2 said:

Ford plant worker tested positive for Coronavirus, sending thousands of factory workers home early after second day open

CBS Chicago  /  May 20, 2020

Chicago’s Ford assembly plant sent thousands of workers home early on Wednesday only two days after reopening because an employee tested positive for the novel Coronavirus.

The unexpected dismissal came after Ford reopened Monday. Production was set to resume Tuesday night.

Ford had implemented temperature checks, installed social distancing reminders and redesigned work stations for safety. Ford said the company has been cleaning and disinfecting all areas that the ill employee might have touched.

“I’m worried right now,” said employee Timothy Shy. “This is the second day, and we are already hearing about this.

Production was temporarily halted at part of the facility and the main plant.

“Social distancing doesn’t really work,” said employee Billy Cowart.

There are changes from the social distancing reminders outside to temperature checks and re-configured work stations inside. Ford provided a video highlighting some of the updated health changes COVID has brought along to their plants

“All these people are crowded and on top of each other,” said Michael Hopper while wearing his Ford issued face mask.

“I lost a brother to Coronavirus May 6th,” Hopper said.

Hopper along with others describes an experience inside the plant that doesn’t sound or look like the polished video.

“I cleaned my own workstation myself,” said Hopper. “How our jobs are set-up, if one person gets in the hole that would affect the person behind him.”

Can't say this should be a surprise. Put thousands of people back to  work and if you thought this would not happen you are dreaming.  I guess the key is what is the response.  Surprised this is not on the TV news already as the latest "Bombshell"!!!

[kscarbel2]

Ford throws lifeline to suppliers facing cash crunch

Keith Naughton, Bloomberg  /  May 21, 2020

The automaker is helping keep key component suppliers afloat by paying invoices early. Ford plans eventually to expand the program to other manufacturers across its supply base.

DETROIT -- Ford Motor Co. is helping some of its suppliers survive a cash crunch by paying its bills early to ensure that critically needed parts keep flowing to its auto factories.

The Detroit 3 are restarting production after shutting down for two months to slow the spread of the coronavirus. That has caused a cash-flow crisis at many suppliers that don’t have deep capital reserves.

Ford burned through $8 billion in the first three months of the year, but it has built up a substantial cash pile by suspending its dividend, drawing down its credit lines and selling junk bonds. Now it is helping keep key component suppliers afloat by paying invoices early.

“In light of current market conditions, Ford is creating an early-payment program for our supply base,” Jennifer Flake, a company spokeswoman, said in an emailed statement. “This new voluntary program creates access to cash flow and working capital to Ford suppliers.”

The automaker, which is projecting a $5 billion operating loss for the second quarter, said it is making these early payments to a small group of key suppliers it declined to identify. The company plans eventually to expand the program to other manufacturers across its supply base, Flake said.

[Maxidyne]

Interesting that the big banks seem to be running the automakers these days, advancing credit to suppliers, makers, dealers, and consumers to try to keep sales up and losses down. I sold off a bunch of stocks as the market started to tank and have enough cash to buy a new Mack (but I know better), and have been hunting for a good deal on a new car. But seems most of the incentives offered are zero percent financing, and having paid cash for just about every thing the last few decades the banks know I'm not a credit junkie and won't give me that zero percent financing. I'm in no rush, it's early in this depression and better deals will come and strange deals will happen- For a start, Carl Icahn will probably become the world's largest used car dealer in a few days when Hertz will likely go bankrupt and he's majority shareholder...

[Maxidyne]

The Fords and Porsches need to have a proper German family picnic with the best German and Irish foods followed by a night at an Irish pub with the best of each nations libations and do the deal a merge these great automakers!

"BREAKINGVIEWS-A Ford-VW tie-up would solve a ton of problems

12:05 PM ET, 05/22/2020 - Reuters

(The authors are Reuters Breakingviews columnists. The opinions expressed are their own.)

By Antony Currie and Christopher Thompson

NEW YORK/LONDON, May 22 (Reuters Breakingviews) - The brouhaha about President Donald Trump not always wearing a mask while visiting a Ford Motor plant on Thursday may provide the carmaker’s embattled boss with a welcome distraction. Friday marks three years since Chief Executive Jim Hackett took the wheel from ousted predecessor Mark Fields – and he has had a rough ride: Ford has lost half its value during his tenure, plummeting to $22 billion, compared to General Motors’ 23% drop. A merger with Volkswagen could be the way forward.

The two rivals are already collaborating on electric and autonomous vehicles. It’s a decent way to share the huge costs of developing the next generation of cars. But it doesn’t solve their respective weaknesses.

The U.S. market has been $75 billion Volkswagen’s weak link for a long time. In 2019, the German automaker’s market share in light vehicles was a mere 4%, according to Jefferies, including the Porsche and Audi brands. Joining forces with Ford would give the two almost a fifth of U.S. sales, rivaling GM.

Ford, meanwhile, has struggled to turn a sustainable profit in Europe and has stumbled in China. By contrast, the latter is VW’s most significant single market, accounting for two-fifths of its global vehicle deliveries. A merger would make the new company the largest carmaker in the world by volumes sold.

A deal would be financially compelling, too. Assume a VolksFord combo can cut the same 2.4% of overall costs as Fiat Chrysler Automobiles and Peugeot are for their tie-up. That’d save nearly $10 billion a year. Taxed and capitalized, those could be worth $65 billion once restructuring costs of $14.5 billion are subtracted, equal to around two-thirds of the automakers’ current combined market value.

Both companies have convoluted family ownership, though. The Porsche-Piech families hold 53% of VW votes, while the Fords control 40% of the company thanks to supervoting stock. Resolving that to both sides’ satisfaction presents a major stumbling block to striking a deal. Were they to succeed, VW Chair Herbert Diess could end up driving a more powerful model – and Hackett will have found a graceful exit."

[Red Horse]

7 hours ago, Maxidyne said:

The Fords and Porsches need to have a proper German family picnic with the best German and Irish foods followed by a night at an Irish pub with the best of each nations libations and do the deal a merge these great automakers!

"BREAKINGVIEWS-A Ford-VW tie-up would solve a ton of problems

12:05 PM ET, 05/22/2020 - Reuters

(The authors are Reuters Breakingviews columnists. The opinions expressed are their own.)

By Antony Currie and Christopher Thompson

NEW YORK/LONDON, May 22 (Reuters Breakingviews) - The brouhaha about President Donald Trump not always wearing a mask while visiting a Ford Motor plant on Thursday may provide the carmaker’s embattled boss with a welcome distraction. Friday marks three years since Chief Executive Jim Hackett took the wheel from ousted predecessor Mark Fields – and he has had a rough ride: Ford has lost half its value during his tenure, plummeting to $22 billion, compared to General Motors’ 23% drop. A merger with Volkswagen could be the way forward.

The two rivals are already collaborating on electric and autonomous vehicles. It’s a decent way to share the huge costs of developing the next generation of cars. But it doesn’t solve their respective weaknesses.

The U.S. market has been $75 billion Volkswagen’s weak link for a long time. In 2019, the German automaker’s market share in light vehicles was a mere 4%, according to Jefferies, including the Porsche and Audi brands. Joining forces with Ford would give the two almost a fifth of U.S. sales, rivaling GM.

Ford, meanwhile, has struggled to turn a sustainable profit in Europe and has stumbled in China. By contrast, the latter is VW’s most significant single market, accounting for two-fifths of its global vehicle deliveries. A merger would make the new company the largest carmaker in the world by volumes sold.

A deal would be financially compelling, too. Assume a VolksFord combo can cut the same 2.4% of overall costs as Fiat Chrysler Automobiles and Peugeot are for their tie-up. That’d save nearly $10 billion a year. Taxed and capitalized, those could be worth $65 billion once restructuring costs of $14.5 billion are subtracted, equal to around two-thirds of the automakers’ current combined market value.

Both companies have convoluted family ownership, though. The Porsche-Piech families hold 53% of VW votes, while the Fords control 40% of the company thanks to supervoting stock. Resolving that to both sides’ satisfaction presents a major stumbling block to striking a deal. Were they to succeed, VW Chair Herbert Diess could end up driving a more powerful model – and Hackett will have found a graceful exit."

I guess that sums up Reuters view on Hackett! I've got a lot of shares and I would hate to see the end of Ford as we know it today.  After what Mulally accomplished to bad Bill Ford couldn't find another guy with the same skill sets.  As for Farley, from what I have read, he was supposed to be the worlds best car marketer.

So much for that.

[Maxidyne]

I'd love to see Ford independent and back to it's former glory, but it may be too late- They've blown $10B on the electric "Mustang" but their supplier can only provide 50,000 batteries a year. Another half billion on 'lectric pickup vaporware start up Rivian, can't Ford build an electric pickup nobody wants on their own? The Detroit depot project probably has a couple hundred million already spent and contracted of it's half billion dollar rehab cost, while office space sits empty everywhere. Then there's the $8B of junk bonds Ford sold to the Fed so they can offer 0% loans to try to unload their million vehicle inventory of the wrong vehicles, all while chasing away a couple hundred thousand car customers a year.

On paper Ford is already bankrupt, the filing will be just a formality. The Fords would be wise to accept any merger offer they can get from VW Group while they still have a bit of bargaining power to negotiate protection of Ford jobs, product lines, and the Ford heritage.

[Red Horse]

2 hours ago, Maxidyne said:

I'd love to see Ford independent and back to it's former glory, but it may be too late- They've blown $10B on the electric "Mustang" but their supplier can only provide 50,000 batteries a year. Another half billion on 'lectric pickup vaporware start up Rivian, can't Ford build an electric pickup nobody wants on their own? The Detroit depot project probably has a couple hundred million already spent and contracted of it's half billion dollar rehab cost, while office space sits empty everywhere. Then there's the $8B of junk bonds Ford sold to the Fed so they can offer 0% loans to try to unload their million vehicle inventory of the wrong vehicles, all while chasing away a couple hundred thousand car customers a year.

On paper Ford is already bankrupt, the filing will be just a formality. The Fords would be wise to accept any merger offer they can get from VW Group while they still have a bit of bargaining power to negotiate protection of Ford jobs, product lines, and the Ford heritage.

Ah...But "237"- you don't understand..ICE is dead, and AV's and electrics of whatever type are the future, or should I say immediate future- never mind at a measured pace.  That is what Silicon Valley has demanded the auto industry provide-and all  the lemmings are headed  for the cliff!  Hackett understands that. And as for the "train station", apparently you don't understand that high tech talent will not work in a conventional building that does not have "history" associated with it😎

By the way 10 billion for the E'stang-your estimate or is that a published number??

[Maxidyne]

The electric cars create lots of buzz but low single digit market share. I've seen the 10 billion number in several places, VW Group reportedly spent $25B on their electric car, but it's actually in production. I suspect Ford execs got into electrics when they saw Tesla's stock skyrocket and thought it would do the same for their Ford stock as they approach retirement. Problem is, Tesla's buyers and stockholders are a cult with immense brand loyalty- GM has an electric car available that is the equal of the Tesla Model 3, but it does't sell well because Tesla cultists still think GM is the evil empire that killed the electric car. The cults (Mustang, Tesla, VW, Suburu, Porsche, etc.) make it difficult for a manufacturer to move into new market sectors- Perhaps Ford would be smart to concentrate on their market leaders- F-series, Transits, Mustang, and a new Taurus?

[kscarbel2]

VW board OKs Ford alliance projects

Jan Schwartz and Paul Lienert, Reuters  /  May 28, 2020

Among the shared projects specified by VW are a midsize pickup to be developed by Ford, a city delivery van to be developed by VW and a new electric vehicle for Ford of Europe, to be built on VW's EV architecture.

FRANKFURT -- Volkswagen said Thursday its supervisory board had approved several projects in a multibillion-dollar alliance with Ford Motor that was first announced in July.

The German automaker said various contracts between the two companies were nearing completion and would be signed soon.

Among the shared projects specified by VW are a midsize pickup to be developed by Ford; a city delivery van to be developed by VW; a larger commercial van to be developed by Ford, and a new electric vehicle for Ford of Europe, to be built on VW's electric vehicle architecture.

Regarding official approval of the agreements, a Ford spokesman said Thursday, "We look forward to jointly providing an update soon."

VW's statement said "further projects are to follow, as is the investment in Argo AI," the self-driving software company backed by Ford and which eventually will be jointly controlled with VW.

VW's planned $3.1 billion investment in Argo "remains on track and is expected to close soon," Argo said on Thursday.

[kscarbel2]

Ford, VW Partnership Will Develop Commercial Vehicles

Heavy Duty Trucking (HDT)  /  June 10, 2020

The global alliance between Ford and Volkswagen announced plans to strengthen the commercial-vehicles businesses of both companies as early as 2021 with the development of a city delivery van and medium pickup truck.

The alliance said it will develop a city delivery van based on the latest Volkswagen Caddy model, developed and built by Volkswagen Commercial Vehicles and will also later develop a one-ton cargo van created by Ford, according to the companies. There are also plans to produce a medium pickup truck engineered and built by Ford, for sale by Volkswagen as the Volkswagen Amarok starting in 2022 within the Volkswagen Commercial Vehicles lineup.

“Commercial vehicles are fundamental to Ford today and an area where we will accelerate and grow, and working with Volkswagen on these platforms will provide both of us significant financial advantages in things like engineering, and plants and tooling,” said Jim Farley, Ford chief operating officer. “Separately, Ford will add battery electric versions of Transit and F-150 in the next 24 months for commercial customers who increasingly need zero emissions and the power of connectivity, data and artificial intelligence.”

Plans were also announced to develop a new Ford electric vehicle for the European market by 2023 built on Volkswagen’s Modular Electric Drive (MEB).

“The collaboration with Ford is a key building block of our GRIP 2025+ strategy and part of the current transformation of Volkswagen Commercial Vehicles,” said Thomas Sedran, chairman of the board of management of Volkswagen Commercial Vehicles. “This long-term cooperation with Ford will strengthen our very good position in area of light commercial vehicles, especially in our core European markets, and is proof that we are successfully implementing our plan step by step.”

The companies said they anticipate continued growth in global industry demand for commercial vehicles and for high-performing electric vehicles to add valuable scale to their individual product portfolios.

“This alliance comes at a time of tremendous enthusiasm about the intersection of increasingly intelligent, connected vehicles in an ever-smarter world,” said Ford CEO Jim Hackett.  “This creates a huge opportunity to innovate and solve many of the world’s transportation challenges and deliver extraordinary benefits to customers – even as companies need to be selective about how they use their cash.”

During the lifecycles of the products, the companies expect to produce up to a combined 8 million of the medium pickup truck and both commercial vans included in the commercial relationships.

Additionally, the companies will both work on Ford’s Argo AI autonomous vehicle platform to form an autonomous-vehicle business based on its self-driving technology. 

The Volkswagen/Ford alliance does not include cross-ownership between the companies, which will remain competitors in the marketplace.