Ford Market News

[Red Horse]

1 hour ago, Jamaican Bulldog said:

Ford's recent dealer meeting in Vegas....clarity....meh🙄. So now the company is going to show more commitment to customer loyalty than conquest. It does not take rocket science to figure out how to do BOTH. Ford always think it needs to compromise one over the other and that itself says again why the company is in trouble and have people running it who do not understand the business they are in and their real customers or market. Trying to spin the downturn on steel tariffs is just a distraction from their own inadequacies. They have failed to leverage valuable global assets to make it more profitable, blind to see obvious areas where they bleed money and customers like having a crappy double clutch transmission for years, assuming everyone will want CUVs the same way they thought a few years ago every pick up truck buyer only wanted a full size truck.

And for sure now the tune is from Hinrichs that Ranger WON"T canibalize 150 sales-which I do believe was the very reason T-6 did not come here when the old Ranger went away.

And for sure, how dumb a move to say.."we are only going after our existing loyal base.  There are all kinds of new drivers today that grew up in households that have NEVER had a Ford in their driveway when these "kids" were growing up.  Obviously more "Hackett Speak".

[kscarbel2]

On 10/15/2018 at 7:48 AM, kscarbel2 said:

Bill Ford cancels visit to Saudi investor conference

Reuters  /  October 14, 2018

Ford Motor Company Chairman Bill Ford canceled a multi-stop trip to the Middle East, including a planned appearance at a Saudi investment conference this month, the company said on Sunday, the latest such cancellation after the disappearance of Saudi journalist Jamal Khashoggi,

The company did not elaborate on the reasons for Ford’s decision not to attend the Future Investment Initiative conference in Riyadh, and did not comment on whether concerns about the disappearance of Khashoggi were a factor.

Speaking of the widely shunned “Davos in the Desert” Saudi investment conference in Riyadh that Bill Ford will not attend, hackers took over the main website and placed an image of the Saudi-murdered Khashoggi on the home page.

[Jamaican Bulldog]

19 hours ago, Red Horse said:

And for sure now the tune is from Hinrichs that Ranger WON"T canibalize 150 sales-which I do believe was the very reason T-6 did not come here when the old Ranger went away.

And for sure, how dumb a move to say.."we are only going after our existing loyal base.  There are all kinds of new drivers today that grew up in households that have NEVER had a Ford in their driveway when these "kids" were growing up.  Obviously more "Hackett Speak".

Yep you are exactly right. These honchos think people like me who have been a Ford dealer for years have short memories. Eliminating the Ranger back then sounds eerily familiar to them getting rid of cars now. We remember them boasting how much profits were in the F series and then saying that since only a for a 'few' $$$$$ more people could get a F150,  less and less people would want to get a small pickup. They were comparing the price of bare bones reg cab 4x2 F150 to a Ranger that had more content just as they now compare the price  a bare bones Ecosport to a similar Focus or Fusion of the similar price which has more content. This also while for the purpose of 'clarity to their infinite wisdom' they were allowing the Ranger to die on the vine ( like they are doing to sedans now), not updating it with newer tech that were going into other vehicles and not offering crew cab while other small pick-up models were doing . The Sport trac though great was not the same of what could have been in a crew cab N/A Ranger but would have complimented it.

As it happens often Ford plays catch up with something it already had elsewhere when they realize that GM could both sell and profit by selling both small and full-size pick-ups. They also played catch up with vans with Sprinter with the Transit they have had overseas for years. In some ways still catching up.

As I have probably said here before many of my friends in the late 90s and early 2000s would never had considered a Ford till the Focus came out. Many now drive Explorers etc. because they developed a relationship with the brand  and dealers. The same still happens with why you can't turn around without seeing Honda Civics and Korean cars all over. Affordable and sporty cars are integral in bringing new people into the brand and if you maintain quality and service people stay. Honda has successfully been able to simultaneously maintain customer loyalty while contesting new customers. It is not rocket science. Meanwhile Ford spends millions on 'creative' ways to market cars and sending people who have never been in the car business to tell car dealers how to sell cars.

[kscarbel2]

Ford appoints new China CEO, elevates China to stand-alone unit

Automotive News & Reuters  /  October 23, 2018

Ford Motor Co said late Tuesday it appointed a new head of its China operations to help turn around flagging sales in the world's largest auto market and fill a post vacated when the firm's previous China head abruptly stepped down in January.

The U.S. carmaker said in a statement that Anning Chen, a former Ford executive with 25 years of industry experience, would become the new CEO and president of Ford China. The move is effective Nov. 1.

Ford China would also be elevated to become a stand-alone business unit, reporting directly to global headquarters. 

Chen previously served as CEO, Chery Automobile Ltd., and was chairman of the board at Chery Jaguar Land Rover, Automotive, China. 

In the statement, Ford also announced:

• Plans to increase local production for Ford and Lincoln;
• Details on significant investments in China-led engineering and r&d;
• The creation of a new single sales and service channel;
• A new joint venture with Zotye for a new line of small battery-electric vehicles;
• A strategic alliances with Baidu and Alibaba to explore areas of cooperation in AI, connectivity and digital marketing.

.

[kscarbel2]

Ford will halt production Spain for nine days due to low demand

Reuters  /  October 23, 2018

MADRID -- Ford will stop car production in its plant in [Valencia] Spain for nine days during November due to a lower demand for its vehicles.

Engine production will also be halted for 13 days next month, a company spokesman said. Part of the Spanish production of Ford engines is sent to Canada for assembly of its Edge model.

The latest production shut down comes after a three-day halt in October.

Ford employs some 7,500 workers at the plant in Almussafes near Valencia.

The factory builds about 1,840 cars a day. The vehicles produced are the Mondeo midsize car, S-Max and Galaxy large minivans, Kuga SUV, Tourneo Connect van and Transit Connect van.

.

[kscarbel2]

Ford posts 37% earnings decline on China challenges, retreats on profit margin goal

Michael Martinez, Automotive News  /  October 24, 2018

DETROIT -- Poor results in China and other overseas markets contributed to a 37 percent drop in third-quarter net income for Ford Motor Co., and the automaker backed off its goal of raising its global profit margin to 8 percent by 2020.

But the automaker’s top executives on Wednesday continued to stress patience to investors as CEO Jim Hackett’s $11 billion restructuring plan starts to take hold.

Ford reported on Wednesday that its net income fell to $991 million in the quarter, although revenue rose 3 percent to $37.6 billion, driven by higher-profit vehicles in North America including the redesigned Expedition and Lincoln Navigator SUVs. Ford's earnings before interest and taxes fell 27 percent to $1.7 billion.

“We’ve had an extremely productive quarter in terms of putting building blocks in place,” Hackett said on a conference call. “We’re addressing real issues and we’re moving quickly to redesign the business in support of our stated strategy.”

But Ford said its challenges overseas, as well as higher costs and uncertainty clouding the entire auto industry, mean it no longer forecasts achieving the 8 percent profit-margin target it set previously. CFO Bob Shanks declined to offer an alternate timeframe for reaching that threshold.

“We don’t see, at the moment, a way to get there,” Shanks told analysts. “Certainty we’re trying to get there as fast as we can. I’m not going to put a timeframe on it because I don’t want to go back and have to change it.”

Hackett and his leadership team have faced scrutiny from Wall Street analysts who have asked for more clarity regarding his plan. Hackett on Wednesday said the details would be shared over time.

“We’re fully committed to sharing details as soon as we can, but I can’t allow us to get ahead of the process,” he said. “The need to get our stakeholders up to speed is the priority for me and the entire company.”

Ford's profits in the quarter were driven by North America, where earnings rose 7.5 percent to $1.96 billion. Its profit margin for the region was unchanged from the same period a year ago at 8.8 percent.

The automaker said its market share in the region was down slightly because it was discontinuing sedans, but market share for its profitable F-series pickups increased.

Hackett said those results “demonstrate early evidence that fitness actions are now taking hold.”

Ford shares sank earlier Wednesday to close at $8.18 a share, but rose 5.5 percent to $8.65 at 5:50 p.m. ET in after-hours trading, following the earnings release.

China troubles

Ford posted lower revenue, market share and sales in China, the world's largest vehicle market.

Ford lost $208 million in Asia Pacific in the quarter. Excluding China, it made $170 million in the region with profit margins of 9 percent.

The automaker is suffering from a lack of new product there that has led to a sharp decline in sales. New-vehicle sales fell 43 percent in September from a year earlier and are down 30 percent through the first nine months of the year.

Ford on Tuesday said it would separate its China business into a standalone unit and appointed Anning Chen, a former Ford executive with 25 years of industry experience, to become CEO of Ford China on Nov. 1.

Regional performance

Ford’s profit margin for the quarter was 4.4 percent, down 1.9 percentage points compared with the same period a year ago.

The company lost $152 million in South America, down 1 percent, and lost $245 million in Europe. It made $47 million in the Middle East and Africa.

Ford said its mobility unit lost $196 million in the second quarter, $124 million more than it lost during the same period a year ago. The unit is in a heavy investment phase that has little offsetting revenue.

Ford Motor Credit made $678 million, its best quarterly results since 2011.

Ford’s net income equaled 29 cents per share, 1 cent higher than the consensus estimate on Wall Street.

The company reaffirmed its full-year target of adjusted earnings per share of $1.30 to $1.50. It had previously lowered its guidance from a range of $1.45 to $1.70 per share, citing troubles in Europe and China.

[grayhair]

2 hours ago, kscarbel2 said:

We’re fully committed to sharing details as soon as we can, but I can’t allow us to get ahead of the process,” he said. “The need to get our stakeholders up to speed is the priority for me and the entire company.”

What a nitwit.  "but I can’t allow us to get ahead of the process."   What?  A secret process? 

Need to "get the stakeholders up to speed..."  Uh, yeah, they being so dense and uninformed that is really his priority?

Could maybe do the right thing, like step down...

[kscarbel2]

Ford recalls nearly 1.5 million Focus sedans for engine stall issue

Reuters  /  October 25, 2018

WASHINGTON -- Ford Motor Co. said Thursday it will recall nearly 1.5 million cars in North America to address a faulty part that could lead to engine stalls.

Ford said it is calling back 2012 through 2018 model year Ford Focus cars with 2.0-liter GDI and 2.0-liter GTDI engines for a malfunctioning valve that could result in inaccurate fuel level readings and potentially engine stalls or an inability to restart the vehicle.

Ford said it is not aware of any crashes as a result of this condition but said owners should maintain at least a half tank of fuel until the recall is completed. 

[kscarbel2]

Ford's European losses increase on Turkey, Russia weakness

Michael Martinez, Automotive News Europe  /  October 24, 2018

DETROIT -- Poor results in China and Europe contributed to a 37 percent drop in third-quarter net income for Ford Motor, and the automaker backed off its goal of raising its global profit margin to 8 percent by 2020.

But the automaker's top executives on Wednesday continued to stress patience to investors as CEO Jim Hackett’s $11 billion restructuring plan starts to take hold.

Ford reported on Wednesday that its net income fell to $991 million in the quarter, although revenue rose 3 percent to $37.6 billion, driven by higher-profit vehicles in North America including the redesigned Expedition and Lincoln Navigator SUVs. Ford's earnings before interest and taxes fell 27 percent to $1.7 billion.

“We’ve had an extremely productive quarter in terms of putting building blocks in place,” Hackett said on a conference call. “We’re addressing real issues and we’re moving quickly to redesign the business in support of our stated strategy.”

But Ford said its challenges overseas, as well as higher costs and uncertainty clouding the entire auto industry, mean it no longer forecasts achieving the 8 percent profit-margin target it set previously. CFO Bob Shanks declined to offer an alternate timeframe for reaching that threshold.

“We don’t see, at the moment, a way to get there,” Shanks told analysts. “Certainty we’re trying to get there as fast as we can. I’m not going to put a timeframe on it because I don’t want to go back and have to change it.”

Hackett and his leadership team have faced scrutiny from Wall Street analysts who have asked for more clarity regarding his plan. Hackett on Wednesday said the details would be shared over time.

“We’re fully committed to sharing details as soon as we can, but I can’t allow us to get ahead of the process,” he said. “The need to get our stakeholders up to speed is the priority for me and the entire company.”

Ford's profits in the quarter were driven by North America, where earnings rose 7.5 percent to $1.96 billion. Its profit margin for the region was unchanged from the same period a year ago at 8.8 percent.

The automaker said its market share in the region was down slightly because it was discontinuing sedans, but market share for its profitable F-series pickups increased.

Hackett said those results “demonstrate early evidence that fitness actions are now taking hold.”

Ford’s profit margin for the quarter was 4.4 percent, down 1.9 percentage points compared with the same period a year ago.

China troubles

Ford posted lower revenue, market share and sales in China, the world's largest vehicle market.

Ford lost $208 million in Asia Pacific in the quarter. Excluding China, it made $170 million in the region with profit margins of 9 percent.

The automaker is suffering from a lack of new product there that has led to a sharp decline in sales. New-vehicle sales fell 43 percent in September from a year earlier and are down 30 percent through the first nine months of the year.

Ford on Tuesday said it would separate its China business into a standalone unit and appointed Anning Chen, a former Ford executive with 25 years of industry experience, to become CEO of Ford China on Nov. 1.

Europe loss

Ford lost $245 million in Europe, up from a loss of $192 million in the same quarter last year. This was due to weakness in Turkey and Russia, and launch-related costs for the latest Focus compact car, Ford said. The company said revenue in the region increased due to higher volume and net pricing driven by new products.

Volume up in most major markets but this was offset partially by large decline in Turkey, Ford said. The compay's sales in Turkey fell 25 percent through August in a total market down 21 percent.

In Russia, Ford's sales were flat in September in a market up 6 percent.

In other regions, Ford lost $152 million in South America, down 1 percent. It made $47 million in the Middle East and Africa.

Ford said its mobility unit lost $196 million in the second quarter, $124 million more than it lost during the same period a year ago. The unit is in a heavy investment phase that has little offsetting revenue.

Ford Motor Credit made $678 million, its best quarterly results since 2011.

Ford’s net income equaled 29 cents per share, 1 cent higher than the consensus estimate on Wall Street.

The company reaffirmed its full-year target of adjusted earnings per share of $1.30 to $1.50. It had previously lowered its guidance from a range of $1.45 to $1.70 per share, citing troubles in Europe and China.

.

[kscarbel2]

The new European Focus looks good. It goes without saying the US market will never see it.

[Maxidyne]

Unfortunately, along with the new F-Max heavy truck, it'll never get a chance to prove itself in this market...

[kscarbel2]

Ford recalls almost 1.3 million Ford Focus vehicles in the U.S.

Automotive News  /  October 25, 2018

Ford Motor Co. is recalling nearly 1.3 million Ford Focus vehicles in the U.S. over an issue with the canister purge valve that may trigger engine stalls, the automaker said Thursday.

In a statement, Ford warned that the defective valve may result in inaccurate fuel levels and possibly engine stalls or an "inability to restart the vehicle," increasing the risk of a crash.

"Affected vehicles are equipped with a canister purge valve that may become stuck in an open position," the statement said. "If this occurs, an excessive vacuum in the fuel system could cause deformation of the vehicle's plastic fuel tank. As a result, the customer could observe a malfunction indicator light or a fuel gauge with fluctuating or inaccurate fuel levels."

The recall affects certain 2012-18 Focus vehicles with 2.0-liter GDI and 2.0-liter GTDI engines. Separately, the recall covers 136,272 vehicles in Canada and 44,521 in Mexico, according to Ford.

According to the chronology report, NHTSA contacted the automaker about complaints regarding a suspected "loss of motive power" on 2012-14 Focus vehicles.

"Ongoing discussions with the Agency occurred on August 28 and September 19, including an overview of the Focus fuel system operation and reviews of Ford's data," the report said.

Last week, the automaker's Field Review Committee reviewed the issue and greenlighted a field action, according to the report. Global fuel systems supplier TI Automotive is listed as the supplier of the defective components, specifically referencing its Ashley, Ind., location.

The automaker is unaware of any incidents related to the defect but urges customers to maintain "at least a half a tank" of gas until the recall is completed, according to the statement.

To rectify the issue, Ford and Lincoln dealers will reprogram the powertrain control module and check for fault codes and replace the valve as necessary, Ford said. If the valve is replaced, dealers also will inspect and replace the carbon canister, fuel tank and fuel delivery module if needed.

[Red Horse]

5 hours ago, kscarbel2 said:

The new European Focus looks good. It goes without saying the US market will never see it.

Of course-why would Hackett want to bring an attractive vehicle here?  In particular as he has a position to support-cars are out!-as he holds his hand to his ear waiting for the applause from the press.

[kscarbel2]

Ford, VW are in talks to broaden their alliance

Keith Naughton, Bloomberg  /  October 26, 2018

Ford sees VW cooperation helping with small cars, overseas markets

DETROIT -- Ford is in serious negotiations with Volkswagen Group to broaden their alliance beyond commercial vehicles in ways that would help Ford reverse losses in Europe and South America and share costs of costly technology and small cars.

"We're having a very broad set of discussions about how we can help each other around the world,” Bob Shanks, Ford's chief financial officer, said in an interview Thursday. "Collaboration isn't being limited in any way whatsoever, whether it’s different types of technology, product segments or geography."

The talks with VW are taking place at a pivotal time for Ford. While the stock soared almost 10 percent after the company beat earnings estimates, the automaker is restructuring globally and has backed away from margin targets that it had set for 2020. Partnering with rivals is one way to lower costs and get new cars and technology to market faster.

Ford is in similar talks with Mahindra & Mahindra to broaden an alliance that began to develop models for India and other emerging markets, including SUVs and electric cars.

"With VW and Mahindra, we haven't put boundary conditions in terms of where we could collaborate,” Shanks said. "We're looking at the strengths and the gaps of each company on both sides of the table and trying to understand how we can help each other."

Hackett’s hint

Ford CEO Jim Hackett hinted that the partnerships were progressing when he spoke to analysts on the company’s earnings call.

"We look forward to sharing more about this global redesign of the company," said Hackett, who is leading an $11 billion restructuring of the company. "We are going to be coming to you more frequently, including we’re going to talk about these strategic partnerships in the near future."

Ford shares rose the most in more than nine years Thursday after the company surprised investors with a $2 billion pretax profit in North America, on the strength of sales of high-profit pickups and SUVs. The result is early validation for the automaker’s controversial decision to abandon sedans in America.

While there's still much to be done to update Ford's aging lineup and prepare for the self-driving future, the shares rallied after having plunged to an almost nine-year low earlier in the week.

"There was fear that we might disappoint," Shanks said Thursday during a break from meetings with investors and analysts in New York. "There was relief that the business not only met expectations, but showed the strength of North America, the strength of Ford Credit and the fact that the overseas operations actually got slightly better.”

VW history

Striking deals with VW and Mahindra could further improve Ford’s outlook. Morgan Stanley analyst Adam Jonas predicts Ford will lose $3.6 billion in Europe from 2019 to 2021, making it the least-profitable automaker in that market.

In South America, where VW also operates, Ford has lost more than $4 billion since 2012. Sharing costs to develop cars and new technology with another automaker could help reverse those losses.

"In the world we're in, where the future is so ill-defined because it's yet to be created, companies are going to have to collaborate more together," Shanks said. "We have a history with VW. We get along with them. And if you look at the strengths and weaknesses of each of us, we match up really, really well."

The same is true with Ford’s relationship with Mahindra, Shanks said.

"That's very important in these types of collaborations because getting along well is a good part of the formula for success," Shanks said. "There's lots of examples where that hasn’t been the case and, ultimately, they haven't succeeded"

Hurried discussions

Shanks wouldn't say if there is a deadline for reaching deals with the automakers, but he said talks are proceeding with urgency.

"We're trying to get things done as quickly as we can because we’re all trying to improve the fortunes of each of our companies," Shanks said. “So, we’re moving to get clarity and get moving on to the actual collaboration as quickly as possible."

The partnerships and a parade of new products coming next year, including the mid-size Ranger pickup and redesigned versions of the Explorer and Escape SUVs, will begin to show the shape of Ford’s turnaround plan, Shanks said.

"Starting next year, the picture will start to come more and more into focus,” Shanks said. "It's something that won't be a big bang. It will be done as fast as we possibly can, but it will be done in chunks and pieces."

[kscarbel2]

Der neue Ford. Sieg heil!

[kscarbel2]

VW, Ford Considering Self-Drive Tie-Up as Talks Broaden

Keith Naughton & Christoph Rauwald, Bloomberg  /  October 26, 2018

Talks between Volkswagen AG and Ford Motor Co. on forming an alliance have broadened to include potential collaboration on autonomous driving and arrangements to make vehicles for one another.

The potential cooperation on self-driving technology could result in significant cost sharing.

Ford’s chief financial officer told Bloomberg News that talks are open-ended.

 “Collaboration isn’t being limited in any way whatsoever, whether it’s different types of technology, product segments or geography,” Ford CFO Bob Shanks said Thursday. “We’re having a very broad set of discussions about how we can help each other around the world.”

Ford reversed declines on the news and rose as much as 0.8 percent to $9.06 as of 11:30 a.m. Friday in New York. Volkswagen shares also pared their drop in Frankfurt trading.

A more significant alliance between Volkswagen and Ford has the potential to be one of the more compelling tie-ups for the industry. VW is the world’s largest automaker and has been spending tens of billions of dollars cleaning up after a diesel emissions scandal. Ford is embarking on a costly and years-long global restructuring and just abandoned a profit margin target it had set for 2020. Partnering with rivals is one way to lower costs and get new cars and technology to market faster.

A VW spokesman said talks with Ford are progressing well, but refused to elaborate.

Cooperation Talks

When VW and Ford first announced they were exploring joint projects in June, the only area they specifically discussed was development of commercial vehicles. VW CEO Herbert Diess had said in August that VW is generally open to expanding cooperation with Ford beyond light commercial vehicles and noted previous joint projects worked out well.

Ford has been struggling to reverse losses in markets including Europe and South America. It’s also in similar talks with Mahindra & Mahindra Ltd. to broaden an alliance that began to develop models for India and other emerging markets, including sport utility vehicles and electric cars. Together with its self-driving partner Argo AI, Ford has also said it’s open to outside investment, including providing autonomous technology to a second automaker.

“With VW and Mahindra, we haven’t put boundary conditions in terms of where we could collaborate,” Shanks said. “We’re looking at the strengths and the gaps of each company on both sides of the table and trying to understand how we can help each other.”

Ford Chief Executive Officer Jim Hackett hinted that the partnerships were progressing when he spoke to analysts on the company’s earnings call earlier this week.

“We look forward to sharing more about this global redesign of the company,” said Hackett, who is leading an $11 billion restructuring of the company. “We are going to be coming to you more frequently, including we’re going to talk about these strategic partnerships in the near future.”

Shares Slip

Ford shares slipped in early trading Friday after rising the most in more than nine years a day earlier. A $2 billion pretax profit in North America on the strength of sales of high-profit pickups and SUVs exceeded analysts’ expectations and was early validation for the automaker’s controversial decision to abandon sedans in America.

Striking deals with VW and Mahindra could further improve Ford’s outlook. Morgan Stanley analyst Adam Jonas predicts Ford will lose $3.6 billion in Europe from 2019 to 2021, making it the least-profitable automaker in that market.

In South America, where VW also operates, Ford has lost more than $4 billion since 2012. Sharing costs to develop cars and new technology with another automaker could help reverse those losses.

“In the world we’re in, where the future is so ill-defined because it’s yet to be created, companies are going to have to collaborate more together,” Shanks said Thursday during a break from meetings with investors and analysts in New York. “We have a history with VW. We get along with them. And if you look at the strengths and weaknesses of each of us, we match up really, really well.”

The same is true with Ford’s relationship with Mahindra, Shanks said.

“That’s very important in these types of collaborations because getting along well is a good part of the formula for success,” Shanks said. “There’s lots of examples where that hasn’t been the case and, ultimately, they haven’t succeeded.”

Shanks wouldn’t say if there is a deadline for reaching deals with the automakers, but he said talks are proceeding with urgency.

“We’re trying to get things done as quickly as we can because we’re all trying to improve the fortunes of each of our companies,” Shanks said. “So we’re moving to get clarity and get moving on to the actual collaboration as quickly as possible.”

[Dirtymilkman]

How long before VW buys Ford? 

[Maxidyne]

Depends on how long it takes for the Fords to let it go...

[kscarbel2]

China troubles dampen Ford's outlook

Michael Martinez, Automotive News  /  October 29, 2018

DETROIT — The world's largest vehicle market is causing some of Ford Motor Co.'s biggest headaches.

The automaker lost $378 million in China during the third quarter, down from a $102 million profit there a year earlier. That nearly half-billion-dollar swing dragged Ford's otherwise-profitable Asia Pacific region into the red and was a big reason executives said they no longer expect to meet a companywide target of 8 percent global margins by 2020.

In light of the dismal performance, Ford last week hired a new CEO for its China operation, Anning Chen, and separated the country into a standalone unit directly accountable to company headquarters. Chen, 57, a former Ford executive with 25 years of industry experience, was most recently CEO of China's state-owned Chery Automobile and chairman of Chery's joint venture with Jaguar Land Rover.

Ford is facing slower sales in China due to an aging product lineup, as well as increased competition and trade barriers created by the Trump administration's tariffs and retaliation by Beijing.

It's a stark turnaround for a country that just a few years ago represented a big growth opportunity for Ford, which began selling vehicles there later than many of its rivals. Ford's new-vehicle sales in China plunged 43 percent in September from a year earlier and were down 30 percent in the first nine months of 2018.

"China has really changed," Jim Farley, Ford's president of global markets, told Automotive News this month.

Farley said Ford's profits in China are driven by three key vehicles: the Ford Edge, Kuga and Transit. All are at the end of their life cycles.

The company is attempting to fix that problem with a product blitz that includes 50 new models by 2023, including a China-only crossover called the Territory and a redesigned Ford Focus sedan that won't be coming to North America.

"These launches and the growth opportunity of improving profit really come down to those products and how they land in the market," Farley said.

Chen, who starts as CEO of Ford China on Thursday, Nov. 1, previously spent 17 years at Ford in executive management roles focused on product and technology platform development and JV expansion. He joined Chery in 2010, when it was the seventh-largest vehicle manufacturer in China. He earned an MBA from the University of Michigan and a Ph.D. in engineering from the University of Cincinnati.

"Success in China is critical as we reposition our global business for long-term success," CEO Jim Hackett said in a statement.

Despite a 37 percent decline in third-quarter net income, Ford's stock jumped 9.9 percent the day after last week's earnings report. That was its largest one-day gain since April 2009, though the shares still ended the week below $9.

Ford's earnings beat analyst expectations by a penny per share, and revenue rose 3 percent to $37.6 billion, driven by higher sales of big-ticket vehicles in North America, including the redesigned Ford Expedition and Lincoln Navigator SUVs.

In North America, earnings rose 7.5 percent to $1.96 billion. Profit margin for the region was unchanged from the same period a year ago, at 8.8 percent, despite fewer sales and a drop in market share. That's because Ford is selling fewer low-margin sedans as it phases them out and more high-profit SUVs and pickups.

Hackett said those results "demonstrate early evidence" that his restructuring plan is improving the business.

‘Building blocks'

"We've had an extremely productive quarter in terms of putting building blocks in place," Hackett said on a conference call. "We're addressing real issues, and we're moving quickly to redesign the business in support of our stated strategy."

Ford's global profit margin was 4.4 percent, down from 6.3 percent a year earlier. The company lost $558 million outside North America.

Ford said its mobility unit lost $196 million in the quarter, vs. a $72 million loss during the same period a year ago. The unit is in a heavy investment phase that has little offsetting revenue.

Meanwhile, Ford Motor Credit made $678 million, marking its best quarter since 2011.

Ford said higher costs and uncertainty across the industry, as well as the international challenges it's working to overcome, likely will prevent it from hitting its goal of an 8 percent global profit margin by 2020. CFO Bob Shanks declined to offer an alternate time frame for reaching that threshold.

"We don't see, at the moment, a way to get there," Shanks told analysts. "Certainly, we're trying to get there as fast as we can. I'm not going to put a time frame on it because I don't want to go back and have to change it."

[kscarbel2]

VW and Ford in talks on self-driving and electric vehicles

Reuters  /  October 31, 2018

FRANKFURT/DETROIT - Volkswagen and Ford are in “exploratory talks” to jointly develop self-driving and electric vehicles in a far-reaching strategic alliance meant to save the companies billions of dollars.

The German and U.S. automakers are expected to provide an update on the progress of the talks before year end.

Spokesmen for both automakers would only reiterate what they have said before about the companies collaborating on the development of commercial vehicles.

“Our (memorandum of understanding) with VW covers conversations about potential collaborations across a number of areas. It is premature to share additional details at this time,” Ford spokesman Alan Hall said in an email.

Automakers globally are discussing teaming up to share the cost of developing autonomous and electric vehicles. Partnerships on autonomous driving technology differ by region.

Honda this month said it would invest $2.75 billion and take a stake in General Motors’ Cruise Automation self-driving vehicle unit to jointly develop autonomous vehicles for deployment in ride service fleets globally.

VW and Ford are under pressure to roll out more EVs in Europe, where emissions rules are being tightened in the wake of Volkswagen’s diesel emissions pollution scandal.

Volkswagen Chief Financial Officer Frank Witter on Tuesday said the carmaker was open to deeper alliances with outside companies, particularly in the area of autonomous driving.

Witter said sharing the carmaker’s electric cars platform MEB with Ford was theoretically possible, although VW is currently focused on rolling out the electric vehicle technologies among its own brands.

VW officials have repeatedly emphasized that the only way to make electric cars a mass market product is through economies of scale to make them as cheap or cheaper than diesel vehicles.

VW Group is investing 34 billion euros into e-mobility and autonomous driving by 2022 and plans to make 2 million to 3 million full-battery electric cars by 2025. VW’s MEB project already includes 50 billion euros in battery cell procurement by 2025.

Ford executives previously told Reuters the two automakers were in talks about expanding product and technology alliances.

VW and Ford are already part of a joint venture, dubbed IONITY, with BMW and Daimler to develop an ultrafast EV charging station network across Europe.

In July, Ford created a separate $4 billion unit to house its self-driving vehicle operations and was seeking outside investors in a move similar to one made by GM with Cruise.

Ford said then it would invest $4 billion through 2023 in its newly formed Ford Autonomous Vehicles LLC, including the $1 billion it previously had earmarked for Argo AI, the Pittsburgh-based self-driving startup that Ford acquired in 2017.

[Maxidyne]

OK, is VW or Ford going to get stuck with the cost of these money losing electric cars? And can Ford and VW together sell the million plus a year electric car volume needed to not even half justify the investment in an electric car platform? And if Ford buys into the MEB platform, what of Ford's investment in the train station and Corktown?

[kscarbel2]

VW wants more U.S. production capacity; could trade platforms with Ford

Larry Vellequette, Automotive News  /  November 5, 2018

HERNDON, Va. — The global head of Volkswagen Group says the German automaker is actively looking to add U.S. manufacturing capacity — by enlarging its sole U.S. assembly plant in Tennessee or building new — to make electric vehicles and otherwise expand its offerings to American consumers.

In an expansive, hourlong exclusive interview, Herbert Diess, who took over as CEO of Volkswagen Group in April, also said his company's ongoing discussions with Ford Motor Co. center on small commercial vehicles for Europe. But Diess said the talks between the two on-again, off-again global partners could go much further, including the possible sharing of VW's flexible EV platform and the potential use of Ford's midsize Ranger platform to replace the aging VW Amarok pickup sold outside the U.S.

Diess visited Volkswagen Group of America headquarters last week, in part for a town hall meeting with employees to welcome longtime Audi boss Scott Keogh to his new role as VW's North American CEO. Keogh succeeded Hinrich Woebcken on Nov. 1.

During the interview, Diess, 60, repeatedly stressed Keogh's autonomy and decision-making power. That authority includes deciding how best to increase VW's U.S. manufacturing footprint, Diess said, as well as how to improve U.S. dealer profitability and expand VW sales in the market, as he did during his 12 years with Audi of America.

"We set up the plant in Chattanooga always with the idea to be able to grow it, to mirror it," Diess told Automotive News. "The plant is still too small, and we are considering different options — it might be electric cars, it might be a different derivative of the Atlas — it's still open. Scott will decide. We have opportunities there, and also economies of scale because it is still a bit underutilized as a facility."

VW opened its 3.4 million square-foot Tennessee plant in 2011 to initially build the Passat, then expanded it when adding production of the Atlas three-row crossover. The plant has about 3,500 workers today. VW plans to start making a two-row version of the Atlas — the Atlas Cross Sport — there in 2019.

Ford talks

Diess confirmed discussions with Ford, which has been an occasional partner in past decades, and spoke glowingly of strategies on which the automakers could collaborate, but he dismissed any notion of VW growing bigger through consolidations or mergers. The VW board of supervisors will consider its strategic relationship with Ford on Nov. 16, Reuters reported.

"There's nothing signed yet with Ford. We are in talks," Diess said. "Most of the talks have been centered around our light-duty vehicles — our small commercial vehicles business in Europe, where we found huge synergies. We are both relatively small in size against our peers, so what we're talking about is sharing a few platforms and manufacturing sites there, which makes sense. And within the dialogue, we are also touching other options, but this will be the main focus if we come to a conclusion."

Ford is "a strong American company," Diess said. "We have been working together already many years, in Europe and Latin America. It was a good experience for both companies when we worked together. We split up afterwards, and now there is another new business case in Europe, which makes sense for both companies. It feels good, and I hope we can conclude a case."

Former Fiat Chrysler Automobiles CEO Sergio Marchionne, convinced that industry consolidation was necessary to make more efficient use of capital, had aggressively pursued a tie-up with VW well into 2017, only to be rebuffed. Ford officials have made clear that they are not looking at any alliance with VW that would involve equity stakes.

"I wouldn't agree with Marchionne that the right step forward is to have the biggest company," Diess said, "because in such kind of uncertainty, you have to be profitable, you have to be fast, and the new scales are different from the old scales. It doesn't help you if you have as many as possible gearboxes, etc. ... It doesn't help you."

The former BMW executive, who joined VW in 2015, said VW is "open" to licensing its modular EV platform, known as MEB, to other global automakers, including Ford. Diess said VW plans to build 50 million EVs globally across its brands, beginning in 2020, and has battery sourcing agreements for them. He said licensing MEB to other automakers would lead to further economies of scale.

"Today we have hundreds of different drivetrains in our industry, and there's a lot of differentiation in the drivetrain. I think this will become less, because the battery cells will become very similar on the basis of the same chemistry inside," Diess said. "It will be more about the economies of scale. Still, the battery pack, for the foreseeable future, will be more expensive than a combustion powertrain, so I think it makes a lot of sense to make more volume and generate economies of scale."

Coming pickup

Diess said Ford could provide VW with a global successor to its Amarok pickup, the only body-on-frame light vehicle left among the German automaker's 300-plus nameplates. But he said it would be up to Keogh to decide whether to give U.S. dealerships a small body-on-frame pickup based on the Ford Ranger or a unibody pickup that would closely follow the Tanoak concept VW unveiled in March at the New York auto show.

"It's up to Scott," Diess said. "If the Ford relationship works out well, we would have an Amarok successor, which would be then appropriate for sales worldwide — potentially as well for the United States. The other option is a unibody pickup, which is something for America, which is probably still a bit risky. On the other hand, you have to see that most of the SUVs have been transitioned in the last 20 years" to unibody construction. "I think, at some stage in the [midsize] pickups, the same thing will happen. ... I think unibody might make sense."

.

[Dirtymilkman]

Up next.......VW buys 20% of Ford stock.

[Maxidyne]

There's nothing stopping VW from acquiring 20% of Ford, but the way the Ford corporate structure is set up the Ford family controls the majority of the votes even though they have only a minority of the stock. As for VW adding capacity in the U.S., Chattanooga has 2 "lines" and each could make 200,000+ plus units a year. Neither the Passat line nor the Atlas line are building even half that, so VW has no need for another U.S. plant. What VW Chattanooga could do for Ford is provide an assembly home for the Focus and/or Fusion or simply Ford branded Passats. But another U.S. plant? Diess may just be blowing smoke to curry favor with the Trump administration...

[Red Horse]

Well the guy says..."The plant is too small"......and then says.."Its underutilized".   

 And speaking of Ford, I was on their website seeing if I could get length dimensions on an f-150. No such thing but while there I went to the 650/750 link.  I have to say they made some improvements.  But in typical Ford Commercial Truck organization fashion, in the tractor section is a picture of a very nice 30-35' beverage trailer-side loader, in a blue and white color scheme. And hooked to it?  An orange crew cab tractor! Like the one we have seen in the ad for the moving co.       Makes you wonder-does anyone with brains look at this stuff before they let it fly?

Only Ford would do something stupid like this that fosters the image they don't give a shit about this business.  I imagine if someone at F'liner, Hino, Paccar etc let something like this out they would be gone. 

Web sites are a selling tool-for some companies.  In this case?  Nothing but negative vibes for  Ford.  But I will say perhaps they DO read some of our online comments as they made no reference in the tractor section that the trucks were used for "towing".