Ford Market News

[kscarbel2]

Ford to build some EVs in Michigan, next Transit Connect in Mexico

Michael Martinez, Automotive News  /  March 20, 2019

DETROIT -- Ford Motor Co. has changed its North American production plans for autonomous and electric vehicles, again.

The automaker on Wednesday said its Flat Rock Assembly Plant near Detroit eventually will become a second location for production of battery-electric vehicles, in addition to a plant in Cuautitlan, Mexico. It is scrapping plans for an autonomous vehicle center at the Flat Rock site and instead will build those vehicles at another location in southeast Michigan.

The $900 million Ford had planned to spend on AV production in Flat Rock through 2023 will instead be largely dedicated to EVs and the next-generation Mustang, officials said. The plant, which is scheduled to lose its second production shift this spring, eventually will get the shift back, along with 900 new jobs. Ford did not say when the jobs, which it had previously announced, would be added.

As part of the moves, Ford said production of the next-generation Transit Connect van would shift to Mexico from Spain. Ford had been expected to start North American production of the Transit Connect, with Flat Rock among the locations believed to be under consideration.

"It's a better plan for how we allocate capital in a more efficient way," Joe Hinrichs, Ford's president of global operations, told Automotive News.

The automaker did not disclose a location, investment figure or jobs estimate for its autonomous vehicle center. In a statement, Ford said the site will upfit purpose-built, commercial-grade hybrid vehicles with self-driving technology and unique interiors. Production is slated to begin in 2021, with the vehicles being used commercially rather than sold to consumers.

"As we ramp up AV production, this plan allows us to adjust our investment spending to accommodate the pace of growth of this exciting new technology," Hinrichs said. "This new plan combines our core strength in mass manufacturing with the agility and leanness we've shown with our modification centers for specialty manufacturing."

Ford has shifted its EV and AV assembly plans several times since January 2017, when it canceled a $1.6 billion small-car plant under construction in Mexico shortly before President Donald Trump took office. At the time, Ford said it would make a big investment in Flat Rock to build autonomous vehicles and a long-range battery electric crossover. Later that year, it reversed the decision, saying it would focus on AVs in Flat Rock and move production of the battery-electric crossover to Mexico.

The long-range battery electric crossover, which Ford says is inspired by the Mustang and due in 2020, will still be built in Mexico. Flat Rock will be dedicated to Ford's future EVs, which will sit on a new, dedicated battery-electric architecture.

Ford's decision to build its next-generation Transit Connect in Mexico, after years of importing it from Spain and Turkey before that, allows the company to source more parts for the van from North American locations to meet requirements for the pending USMCA trade agreement. Ford is involved in a court battle with the government over allegations that it was unfairly skirting the so-called chicken tax -- a 25 percent tariff the U.S. has levied on light-truck imports since 1964 -- by bringing over Transit Connects that were built as passenger vehicles and then converting them to cargo vans stateside.

The third-generation Transit Connect, which analysts expect to go on sale in 2021, will be made in Hermosillo, Mexico, where production of the Fusion and Lincoln MKZ is slated to end at an undisclosed time.

"It wasn't so much about avoiding tariffs," Hinrichs said, "it was about improving the business."

[kscarbel2]

"It wasn't so much about avoiding tariffs," Hinrichs said, "it was about improving the business."

These guys regularly lie through their teeth Bob.

[kscarbel2]

F-150, Ram, Titan top IIHS passenger-side crash tests; GM pickups, Tundra among the worst

Michael Martinez, Automotive News  /  March 21, 2018

The Ford F-150 is the only pickup to earn top ratings in passenger-side crash testing by the Insurance Institute for Highway Safety.

The IIHS on Thursday said all four of General Motors' pickup nameplates earned only "marginal" ratings [pictured below], while the Toyota Tundra [pictured below] was the only one of 11 crew-cab pickups tested to get a "poor" rating.

GM's pickups and the Tundra received "poor" ratings for how the vehicle's structure held up in the passenger-side small overlap test, which IIHS initiated in 2017. All 11 pickups tested earned "good" ratings for head, neck and chest injuries. The Tundra was the only one not to receive a "good" rating for hip and thigh injuries.

The Ram 1500 and Nissan Titan joined the F-150 in receiving "good" ratings overall for passenger-side safety, though they landed one notch below the F-150 for structural integrity.

The results contrast with top ratings for nine of the 11 pickups on driver-side testing conducted previously.

The Honda Ridgeline, despite trailing the top performers with an "acceptable" overall passenger-side rating, is the only pickup to qualify for a 2019 Top Safety Pick award. That's because the Ridgeline is the only one to also get the required ratings of "good" for headlights and "superior" for front crash prevention.

"We commend Ford, Nissan and Ram for providing state-of-the-art crash protection for both drivers and front passengers of their large pickup models," David Zuby, IIHS chief research officer, said in a statement. "As a group, however, the pickup class still has a lot of work to do."

Small-overlap crashes account for about 25 percent of the serious driver injuries and deaths that occur in frontal impacts, IIHS says. The test, introduced in 2012, involves 25 percent of a vehicle's front end on the driver side striking a 5-foot-tall barrier at 40 mph. IIHS added a passenger-side small-overlap crash test in 2017.

Vehicles are given "good," "acceptable," "marginal" or "poor" ratings.

Many automakers initially struggled with the driver-side tests but have increasingly added features to improve their performance. Ford in 2015, for example, added steel horns -- known by most engineers as wheel blockers -- onto the frame of some F-150 versions to redirect the energy of the collision away from the passenger cabin. The automaker later spread the wheel blockers across all F-150s.

For the redesigned 2019 Ram 1500, Fiat Chrysler Automobiles incorporated what it calls a "splayed" frame, spreading the leading elements of the frame outward on each side of the pickup -- and protecting the wheel in the process.

IIHS said the Tundra's dummy received the most damage during testing, indicating a right lower leg injury would be likely in the event of a real-world crash. Right hip injuries also would be possible. Maximum intrusion into the Tundra's structure was 15 inches, vs. only 5 inches for the F-150.

The dummy in the F-150, by comparison, showed no signs of potential injuries.

The Tundra, along with the Nissan Frontier, are the only pickups to not earn a "good" rating in either driver-side or passenger-side tests. IIHS noted that they are the oldest in the group, with the Tundra's basic structure dating to the 2007 model year and the Frontier's to the 2005 model year.

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[kscarbel2]

Tampa, Florida based Brandon Ford was recently named the world's largest volume Ford truck dealer for 2018.

Los Angeles-based Galpin Ford remains Ford's largest overall volume sales dealer.

[kscarbel2]

Ford hires Amazon vet to succeed Shanks as CFO

Michael Martinez, Automotive News  /  March 21, 2019

DETROIT -- Ford Motor Co. said Bob Shanks, its CFO since 2012, will retire at year end and be replaced by Tim Stone, a 20-year veteran at Amazon and former CFO of Snap Inc., the parent company of popular phone app Snapchat.

The move is part of series of global changes announced Thursday that include new presidents of Ford's European operations and international markets group.

Stone, 52, will join Ford next month as a company officer and will become CFO on June 1. He will report directly to CEO Jim Hackett.

Shanks, 66, joined Ford in 1977 and was previously CFO at Mazda Motor Corp. He'll stay on through year end to assist on special projects, Ford said. His departure had been expected.

"Bob will leave a remarkable 42-year legacy at Ford," Hackett said in a statement. "As a CFO, he's been relentless in driving for results and pushing the company to greater heights. He's also been a wonderful colleague who leads with integrity, warmth and humor. Bob's leadership was integral to Ford's comeback during the Great Recession, and he has been an invaluable partner as we transform Ford to succeed in the next era."

Stone has a background in the tech sector, which could suit Ford well as it tries to redefine itself as an auto and a mobility company. Stone said he's familiar with Ford because his family drove Explorers and Ford vans, and his father used Ford vehicles in his work as a general contractor and plumber.

"He was a key player in the incredible success at Amazon and he understands the principles of fitness and growth as complementary virtues for Ford's future," Hackett said.

The automaker also announced other changes to its leadership team:

• Peter Fleet, president of international markets group, will retire. The international markets group is a new business unit that Ford will begin reporting financial results for on Jan. 1. It covers about 100 markets, including operations in Africa, ASEAN, Australia, India, Mexico, Middle East, New Zealand and South Korea.

Fleet, 51, has held roles in Ford marketing, sales and service, and global business operations. Most recently, he was Ford's president of Asia Pacific.

He'll be replaced April 1 by Mark Ovenden, president Ford Middle East & Africa. He'll report to Jim Farley, Ford's president of global markets.

• Stuart Rowley, 51, COO for Ford North America, will replace Steven Armstrong as president of Ford of Europe. Armstrong will become chairman of Ford of Europe.

In his new role, Armstrong, 54, will oversee key transformation projects and joint venture partner interactions for the region, as well as lead Ford's engagement with European governments on key industry legislation and issues, the automaker said.

Both men will report to Farley, and the moves are effective April 1, Ford said.

• Birgit Behrendt, 59, vice president, joint ventures, alliances and commercial affairs in Europe, will retire at the end of March. In her role, she helped establish Ford's global alliance with Volkswagen. She'll continue to be a member of the Ford Werke Supervisory Board. Ford did not name a successor.

[Red Horse]

On 3/20/2019 at 4:12 PM, kscarbel2 said:

DETROIT -- Ford Motor Co. has changed its North American production plans for autonomous and electric vehicles, again.

Well Kevin I guess we should give them the benefit of the doubt?  When you screw up and it is obvious, do you have the stones to admit it? Note Hinrichs said they can adjust the pace of expansion as AV market changes-or words to that effect.  

Maybe adjust pace as the public wants no part of AV's at least to degree the planners thought would take place.  that means "Car and Driver" is NOT changing its name to "Car and Sofa"!

[kscarbel2]

Dealers get a glimpse of Bronco prototype

Michael Martinez, Automotive News  /  March 25, 2019

In the 800-plus days since Ford Motor Co. flashed a Bronco logo on stage at the 2017 Detroit auto show, development of the highly anticipated SUV has been shrouded in secrecy.

But Ford used a gathering of its top-selling dealers last month in Palm Beach, Fla., to take the wraps off a prototype and to divulge plans for a "family" of rugged off-road vehicles, which sources told Automotive News will eventually include a small unibody pickup.

Dealers, after relinquishing their phones, were shown an early build of a two-door Bronco and told that a four-door version also would be offered, according to multiple sources in the room. The Bronco is designed to be customizable, with a removable hard top and removable doors that can be stored in the vehicle's cargo area, the sources said. The side mirrors will be attached to the front pillars so they remain in place when the doors are taken off, unlike the Jeep Wrangler — one of the chief rivals Ford is targeting with its Bronco revival.

Those in the room said the SUV has a retro design, featuring a rectangular grille, round headlights and the word "Bronco" stamped across the front.

The Bronco, a nameplate that Ford killed in 1996, and other off-roaders are key products for the automaker as it ditches unprofitable cars and devotes 90 percent of capital spending to more lucrative light trucks.

Ford also showed dealers its small off-roader — unofficially referred to as the Baby Bronco — as well as its upcoming Mustang-inspired, electric crossover with a 300-mile range. Executives did not divulge names for either of the vehicles, due next year.

The Bronco reveal was the highlight of the two-day confab, which included a private concert by the band Earth, Wind & Fire and an appearance by legendary NFL quarterback Joe Namath, who handed out Ford-blue sport coats and championship-style rings during a dealer Hall of Fame induction ceremony.

The Bronco "was twice as cool as I thought it would be," said one dealer, who asked to remain anonymous while discussing future products.

"It's going to be a game changer," said another dealer who attended.

Ford described its off-roaders to dealers as a family of vehicles, although the company stopped short of labeling them as a subbrand. The off-road lineup will include the two- and four-door Broncos, the Baby Bronco and the unibody pickup, sources said.

Jim Farley, Ford's president of global markets, confirmed plans for a compact pickup in January after Automobile magazine reported that Ford was working on such a vehicle. This is the first time, however, that the pickup has been tied to a larger off-road lineup.

Dealers were told the Bronco would be available in late 2020, as soon as three months after the Baby Bronco.

The unibody pickup isn't expected until at least 2021, according to another source with insight on Ford's product plans.

CEO Jim Hackett did not attend the meeting, but most of Ford's senior leadership team was there, including Farley, Joe Hinrichs, Kumar Galhotra, Mark LaNeve, Matt VanDyke and Elena Ford.

Ford plans to make the Bronco at its Michigan Assembly Plant, alongside the Ranger midsize pickup that went on sale in January.

The automaker has been tight-lipped about the vehicle, offering only a teaser image of a boxy SUV draped in a mud-caked covering. It declined to show even an image or rendering at larger dealer gatherings such as the National Automobile Dealers Association Show in January or a meeting in Las Vegas last fall, when it displayed photos of the Baby Bronco and other future products.

During the Las Vegas gathering, Farley teased dealers by promising to show them a Bronco, which turned out to be a picture of his own classic 1973 model.

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[kscarbel2]

Ford planning major cuts in Russia

Keith Naughton, Bloomberg  /  March 26, 2019

Ford Motor Co. may close two of its three assembly plants in Russia as part of a restructuring of its money-losing business operations in the country, a person familiar with the matter told Bloomberg.

The automaker, which operates a joint venture in Russia with local automaker Sollers, plans to make an announcement about the future of its operations there on Wednesday, the person said. Ford is likely to close one passenger-car factory near St. Petersburg and another in the Tatarstan region, but continue producing commercial vehicles at a third plant, said the person.

Moscow-based Sollers said in a statement that the two companies have reached a new agreement on the future of their venture and are finalizing details. Ford announced it was putting the business under review in January as part of a broader restructuring in a region that’s dragged on earnings for years.

Ford is also ceasing production at a French transmission factory, reducing its German staff by more than 5,000 people and cutting an unspecified number of jobs in the U.K.

Ford’s 50-50 joint venture with Sollers dates to 2011 and currently manufactures seven models, according to FordSollers’ website. The plant near St. Petersburg builds the Focus and Mondeo models, and the Tatarstan facility in Naberezhnye Chelny makes the Fiesta and Ecosport crossover.

Ford also has an engine plant and third assembly factory in the Tatarstan region in the town of Elabuga, which produces the Kuga crossover, Explorer SUV and Transit light commercial vehicles.

[kscarbel2]

VW updates status of Ford alliance talks

Jan Schwartz, Automotive News  /  March 28, 2019

HANNOVER -- Volkswagen Group has signed a deal to develop a pickup truck with Ford and may extend its alliance to include autonomous driving and mobility services, the German automaker said.

In January, VW and Ford agreed to develop a range of midsize pickups and commercial vehicles. They also agreed to explore cooperating on electric and autonomous cars as part of a sweeping alliance designed to save each automaker billions in costs.

The successor to the VW Amarok pickup will be the first joint vehicle project with Ford, Volkswagen Commercial Vehicles CEO Thomas Sedran said on Thursday. Ford has a platform for its Ranger midsized pickup truck, which could help VW lower development costs. 

Other joint vehicle projects may follow including joint EVs, Sedran said, without elaborating.

Discussions over VW's investment in Ford's self-driving unit Argo AI have been ongoing for several weeks. 

"We are in constructive talks about taking a stake in Argo, the Ford division for autonomous driving. A joint company for offering mobility as a service is also a possibility," Sedran said Thursday.

Last month, The Wall Street Journal reported that VW is preparing to invest $600 million as an equity investment in Argo, with each company owning half of the business. VW would invest $1.1 billion in working capital for the entity's r&d operations, the report said. 

The talks will come to a conclusion in the coming months, Sedran said.

Ford bought Argo, a Pittsburgh-based self-driving startup, in 2017 but development costs for autonomous cars have spiraled in recent years, leading several carmakers to seek alliances and outside investors.

[kscarbel2]

Ford Trucks Brasil: a breath of hope?

Transport Brasil  /  April 2, 2019

Grupo Caoa announces purchase of Ford operations in São Bernardo do Campo and wants to continue manufacturing trucks under US brand license

The legendary Ford Trucks is heading for a happy ending: after leaving the market stunned by its withdrawal in South America and threatening to eliminate more than 3,000 jobs, the company is, according to the newspaper O Estado de São Paulo, closing a sales agreement for Grupo Caoa, which already distributes the Subaru, Hyundai and Chery brands in Brazil.

According to newspaper sources, Caoa is interested in manufacturing Ford's trucks under the brand's license. Production of the Ford Fiesta hatch would continue. In Goiás, in the industrial city of Anápolis, Caoa has a large industrial complex where it manufactures the Hyundai HR and HD80 trucks, as well as the Hyundai Tucson and iX35 SUVs. There, the new Chery Tiggo 5X and Tiggo 7 are also made.

Help from the São Paulo government

When Ford announced the closure of its truck plant, the São Paulo government, led by Governor João Dória, began work to find a buyer for the operation, thinking about preserving jobs.

With the help of the governor and with interest in the Ford factory, Caoa Group expressed an interest in the São Paulo operation. The company said in February it had a strong partnership with Ford four decades ago and that "it would be natural for Caoa and Ford to talk about future deals."

Nothing official yet

Caoa and Ford have not yet confirmed the news and a Ford spokesman refused to discuss the matter. However, the news check with industry sources confirms the fact.

Plans with VW

In addition to having a new commercial truck joint venture in Brazil with Caoa, Ford’s plans also include a partnership with Volkswagen. The idea is to develop medium-size pickups and commercial vans together from 2022. The first fruit of this partnership will be the new Ranger, which will include a Volkswagen version.

In addition, Ford and Volkswagen have already stated that they will work together on the development of electric vehicles, as well as investing in the development of autonomous vehicle systems.

Scenes from the next chapters

It remains to be seen how the customers of Ford Trucks and their thousands of vehicles in circulation throughout Brazil will remain. How will the dealer network be structured? And the jobs?

[kscarbel2]

FORD: Trucks can't overcome car slump

Richard Truett, Automotive News  /  April 2, 2019

Ford's March U.S. sales dropped 5.2 percent with sharply weaker car demand offset by slightly higher truck deliveries, according to the Automotive News Data Center. Lincoln logged another quiet month with sales ticking up 1.9 percent.

If there were two breakout stars on the showroom floor, it was the Ranger midsize pickup and the EcoSport crossover. And a hat tip to the Fiesta for a strong month, even though the end of the road is near. Lincoln's new Nautilus is off to a good start, but otherwise, not much is happening in Ford's luxury division.

Brands: Ford, down 5.5%; Lincoln, up 1.9%.

Notable nameplates: EcoSport, Ford's smallest crossover, continues its winning streak with sales of 5,244 units. For the quarter, Ford sold 12,879 EcoSports, up 111 percent over 2018's first quarter.

The Fiesta, running on fumes as the clock winds down on the entry-level hatchback, racked up March sales of 7,299, up 47 percent year over year and 29 percent for the quarter. Another Ford car slated for burial, the midsize Fusion sedan, also saw sales rise in March, with 18,008 sold, up from 16,103 a year ago.

On the truck side, the F-150 held its ground against the recently revamped Ram from Fiat Chrysler and the Chevrolet Silverado and GMC Sierra from General Motors. U.S. sales of the F-150, the industry's best-selling nameplate, totaled 86,497 last month, down from 87,011 a year ago. For the quarter, sales were stagnant, but still an industry best at 214,611, down 0.2 percent over a year ago.

The Ranger's return has been nothing but good news for Ford. The midsize truck chalked up sales of 4,369 units in March, according to the Automotive News Data Center. But two of Ford's bread-and-butter SUVs, the Escape and Edge, posted March declines.

At Lincoln, March can best be described as sleepy. Sales of the brand's utilities rose 10 percent, a gain canceled out by a 19 percent decline in car deliveries. The Nautilus SUV was Lincoln's star performer in March, with sales of 3,019. Ford and Lincoln sales figures for March are provided by the Automotive News Data Center.

Q1 2019 U.S. light-vehicle market share: 14.7% vs. 14.5% in Q1 2018.

March incentives: $3,954 per vehicle, down 5.1%from a year earlier, ALG says.

Average transaction price in March: $39,183, up 4.8% from a year earlier, according to ALG

Did you know? Though Mustang sales were down in March, that could change starting now. Traditionally, sales of sporty cars pick up in the spring, jump-started oftentimes by added incentives. Mustang's strongest months are usually April to August. Sales of sporty cars have been weak as the market shifts from cars to crossovers, trucks and SUVs. We'll be watching closely to see if Mustang gains ground as we round the corner into summer.

[TS7]

Kscarbel I do not know much about the EcoSport,  but I see a lot them on the roads around here lately. 

Edited April 5, 2019 by TS7

[kscarbel2]

Ford thought the global EcoSport was too spartan and decided to revamp the interior before introducing it in North America. I drove it overseas and thought it was fine......never could understand their decision. Also, Ford originally thought the EcoSport (alike the Ranger) had no place in North America.

[kscarbel2]

CEO Jim Hackett: Trust that Ford is 'turning the corner'

Michael Martinez, Automotive News  /  April 9, 2019

DETROIT — Ford Motor Co. CEO Jim Hackett on Tuesday asserted that the automaker is "turning the corner" and will have positive news in the coming months.

Speaking at the Detroit Economic Club, Hackett reiterated that 2019 will be a "year of execution," a phrase he's used since describing 2018 as disappointing in a year-end letter to employees. The automaker made $7 billion last year with a profit margin of 4.4 percent, down from 6.1 percent in 2017.

"No one in the company was proud," Hackett said. "My reason for writing about it was not to tell them they did a bad job. It was to tell myself I can be better. I'm telling myself I can't have another year like that. Not that I'm worried about getting fired; it's like, who wants to spend their time being average?"

Hackett has instituted an $11 billion global restructuring at Ford that includes a transformation of its product portfolio and cuts to its salaried work force. In North America, the automaker expects to eventually hit 10 percent profit margins.

Hackett on Tuesday said the restructuring is starting to bear fruit, although he declined to go into specifics.

"We're turning the corner," he said. "Just trust me on this. You're going to be reading a lot about Ford performance going forward."

Hackett is approaching his two-year anniversary leading Ford. He replaced Mark Fields as CEO in May 2017 and was tasked by Executive Chairman Bill Ford with shaking up the automaker's culture and speed up decision making.

But investors and analysts remain skeptical. Ford's stock price has fallen 16 percent since Hackett took over.

Still, Hackett argues he has made the automaker more "fit" and better prepared it for an economic downturn.

He cited the automaker's reduced time to deliver vehicles, saying when he first became CEO and ordered a Mustang it took 81 days, but that's been cut to 35 days for delivery of some Fusions.

"Part of this mindset is — not to be recession-proof — but to say, 'Come on recession, we're ready for you.' " he said. "Ford will be ready for the recession."

Hackett did not address Ford's ongoing salaried layoffs in North America, a process that began last November and is anticipated to wrap up at some point in the second quarter. It's unclear how many workers Ford will lay off, or how far along it is in the process.

The automaker also is working on development of autonomous vehicles, which Hackett said will be ready by 2021.

Tamping down expectations

However, he appeared to tamp down expectations for the emerging technology.

“We’ve overestimated the arrival of autonomous vehicles,” he said. “We’ll be ready, but its application’s going to be narrow, what we call ‘geofenced,’ because the problem is so complex. When we break through it, it will change the way your toothpaste is delivered.”

Ford has consistently said it plans to launch a dedicated autonomous vehicle in 2021 at scale for commercial use delivering packages and other goods. It’s partnered with Domino’s Pizza to pilot autonomous delivery and with Postmates on autonomous grocery delivery. 

“The logistics systems that are powered today by routes and maps all folds into autonomy,” he said. “Logistics and ride structures and cities all get redesigned. I won’t be in charge of Ford when this is going on, but I see this as clearly as I saw that computer weight changing,” he said, referencing a time when he was CEO of furniture maker Steelcase that he predicted changes to computing that would affect office space. 

 

[kscarbel2]

Ford negotiating with Mahindra for India JV

Reuters  /  April 9, 2019

NEW DELHI -- Ford Motor Co. is nearing a deal with Mahindra & Mahindra to form a new joint-venture company in India, a move that would see the U.S. automaker cease its independent operations in the country.

Under the terms of the deal being negotiated, Ford would form a unit in India in which it will hold a 49 percent stake, while India's Mahindra would own 51 percent.

The U.S. carmaker's India unit would transfer most of its current automotive business to the newly created entity, including its assets and employees.

When asked for a comment, Ford would only say that both companies continue to work together "to develop avenues of strategic cooperation that help us achieve commercial, manufacturing and business efficiencies."

Mahindra said it was "working together in identified areas" with Ford after a 2017 partnership arrangement, and "will announce further definitive agreements as we progress on some of the other areas."

Currently, Ford manufactures and sells its cars in India through its wholly-owned subsidiary. In 2017, it also formed a strategic alliance with Mahindra under which, among other things, they plan to build new cars together, including SUVs and electric variants. 

[kscarbel2]

Farley, Hinrichs get new top roles as Ford prepares for future

Michael Martinez, Automotive News  /  April 10, 2019

DETROIT — As Ford CEO Jim Hackett works to transform the company, his top lieutenants will take on new roles: One will be responsible for making money and the other will spend it on future tech and innovation.

Jim Farley, 56, Ford's president of global markets, will take over Marcy Klevorn's mobility role in his new title of president of new businesses, technology and strategy. He'll oversee strategy, Ford's Smart Mobility subsidiary, its autonomous vehicle unit, research and advanced engineering, corporate partnerships and global data insight and analytics.

Joe Hinrichs, 52, Ford's president of global operations, will become president of automotive. He'll be in charge of Ford's global operations, including product development, purchasing, manufacturing, and marketing and sales, as well as the company's global business units: North America, South America, Europe, China and International Markets Group.

Klevorn, 59, president of mobility, will retire in October after 36 years with the company. Farley and Hinrichs’ appointments are effective May 1. 

Additionally, John Lawler, currently Ford’s vice president, strategy, will  take on an expanded role. He’ll lead corporate strategy, business development and global data insights and analytics. 

The move comes a few weeks after Paul Ballew, who previously led Ford’s data and analytics team, elected to retire effective April 5. 

This marks the second top executive shift in less than two years for Hackett, who appointed Farley, Hinrichs and Klevorn to their current roles after he was named CEO in May 2017. 

"In the past two years, we have made tangible progress in improving the fitness of our business, overhauled our regional strategies, created a winning product portfolio, and are working to transform Ford to succeed in an era of profound change and disruption," Hackett said in the statement. "With this strong foundation in place for our auto and mobility businesses, we can now accelerate our transformation."

By expanding Hinrichs’ role, Ford is handing him the reigns to the day-to-day business. He’ll oversee the reorganizations in markets like Europe and South America, and will lead Ford’s drive to improve profit margins in North America. 

“Joe Hinrichs possesses the knowledge, experience and leadership to now take our automotive business to world-class levels of product excellence, customer satisfaction, efficiency and financial performance,” Hackett said. “As we enter a busy period for new product launches and further restructuring in underperforming markets, Joe’s leadership in transforming businesses through focused execution will be key.”

Farley, meanwhile, now takes responsibility for Ford’s future-minded endeavors. The automaker is preparing to launch a Level 4 autonomous vehicle in 2021 for commercial use delivering packages and other goods. 

“Jim combines an innate feel for what customers want and need in vehicles and the ability to translate this into the vehicles and services of the future,” Hackett said.

Hackett, speaking to the Detroit Economic Club earlier this week, said 2019 will be a year of execution following what he termed a “mediocre” 2018. 

[kscarbel2]

Ford recalls F-150, Super Duty trucks a second time for fire risk

Greg Layson, Automotive News  /  April 10, 2019

Ford Motor Co. is recalling about 327,000 pickups equipped with engine block heaters because cable splice connectors might have inadvertently been damaged during a service procedure for a previous recall and now pose a fire risk.

The affected F-150 and Super Duty trucks are a subset of the 874,000 vehicles recalled during December 2018 to fix a wiring problem. So far, there is no immediate fix available.

Ford said in a statement that it is aware of a fire in the United States and one in Canada that may be related to block heater usage following the successful completion of the 2018 recall. Ford is also aware of an additional report of fire in Canada, which led to the initial recall last year.

There are now 131,068 affected vehicles in the United States and federalized territories and about 196,269 in Canada being recalled for a second time. 

Affected vehicles include:

• 2015-19 Ford F-150 vehicles built at Dearborn Truck Plant in Michigan from March 18, 2014, to Nov. 17, 2018, and at Kansas City Assembly Plant from Aug. 21, 2014, to Nov. 17, 2018;

• 2017-19 Ford F-series Super Duty vehicles built at Ohio Assembly Plant from Feb. 5, 2016, to Nov. 17, 2018, and at Kentucky Truck Plant from Oct. 8, 2015, to Nov. 17, 2018.

Ford warns a damaged block heater cable can cause an array of problems for the truck’s owner. Problems include an inoperative engine block heater; tripping of household breakers or GFCI-equipped outlets; or a resistive short, which can increase the risk of overheated or melted wiring and fire while the vehicle is parked and the block heater is plugged in.

Dealers will disable the vehicle’s engine block heater cable by cutting off the plug end prongs and sealing the end cap with silicone sealant. Customers will be notified when an engine block replacement cable is available. 

[kscarbel2]

Ford's overhaul in Europe diminishes German operations

Nick Gibbs, Automotive News  /  April 10, 2019

Ford Motor’s restructuring of its European operations and its shift toward utilities has one significant effect: Germany’s importance to the automaker in the region is gradually being diminished.

Germany currently is critical to Ford of Europe. Half of the company’s 53,000 European employees work there, and last year just over half its passenger cars sold in Europe were built in either its Cologne or Saarlouis plants.

Cologne has also been home to Ford of Europe’s headquarters since 1999 and is the center of Ford’s small-car development globally. Cologne also has an engine plant.

But Ford of Europe’s center of gravity is shifting. In March, Ford announced it will ax the C-Max compact minivan in June, reducing Saarlouis’s shifts to two from three and leaving just the Focus compact at the plant. Cologne also lost its third shift when it started building the newest Fiesta in 2017.

Ford said this year that it would cut 5,000 jobs in Germany.

The Fiesta is Ford’s best-selling model in Europe and the Focus No. 2, but that could change. Demand is falling in these traditional sectors as utilites become more popular, and Ford has said repeatedly that it’s happy to sacrifice sales of cheaper, unprofitable versions of these models to concentrate on higher-margin variants such as the Fiesta and Focus Active crossovers.

It’s already happening: In the first two months of the year, European sales of the Fiesta fell 24 percent to 34,523, according to market researchers JATO Dynamics. Sales of the newer Focus were up 12 percent to 36,601 but are expected to fall again.

Meanwhile, Ford has announced a second small utility that’s likely to further steal sales from Fiesta: the Puma.

This Fiesta-based vehicles won’t be built in Germany but instead in Craiova, Romania, where Ford has gradually been building up capacity. The Puma will be built alongside the EcoSport subcompact crossover. To accommodate the new car when it starts production this year, Ford will add a third shift at Craiova, Ford of Europe President Stuart Rowley told Automotive News Europe this month. That addition will take capacity at the plant to 100 percent, Rowley said.

“We’re going to fundamentally redesign Ford of Europe, and we need to be choiceful about where we invest,” he said.

Ford hasn’t communicated Craiova’s capacity, but local media reports say it could be as much as 300,000 annually with the third shift. Craiova also has an engine plant where it builds the 1.0-liter, three-cylinder EcoBoost engine.

Total employment at Craiova will rise to 5,900, Ford said last year.

Romania joins Turkey as a critical low-cost manufacturing hub for Ford in Europe. The two plants in Kocaeli, Turkey, build the bulk of Ford’s highly profitable Transit van range and are expected to receive more work in the future when Ford starts building a large van for Volkswagen Group, expected in 2023.

Ford already sources about half of its parts for Transits built there and looks to raise that, said Steve Armstrong, Ford of Europe’s chairman. One possibility is to relocate diesel engines, currently built in Ford’s Dagenham, England, plant.

Ford’s other important manufacturing base is Valencia, Spain, where it will build the newest Kuga, scheduled for launch this year. The Kuga secures the future of the plant, which is set to lose the Transit Connect van when VW begins building its replacement early next decade. Valencia also could lose the Mondeo midsize car and S-Max and Galaxy minivans if Ford decides to end them in response to falling sales.

Germany is likely to remain Ford’s development hub and headquarters, but it makes little sense for a company trying to overcome persistent losses to build small, low-margin cars in such a high-cost country, no matter how efficient the plants.

[Red Horse]

On 4/10/2019 at 9:24 PM, kscarbel2 said:

Ford recalls F-150, Super Duty trucks a second time for fire risk

Greg Layson, Automotive News  /  April 10, 2019

Ford Motor Co. is recalling about 327,000 pickups equipped with engine block heaters because cable splice connectors might have inadvertently been damaged during a service procedure for a previous recall and now pose a fire risk.

The affected F-150 and Super Duty trucks are a subset of the 874,000 vehicles recalled during December 2018 to fix a wiring problem. So far, there is no immediate fix available.

Ford said in a statement that it is aware of a fire in the United States and one in Canada that may be related to block heater usage following the successful completion of the 2018 recall. Ford is also aware of an additional report of fire in Canada, which led to the initial recall last year.

There are now 131,068 affected vehicles in the United States and federalized territories and about 196,269 in Canada being recalled for a second time.

Affected vehicles include:

• 2015-19 Ford F-150 vehicles built at Dearborn Truck Plant in Michigan from March 18, 2014, to Nov. 17, 2018, and at Kansas City Assembly Plant from Aug. 21, 2014, to Nov. 17, 2018;
• 2017-19 Ford F-series Super Duty vehicles built at Ohio Assembly Plant from Feb. 5, 2016, to Nov. 17, 2018, and at Kentucky Truck Plant from Oct. 8, 2015, to Nov. 17, 2018.

Ford warns a damaged block heater cable can cause an array of problems for the truck’s owner. Problems include an inoperative engine block heater; tripping of household breakers or GFCI-equipped outlets; or a resistive short, which can increase the risk of overheated or melted wiring and fire while the vehicle is parked and the block heater is plugged in.

Dealers will disable the vehicle’s engine block heater cable by cutting off the plug end prongs and sealing the end cap with silicone sealant. Customers will be notified when an engine block replacement cable is available.

How would you like to be the guy that signed off on that service bulletin

[kscarbel2]

Ford forecasts $1 billion profit improvement from Michigan truck plant

Ben Klayman, Reuters  /  April 17, 2019

DETROIT - Ford Motor Co’s shift in production at a Michigan plant to trucks from less profitable cars will lead to a more than $1 billion improvement in operating earnings, an official at the No. 2 U.S. automaker said on Wednesday.

The increase in earnings, before interest and taxes, in 2021 compared with 2017 is due to the shift at the Michigan Assembly Plant in Wayne, Michigan, from C-Max hybrids and Focus compact cars to Ranger mid-sized pickup trucks and Bronco SUVs, Ford’s Jim Baumbick, vice president of enterprise product line management, said at a Bank of America Merrill Lynch conference in New York.

“The absolute change in profitability is over $1 billion EBIT and we expect over the long, normal cycle, that to continue to improve,” he said. “That’s just an example of other choices that we’re making in the portfolio that are going to unlock additional value.”

Ford has been restructuring its operations globally to improve profitability and speed product development.

Ford is making product shifts elsewhere that are similar to those at the Michigan plant. Baumbick declined to provide details but said there were a couple of cases in which Ford was making “major changes in the overall profit contribution” from one vehicle to another.

The Ranger went on sale in January and the Bronco will launch next year.

In 2017, Ford built about 200,000 C-Max and Focus vehicles and will assemble more than 200,000 of the Ranger and Bronco vehicles in 2021, when the latter is at full production, Baumbick said.

Ford invested $850 million in the Detroit-area plant to retool for the pickup and SUV.

Baumbick said Ford will not chase volume over profitability with any launches. “If the better business has a slightly lower volume, then so be it,” he said.

As part of Ford’s push to speed up product development, Baumbick said a team of employees in 12 weeks developed a vehicle for the “affordable segments” that will go into production before the end of 2022. He declined to provide more detail.

Ford, based in Dearborn, Michigan, gets 150 percent of its operating profit from its strongest products, such as F-150 full-size pickup trucks and Transit vans. The focus is on shifting investments to areas that offer operating profit margins in the high teens on a percentage basis, Baumbick said.

He also said a Ford Mustang-inspired battery electric SUV that Ford plans to introduce next year would be profitable from its launch and build on company strengths, just like the upcoming electric F-150 will do.

[kscarbel2]

Ford to add ‘affordable' nameplate by 2022

Michael Martinez, Automotive News  /  April 17, 2019

Ford Motor Co. executives have promised for months that they wouldn't abandon customers who want the sedans it's discontinuing in North America. Now those plans are becoming clearer.

Jim Baumbick, Ford's vice president of enterprise product line management, on Wednesday said the automaker would by 2022 add an "affordable" nameplate aimed at filling the hole left by ending sales of the Fiesta, Focus, Fusion and Taurus sedans.

A Ford spokesman declined to say what sort of body style it would have or how big it would be.

"It's an example of how we're moving faster, working together differently and leveraging our five all-new flexible vehicle architectures," Ford said in a statement. "We came up with the concept in just 12 weeks using our new product creation process. Previous all-new vehicles could have taken years of research before receiving approval."

Baumbick was speaking at the Bank of America Merrill Lynch 2019 Auto Summit in New York. His presentation also showed that Ford plans to add a higher-performance variant of its "Mustang-inspired" electric crossover that the company has said it plans to start selling in 2020.

Ford previously has teased several upcoming vehicles under development, including a small off-road crossover informally known as the Baby Bronco that's planned for mid-2020, the revived Bronco SUV due in late 2020, and a unibody compact pickup expected around 2022. The pickup matches the timeline of the vehicle Baumbick mentioned, but it's unclear whether that is what he was talking about.

Ford product chief Hau Thai Tang in August said the Ford brand would grow to 23 nameplates — three more than it had last year — through 2023. He said nine new nameplates were planned, including seven pickups and utilities, as six others are discontinued.

[kscarbel2]

Corsair will be first Chinese Lincoln

Michael Martinez, Automotive News  /  April 17, 2019

NEW YORK — Lincoln Motor Co., aiming to build on the momentum from a revamp to the larger end of its utility-vehicle lineup, is now making a big bet on its smallest crossover — particularly in a key market, China.

The 2020 Corsair, which replaces the MKC, rides on a new Ford Motor Co. front-wheel-drive platform to better compete in one of the industry's fastest-growing segments. The compact luxury crossover features a new suspension, loads of driver-assist features and a plug-in hybrid option, although that variant won't be ready when the Corsair launches this fall.

The MKC has been the brand's second-best seller in the U.S., where it also draws the most customers from rival brands compared with any other Lincoln vehicle. But the compact crossover is even more vital in China, where it's Lincoln's top seller.

That's why the Corsair will be the first Lincoln built in China for that market, beginning late this year.

By localizing Chinese production, as well as continuing to build the U.S. version in Louisville, Ky., Lincoln is further leaning into utility vehicles as it continues its climb back to relevancy.

"Slow and steady wins the race, and cranking out a stable of stylish SUVs with actual names shoppers can identify isn't a bad way to build a brand right now," said Jessica Caldwell, executive director of industry analysis at Edmunds. "If Lincoln continues to build the types of vehicles shoppers want with a focus on style and quality, it has a real shot at a comeback."

Lincoln's first-quarter U.S. sales jumped 11 percent, including double-digit gains for all four of the brand's utility vehicles. It's hoping the compact Corsair, unveiled ahead of the New York auto show, will continue that trend, targeting younger buyers as well as defectors from other brands.

"It's unapologetically Lincoln," said Joy Falotico, Lincoln's president. "Corsair's addition to the portfolio means Lincoln now has a full family of SUVs to exceed the needs of our luxury clients."

'Sculpture in motion'

The vehicle sits on the same fwd platform that underpins the recently retooled Escape, but Corsair has a unique rear integral bush suspension. It's lower, wider and longer than the outgoing MKC, and it features what officials call the "most dramatic expression" of Lincoln's design language.

"It is virtually sculpture in motion, a vehicle definitely meant to seduce," said David Woodhouse, Lincoln's design director.

Corsair buyers can choose from two four-cylinder engines: a standard 2.0-liter with an estimated 250 hp and 275 pound-feet of torque and an optional 2.3-liter with a targeted 280 hp and 310 pound-feet of torque. While the engines are carryovers from the outgoing model, they're mated to a new eight-speed automatic transmission.

All-wheel drive is available with both engines. The vehicle can switch automatically from fwd to awd in response to road, speed, temperature and other conditions, Lincoln said.

The Corsair continues Lincoln's rollout out of five distinct drive modes for use in varying conditions: Normal, Excite, Slippery, Deep Conditions and Conserve.

It also features a dual-wall dashboard in the engine compartment to reduce vibrations and sound.

Tech features

The Corsair has "phone as a key" technology, which Lincoln plans to debut on the Aviaitor crossover this summer. Owners can download the Lincoln Way app and use their smartphone to lock, unlock and start their vehicle. If the phone's battery dies, a backup passcode can be entered on the exterior keypad to enter the vehicle, and the center touch screen can be used to start the engine.

The vehicle also features Lincoln's suite of standard driver-assist technology: pre-collision assist with automatic emergency braking and pedestrian detection, blind spot information system, a lane-keeping system, a rear backup camera, and auto high-beam lighting.

Optional safety features include the company's second-generation active park assist, adaptive cruise control with traffic jam assist, and evasive steering assist. A head-up display is optional.

'Moment of quiet'

The Corsair will launch in a hyper-competitive compact luxury crossover segment that jumped 30 percent in the U.S. last year, according to the Automotive News Data Center. MKC sales, in contrast, fell 3 percent.

But through the first three months of 2019, MKC sales are up 18 percent, helping the brand to its best first quarter in more than a decade.

The Corsair's arrival will follow that of the new Aviator large crossover this summer, which comes on the heels of updates to the Nautilus midsize crossover and the Navigator full-size SUV.

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[kscarbel2]

 

[DailyDiesel]

I see that Ford has trademarked the names Scout and Bronco Scout for possible future use. The Scout will always be an IH product in my mind!

https://www.autoblog.com/2019/04/22/ford-trademarks-scout-bronco-scout-names/

[Maxidyne]

Wonder what CNH thinks of that, given that they're selling a side by side ATV called the "Scout"... https://www.caseih.com/northamerica/en-us/products/utv/case-ih-utility-vehicles