Tagged: Ford Motor Company

Ford Motor Company announced its second-quarter earnings this morning. And, although profits dropped slightly, the automaker did beat analysts' expectations. The Associated Press reports:

The company earned $2.4 billion, or 59 cents per share, down 8 percent from $2.6 billion, or 61 cents per share, in the second quarter of 2010. It was Ford's ninth straight quarterly profit. Worldwide sales rose, but the company spent more on materials and product development.

Revenue rose 13 percent to $35.5 billion. Analysts polled by FactSet had forecast revenue of $32.15 billion. Without one-time items, including $110 million for employee reductions, Ford would have earned $2.9 billion, or 65 cents per share. That beat analysts' forecast of 60 cents per share. Ford paid off $2.6 billion in debt during the quarter.

The United Auto Workers formally kicked off negotiations today with Detroit automakers.

Current UAW contracts with Chrysler, GM, and Ford expire in mid-September.

Michigan Radio's Sarah Cwiek reports that Chrysler Group LLC management and the UAW emphasized unity at the press event today:

Scott Garberding is a Senior Vice President for Chrysler. He says the company and the UAW worked together to get Chrysler through bankruptcy. Garberding says it’s important for the new contract to recognize the sacrifices Chrysler workers have made.

"And at the same time, establishing a legacy for our organization to ensure that we remain competitive long-term. And I can’t think of a better team that could collectively come together and craft that type of arrangement. "

Last week, UAW President Bob King said he wanted workers to see the benefits of increased profit sharing. The UAW is also expected to seek wage increases for entry-level workers, and job guarantees. After huge layoffs, King said remaining workers want to count on their jobs:

“They want stability,” he said. “They want to know they’ll be working next week and next year, and that they will be able to send their kids to college.”

Talks are expected to take at least a month, and if things don't go well in negotiations with Chrysler and GM, the UAW is compelled to enter into binding arbitration. The UAW cannot strike under the terms of the government bailouts:

This year, for the first time, the UAW is bound by an agreement that it reached with Chrysler and General Motors in 2009 that requires the two sides to enter into binding arbitration if they reach an impasse.

King said Chrysler and the UAW have formed a committee to set up the ground rules for arbitration, even though he said that is a last resort.

“If arbitration happens … then I would say we haven’t done our job,” King said.

The UAW can, however, strike against Ford Motor Company. Analysts are curious to see if UAW negotiators are able to secure better terms with Ford.

A technology company has sued Ford Motor Company over patent infringements related to some of Ford’s hottest new products, including Sync.

The lawsuit says Eagle Harbor Holdings met with Ford starting in 2000 to discuss using Eagle Harbor’s voice command software and other patented technology. 

Eagle Harbor's General Counsel, Jeff Harmes, says Ford’s hands-free phone system, Sync, uses some of that technology.   But he says Ford broke off talks with Eagle Harbor in 2008.    

General Motors, Ford and other automakers will release their June auto sales numbers Friday.  Toyota continues to recover from this year’s natural disaster.    

Michigan House to release its redistricting plan

The political boundaries in Michigan are being redrawn by the party in power, and Republicans in the State House plan to release their proposed redistricting maps this Friday.

Redrawing political boundaries is required every ten years after the U.S. Census numbers are released.

It's the first time the public will see how some Republicans plan to redraw Michigan's political maps.

Republicans in the State Senate will release their plans later.

Michigan is the only state in the nation to have lost population, so the state will lose one seat in the U.S. House of Representatives. From the Detroit News:

Congressional districts represented by Democratic U.S. Reps. Gary Peters of Bloomfield Township and Sander Levin of Royal Oak would be merged under a plan Republicans reviewed in late May that was obtained by The Detroit News.

If both wanted to keep their seat, they'd have to run against each other in a Democratic primary. The draft plan would boost GOP majorities in a number of districts, making it easier for Republicans to hold on to their seats.

After the maps are released, the House Redistricting Committee will have hearings, according to a press release by Lund.

The latest U.S. Census numbers show that populations declined in southeast Michigan and grew in the west and other parts of the state.

State Representative Pete Lund (R - Shelby Township) chairman of the House Redistricting Committee was quoted in the News article, "the maps are going to reflect where people have moved. Whatever areas lost population will lose representation, and whatever areas gained population will gain representation."

Ford shares fall after $2 billion judgment in dealer suit An Ohio judge ruled that Ford Motor Company had to pay more than $2 billion in damages to thousands of dealerships. In the class action suit, the dealers contend they were overcharged for trucks they paid for over an 11 year period. From the Associated Press: 

Ford Motor Co. shares sank early Monday after an Ohio judge said the automaker had to pay nearly $2 billion in damages to thousands of dealerships who participated in a 2002 class-action lawsuit. But the shares pared their losses as several analysts downplayed the news and said Ford can absorb the damages even if loses a planned appeal.

ACLU goes after Livonia's medical marijuana ban

The ACLU will challenge Livonia's medical marijuana ban in court today.

From the Detroit Free Press:

The American Civil Liberties Union will try to convince a Wayne County judge today to strike down a Livonia ordinance that bans medical marijuana in any way, shape or form.

The ACLU of Michigan, arguing on behalf of a medical marijuana patient with multiple sclerosis, claims that the Livonia measure violates the 2008 Michigan Medical Marihuana Act, which legalized medical marijuana. ACLU Attorney Andy Nickelhoff will present oral arguments at 11 a.m. before Wayne County Circuit Court Judge Wendy M. Baxter.

The ACLU is representing Linda and Robert Lott of Birmingham.

Both Ford and General Motors today predicted they will expand their global presence, despite rising energy and commodity prices. 

GM held its first public stockholders meeting in Detroit – and Ford held its annual Investors Meeting in New York. 

GM CEO Dan Akerson told stockholders to consider the company a long-term investment, not short-term.  GM stock has lost a fair bit of value since the IPO in November.