Ford Motor Company

Changing Gears
12:40 pm
Tue January 31, 2012

4 Things $100 Million could buy in the Midwest (besides political ads)

$100 million for a high-stakes political battle, or laser guided robots? Your choice.
Ford Motor Company

Talking Points Memo, an influential political blog, is estimating that as much as $100 million could be spent on the recall fight involving Wisconsin Republican Gov. Scott Walker.

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Auto/Economy
1:29 pm
Fri January 27, 2012

Ford posts third consecutive annual profit despite speed bumps

Ford Motor Company posted its third consecutive annual profit last year.   

It’s another sign that the company’s massive restructuring effort, which began in 2006, has returned the company to financial health. 

"This was our plan," said Ford CEO Alan Mulally.  "This is our vision of growing a great company for the good of all of us." 

Ford made an $8.8 billion pre-tax operating profit last year, not including a one-time tax gain.  That compares to an $8.3 billion pre-tax operating profit in 2010.

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Auto/Economy
3:35 pm
Tue January 24, 2012

Business leaders release updated "Michigan Turnaround Plan"

A group of influential Michigan business leaders says Governor Snyder and the state legislature have advanced their plan to revive the state’s economy.a

Business Leaders for Michigan released its updated Michigan Turnaround Plan Tuesday.  Their goal is to make Michigan a top-ten state for job, economic and personal income growth.

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Auto/Economy
11:59 am
Thu January 19, 2012

Ford salaried workers to get raises, bonuses

Marcus Wong creative commons

DEARBORN, Mich. (AP) - Ford is giving pay raises and bonuses to about 20,000 white-collar workers, mainly in the U.S. and Canada.

Letters sent to workers last week say they'll get 2.7 percent raises on April 1. They'll also get bonuses based on performance.

The raises are a sign that Ford is confident in its turnaround and in the U.S. economy. Ford Motor Co. made $6.6 billion in the first three quarters of last year. It reports fourth-quarter earnings this month. The company's U.S. sales rose 11 percent last year.

Spokeswoman Marcey Evans says the raises are needed to keep pay competitive with other Fortune 100 companies.

Salaried workers last got raises in 2010. Only performance bonuses were given in 2011.

Ford has made a huge turnaround since 2006, when it lost $12.6 billion.

Detroit Auto Show
9:00 am
Tue January 10, 2012

2013 Ford Fusion makes its big debut at the Detroit Auto Show

On Monday January 9, Ford Motor Company revealed its 2013 Ford Fusion.
Mercedes Mejia/Michigan Radio

Auto companies use words such as "affordability", "reliability", "high performance", "style" and "fuel economy" to sell you a car.  

Ford Motor Company thinks they’ve got it all. Of course, they do have some competition.

Michigan Radio's Tracy Samilton reports:

Ford Motor Company is unveiling its new Fusion, hoping to topple the traditional midsize sedan leaders, the Toyota Camry and Honda Accord. The Fusion will also come in hybrid and plug-in hybrid versions, with the plug-in getting the equivalent of 100 miles per gallon. 

Here's the splashy unveiling of the 2013 Ford Fusion at the North American International Auto Show in Detroit.

Detroit auto show
2:53 pm
Mon January 9, 2012

Ford, GM, Chrysler all hope to make gains against foreign competition

The 2013 Ford Fusion at the Detroit Auto Show.
Mercedes Mejia/Michigan Radio

Detroit automakers are introducing cars at this year’s Detroit Auto Show that could help them make gains against foreign-based competitors. 

Ford Motor Company is unveiling its new Fusion, hoping to topple the traditional midsize sedan leaders, the Toyota Camry and Honda Accord.  

The Fusion will also come in hybrid and plug-in hybrid versions, with the plug-in getting the equivalent of 100 miles per gallon.  

Ford CEO Alan Mulally says the company sold a record number of Fusions in 2011 -

"It had its best sales year ever," Mulally told reporters after revealing the Fusion at Joe Louis Arena.  "So the new Fusion is going to build on that success and be very, very popular with consumers."

But Ford Executive Chairman, Bill Ford, Jr., says the company is not going to pursue an increase in market share for the coveted midsize sedan segment just for the sake of market share.

"We are not going to play that volume game," he says.  "If it happens organically, great, but we don’t have some magic number on the wall that we’re all pushing toward."

Meanwhile, Cadillac on Sunday introduced a new small luxury vehicle, the ATS, to compete against BMW and Mercedes Benz.   GM North American President Mark Reuss says the car is a "true driver's car," and can compete head to head with the Mercedes Benz C class and the BMW 3 series.

BMW North America head Ludwig Willisch says a new competitor is always a concern, but he's confident that upgrades to the new 3-series will enable the company to keep its leadership position.

For its part, Chrysler introduced a new small car called the Dodge Dart.  The car will compete against small cars made both by its Detroit rivals and foreign-based companies including Toyota, Honda and Hyundai.

Auto/Economy
12:09 pm
Fri November 18, 2011

Detroit carmaker CEOs watch Italy, Greece, and worry

automotiveauto.info

The heads of two of Detroit’s car companies say they’re concerned about the debt crisis in Europe. 

European consumers are pulling back from buying cars because of fears about the Euro and the economy.   

Fiat and Chrysler CEO Sergio Marchionne on Wednesday said he’s hopeful the new leadership in Italy will help turn things around in that country.  But he says car sales in Europe could worsen through next year.   

At the Detroit Economic Club Thursday, GM CEO Dan Akerson said the crisis could damage more than car sales.  But he’s hopeful the U.S. economy has become more resilient.

"Could the United States withstand a recession in Europe?" he asked rhetorically.  "I think it could. "

Ford CEO Alan Mulally earlier this month took the most optimistic view, saying he expects some global economic growth next year, despite sovereign debt concerns.

Auto/Economy
10:07 am
Wed November 9, 2011

GM's Akerson says solid 3rd quarter "not good enough"

General Motors CEO Dan Akerson

General Motors made $1.7 billion in the third quarter of this year.

That's down from $2 billion in the same period of 2010.

Financial turmoil in Europe contributed to GM's continued losses in Europe, although GM did cut those losses in half compared to last year, to $300 million.

GM is also not doing particularly well in South America.  The company broke even in that region.  GM officials say that's due to increased competition in the region and an aging lineup there.

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Ford problems easy fix
6:04 pm
Thu October 27, 2011

Ford quality issues easy to fix, says CEO Mulally

The CEO of Ford Motor Company says the company is well on the way to fixing quality problems in new Ford cars.

The problems resulted in a big drop in the rankings for Ford in Consumer Reports' 2011 reliability survey.

Customers are having problems with the company’s My Ford in-car communication system. 

Users found the touch screens hard to activate or they had to be rebooted frequently.  

Consumer Reports' David Champion said that’s a safety issue, if people are so distracted by the problems that they take their eyes off the road.  

The new transmission in the Focus and Fusion has glitches, too. 

CEO Alan Mulally said both problems are software related.  

"So it’s relatively easy and fast, to be able to make those improvements," Mulally told Michigan Radio.  "So we’ve already started to incorporate that in the products that are in the field but also in the new products coming out."

Mulally said Ford began working on the issue a year ago, right after customers started complaining. 

Ford fell from 10th to 20th place this year in the Consumer Reports reliability survey.

Ford profits slightly lower
10:20 am
Wed October 26, 2011

Ford third quarter profits down a bit but still strong

Ford Motor Company

Ford Motor Company reports strong profits for the third quarter.  The company made $1.6 billion, despite a stagnant U.S. economy.   

The company's profit was down a bit from last year, because of a charge related to commodities, not because sales have slowed. 

Ford also reduced its debt by another $1.3 billion.

CEO Alan Mulally says the improved balance sheet -- and the new contract with the United Auto Workers -- will result in job growth over the next three to four years.

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Ford falls in reliability, Chrysler rises
5:22 pm
Tue October 25, 2011

Ford Motor Company falls, Chrysler rises in reliability survey

Ford Motor Company fell from grace in a Consumer Reports survey this year.

The survey predicts reliability of new models, based on past performance of older versions of the cars.

Ford dropped from 10th place to 20th.

David Champion is with Consumer Reports. 

He says the MyFordTouch and MyLincoln Touch in-car communications systems work poorly.

And a new transmission in the Ford Focus and Fusion doesn’t work well, especially at parking lot speeds.

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Auto/Economy
1:16 pm
Fri October 21, 2011

Ford's credit rating gets an upgrade

 NEW YORK (AP) - Standard & Poor's is raising Ford Motor Co.'s credit rating two notches, saying a new contract with auto workers will allow for continued profits at the car maker's North American operations.

S&P said Friday it was upgrading Ford to "BB+" - one level below investment-grade - from "BB-."

Ford shares are up 45 cents, or 3.9 percent, to $12.15 in late-morning trading.

Ford union contract approved, Chrysler next
10:19 am
Thu October 20, 2011

With Ford contract ratified, UAW turns to Chrysler

Staff Chrysler Media

Chrysler union workers vote this week on a tentative new contract. 

Ford workers approved their contract on Wednesday, 63-percent in favor to 37-percent against. 

But the contract was narrowly rejected at the Michigan Assembly plant in Wayne.  Bob King is President of the union. 

"I don’t feel bad or in any way negative towards those workers because they voted against it," says King.  "I think they expressed honest, legitimate concerns.   I have the same concerns.   I don’t like a system where people on the same assembly line are making a different rate of pay."

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Auto/Economy
11:28 am
Wed October 19, 2011

UAW membership approves 4-year contract with Ford

A majority of the 41,000 UAW workers at Ford have ratified a four-year contract with the company.

From the Detroit Free Press

The UAW said 63% of production workers voted in favor of the agreement and 65% of skilled-trades workers voted in favor of the deal.

“I am pleased with the strong support for this agreement from UAW Ford members,” UAW Vice President Jimmy Settles said in a statement today. “I believe UAW Ford workers understood the importance of each and every vote.”

The contract needed to pass by a simple majority.

Ratification of the agreement leaves Chrysler as the only member of the Detroit Three without a contract. Chrysler workers began voting Tuesday on a tentative agreement while General Motors workers ratified a deal on Sept. 28.

Ford Motor Company officials say the new agreement will add jobs and improve the company's competitiveness in the U.S.

From a Ford press release:

Ford is adding 12,000 hourly jobs in its U.S. manufacturing facilities through the four-year term of the contract, including in-sourcing work from Mexico, China and Japan. The company also is investing $16 billion in its U.S. product development and manufacturing operations – including $6.2 billion in plant-specific investments – by 2015. 

“This agreement is proof that, by working together with our UAW partners and local communities, we can significantly create new jobs, invest in our plants and people, and make a very positive impact on the U.S. economy,” said Mark Fields, Ford Motor Company’s president of The Americas. “Our agreement is fair to our employees and it improves our competitiveness in the U.S."

Company officials say new production shifts will be added at Auto Alliance International in Flat Rock, Michigan, and at the Michigan Assembly Plant in Wayne.

Auto/Economy
6:10 pm
Sun October 16, 2011

Ford's largest local union approves contract

Workers at Ford's largest local union have approved a new labor contract with the company.

Ford and the UAW reached a tentative agreement on the contract earlier this month but it must be ratified by Ford's 41,000 UAW workers.

The union says 62 percent of the more than 5,000 workers at Local 600 in Dearborn favored the agreement.

Ford in China
12:19 am
Fri October 14, 2011

Ford and the case of the Chinese official's hat

Want to know the real reason Ford isn’t one of the biggest car companies in China right now? 

Hats. 

That's right. David McKee says it’s because of hats. Here’s the story. 

In 1992, Ford Motor Company sent McKee to China to head a Ford components company. At the time, very few ordinary Chinese owned cars. Cars were a perk for bureaucrats. 

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Selling cars in China different than U.S.
10:59 am
Tue October 11, 2011

Detroit automakers shift approach to sell cars in China

General Motors now sells more cars in China that it does in the United States. In a few years, it’s likely that will be the case for Ford Motor Company, too.   

But selling cars in China takes a different approach than it does in the U.S.

There's much that's familiar at Shanghai Dongchang Fude Auto Sales and Service. There’s the piped in music -- the salespeople hanging out near the front entrance, waiting to grab the next walk-in customer., and the lineup of shiny new cars on the floor. 

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Auto/Economy
11:06 am
Wed October 5, 2011

Ford and the UAW

There’s a fair amount of grumbling in union ranks over the new four-year contract the United Auto Workers reached with Ford.

Some workers are unhappy that they failed to gain back concessions, and that there is nothing new for the retirees, who overwhelmingly outnumber those still working on the line.

Ford workers also thought they deserved more than those at GM and Chrysler, mainly because their automaker was the only one not to declare bankruptcy. They get a little more, but not much.

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Auto/Economy
1:03 pm
Tue October 4, 2011

Ford-UAW deal includes more jobs and U.S. investment

John Fleming, Ford executive vice president of Global Manufacturing and Labor Affairs discusses the UAW agreement with reporters this morning.
screen grab fordahead.com

Update 1:03 p.m.

More details of the UAW-Ford agreement emerged after the UAW's press conference. UAW vice president Jimmy Settles reports winning a "a $6,000 settlement bonus for workers and $7,000 in inflation protection and competitive lump-sum payments over the term of the agreement."

Settles said workers will receive a payment averaging $3,700 this year.

Entry-level wages for new Ford workers are similar to the GM agreement. Their hourly pay was raised to $19.28 over the term of the agreement.

The union details where the investments in jobs and upgraded auto plants will occur in the U.S. saying that "jobs, investment and product guarantees in the tentative agreement include":

  • Flat Rock, Mich., second source for the next generation Fusion and next-generation Mustang.
  • Kansas City, Mo., in-source Transit Commercial Van from Europe.
  • Louisville, Ky., new unnamed vehicle in addition to 2012 Escape.
  • Wayne, Mich., in-source C-Max from Europe in both hybrid and plug-in hybrid models.
  • Avon Lake, Ohio, in-source medium truck and frame assembly from Mexico, along with in-source Motorhome Chassis.

The agreement with Ford was recommenced to the union's larger membership. Now all UAW members will vote for or against ratification this week.

10:27 a.m.

The agreement reached between Ford Motor Company and United Auto Worker representatives will lead to more jobs and investment in the U.S., according to the Detroit News.

Alisa Priddle of the Detroit News reports that many of those jobs will be in Michigan:

The figure includes 7,000 jobs previously announced as well as 5,000 additional jobs - the majority of them new and paying the lower, entry-level wage. Ford officials declined to break down the exact split between new and saved jobs. Some the jobs are from in-sourcing of work that has been previously done in other countries, including Mexico, Japan and China.

The UAW says that "proposed agreement also includes $16 billion of investment to produce new models and upgraded vehicles and components by 2015, of which, $6.3 billion will be invested directly into retooling and upgrading plants."

Ford's union workers are demanding more from Ford compared to the workers at GM and Chrysler.

Part of it has to do with bargaining from a position of power. Ford's union workers could strike should an agreement not be reached. Chrysler and GM workers do not have that option. Both Chrysler and GM took loans from the federal government's Troubled Asset Relief Program (TARP). A condition of those loans stipulated that its workers could not strike.

Brent Snavely reports in USA Today on the other reasons workers at Ford hope to achieve more in their negotiations with the company.

Entering contract talks, the UAW and Ford had an unresolved grievance, signed by 35,000 of the automaker's 40,600 workers, alleging that Ford had violated equity of sacrifice promise by restoring merit pay to white-collar workers but not to hourly workers.

But Ford workers say they have more reasons to expect more than UAW members at GM. Ford has made $14.2 billion in profits since the end of 2008. Ford CEO Alan Mulally and Executive Chairman Bill Ford each made $26.5 million in 2010, an amount that many workers find excessive since production workers have gone eight years without a base wage increase. That high executive pay has become a rallying point for discontents in Ford's factories.

Comparing previous contracts, Snavely reports that "Ford pays $58 an hour for wages and benefits, which is about $2 more per hour than GM and $9 an hour more than Chrysler were paying..."

More details of the tentative 4-year agreement between Ford and the UAW will be revealed at an 11:30 press conference. The contract will not be ratified until the UAW membership votes on it.

Auto/Economy
4:01 pm
Sun October 2, 2011

Big boost in September auto sales expected

Analysts expect the auto industry to post very good sales numbers on Monday.  

IHS Global Insight automotive analyst Rebecca Lindland says September was a very good month at car dealerships.   She says the number of car buyers increased last month.  At the same time, Honda and Toyota were finally able to get more vehicles to showrooms, as the disruptive effects of last March’s earthquake and tsunami began to fade.

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