Ford Motor Company

News Roundup
8:50 am
Tue September 27, 2011

In this morning's news...

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UAW talks with Ford heat up

Officials from the United Auto Workers are pushing for more from Ford Motor Company. Michigan Radio's Sarah Cwiek reports the union leaders "expect to get better terms" from Ford, since the company is in a better position compared to GM and Chrysler. From Cwiek's report:

If the two sides can’t come to an agreement, there is the possibility of a strike. Since Ford didn’t go through bankruptcy, it doesn’t have the no-strike clause in its current contract that the other companies enjoy.

Like its fellow U.S. automakers, Ford is reluctant to increase its fixed costs by raising wages. But the union is expected to make a major push for bonuses, more generous profit-sharing formulas and retaining jobs in the U.S.

Costs of Enbridge oil spill going up

Officials from Enbridge Energy have revised their estimates for cleaning up the oil spilled into Talmadge Creek and the Kalamazoo River. It's original cost was $585 million. Now, they say it will cost $700 million. Michigan Radio's Steve Carmody reports the new estimate was part of paperwork Enbridge Energy filed with the U.S. Securities and Exchange Commission. An Enbridge spokesman says the increase is due to "additional work around submerged oil and just some more active remediation of the impacted environment."

New state policy: ties for guys

In contrast to their chief executive's style, officials from the Department of Licensing and Regulatory Affairs have issued a dress code for men that calls for ties. Governor Rick Snyder prefers a sport coat and dress shirt with no tie. The Lansing State Journal reports the new policy is aimed at thousands of state employees:

The new policy went into effect Sept. 12 for about 3,700 employees at the state Department of Licensing and Regulatory Affairs. It's part of a move to implement a consistent dress code among the several state bureaus and offices that merged this year to create the agency.

"Some of the old bureaus had dress codes, others didn't," said Mike Zimmer, the agency's chief deputy director. "We thought it should be consistent throughout the department."

Auto/Economy
6:51 pm
Mon September 26, 2011

UAW, Ford talks heat up

Ongoing contract talks between the UAW and Ford are heating up.

The union has indicated it expects more for workers from the only Detroit automaker to avoid bankruptcy.

Since Ford is the best-positioned of the three US carmakers, union leaders expect to get better terms from that company than from GM and Chrysler.

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Auto/Economy
10:57 am
Tue September 20, 2011

Auto Talks: Far From Over

There’s a great deal of celebration going on over the fact that General Motors and the United Auto Workers union have reached tentative agreement on a new, four-year contract.

In the old days, what this would have meant was speedy ratification, followed by a similar settlement with Chrysler within perhaps two weeks, and then Ford maybe a month later.

That was the era of pretty much one-size-fits all pattern bargaining agreements. But that was before the near-death and the resurrection of Chrysler and GM, and it’s now a different world.

I spent some time yesterday with one of the best industry analysts around -- Kristin Dziczek, who heads the labor and industry group at CAR, the non-profit Center for Automotive Research based in Ann Arbor. Dziczek knows the management spokesmen and the economists, and has friends and relatives who are in the UAW. She eats, breathes, and sleeps this stuff.

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Auto/Economy
11:50 am
Fri September 16, 2011

The end of the classic police car, Ford makes last Crown Victoria

The last Crown Victoria rolls off the assembly line yesterday. The St. Thomas Assembly Plant in Ontario will close.
Ford Motor Company

"You couldn't kill it no matter what you did to it."

So said Ford spokesman Octavio Navarro of the Crown Victoria in CNN Money:

The last Ford Crown Victoria rolled off a Canadian assembly line Thursday, marking the end of the big, heavy Ford cars that have been popular with taxi fleets and police departments for decades.

Since 1979, almost 10 million Crown Victoria, Mercury Grand Marquis and Lincoln Town Cars -- so-called Panther Platform vehicles -- have been sold.

The last "Crown Vic" rolled off the assembly line at 12:30 p.m. yesterday, according to the NY Times City Room blog. They write that the car will likely be exported to Mexico or Saudi Arabia.

The Canadian auto plant where the Crown Victoria was made, the St. Thomas Assembly Plant in Ontario, is closing.

CNN Money reports that Ford "is offering $100,000 cash payments or relocation offers, among other programs, for the workers at the plant."

So with the Crown Victoria out, what will future cop cars look like? CNN put together this gallery.

Contract talks may be extended
12:10 am
Tue September 13, 2011

UAW contract talks to be extended at Ford Motor Company

The deadline for Detroit automakers and the United Auto Workers’ union is fast approaching. 

But contract talks could be extended past the deadline of this Wednesday – especially at Ford. 

Ford is the only company that faces the possibility of a strike this time, because of agreements made during GM and Chrysler’s bankruptcies.

UAW President Bob King says a strike is not the goal.

But some union dissidents think a strike could happen.

Gary Walkowicz  is a bargaining committeeman at UAW Local 600 in Dearborn.

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August car sales
11:25 am
Fri September 2, 2011

August auto sales weather bad economic news

U.S. auto sales were a bright spot in a sea of bad economic news in August.  Most companies reported increases from the same month a year ago. 

Consumer sentiment in August fell to its lowest level since November 2007, stock markets dove, and fears of a double-dip recession increased. 

Those conditions usually flatten U.S. vehicle sales.

Yet car sales rode the storm, with sales at Chrysler  up 30%, GM,  up 18% and Ford,  up 11%. 

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Auto
3:49 pm
Mon August 22, 2011

Ford and Toyota to develop a hybrid truck system together

Ford's Derrick Kuzak and Toyota's Takeshi Uchiyamada

Ford Motor Company sprang a surprise on the media world on Monday by announcing it had signed a memorandum of understanding with Toyota to jointly develop a rear-wheel drive hybrid system for SUVs and trucks.

Ford is the undisputed king of the pickup in the U.S.  Its F-series pickup has been the best-selling vehicle in the U.S. for 25 years.

Toyota is the undisputed king of the hybrid - the Prius is the best-selling hybrid in the U.S.

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AUTO
8:02 am
Wed August 17, 2011

UAW: Ford talks ahead of schedule, strike vote set

Pobrecito33 Flickr

The United Auto Workers' lead negotiator with Ford Motor Co. says talks with the Dearborn-based automaker are ahead of schedule and says the union is asking its locals to hold routine strike authorization votes by Sept. 2.

Jimmy Settles tells the Detroit Free Press the votes are "nothing unusual" and are a normal part of every contract cycle with Ford.

Settles and UAW President Bob King announced the decision to hold a strike authorization vote Tuesday at a UAW meeting in Chicago. The union started negotiations with Ford late last month to replace a four-year contract that expires Sept. 14.

Contracts also are up at General Motors Co. and Chrysler, of which Fiat is the majority owner.

Environment
2:26 pm
Mon August 15, 2011

A settlement reached for part of River Rouge cleanup

An aerial view of the Ford River Rouge plant near Dearborn, Michigan, circa 1927.
Library of Congress

The U.S. government has agreed to pay $10.8 million for part of a cleanup at the River Rouge complex in Dearborn.

From the Detroit News:

The Dearborn automaker filed suit in May 2004 against the federal government in U.S. District Court in Detroit, arguing the government should pay a share of the costs of cleaning up the automaker's Rouge manufacturing complex that opened in 1917 stemming from military production from World War I.

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Auto/Economy
2:00 pm
Thu July 28, 2011

AP: Parts problem hurts Ford Focus sales

Ford Focus being assembled at the Michigan Assembly Plant in Wayne. The Associated Press reports that a shortage of dashboards is slowing production.
Sam VarnHagen Ford Motor Co.

DETROIT (AP) - Two people familiar with the matter say Ford Motor Co. can't build as many hot-selling Focus cars as it wants because of equipment problems at a parts factory.

The people say machinery that makes a key dashboard part doesn't work all the time and has slowed production at the Focus factory near Detroit. The company has taken the unusual step of flying in
parts from Europe. But the people say Ford is still running short on dashboards.

The problem has forced dealers to put customers on waiting lists. The redesigned Focus was Ford's top-selling U.S. passenger car last month.

The people didn't want to be identified because they aren't authorized to speak about the matter. A Ford spokesman would not comment.

Auto
7:44 am
Tue July 26, 2011

Profits at Ford drop but beat Wall Street expectations

Toolshed4 Flickr

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.

Auto/Economy
3:11 pm
Mon July 25, 2011

UAW begins new contract negotiations with automakers

From left - UAW President Bob King, UAW Vice President Chrysler Department General Holiefield, Chrysler Senior Vice President of Manufacturing Scott Garberding and Chrysler Vice President of Employee Relations Al Iacobelli.
UAW

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.

Ford sued over Sync
5:33 pm
Tue July 5, 2011

Company sues Ford Motor, alleges Sync patent infringement

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.    

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News Roundup
7:26 am
Tue June 14, 2011

In this morning's news...

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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.

Ford, GM future bright
5:19 pm
Tue June 7, 2011

GM, Ford tell stakeholders that future is bright

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.    

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Auto/Economy
11:51 am
Tue June 7, 2011

GM Chief concerned about the economy, and Ford looks to Asia

 The CEO of General Motors, Dan Akerson, told reporters today that he's concerned about the "jobless economic recovery" and high federal deficits.

From the Associated Press:

The CEO told reporters before the company's stockholders meeting Tuesday that the government should have a 10-year plan to cut its roughly $14 trillion deficit. He says that would bring much needed stability to markets.

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Auto/Economy
2:33 pm
Thu June 2, 2011

Ford announces its smallest engine ever

A Ford Focus being built in Germany. Ford's not saying yet which cars will get their new 1.0-liter, three-cylinder engine.
Ford Motor Company

In the car world, engine size matters. It used to be the bigger the engine the more appeal it had (more power, and more vrooom!).

But now Ford is going small by announcing the "the smallest engine Ford has ever built."

Ford says the fuel-efficient 1.0-liter engine is a "three cylinder engine that delivers the same performance as a four-cylinder."

Ford says the engine is still being tweaked and is not in cars yet.

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Auto/Economy
11:18 pm
Sun May 22, 2011

Suppliers like working with Toyota best but Ford becoming more popular

Ford, GM and Chrysler are getting along with their suppliers better than they used to.  

But an annual study says the companies have a ways to go to catch up with their Japanese counterparts. 

John Henke is President of Planning Perspectives, which studies the working relationship between parts suppliers and their customers, the car companies. 

He says that relationship has long been adversarial for the Detroit Three, which means suppliers often don’t give them the best prices for parts, or the first crack at new technologies.

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Auto/Economy
11:33 am
Tue May 17, 2011

Ford to expand engine plant in India

The Ford Figo is sold in India. The company plans to expand an engine plant in Chennai, India.
user Ford APA Flickr

Ford Motor Company plans to expand one of its engine plants in India.

From the Associated Press:

Ford Motor Co. says it will spend $72 million to expand an engine plant in India to support sales and export growth.

The company said today the investment in its Chennai engine plant will create more than 300 jobs. Ford plans to run the factory on three shifts per day.

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