Ford’s chief executive, Jim Hackett, told employees Thursday evening that 2019 cannot be a repeat of last year.

“2018 was mediocre by any standard,” Hackett said in an email to employees. “Yes, we made $7 billion last year. But think of it this way: this represents a 4.4 percent operating margin, about half what we believe is an appropriate margin. So we are aiming for much closer to $14 billion.”

Despite being at the helm of The Blue Oval for nearly two years. Hackett’s Ford continues to endure a slipping share price and a market cap of 34.5 billion — substantially less than General Motors’.

“I become mad for a short time. Likely mad at myself, but also because I know we are better than that,” the CEO said of Ford’s current situation. “I know that our competition hasn’t been better than us by magic.”  (Read More…)

Remember Mark Fields, the former Ford CEO who was forced to retire due to an inability to manifest his vision of the company’s future in a timely manner? Well, it’s starting to look like Wall Street needs another sacrificial lamb. Ford’s current chief executive, Jim Hackett, appears rather appetizing.

Despite promises from company chairman Bill Ford that the automaker would see swifter decision making under Hackett, it hasn’t felt all that differing from the company’s Fieldsian days. There’s still a strong emphasis placed on transforming Ford into a mobility company with no obvious path on how to get there. While it might be a little unfair of us to slam Fields or Hackett for their inability to accurately map out the future like some mythical sage, investors expect exactly that. As a result, Ford’s stock price has continued to tumble.  (Read More…)

As previously reported, vehicle certifications have been suspended during the current government shutdown. While this is normally a non-issue, the extended length of this federal deferment is starting to spook automakers.

Fiat Chrysler has already bemoaned the situation, as it’s currently waiting for the Environmental Protection Agency to approve its Ram Heavy Duty pickups. While the situation hasn’t become truly dire, other automakers have begun expressing concerns of their own.  (Read More…)

On Thursday, Ford announced preliminary details of a plan that will ultimately erase thousands of European jobs in an attempt to return the business to profitability. The decision comes after several reports indicated the automaker’s restructuring program will be particularly hard on the region.

The plan now officially includes a slimmer product lineup, which is likely to result in the shuttering of several facilities. The manufacturer also announced a “leveraging” of existing relationships — specifically referencing a potential alliance with Volkswagen Group that would help support Ford in that market.

“We are taking decisive action to transform the Ford business in Europe,” explained Steven Armstrong, group vice president and president of Europe, Middle East and Africa. “We will invest in the vehicles, services, segments and markets that best support a long-term sustainably profitable business, creating value for all our stakeholders and delivering emotive vehicles to our customers.”

What does Ford think it needs to do to achieve a 6 percent operating margin in Europe? Read on.  (Read More…)

If you’re of a certain age, you’ll probably recall the Ford Shelby GR-1 Concept revealed at the 2005 North American International Auto Show after a brief stint as a clay model. Having already introduced the Shelby Cobra Concept as the hypothetical successor to the American roadster inspired by the original AC Cobra in 2004, Ford wanted a follow-up. The end result was the GR-1, which bore a striking resemblance to one of the best-looking cars ever assembled — at least from this author’s perspective: the Shelby Daytona.

Unfortunately, Ford never built the GR-1, as it was tied up finalizing the first-generation GT. We thought we’d never see one on the streets but, as it turns out, we were wrong. Superformance, an aftermarket company based in Irvine, California that specializes in vintage Ford race replicas or continuation cars, has picked up the torch. (Read More…)

Relaunching the Bronco is a no-brainer for North America. With credits like Longmire and the O.J. Simpson police chase under its belt, there is just too much buzz around the model not to bring it back. Unfortunately, the rest of the world doesn’t have the same rich history with the vehicle — leaving them in the lurch.

The 2020 Ford Bronco will be left-hand drive only, not a global sensation, according to Ford Australia.  (Read More…)

As part of Ford’s massive restructuring plan, which is said to focus primarily on its European assets, the automaker will end assembly at its Blanquefort transmission plant in France next year. Its 850 employees will now have to find gainful employment elsewhere by August.

However, there was a brief glimmer of hope after transmission supplier Punch Powerglide (encouraged by the French government) launched a bid to purchase the facility and rescue it from being shuttered.

“Despite thorough and rigorous talks over the past nine months, and the best efforts of both sides, the plan put forward by the potential buyer presents significant risks,” Ford said in a statement. “We do not believe that the prospective buyer’s plans offer the level of security or protection, or limit the risk of possible future job losses, that we would like for the employees.”  (Read More…)

This time last year, Lincoln was busy promoting its Experience Centers — storefronts that promote the brand and its products, but don’t serve as active dealerships. Then, in August, it asked around 80 Ford/Lincoln dealerships to commit to building separate Lincoln-only facilities by July. It was an attempt to elevate the premium brand by making it appear more exclusive, akin to what Cadillac attempted with Project Pinnacle and what Hyundai Group wants to achieve with Genesis.

Unfortunately, all of these programs garnered a “mixed response” from dealers. Many complained that the cost of building a separate showroom for higher-end models is prohibitively expensive. That has also been the case with Lincoln. The California New Car Dealers Association even wrote Ford Motor Co. last month, asking it not to punish storefronts that fail to divide their facilities, and it looks as though the automaker has acquiesced.  (Read More…)

Ford Europe announced it had shuffled its leadership on Friday as part of a larger restructuring plan, appointing executives in Germany and the United Kingdom to oversee “Sprint to 6 Reset and Redesign.” The strategy seeks to achieve a 6 percent EBIT (earnings before interest and taxes) margin, investing only in products and services that it believes best support long-term, sustainably and profitable business.

“Ford is implementing key leadership and organizational changes to improve the fitness and agility of its European operations as it undergoes a fundamental reset and redesign of its business,” the company said in an announcement that emphasized creating operational agility.

While the full scope of the plan has yet to be announced, layoffs and factory closings seem highly probable. Ford said announcements concerning the details of the restructuring are expected between now and the beginning of 2020. Europe is expected to be the primary focus during the initial months, however. Ford Europe lost nearly $250 million in the third quarter of 2018, significantly worse than it managed in 2017. The company now expects to see a net loss for the region this year.  (Read More…)

Earlier this week we mentioned that Ford’s restructuring plan might closely mimic General Motors’ strategy — resulting in widespread job losses. That theory was backed by an analysis from Morgan Stanley, which presumed the Dearborn-based automaker is likely to surpass GM in terms of layoffs, based on how much each intends to free up. Back in July, Ford said it would spend roughly three to five years on its $11 billion restructuring. All told, the financial services company believes the Blue Oval might shed at least 25,000 positions.

In the report’s wake, Ford CEO Jim Hackett is urging everyone not to panic. On Tuesday, he said Ford never provided numbers to Morgan Stanley analyst Adam Jonas, who estimated the significant employee reduction just one day earlier.  (Read More…)

Ford’s decision to abandon sedans and non-utility hatchbacks is quickly coming to a head. While the choice rubbed many of us the wrong way, we attempted to view the situation through the lens of business and urged everyone not to panic if they wanted to purchase a Fusion or Focus sedan before they were all gone.

While we’re still not going to tell you not to panic, you might want to start making some moves if you’re still interested. Michael Martinez, Automotive News’ go-to guy for all things Ford, just claimed that the automaker only has about 12,000 Focus sedans left in its inventory.  (Read More…)

Not to be outdone by Toyota’s announcement of an all-wheel drive Prius at the Los Angeles Auto Show, Ford issued a teaser promoting the most capable variant of one of its own iconic models — the Mustang Shelby GT500.

However, the car isn’t coming to LA. According to Ford’s social media accounts and a new display in California, the vehicle won’t be on display until January 14th of 2019. As you might have guessed, that’s in the midst of the North American International Auto Show. (Read More…)

These days, every automaker is in the midst of a metamorphosis, eager to emerge from their chrysalis as a “mobility company.” Even brands that don’t seem bent on completely revolutionizing their business model now use the term in reference to themselves.

Ford, which has positioned itself as a mobility company ever since Mark Fields was steering the ship, is among those pushing the narrative the strongest. Fields may have been fired for having a lofty, tech-focused vision that couldn’t charm investors, but much of it carried over to Jim Hackett’s tenure as CEO. Ford desperately wants to be seen as a cutting-edge nameplate.

However, the assumption among industry experts is that it’s lagging behind General Motors in terms of autonomous driving, electrification, and the ability to tap into alternative revenue streams. We sometimes wonder how accurate those assumptions are.  (Read More…)

Volkswagen AG and Ford Motor Co. continue to become more chummy with each passing day. They may even be on the cusp of sittin’ in a tree, K-I-S-S-I-N-G.

After signing a Memorandum of Understanding in June, executives are now hinting at widespread collaboration. Ford wants help in Europe and Latin America, areas awash in a sea of red. Volkswagen wants a piece of Ford’s self-driving technology, while the pair would work together on electric vehicles, according to recent reports. It’s worth noting that Ford, which has proven more open in discussing the matter, previously said nothing would be off the table if the two joined forces.

The most recent update concerns VW’s proposed investment in Ford’s self-driving partner, Argo AI. While both companies are dead set on a future of “electro mobility,” both fall short in critical areas.  (Read More…)

Wages may have stagnated, but companies know they can still curry the public’s favor by other means. Because corporations aren’t people, despite the government saying otherwise, they can’t really be good or evil. This frequently results in meaningless pandering, perplexing business decisions, or disingenuous marketing that pushes an empty moral narrative in an attempt to bend to rampant social pressures. Still, it occasionally leads to those in charge making a decision to do the right thing and getting some deserved praise.

Ford Motor Co. is significantly expanding the amount of paid time off available to new parents among its salaried workforce in the United States.  (Read More…)