Ford has big plans for Europe. Within the next three years, 20 new or facelifted cars will be launched in Europe with the blue oval. Before that is done, Ford production all over Europe is being completely rearranged, reports Automobilwoche [sub] today. The basic strategy is called “single sourcing:” (Read More…)
Just a week after GM CEO Dan Akerson slammed Ford’s Lincoln revival, Ford is asking its Lincoln dealers to put big money down on the brand’s future. Automotive News [sub] reports
A group of 120 Lincoln dealers had been invited to the meeting to hear Ford’s plans to rebuild its remaining luxury brand, say dealers who attended.
Ford expects stand-alone Lincoln dealers to spend an average of $1 million on renovations, dealers say. Owners of Ford-Lincoln duals are expected to spend about $1.9 million to remodel, dealers who went to the meeting say.
If dealers do not invest in renovations, Ford says it will seek to take back their franchises in exchange for compensation. The investment requirement applies only to urban dealers — for now.
And what do the dealers get in return for their hefty outlays? Hot new Lincoln product, or, in the words of a Lincoln rep “seven new or significantly refreshed vehicles coming out in the next three years.” Which means that if you want to get aboard the Lincoln express (destination:viability), you’ll have to get your store to Lincoln standards by the end of 2013, when a redesigned MKZ and a Focus-based Lincoln compact hit dealers.
An Ohio judged has ruled [full ruling in PDF here] against Ford in a 2002 case alleging the automaker overcharged dealers by selling commercial trucks at unpublished prices between 1987 and 1998. According to the summary judgement, Ford’s “CPA” program violated its contract with dealers by publishing “unrealistically high” wholesale prices and using “secretive, unpublished discounts” on an uneven basis, thereby overcharging some 3,000 dealers by an average of $1,650 for each of the 474,289 medium- and heavy-duty trucks sold in the applicable time period (about $1.2b of the ruling is for unpaid interest). The story is intriguing in its illustration of the differences between consumer and dealer incentives: while consumer-end incentives can be applied on a market-by-market basis, dealer invoice prices must be evenly applied across all markets according to Ford’s contract with its dealers. The story is also of major significance considering Ford’s still-shaky financial position, with automotive gross cash exceeding total debt by a mere $1.4b. Ford will appeal the ruling, but because the damages awarded are material rather than punitive, an expert tells the Cleveland Plain Dealer, Ford’s appeal could be “interesting.” Which doesn’t sound like great news to us…
When Ford showed the world its new crop of compact-based cars and MPVs at January’s Detroit Auto Show, it announced that its C-Max compact MPV would be coming to the US in 7-passenger Grand C-Max form. But in a strangely prophetic turn of events (see video above), the 7-passenger model refused to show up. Now, according to Ford, the 7-passenger Grand C-Max won’t be coming to the US… instead the 5-passenger version will be sold as a dedicated hybrid model with a plug-in option. Why? Because it’s big in Europe… and because “One Ford.” Hit the jump for Ford’s explanation, and then wonder along with us: seriously, why not sell the 7-seat version too?
Editor’s note: Ladies and gentlemen, for one night only, it’s the return of Curbside Classics to TTAC. You can catch Paul Niedermeyer’s work (along with contributions from an ever expanding crew of TTAC commenters and more) on a regular basis at the new Curbside Classics site. But this piece? It just had to be on TTAC.
There’s a big difference between creating and re-creating. The proto-hot rodders of yore scoured the junk yards for new solutions, not to replicate. The competition was as much in creativity as it was pure speed. Much of that has given way to endless replication, whether it’s a perfect restoration or a 1000 hp resto-mod. But creative juices are irrepressible, and they were certainly at work here. Want a daily driver Edsel, but not its 1950′s fuel-gulping ways? The solution was just a $200 junkyard engine away. But it had to be imagined first. Now that’s creativity, and a harbinger of the future. Which is exactly what the old car hobby needs: a new model, like this “Eco-Boost” Edsel.
Here’s a car that I’ve been seeing in my neighborhood for a year now; on a busy street that makes photography tough, it kept getting sort of overlooked by me when I went out hunting cars with camera in hand. Yesterday, however, I decided that a 45-year-old, 4,400-pound personal luxury coupe that still survives on the street deserves to be admired. (Read More…)
I designed TrueDelta’s Car Reliability Survey to provide information an average of ten months ahead of the established annual surveys. Early last December we shared with TTAC readers that ”Early data on the Ford Fiesta is not good.” Then, in early March, we stated about the 2011 Fiesta and the 2010 Taurus that ”Ford does not appear to have tested either model thoroughly enough.” The late February release on the TrueDelta site went a step farther, asking, “Is Ford slipping?” The answer last week from Ford: “Yes, but we’re going to fix it.”
TTAC Commentator talkstoanimals writes:
Sajeev,
Much to my dismay, in less than a year my job will move from downtown Washington, DC to suburban Maryland. This means I will be forced to drive to work every day rather than being able to rely on the Metro system for the work commute. Currently, my main ride is a 2011 BMW 135i with the M Sport package and some Dinan tweaks. However, since it does occasionally snow and sleet around here, and since I’m unwilling to sell the 135 or swap the summer treads for all season rubber (I regularly flog the car out in the twisties of VA/WV and prefer the feel of summers out there), I’m presented with a twist on the new or used question. Should I:
1. Invest in a set of winter tires, perhaps in a minus 1 size on dedicated wheels? This would require that I rent storage for the wheels/tires not in use or move out of my apartment to someplace with dirty item storage space. I could maybe beg a friend with a garage to loan me a dark corner, but it would make me feel guilty.
2. Buy some sort of cheap – $3500 to $5000ish – but reliable winter car? I wouldn’t mind having a second vehicle for hauling stuff around – maybe a small pickup or a wagon/SUV. Also, since most of my social life still revolves around downtown, I wouldn’t mind having something I could park on the street without a care whether it gets doored, dinged or scraped.
If the answer is two, what car or truck should I look for? The only caveat is that, after the fiasco with my 2010 lemon-lawed Mustang [can’t find the link to the Piston Slap on the issue], I won’t buy a FoMoCo product. (Sorry, Sajeev. But Ford ticked me off so much in negotiations over the Mustang that I refuse to give them my money anymore, even in used car form. I don’t want them making a nickel off of me on parts or anything else.) The ideal would be something small enough for city life, durable, utile and easy to insure.
Sajeev Answers: (Read More…)
Mazda will stop making cars in the U.S. at around 2013, The Nikkei [sub] heard from unnamed sources inside of the Japanese company. It’s not that Mazda is leaving America. It’s more a continuing process of its divorce from Ford. Mazda wants to sell its share in AutoAlliance International Inc., a 50-50 U.S. joint venture with Ford, back to Ford. (Read More…)
Of all the cars at the ‘Shine Country Classic, none inspired more speculation than the ’75 LTD of the Tunachuckers and ’79 W116 of NSF Racing. So many questions! Would either car be ready for the green flag on Saturday morning? Which one would be quicker around a road course? Could an ungodly complicated Teutonic flagship even make one lap on a race track after 32 years and a 99.97% value depreciation? Could Grandma’s long-abandoned big Ford roar into life and survive on the race track with little more than a cage installation and a hasty tune-up? Each team had joined the elite of LeMons veterans, with one Index of Effluency win apiece, so expectations of horrible failure were high. (Read More…)
I love stories of American cars that take a weird journey to production in South America, preferably with a dash of European influence added during the journey’s many twists and turns. The Argentinean Renault Torino, a Rambler American with Jeep Tornado engine and Pininfarina rebody is a great example, as is the Willys Itamaraty, a limo-ized Willys Aero sold in Brazil by Ford. The list goes on, but perhaps the greatest, most convoluted tale of them all is that of the Simca Esplanada. How about a late-60s Chrysler product, based on a Dearborn-designed French Ford, with an Ardun-ized hemi Ford Flathead V8 under the hood? (Read More…)
Though the auto bailout is being widely defended in the political realm as a jobs-saving measure, the industry sees the rescue’s value in precisely the opposite light, as industry and supplier execs rate “capacity rationalization” as the most positive effect of the bailout. And, reports Automotive News [sub], Ford and GM could still end up cutting as many as six more plants over the next few years as questions linger about volume recovery in the larger market. Of the three GM plants likely to be shut down, the former Saturn plant at Spring Hill, TN, is the most likely to survive as it includes a paint shop, a small engine plant and associated parts manufacturing facilities. In contrast, analysts note that GM’s Janesville, WI, plant is the firm’s oldest and is therefore far less likely to survive, and its Shreveport, LA, compact truck plant is part of “Old GM” and will likely be liquidated. Similarly, Ford’s Ranger plant in Minnesota, as well as its Avon, OH Econoline plant and its Flat Rock, MI Mustang plant could face shutdowns. Ranger is running out of production, Econoline has been losing share to Ford’s more-efficient Transit Connect, and Mustang has been losing market share to Camaro while facing a Mazda pullout from the Flat Rock plant.
Because GM is adding jobs at other plants, the net job loss from its three likely shutdowns (two of which are currently idle) could be relatively low, but then cost savings aren’t likely to match those accrued by past shutdowns either. Ford, meanwhile, is facing a bit more disruption if Mazda pulls out of Flat Rock, but could accrue more savings than GM as only the Ranger plant is scheduled to lose its production. In any case, the UAW will have to weigh its desire to keep plants open with its desire to mitigate the inequity of the two-tier wage system… as well as its desire to gain board seats. All of which could make the UAW’s upcoming bargaining session (not to mention the political debate about the auto bailout) much more interesting…
Ford’s arduous Lincoln turnaround is having another one of those awkward moments, as Ford and its dealers seem to once again be at odds about how to go about fixing Lincoln. And though it’s tough to tell what exactly is going on in Ford’s fandango with Lincoln dealers, it’s easy to see that it ain’t good. For starters, last week, Automotive News [sub] ran a blog item that noted
In just a few weeks, a group of Lincoln dealers will converge on Detroit for an invitation-only brand meeting with Ford Motor Co.
Mark Fields, Ford’s president of the Americas, promises that the meeting in early June will spell out some specifics about Ford’s plan to reignite its luxury brand.
But some dealers have put their invitations in the round file.
One says he won’t “waste” his money on airfare, adding that when Ford has “actual future product to show us, then I’ll go meet with them.”
One Lincoln dealer with a stand-alone store did not get an invitation, but he doesn’t care.
So, clearly things don’t sound happy in Lincoln Land. And what does Ford have to say to the non-attending and uninvited dealers? Ford’s Alan Mulally personally delivered a response the next day at Ford’s annual shareholder’s meeting…
The combined market share of GM and Ford will reach 40% of the US market by the end of 2015. Yes, you just read that correctly. That’s a full five percent more share than what they have today, or a gain of just one percent a year. Call me crazy… but recall that Farago and I called the GM bankruptcy way before most industry observers (and certainly before the BoD of Old GM) could see it coming. Long time TTAC readers will also remember my call to buy Ford’s stock in April 2009 when it was trading in the three buck range. So calm those gut-reactions for a few minutes and let’s walk through this.
Despite being on something of a roll product-wise, Ford has just experienced its second run-in with Consumer Reports, which failed to give Ford’s new Explorer a coveted “recommended” rating. Why? CR explains its decision in Automotive News [sub] thusly
“The engine is a little noisy, handling is secure but lacks agility, and the driving position is flawed,” the magazine says.
“The optional ‘MyFord Touch’ control interface is over-complicated and distracting,” the magazine says, echoing ongoing complaints about Ford’s family of in-vehicle communications systems.
But there’s more.
“The six-speed automatic is not the smoothest out there and wants to hold on to higher gears too long. It was sometimes slow to downshift and overly aggressive engine braking slowed the Explorer going down hills unless we gave the gas pedal a prod.
“An optional Terrain Management system for the all-wheel-drive system lets you dial in various terrain types such as snow and sand, and it alters throttle, brake and torque split between front and rear wheels accordingly.”
Finally, the latest Explorer is too new to be recommended, the magazine says.
But here’s the kicker: as our “Crossover Report” proves, the Explorer killed the competition last month, outselling every other midsized and large CUV on the market. So, is CR right to rate products like Toyota Highlander Hybrid, Ford Flex, Acura MDX, Volkswagen Touareg, Hyundai Veracruz, Subaru Tribeca, Kia Sorento and Mazda CX-9 higher than Explorer? Or is this yet another example of CR’s well-disguised but often-noted bias against American cars? Is CR right about the Explorer, or is the market?
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