History does tend to repeat itself, especially in the car business. Detroit’s more recent efforts to compete with import compact trucks was once a serious undertaking, and is now quickly dwindling away to nothing. The same thing happened once before, in the early sixties. In response to real (or imagined) incursions into the light truck field by imports, Detroit launched a barrage of new compact vans and trucks.  Ford was the most prolific in the 1960-1961 period, offering no less than three distinct types of pickups. The most creative and nontraditional one was the Econoline pickup. Not surprisingly, it was the least successful (of Ford’s three types), and petered out after a few years. Americans know how they like their Ford trucks, and the Econoline was not it (Read More…)

As a boy in the pre-internet early sixties, I became obsessed with unveiling the secrets of that inexplicably alluring object of male interest. I had a general notion of what transpired within: the rhythmic in and out motions, the frenzy of moving members, the rapid inhalations, the (hopefully) synchronized explosions, and in their wake, the murmur of exhalations. Yes, life’s most intimate mysteries sang their siren song, and I was powerless to resist. (Read More…)

We’re ready to seal the deal. If the deal fails, the problem is not on our side. We have not violated any part of the agreement. The situation is changing constantly…and the process of the negotiation is very tough. We will put as much effort as we can. I hope the deal can be done

Geely Zhejiang Chairman Li Shufu is sounding defensive in today’s Wall Street Journal, as his firm’s deal to buy Volvo from Ford drags on. And he won’t say what’s holding things up on Ford’s end either. After all, the money is there, and Ford (allegedly) isn’t sweating the IP details… so where’s the beef? Ford spokesfolks say the Blue Oval’s

position hasn’t changed since 23 December last year. As Ford and Geely said at the time—and as we’ve continued to say—we expect to sign a sale agreement in the first quarter.

That gives the Volvo-Geely deal two more weeks, not long considering the deal has been over a year in the making. So why is Li Shufu getting so antsy? Is this end-of-deal nerves, or is the Geely-Volvo deal going the way of HUMMER-Tengzhong?

China’s Geely and Ford say they are on track to sign a deal on Volvo, says Reuters after checking back with the players. Spokesmen for Ford and Geely said their companies still plan to sign on the dotted line by the end of the month. Then, the deal would close sometime in summer.

Doubts were raised by China Daily, China’s government-owned and English speaking newspaper. They speculated that “financing and technology issues could delay Zhejiang Geely Holding Group, the parent of Geely Automobile, in its plan to acquire the Volvo brand from US automaker Ford Motor Co,” after talking to “sources familiar with the matter.” The same sources said that “the chances of a short-term deal now looks bleak, unless the two sides make major concessions.” At first glance, this smells like some last minute arm-wrestling, not too foreign to anybody living in China. However, China Daily sees two problems, far beyond the usual haggling: (Read More…)

The biggest storyline right now for America’s bailed-out automakers is how little they’ve been able to capitalize on Toyota’s stumbles. While Ford and Hyundai made hefty sales gains last month, both GM and Chrysler’s performances were distinctly unimproved by Toyota’s woes. And now that Toyota is launching major incentive packages to recover lost sales momentum, Detroit has no remaining incentive to not revert to the bad old practices of incentive dependence. With GM and Ford diving into the zero-percent war, Global Insight’s George Magliano tells Automotive News [sub]:

Incentives are going to be here into the third quarter. We’re not going to wean consumers off incentives any time soon. We’re stuck with it. They’re all jockeying for position… After clunkers everybody backed off incentives. Now they’re going to the whip again

After early versions of the 2010 Mustang Convertible were caught crushing crash dummy heads, Ford re-worked its retro cruiser for a less “mind-blowing” crash test performance. If you’ve got a 2010 ‘stangvertible in mind, you might want to make sure it was built after December of last year.

It’s a little-known fact that nearly half of the 2,000 or so dealer franchises that GM began winding down during bankruptcy were Cadillac stores, most of them located in rural areas. The General’s plan was to focus Cadillac’s dealer network on  standalone stores in major metropolitan areas, following the strategies of more premium luxury competitors like BMW and Lexus. But having marked 922 largely small-town Caddy dealers for death, GM saw 2009 sales of its luxury brand fall 15 percent, or twice the rate of Buick and Chevrolet in the same period. The lesson: small-town Cadillac dealers (like attempts to sell the brand in Europe) are worthwhile after all. Automotive News [sub] reports, the majority of those dealers being reinstated are small-town Cadillac dealers. Will Cadillac’s brand integrity suffer by having to serve the small-town American market as well as competing with the European brands? Probably, but at least Caddy dealers can take heart knowing that things could still be worse: they could be Lincoln-Mercury dealers.

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Ford’s new Taurus-based Interceptor will be available with the 3.5 liter Duratec, or the twin-turbo Ecoboost engine. Front wheel drive is standard, and AWD will be an option. But then, if you got to use other people’s tax money to buy your work ride, would you really save the few bucks by not buying the 365 hp, AWD version? Of course not. You are the law! Libraries can always have bake sales. [via Jalopnik]

When Ford announced that it would be building an “all-new” Police Interceptor model, speculation was rampant. At the time, we noted:

GM went to Australia for their police-duty RWD platform, might Ford do the same with a Falcon-based interceptor? Or is this the prelude to Panther 2.0? Or, as common sense seems to dictate, is the Interceptor “all new” simply because there’s just never been an Interceptor based on this Taurus before? If Ford is really engineering a dedicated fleet vehicle for US production with no civilian counterpart, they’re as crazy as GM is.

Against all odds, common sense won out (damn you Alan Mulally!). The Detroit News reports that the new Interceptor will debut tomorrow, and that it will be based on the Taurus’ D3 platform. Which gives us less than 24 hours to speculate about which engines will be turning which wheels, and whether Ford and Chevy’s FWD-RWD cop car flip-flop will favor one automaker or the other. Oh yes, and mourn the eventual passing of the Panther platform, now that there’s no hope of a police duty-inspired update. Actually, some of us might need to take our time with that last one…

UPDATE: Bonus police-duty Taurus gallery!

Sales recently began in India for Ford’s “all new” Figo. The launch of the Figo, a five-door sedan/hatchback, was a supposed to be a big deal. It is Ford’s first car designed specifically for the Indian market, and it was introduced by Mullaly himself in India last September. It’s built in Ford’s refurbished Chennai plant, where production started up in early February after a $500 million investment. In addition to producing cars for the local market, where sales are booming and compact cars, the so-called Sub B segment, make up 70% of the sales volume, Ford intends for the Chennai plant to be a supply hub for their Asia, Pacific and Africa operations.

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Reuters (which has been all over the Volvo-Geely deal) reports that Zhejiang Geely Holding has money “in the bank account,” to purchase Ford’s Volvo brand, citing Swedish press reports. And yet, despite having reportedly given Ford guarantees about the financing of Volvo’s business plan, and scheduled a formal deal signing for last month, a deal has yet to emerge. Last week, Geely’s chairman Li Shufu told Reuters from the sidelines of the National People’s Congress in Beijing that “we haven’t reached a final agreement so far,” but “everything is moving as planned.” Geely has also been talking up its “only one foreign brand” strategy and “new energy” car plans, while Volvo reps tell AM Online that a deal will be done by March 31 and that Chinese market access will save the brand [via The WSJ [sub]]. In fact, the only party involved that’s not issuing a steady stream of PR about the upcoming deal is Ford. Could the Blue Oval be getting cold heels?

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A few years ago Ford decided that its survival depended on making bold moves. They decided to stop simply doing what they’d always done. Well, at least some of the time. One bold move: replace their minivan with the world’s largest Scion xB. Another: instead of offering a V8, twin-turbocharge and direct inject a V6. Then combine the two to offer a 355-horsepower family hauler that really hauls. Intriguing. But does the Ford Flex EcoBoost make sense?
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To the victor go the spoils. Who will be the victors, and how much spoilage will be there in the protracted Toyota battle? Of course, this is all in the name of safety and the children, and any sales dislocations will be unfortunate collateral damage. Really.

As optimistic as Toyota might want to be, over the next few months, their sales will decrease. They already do decrease.  “Toyota’s US sales tumbled 16 per cent in January from a year earlier and are set to record another hefty fall this month,” reports Financial Times. Stoppage of deliveries and production, topped by a media onslaught, can have that effect.

Maybe Toyota’s ideas of an increased warranty and more incentives will work, long term, but in the short term, they’d better prepare themselves for negative numbers at the end of each month ahead.

As the first law of thermodynamics infers, energy cannot be created or destroyed, merely transposed. If customers are leaving Toyota, they don’t just disappear like Toyota‘s reputation for reliability China’s interest in US debt, they have to go somewhere. So where will they? (Read More…)

With news that Mercury will receive new product based on the forthcoming Ford Focus, the bandwagon to crown Ford as the new King of Detroit has halted briefly as its passengers take a moment to remember: oh yeah, Ford is technically still trying to compete in the luxury game. Ford’s recent luxury-brand efforts have been so half-hearted in comparison with its Ford-brand turnaround that many analysts simply overlook Lincoln and Mercury when proclaiming Dearborn’s momentum. As, apparently, have consumers. Neither Lincoln nor Mercury cracked 100k sales units in 2009, a feat achieved even by such marginal luxury brands as Buick, Cadillac, and Acura. And as the Detroit News details, the problems with Lincoln-Mercury run deep, and their solutions are far from obvious.

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Do you think being the scion of a global brand is easy? Well think again, it’s hard work. No-one knows this more than Bill Ford, the great-grandson of Henry Ford. So, when Akio Toyoda got thrown into a quality nightmare, Bill Ford empathised with the fellow (and currently not so great) grandson of Kiichiro Toyoda, the one who had founded Toyota. Bill feels for Akio, in the family way. (Read More…)