For some weeks, we have been following the steamy nampa between Japanese and European auto makers with more than prurient interest. First Mitsubishi and PSA (TBD), then Suzuki and VW (marriage consummated.) Now what? Now who? Suddenly, all eyes are on Mazda, the former wallflower of Nipponese car makers.
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The Freep reports that creditors in Visteon’s bankruptcy are investigating Ford’s relationship with its spun-off supplier, implying that the Blue Oval could be responsible for its financial downfall. The creditors have requested the release of documents relating to Ford’s 2000 spin-off of its parts maker, and financial transactions between the two firms since then. They’re hoping to show that Ford forced losses onto the supplier, possibly securing better claims for creditors. The creditor committee motion explains:
Since the spin-off transaction, there has been no semblance of arm’s length bargaining between Visteon and Ford. Ford appears to have utilized its insider status to control Visteon to Visteon’s detriment.
Unfazed by Swedish unions calling for an investigation into the Ford-Volvo-Geely deal, Geely is getting itself ready to swallow the big Swedish fish. The deal is already being feted as episode two of the takeover of international icons by the Chinese.
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“We’re still dependent on each other,” Ford’s head of global product development Derrick Kuzak tells the Detroit News, dispelling rumors that Ford and Mazda are going their separate ways. “You cannot change that overnight.” According to Kuzak, many of Ford’s most important vehicles continue to be based off of Mazda platforms. Ford Chief Financial Officer Lewis Booth adds,
The strategic relationship continues. The business relationships continue. And they continue on the basis that they’ve always continued. Where it works to the benefit of both companies, we do things together, and where it doesn’t, we don’t.
Ford will be taking a conservative approach to 2010, according to Chairman Bill Ford, who tells Automotive News [sub] that unemployment makes him most pessimistic about the year to come.
We’re not planning for a huge pickup next year. If we get one, great, we’ll ride it. We’re planning conservatively. Just as we did this year, we’ve kept our inventories low. If things start to pop for the better, we’ll adjust our production upward and go that way
And why not? Ford’s stock price has soared over the last year, since falling under $2 a year ago. This despite the fact that the Blue Oval is mortgaged to the hilt and will miss profitability for 2009. But because Ford believes that, as President of the Americas Mark Fields puts it, “our plan is working,” the bonuses are coming back for Ford’s white-collar employees.
While Ford is slowly but surely gaining traction in North America and China, Europe is storming ahead. Over at paddocktalk.com there’s report on Ford of Europe’s latest sales, which jumped 19.8% in November. This marks Ford’s sixth consecutive volume increase, resulting in a 9.1% year to date market share. “November was another month with outstanding volume gains for Ford of Europe”, said Roelant de Waard, Ford of Europe’s Vice-President for Sales. “Having the right products at the right time is paying off, and this is why we’re continuing to strengthen our position as the clear No.2 choice for customers in the European auto industry.” A key point included how 63% of their sales went to retail customers, which was an increase of 13%. Increase in sales? Increase in retail customers? Increase in market share? It all sounds great! Until you dig a little deeper.
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UAW Boss Ron Gettelfinger plans to retire next year, and the search is on to replace the man who led the union through the political minefield that was the auto bailout. But the union’s support for Bob King, who led negotiations with Ford, could open up divisions within the union, reports Automotive News [sub]. King followed the Gettelfinger line, offering Ford many of the same concessions it granted GM and Chrysler during the government bailout that transferred large stakes in those companies to the union’s VEBA fund. Those concessions to Ford, which would have preserved the UAW’s decades-long policy of treating the Detroit automakers equally, were rejected by the same union rank-and-file that must now ratify King’s nomination.
TTAC Commentator Detroit-Iron writes:
I have a 2000 Ford Ranger, 2wd 3.0L V6 with 143k miles. The CEL has been on for at least last 70k and I finally went to AutoZone and got the code read. Turns out the O2 sensor is bad and the EGR valve is stuck. Is that the kind of thing that I can fix myself? I don’t want to put a whole lot of money in this truck seeing as it has a lot of miles and has been running reasonably well, if inefficiently (21 mpg all highway), for so long. I have an ok tool set and I do my brakes, but I recently paid $70 to have the fuel filter replaced-I’ve done it before and I didn’t want to do it again. The truck is going back to my parents to be semi-retired and put into “farm use” so I wouldn’t mind fixing it up a little before giving it back but I don’t want to spend a lot.
GM’s New Chairman and CEO, Ed Whitacre may not be talking to the press about his plans for the state-owned automaker, but he’s talking to someone. Reuters reports that Alan Mulally, CEO of Ford, has already had a chat with GM’s chairman and CEO, Ed Whitacre. Mulally didn’t disclose what they talked about, but did mention his reasons as to why they had the chat. “You want to be supportive because we have a lot of industry issues that we work together,” Mulally said, “He’s reaching out just the way that I did when I came in.”
Corresponding with news that Ford and Geely are close to closing the Volvo deal, Volvo’s unions have expressed skepticism towards Geely, even going so far as to ask that the company be investigated. An ownership company based in tax havens, a history of trademark theft, and minimal transparancy have all worried unions within Volvo. Swedish Engineers at Volvo and the Metalworkers have expressed worries over the lack of information regarding Volvo’s future within Geely. “There’s a great information vacuum” says Magnus Sundemo of the Engineers. “We know very little about what the consequences will be if or when Geely takes over Volvo – We need to have more information, and we need reasonable time to examine the information” he continues.
This terse encapsulation Ford’s alleged brand values comes courtesy of The Blue Oval’s perennially amusing crowdsourced marketing site, The Ford Story.
Zacks Investment Research reports that Ford will invest $500 million in Michigan for developing and building batteries for their hybrid and electric vehicles. In return, they have asked the Michigan government for a tax break between $85 to $120 million. Michigan haven’t confirmed whether they’ll give this tax break, which is handy because Ford have indicated that they will look elsewhere if the tax break isn’t given. This investment will create 1000 jobs. Each job will cost at least $85000? Shocking!
Chinese Gasgoo is quoting Sweden’s Dagens Industri (DI) as saying that Geely will sign a contract later this week for the intellectual property rights of Ford’s Volvo Cars. Let’s hope everybody has their translations right.
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Picture above are the base-model prices for the cheapest sedan and hatchback variants of the new Ford Fiesta. As you can see, the cheapest Fiesta hatch is priced $1,800 more than the cheapest sedan. In part, that’s because Ford won’t offer an S trim Fiesta hatchback, but even in the best apples-to-apples comparison, the SE trim hatch costs $800 more than an SE sedan. Compare that to last month’s subcompact segment sales leader, the Nissan Versa. Like Ford, Nissan makes its lowest-cost models sedan-only; in fact you can’t buy a Versa hatch with the base 1.6-liter engine. By that measure, the $9,990 “base” 1.6 sedan is a whole lot cheaper than the lowest-cost Versa hatch, the $13,150 1.8 S. But compared apples-to-apples to a 1.8 S sedan, the cheapest Versa hatch carries a mere $50 premium over the sedan. As a hatchback lover, I want to damn Ford for not offering a hatchback Fiesta for less than $15k. On the other hand, with so few hatchback options on the market, I can understand why Ford would want to squeeze more cash out of weirdos like me who crave hatches possibly because nobody else does. But has Ford taken the hatchback premium too far?
Ten years ago I test drove the then new to North America Ford Focus ZTS. “Give it some gas,” the salesman prodded as we entered a freeway onramp. I showed her the whip. “Can you feel that,” he yelled enthusiastically over the buzz of the straining engine. “Well, it’s certainly making a lot of noise,” I thought, “but we don’t seem to be getting anywhere very fast.” A decade later it’s deja vu all over again, except my copilot has the good sense not to pretend that this 2009 Focus is any kind of street demon. And rather than fouling the atmosphere with noxious gasoline exhaust, birds are singing and bees are sweetly humming as I explore the green virtues of driving with Compressed Natural Gas.
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