As posted earlier, the American based Crown Consortium finally made an offer, said to be on par with Geely’s, perhaps calculating that Ford will prefer an American buyer to the Chinese. According to Swedish business site di.se Roger Holtback of Crown confirmed to tt.se [sub] that the Crown Consortium has made an offer on Volvo. Geely still has the edge, though: according to Ford Spokesman John Gardiner to Wall Street Journal, Geely is still the “preferred bidder.” But that doesn’t mean it’s exclusive.
We thought we’d seen the last of the unintended acceleration crazes come and go for good nearly two decades ago. We were wrong. Somehow, like Camaros, Chrysler bailouts and Whitney Houston, the phenomenon has clawed its way back into the American consciousness this year. Consumer Reports even devotes an entire study to the number of unintended acceleration complaints lodged against the 2008 model-year with the NHTSA. Unsurprisingly, the big winner was Toyota, with 41 percent of the complaints, Ford came in second with 28 percent while Chrysler had nine percent. But wait, how many cases were there in total? Only 166? So, of the 2.2m vehicles Toyota sold in 2008, a total of 52 complaints were lodged about a phenomenon with no good mechanical explanation… and Consumer Reports wants us to believe that this is statistically significant?
In my editorial on GM’s plant to take on the Indian market in partnership with SAIC, I wrote that Maruti Suzuki’s monstrous market share indicated the possibilities for GM. Well, the Indian market leader isn’t going to just sit on that lead. In 2007, Osamu Suzuki said that his firm’s Indian passenger car market share would never drop below 50 percent, an assertion that took two years to prove untrue. The WSJ reports that although the overall Indian market will probably grow 16 percent this year, Maruti’s share of that market has fallen over the last year from 45 percent to about 40 percent (with passenger car share down from 55 percent to 48 percent).
For most of the last 20 years, Ford and Mazda have enjoyed a symbiotic relationship which worked quite well. Ford needed Mazda’s engineering and Mazda needed Ford’s volume to keep their profit margins. In short, everyone was happy. Then came the recession. Ford needed money and it needed it fast, so they mortgaged their logo, cut staff and closed factories. But curiously, Ford divested a huge chunk of Mazda which netted them, in the auto world, very little money. Ford reduced their 33.4% stake in Mazda to 13.4%, netting $540 million, but effectively losing Mazda. Not that Ford’s Mark Fields is worried.
As another indication that November car sales in China will be a humdinger, Dow Jones Newswire reports that “sales of Ford brand vehicles by Ford Motor Co.’s passenger vehicle-making joint venture in China rose 152 percent in November from a year earlier.” (Read More…)
The Wall Street Journal reports that the Crown group, which includes former Ford Executives Michael Dingman and Shamel Rushwin as well as former Volvo CEO Roger Holtback, are still in the hunt to buy Volvo Cars from Ford, or at least they like to think they are! Ford has been keeping these guys on the back burner behind Geely and told Crown to come back when they had money lined up. Guess what, Crown now says their “offer is fully funded and includes participation by Swedish investors … two adjustments aimed at making the offer more attractive to Ford in the sale of the Swedish operation.”
Ford’s worst kept secret lately has been the new for North America Fiesta. Those who were hoping for a direct translation of the Euro-spec Fiesta might be a bit disappointed. The Fiesta shares a mere 60 percent of its parts in common with its European cousin, but thankfully gets a few improvements like Sync system and a new sedan variant. Er, if you consider those improvements. Inside the Fiesta’s plastics are typically frugal but overall no worse than the ubiquitous Corolla. Trunk room is fairly miniature sized but rear headroom even in the sedan is fairly good even with a 6’6 driver in the front seat.
When it comes to the freshened 2010 Ford Fusion, TTAC’s got you covered like Alan Mulally’s life insurance policy. Over the past few months, no fewer than three full-length reviews have served up our impressions of the base gasoline 4-cylinder SE (with manual trans, no less), the hot-rod AWD 3.5-liter V6 Sport model, and even the much-lauded Fusion Hybrid planet-saver. Interestingly, the mid-line FWD 3.0 V6 SEL model has somehow escaped our scrutiny. Until now.
Hello Sajeev, my father owns a 2005 Ford Focus wagon. The car has 100,000 km’s on it (Canadian) and it has been well maintained. The car has never given him any issues and runs very well but the paint is in horrible condition. He purchased the vehicle after the lease was up and soon after the paint started peeling. He didn’t think too much of it, but recently it has gotten much worse… Ford did not apply primer on the car.
After we reported yesterday that the talks between Geely and Ford about Volvo are intensifying, China’s Xinhua news agency runs a terse one-liner today: “China’s Geely Holding Group said Friday it was having a detailed and in-depth discussion with Ford over relevant terms and contracts about acquiring Volvo.” That’s it. Short, sweet, and to the point. (Read More…)
Ford has enlisted JP Morgan and Citigroup to assist with the sale, Geely has employed Rothschild. The deal is expected to close soon, “before the start of 2010.”
According to CCT, Geely is working off a seven point checklist: (Read More…)
Managing debt is a most American exercise, and after finishing the third quarter of this year owing $26.9b in debt, Ford is in management mode. According to Reuters, Ford will repay $1.9b of its $10.7b “mother of all subprime mortgages” revolving credit line, part of $23.5b in loans Ford backed with all of its assets (up to and including its logo) in 2006. $7.2 billion of revolver debt is being pushed on down the road though, from November 2011 to November 2013, and $724m has been converted to a term loan due in December 2013. More worryingly, lenders refused to roll over $886m of the debt Ford requested, bringing it due in December 2011.
The Lincoln MKT is a Looney Tunes cartoon: based on previously made creations, packaged into something unique. While the animated series started from the Warner Brother’s impressive music library, the MKT comes from an old Volvo S80 platform, sharing a motor with the Mazda6. So both creations are downright looney. Which explains the MKT’s krill filtering grille: silly in pictures, insane in natural sunlight where it’s obvious that 40% of it’s toothy smile is blocked off by solid plastic paneling. Which probably says more about the current state of Lincoln better than anything else.
For weeks now, the only realistic bid for Volvo has has come from the Chinese automaker Geely. They’ve been Fords’ “preferred bidder” for about a month ago, and last week, Geely’s management were in meetings with Volvo’s unions, and with Volvo AB (commercial vehicle company) about the Volvo trademarks – which are owned 50/50 between Ford and Volvo AB. At the same time time, Ford seemes to be in no hurry to sell Volvo, leading many to speculate that Ford was dragging their feet waiting for new and improved offers. We’ve been posting about the two other possible bidders, Consortiums Jakob and Crown earlier, and reports in Swedish media today say that Crown are now ready to make an offer, to be presented this week.
Ford illustrates the ugly side of social media-based advertising: exploiting and promoting baseless prejudices by reprinting ignorant opinions. Like this misguided and misleading “thank you” posted at Thefordstory.com.
I am here today because 5 years ago, I was driving my 1993 Ford Ranger XL. Thats a midsize truck, but not midsize in saving my life. I have not ever written about this before, but I thought Ford (and all its engineers) would benefit in knowing that they have been instrumental in saving my life. The reason I can say this with certainty, is because of the nature of my car crash. I ask you, if you were broadsided at 60+ ( I was on a highway in Ca) and all that saved you was your vehicles chasis..if you were driving say, a Honda..would you be here reading this?? Maybe, but not likely. All that happened to me was, I had a heck of a bent truck frame (rear suspension) and a minor seat belt bruise! I almost tipped the truck over on its side, I was hit that hard..but luckily, she righted herself in time! (I know its silly, but you got to name your trucks) This was my first Ford, and god willing not my last. I may have lost traction, due to the road being wet..but I tell you I would not be soo lucky driving anything other than a Ford. Thank you for all your hard work and dedication. I just thought it would be nice to tell someone. Thanks..I could never be more grateful for your company, God bless you.
Your friend,
Rose
[Note: the Ranger pictured above is not the one from the wreck]
Recent Comments