Ford Motor Company

Up Next: Ford-Volkswagen Tie-up?

October 31, 2019 by admin 4 Comments

What a week it has been. More like a half-week, actually.

For it was within that abbreviated timeframe we officially heard that Fiat Chrysler and the PSA Groupe (Peugeot and Citroën) were talking merger. The news spilled out late Monday and by Wednesday the two automakers came to terms. Today, news of the planned merger was announced, setting in place what will become a near $50 billion entity, which currently produces 8.7 passenger vehicles annually.

Merger talk doesn’t take place in a vacuum. Indeed, soon after the FCA broke off talks with Renault to merge in June, rumors of PSA’s interest in FCA came out. All we’ve heard is what was reported this week. But talks have been going on for some time, carried under the cloak of secrecy.

We shouldn’t be surprised that the two automakers are connecting as the entire industry is ripe of consolidation. With the deal nearly certain to pass, it likely will trigger further consolidation with perhaps Ford and Volkswagen following. Yes, these two automakers seem like prime candidates for an alliance or outright merger. There are several reasons why, which we’ll explore here.

Volkswagen and Ford: The Next Tie-up?

1. The two companies forged a global alliance.

In January 2019, Ford and Volkswagen announced that the two companies were forging a global alliance, but without cross-ownership. Pickup trucks and commercial vans were the first vehicles mentioned where collaboration will take place.

2. An EV/AV alliance follows.

In July, Ford and Volkswagen announced that the two automakers would begin sharing electric vehicle (EV) and autonomous vehicle (AV) technology. VW is investing in Argo AI, which is Ford’s self-driving technology, while Ford will build at least one vehicle based on Volkswagen’s Modular Electric Toolkit (MEB) architecture for sale in Europe.

3. Ford cuts back on cars.

The Ford Motor Company still produces cars, but the U.S. market will soon offer only the Mustang, pickup trucks, and lots of utility vehicles. With a VW tie-up, Ford might find it affordable and sensible to sell small cars again in the U.S., especially as the merged entity shaves costs. In any case, if the market suddenly shifts to cars again, Ford will have the platforms in place to build what’s needed.

4. The Rivian factor.

We already know that Ford owns a slice of Rivian, the upstart electric vehicle maker. Rivian will begin producing an SUV and pickup truck by the end of 2020. Ford will have access to Rivian’s skateboard electric vehicle architecture, which is certain to produce at least one model for the Ford brand. Volkswagen wants a pickup too and might utilize Rivian besides tapping the Ford Ranger for its own purpose.

5. Big is better.

When it comes to building passenger vehicles, the bigger you are, the better. Or at least that is the thinking in this industry. Yes, “economies of scale” and “synergies” are realized through smart collaboration. But there is another factor, bragging rights, which the new company led by Volkswagen would claim as sales would top an estimated 14 million units annually, putting the new automaker well in front of the pack.

What About GM?

With FCA and PSA hooking up and Ford and Volkswagen presenting a strong argument for consolidation, what about GM? At one time we might have seen GM go it alone or acquire another automaker, but that’s not going to happen.

Fresh on the heels of a costly labor agreement with the UAW, GM is ripe for the picking. We don’t see Toyota or Hyundai/Kia interested nor is it likely Honda with its independent streak planning to do likewise. There’s a chance GM might find a place in the Renault-Nissan alliance, but we think a Chinese suitor is just as likely.

In any case, the industry is changing and most likely will see additional mergers, acquisitions, and alliances in the months ahead. FCA and PSA triggered the tsunami. Now we’ll witness how other automakers avoid getting consumed by the waves of change.

Rivian Attracts Another Investor;
More to Follow?

September 16, 2019 by admin 3 Comments

Upstart electric vehicle maker Rivian hasn’t manufactured one production-ready model yet, but that hasn’t kept outside parties from investing in it. This U.S. manufacturer has a plant in Normal, Illinois, along with four development centers. Rivian boasts Amazon and Ford as investors, and just this month added Cox Automotive as yet another important stakeholder.

The Latest Stake: Cox Automotive

The Cox Automotive $350 million investment follows $700 million from Amazon and $500 million from the Ford Motor Company. Despite the $1.55 billion invested by these three contributors and funds contributed by others, Rivian remains an independent company. As a result of this latest contribution, Cox gains a board seat and Rivian receives an important cash outlay.

So, who is Cox Automotive? The company is a subsidiary of Cox Enterprises, which was launched in 1898 when James M. Cox purchased the Dayton (Ohio) Daily News. Since then, the company has evolved to include the present Cox Communications — a U.S. cable company — and the Cox Media Group, a broadcasting, publishing, and digital media group.

In 2014, Cox formed Cox Automotive, which includes top brands such as Kelley Blue Book and AutoTrader. The automotive arm is also heavily involved in auto retailing, with Dealertrack, Dealer.com, and Vinsolutions in its portfolio. Manheim Auctions is yet another Cox Automotive holding.

In a press release from Rivian, we uncover Cox’s motive for investing in the automaker. “We are excited by Rivian’s unique approach to building an electrified future and to be part of the positive impact its products will bring to our roads and the world around us,” said Sandy Schwartz, president of Cox Automotive. “This investment complements Cox Automotive’s own commitment to environmental change through our Cox Conserves efforts.”

Certainly, taking a stake in Rivian enables Cox to claim an early slice of an electrified future. This move may also give the company an avenue to market new vehicles.

Two Rivian Models

Based on Rivian’s timeline, we’re still more than a year away from seeing the company’s first two models launch: the R1T pickup truck and the R1S utility vehicle. The two models share a common skateboard chassis and will be offered in 105 kWh, 135 kWh, and 180 kWh battery pack sizes.

The standard model offers a robust 402 horsepower and 413 pound-feet of torque. its most powerful version has an output of 754 horsepower and 823 pound-feet of torque. Thus, the two models boast a 0-60 mph acceleration time of under five seconds to as fast as three seconds, depending on the battery size. Vehicle range is from 230/240 to 400/410 miles, which should meet the needs of the vast majority of drivers.

Partners and Consumer Demand

If there is any probable downside to Rivian (besides executing what they’ve promised to build), then that would be demand. Indeed, Rivian is entering an unchartered territory with an electric pickup truck, as no production model has ever been built or marketed. Traditional pickup truck owners enjoy their big gas- and diesel-powered models, and may not be ready to make a switch, especially away from a brand they’ve long trusted.

We think, however, Rivian stands a very good chance with starting on the right foot, thanks in large part to its investors. For example, Amazon needs delivery vehicles and may use the R1S to supplement its fleet. Although the vehicles are smaller than the Mercedes-Benz vans now in use, the Rivian’s footprint may be ideal for cities.

Cox will likely bolster its company fleet with both models. Its cable division might easily integrate the pair, upfitting the pickup for its residential services.

As for Ford, don’t look for Rivian models to supplant the F-150 and Ranger anytime soon. However, a promised electric Ford truck may tap Rivian technology, perhaps even sharing the skateboard platform to create a third model line.

Competition and Consumer Demand

Rivian can also expect competition from Tesla, which promises its own pickup truck will eventually arrive on the scene. And if this new breed of models proves stout and affordable, the swing to electrification may finally gain traction. If so, expect more investors to beat a Rivian path.

Additional Rivian News

Rivian’s Electric Truck as a Meal Ticket

EV Shocker! Ford, Not GM Invests in Rivian

About EV Maker Rivian

Rivian Automotive Draws Interest From GM, Amazon

Ford Focus, Fiesta Transmission Troubles Not Over Yet

May 9, 2019 by admin

The Ford Motor Company has received thousands of complaints about the dual-clutch transmissions found in some of its models. Specifically, owners of 2011-2016 Fiesta and 2012-2016 Focus models have complained to Ford about problems, which have caused these cars to operate dangerously or break down. Ford settled one suit earlier for $35 million, but the case may be reopened and expanded significantly, with billions of dollars at stake.

Attorneys representing consumers nationwide are arguing that the DPS6 transmission found in select models is prone to “shuddering, slipping, bucking, jerking, hesitation while changing gears, premature internal wear, delays in downshifting and, in some cases, sudden or delayed acceleration.” You’ll find personal injury and commercial litigation specialists working on behalf of affected owners, although we recommend Ford owners visit the Public Citizen website and search for “Vargas v. Ford Motor Company” for details about the legal action.

Legal Action on Behalf of Affected Owners

So, who is affected by the lawsuit and what might the result be if the outcome favors the plaintiffs?

1. Nearly two million owners. The lawsuit filed by Public Citizen covers 1.9 million Fiesta and Focus owners whose cars were equipped with the affected six-speed dual-clutch automatic transmission. Not included are thousands of drivers who chose a manual transmission or who cars were built in the 2017 model year or later. That latter group of owners aren’t covered, at least not yet.

2. Thousands of dollars are at stake. Public Citizen isn’t the only one representing affected Ford owners. Attorneys familiar with California’s Lemon Law have filed claims. They’ve also filed Auto Fraud claims and are seeking to reimburse consumers for their losses. If consumers prevail, Ford may be required to buy back the vehicles, pay for repairs, or cover related costs. Thousands of dollars in settlement money for each owner is at stake. Reports indicate that Ford’s payout may top $4 billion.

Your Affected Ford Vehicle

If you are the current owner of an affected Fiesta or Focus vehicle, the following are among the problems you may encounter with them:

1. Clunking or chattering noises while shifting.

2. Vehicle rolls back on a hill while stopped.

3. Delay while shifting.

4. Shuddering or vibration while automatically shifting between gears.

5. Delayed response when accelerating.

6. Transmission gear hunting.

7. A sharp rise or fall in engine RPM when shifting.

California Lemon Law

California has one of the toughest lemon law statutes in the nation. The state “requires a vehicle manufacturer that is unable to repair a vehicle to conform to the manufacturer’s express warranty after a reasonable number of repair attempts to
replace or repurchase the vehicle.”

The state does not set the number on “reasonable repair attempts.” However, there are guidelines for determining when a “reasonable number” of repairs have been made. California’s law covers all cars, pickup trucks, vans, and utility vehicle. Also covered are the chassis, chassis cab, and drivetrain of a motorhome.

The California law extends to dealer-owned vehicles, demonstrators, vehicles purchased or leased for business use as well as for personal use. It is a wide blanket that covers vehicles throughout that model’s original warranty period.

Lemon Laws by State

All 50 states have lemon laws, but there are some differences in what these laws state For instance, in some states just one or two repair visits may result in state action.

You can where you stand by visiting the Center for Auto Safety website and clicking the Lemon Law Library tab. There, you’ll find out information about the Magnuson-Moss Warranty Act and federal emissions warranties. The site also offers details about secret warranties, small claim courts, and the National Motor Vehicle Title Information System.

EV Shocker! Ford, Not GM Invests in Rivian

April 24, 2019 by admin

RJ Scaringe and Bill Ford

RJ Scaringe, Rivian founder and CEO, and Ford Executive Chairman Bill Ford announced a $500 million Ford investment in Rivian. Through a strategic partnership, Ford will develop an all-new, next-generation battery electric vehicle for Ford’s growing EV portfolio using Rivian’s skateboard platform.

Upstart Rivian, a future manufacturer of electric vehicles, announced today a $500 million minority investment by the Ford Motor Company. Ford’s backing follows a $700 million investment by Amazon. Together, the two companies give Rivian the confidence and support it needs to launch their new products.

The Ford investment is stunning as it follows on the heels of a rumored stake sought by GM, but later canceled. Ford kept its negotiation with Rivian under wraps, which made today’s announcement all the more stunning.

A Board Seat and a Skateboard Platform

Ford’s stake will not only give it a voice in how Rivian is run — Executive Vice President and President of Global Operations Joe Hinrichs will join Rivian’s board of directors — the company will also receive access to Rivian’s proprietary skateboard platform.

That platform is already designed to uphold an SUV and pickup truck, two models that’ll underpin this emerging automaker. The first of the two is expected late next year. Other models may follow.

Some have speculated the skateboard platform will underpin an electric F-150, but that doesn’t seem at all likely. Notably, Ford is developing its own electrified truck based on its existing platform. Instead, we’re likely to see an all-new model, a dedicated electric vehicle for either the Ford or Lincoln brands. Perhaps both.

If the model is a Ford, an SUV is a logical approach. If Lincoln is selected, it might see a pickup truck, but we’re thinking an SUV designed to compete with the Tesla Model X or perhaps the upcoming Model Y, a small crossover is a more sensible approach.

Ford and Volkswagen

Ford’s Rivian connection won’t have any bearing on its burgeoning relationship with Volkswagen. Indeed, Ford CEO Jim Hackette told Automotive News today that “…the Rivian investment “does not interfere” with any potential deal with VW. ” The two automakers are collaborating on a few products, including a shared EV platform.

The Rivian stake is in addition to Ford’s $11 billion monetary contribution to its own electric vehicle quest. Ford has two electric models in the planning stages, including a Mustang-inspired crossover. The other model is the electrified F-150.

Rivian Independence

Neither Amazon nor Ford will have a controlling interest in Rivian, which will remain an independent company. Rivian already has the backing of two global investment firms: Saudi Arabia’s Abdul Latif Jameel Ltd. and Japan’s Sumitomo Corp.

As for GM, the news that Ford took its place in backing Rivian must be sending shockwaves through the Renaissance Center. To its credit, GM is ahead of Ford in all things electric, but having its chief rival jump in is not something the company’s executives can easily dismiss.

Photo courtesy of the Ford Motor Company.

Book Review: Mustang by Design

December 14, 2018 by admin 5 Comments

Nearly everyone knows something about the Ford Mustang, the iconic sports coupe that’s been part of American automotive lore for more than a half-century. Formally introduced at the New York World’s Fair on April 17, 1964, this steed on wheels has captured the hearts of millions of drivers and remains the quintessential pony car.

As much as we may think we know about the Mustang and its storied history, these details are typically relegated to the release of the first model and every subsequent iteration. But the Mustang’s origin is a story seldom told or least key elements about the vehicle’s beginnings are often left unsaid.

Mustang by Design: Gale Halderman and the Creation of Ford’s Iconic Pony Car

Those omissions led a pair of automotive authors, Jimmy Dinsmore and James Halderman, to collaborate and tell the whole story, which they covered in the seminal hard-copy book titled, “Mustang by Design: Gale Halderman and the Creation of Ford’s Iconic Pony Car.”

Mustang by Design: Gale Halderman and the Creation of Ford's Iconic Pony Car Who is Gale Halderman? To begin, he is James Halderman’s cousin, which immediately supplied the authors with special access and inside knowledge about the Mustang. Gale had a long history with the Ford Motor Company, starting his tenure as a designer fresh out of college and quickly working his way up in the company’s hierarchy.

Significantly, it was Halderman’s initial design sketch that ultimately led to the development of the car that became the Ford Mustang. But the project almost never happened as the automaker was still licking its wounds from the failed Edsel debacle, an all-new marque slotted between the Ford and Mercury brands.

With the backing of Ford executives Hal Sperlich and Lee Iacocca, but especially Iacocca, the then-unnamed project received the reluctant approval of Henry Ford II, the eldest grandson of the company’s founder, Henry Ford. The authors recounted Iacocca’s influence, which included the executive guaranteeing the success of the nascent model with his career aspirations on the line.

Falcon Architecture and a Nominal Budget

The authors dug deeper to reveal more about the project, based on the popular Ford Falcon architecture and allotted a budget of just $75 million to launch. That amount was just a fraction of the cost of the average car launch, but savings were realized by deriving about 60 percent of the coupe’s parts from the Falcon.

Yet, the Mustang’s success was far from guaranteed. For one, it had to show enough differentiation to appeal to its target audience — young people, men and women alike. Indeed, the proposed vehicle was sometimes referred to as a “secretary’s car,” meaning it had to be liked and affordable for office workers. Furthermore, it was tasked with launching an entirely new segment of sport coupes. Ultimately, Ford was striking out in a fresh direction and reshaping the industry with it.

Dinsmore and Halderman shared details about car design that demonstrate how even the smallest changes can have a lasting impact on vehicle development. For instance, the three-gill look on the first-generation model’s front fascia remains a significant Mustang design element, but its purpose was quite simple — the designers had to conceal a gap between the grille and the headlamp bezels. To this day, the design is a significant part of the modern Mustang as it is now utilized in the LED accent lights adorning each model.

From Planning to Production and Beyond

The Mustang’s formal launch was preceded by a massive media push, whereby the automaker made the new car available ahead of its release. Consequently, by the time the Mustang entered dealer showrooms, consumers were ready to make a purchase. One full year later and more than one million Mustangs were sold — a new segment was launched and the pony car was born.

At this point in the storyline, the authors delved into the first model, explaining how new engines and transmissions were brought on and where the late-available fastback model fit in with the standard coupe and convertible. We also learn about Carroll Shelby’s role in transforming the Mustang into a performance model, something Ford needed, especially as GM rolled out the competing Chevrolet Camaro and Pontiac Firebird models.

The remaining chapters of Mustang by Design focuses on Halderman’s design influence beyond the Mustang. Indeed, Gale worked for the Lincoln-Mercury Design Studio and is credited with developing the opera window popularized in the 1970s. The book also examines Ford’s design studios, Ford family members and key company personnel, then concludes with a look inside the Halderman Barn Museum.

Available at Booksellers Today

Ford Motor Company fans, but especially Mustang mavens, will naturally be drawn to Mustang by Design. There are enough nuggets to keep readers digging for more, while the supporting photographs and story insets complete the narrative.

The book (CarTech; 192 pages; $42.95) is available through booksellers such as Barnes & Noble and Amazon. You can also obtain an author-signed edition through CarTech.

Return of the First-Generation Ford Bronco

December 6, 2018 by admin 4 Comments

An Illinois manufacturer is bringing back the original Ford Bronco in small numbers.

If you’re a fan of the Ford Bronco, then likely you’re anticipating the return of this small SUV in 2020. Sharing its platform with the Ford Ranger, the new Bronco will build on the success of earlier models, including the original, which was manufactured for 12 years from 1966 to 1977.

The original Bronco was offered in three cab types: a wagon, a pickup (but only through 1972), and an open model with cut-out filler panels instead of doors, according to Hagerty. The most popular of the three is the first cab type.

The Original Ford Bronco

Ford may be returning with a new model, but that isn’t stopping some enthusiasts from snapping up the original. Speaking of the original, a company by the name of Gateway Bronco has received approval by the Ford Motor Company to produce original copies of the first-generation Bronco for customers under a special license agreement with the automaker.

Based in Hamel, Illinois, Gateway Bronco is already a restorer of the original and will now create 1966-77 Broncos according to the Low Volume Motor Vehicle Manufacturers Act of 2015. That act allows manufacturers to build as many as 325 replica cars annually without needing to comply with certain NHTSA safety standards or pay for expensive crash testing. In effect, the act makes it possible for certain discontinued vehicles such as the original Ford Bronco to return.

Gateway Bronco has the distinction of restoring the classic Bronco and delivering it to customers with an authentic Ford frame and original Vehicle Identification Number (VIN). Available upgrades include electronic fuel injection, a Porsche leather interior, and a barn wood bed. In fact, the company says that it offers “endless custom options” according to its website.

Founder Seth Burgett stands in front of one of his classic Broncos.

A Reimagined Original

Under the agreement with Ford, Gateway Bronco will now go to the next step: offering what it calls “reimagined” Ford Broncos powered either by a fuel-injected 347 Stroker engine paired with a four-speed automatic or five-speed manual transmission or by a Ford Coyote 5.0-liter V8 engine paired with a six-speed automatic transmission.

Further, the company makes improvements to the chassis for a smoother and more comfortable ride, adds sound deadening material, and takes special steps to thwart rust and deterioration. Customers will have a choice of three models ranging in cost from $120,000 to $180,000.

Gateway is able to produce two to four new vehicles per month. Importantly, it meets the Certified Reconditioned Vehicle standards as established by Ford.

“We’re honored to be recognized by Ford Motor Company and consider this license agreement a tremendous privilege,” said Seth Burgett, CEO of Gateway Bronco. “We will work diligently to serve and protect the Ford brand. Our proprietary, exclusive solutions to re-condition and manufacture the first-generation Ford Bronco has led to incredible growth of our company. Deepening our relationship with Ford will help us better serve our customers who want the ultimate classic Ford Bronco with modern performance.”

Hagerty Valuation

Of course, if you own a classic Bronco, Hagerty places a value starting somewhere around $25,000, depending on the year and condition. A makeover can restore it to its original condition or in the case of Gateway Bronco, provide a fresh take on a cherished classic with either a complete restoration or an all-new Ford-approved model.

Video: This is Gateway Bronco

Photos and video copyright Gateway Bronco.

Ford Management Overhaul: Fields Out, Hackett In

May 22, 2017 by admin Leave a Comment

Management shakeup at the top as stock prices slide.

Following a board meeting this past Friday, the Ford Motor Company set in motion changes to senior management confirmed only this morning.

CEO Mark Fields is out, Jim Hackett has taken his place, and three new roles for current Ford executives were announced. Also, long time Ford communications head Ray Day will retire in 2018 with Mark Truby replacing him.

Hackett is the former CEO of Steelcase, a leading office furniture company. Besides modernizing Steelcase, Hackett served as the interim athletic director at the University of Michigan, bringing venerated football coach Jim Harbaugh to Ann Arbor. That move received praise from fans and has helped reinvigorate the program.

From Board Member to Mobility Boss

Hackett joined Ford’s board of directors in 2013, later named the chairman of the newly formed Ford Smart Mobility in March 2016. Bill Ford is a fan of Hackett and the two appeared together at a news conference this morning at Ford’s Dearborn headquarters to discuss the changes.

These changes mean Mark Field has retired, following a distinguished 28-year career at Ford. Fields, now retired, succeeded Alan Mulally as the company’s president in CEO beginning in July 2014. Prior to that, he served as the company’s chief operating officer, executive vice president, and chairman of the automaker’s Premier Automotive Group. Early on he ran marketing and sales for Ford’s former Mazda subsidiary and also managed Ford’s Argentina operation.

In Mulally’s Steps

But Fields came in behind Mulally, who has been widely credited with saving Ford from bankruptcy. Unlike its chief US competitors GM and Chrysler, Ford had a large cash fund in place when the market nosedived in 2008. Essentially, Mulally hocked the house to create Ford’s war chest. That debt has since been paid off.

Mulally also instituted the company’s “One Ford” policy, where the automaker began offering its products globally instead of regionally. Thus, the European Ford Focus came to the US market, while the Mustang sports car’s range extended to new markets, including Europe. Today, more than 100 markets offer the Ford Mustang.

To his credit, Fields oversaw record profits and operating margins over the past few years. For instance, the company made a record $2.5 billion net profit in the first quarter of 2016 — more profit than any quarter in Ford’s now 114-year history.

But profits are only one indicator of corporate success. Unfortunately, Ford’s stock price has fallen by 40 percent under Fields. At the most recent annual shareholder meeting earlier this month, shareholders pressed Fields and Chairman Bill Ford to explain why shares have plummeted. Further aggravating shareholders were the strong bonuses awarded to Fields and other executives as share prices tumbled. Clearly, shareholder disgruntlement and board angst led to the changes we learned about today.

Three Appointments Effective June 1

Besides Hackett stepping in, Ford announced three other personnel changes effective June 1.

Firstly, Jim Farley is now the executive vice president and president of Global Markets, overseeing Ford’s business units in much of the world. In addition, Farley will oversee the Lincoln Motor Company along with global marketing sales and services.

Secondly, Joe Hinrichs is appointed executive vice president and president of Global Operations. This means Hinrichs will oversee the company’s product development, manufacturing and labor affairs, quality, purchasing, and sustainability efforts, along with environmental and safety engineering.

Thirdly, Marcy Klevorn is now the executive vice president and president of Ford Smart Mobility LLC, replacing Hackett. The subsidiary was formed to accelerate the company’s plans to design, build, grow and invest in emerging mobility service along with advancing changes to Information Technology and Global Data.

“We are fortunate to have three dynamic and talented leaders in Jim Farley, Joe Hinrichs and Marcy Klevorn taking on greater responsibility,” Bill Ford said. “Each has a track record of driving innovation, cost efficiency and delivering results around the world. They will work closely with Jim Hackett to lead Ford’s day-to-day operations, build our brand and capitalize on emerging opportunities.”

Three Priorities

Hackett and Bill Ford will focus on three priorities moving forward, defining these as:

1), sharpening operational execution,

2), modernizing Ford’s business, and

3), transforming the company to meet future challenges.

Besides the immediate challenges of convincing Wall Street to boost Ford stock, the automaker must also face a tightening market. US sales are down year to date as analysts indicate peak sales were reached in 2017.

Like its competitors, Ford must exercise discipline and avoid deep discounting, what can only hurt its bottom line.

Photo courtesy of the Ford Motor Company.

Ford Raises 2017 Michigan Investment to $1.9 Billion

March 29, 2017 by admin 1 Comment

Money, jobs, and a presidential tweet.

Watch or read the news and you may have a different take on a story compared to the person observing it with you. That’s nothing new, especially in the way stories are presented by various networks, newspapers, and individuals.

Three Michigan Plants

The Ford Motor Company announced on Tuesday its plans to invest additional money covering three Michigan plants, on top of the one plant it had previously targeted. The earlier announcement, made in January, was for $700 million and 700 new jobs at the Flat Rock Assembly Plant, while the latest plan adds an additional $1.2 billion and creates 130 new jobs, raising Ford’s new investments in Michigan to a grand total of $1.9 billion for 2017 alone. In all, 830 new Michigan jobs are on the way.

Ford says the investment comes as it seeks to strengthen two of its profit pillars — trucks and SUVs — as well as expand the company’s mobility initiative.

So, here is how the $1.9 billion will be earmarked:

1. Flat Rock Assembly — In January, Ford announced a $700 million investment in its Flat Rock Assembly plant for “high-tech electrified and autonomous vehicles.”

2. Michigan Assembly Plant (Wayne) — Ford’s Wayne, Michigan, assembly plant will receive $850 million in upgrades to produce the Ford Ranger (2019) and the Ford Bronco (2020). Work begins next May to transform the plant, with plans to remove and install the tooling in just four weeks.

3. Romeo Engine Plant — Ford’s Romeo engine plant will benefit from an expansion to allow it to build engine components for several vehicles, including the Ranger and Bronco. The plant already produces engines for the Super Duty, E-Series, Ford Shelby GT 350 Mustang and Shelby GT350R Mustang, along with components for F-Series, Mustang, Explorer and Edge. Ford says 130 new jobs will be created to handle the expanded capacity.

4. Data Storage Expansion. The automaker’s data storage requirements are expected to increase sharply over the next four years. To handle the growth, Ford is investing $200 million to upgrade its data center for improved storage, processing, and integration of this data. A side benefit will enable Ford to introduce new mobility products and services.

“At Ford, we are investing aggressively in building on our strengths today – including trucks, vans, commercial vehicles, performance vehicles and SUVs – while at the same time growing our leadership in electrification, autonomy and mobility services,” said Joe Hinrichs, Ford president, The Americas. “As America’s top producer of automobiles, we are proud to be going even further in our commitment to invest in manufacturing here at home.”

Ford says it investments are supported by the automaker’s partnership with the UAW, as well as with federal, state, county and local governments.

“UAW-Ford is proud of the total investments in three of our Southeast Michigan assembly and engine plants, which will lead to stronger job security for our members and continued support for the surrounding communities,” said UAW-Ford Vice President Jimmy Settles. “Thanks to collective bargaining, the hard-working men and women at each of these locations will now reap the full fruits of their labor. We look forward to celebrating more product investment and job growth at each of our UAW represented facilities in the months and years to come.”

See Also — New Ford Super Duty F-600 Unveiled

President Trump Sends a Tweet

For a full day leading up to Ford’s announcement, news that something was brewing surfaced on media outlets online. Further, just hours before Ford released details of its plans, President Donald J. Trump tweeted — “Big announcement by Ford today. Major investment to be made in three Michigan plants. Car companies coming back to U.S. JOBS! JOBS! JOBS!”

The president has been pushing automakers to expand jobs stateside, giving him yet another victory lap to run.

Photo copyright the Ford Motor Company.

Updated SUV: 2017 Ford Escape

October 10, 2016 by admin 9 Comments

Small SUVs are a hot commodity — so much so that at least four models should top 300,000 units sold this year.

The Toyota RAV is in hot pursuit of the segment-leading Honda CR-V, followed by the Nissan Rogue and the Ford Escape. Although sitting in a distant second place among Ford brand products to the F-150, the Escape now outsells Ford’s Fusion sedan, itself one of the top-selling midsize models.

Ford introduced the Escape in 2001, with an updated model appearing six years later. The most important change took place in 2013 when an all-new model was released. The move was significant for Ford as the automaker severed its tie with Mazda (previous models were based on the architecture it shared with the Mazda Tribute) and dropped the hybrid variant. Ford’s compact hybrids are now sold under the C-MAX model range.

The new model offers a modern design, room for five, and three engine choices. Its release was timed perfectly with shifting consumer demand and Ford has reaped those benefits.

But resting on your laurels is dangerous in this business as competitors are quick to pivot in an effort to gain an upper hand. Furthermore, consumers are much less brand loyal than ever as they search for the most modern vehicle with the technology and convenience features that distinguish them.

2017 Ford Escape

For 2017, the Ford Escape is vastly overhauled, reflecting a significant mid product cycle update. It also follows several interim changes Ford has made year-over-year since the third-generation Escape was released.

Indeed, in 2014 Ford shuffled its trims and made a rearview camera and its SYNC telematics system standard across the model line. In 2016, Ford released the third-generation of its SYNC system, replacing MyFord Touch.

The changes for 2017 include refreshed front and rear fascias, a newly available 1.5-liter turbocharged four-cylinder engine and an updated 2.0-liter, turbocharged four-cylinder engine. Along with a handful of interior updates, this model now provides Apple Car Play and Android Auto compatibility.

Moreover, the Escape’s list of available safety features has expanded to include adaptive cruise control with forward collision alert, lane-departure prevention, and a driver drowsiness monitor. Ford now offers a Sport Appearance Package on the SE and Titanium trim and continues with this model’s maximum 3,500-pond towing capacity.

The 2017 Ford Escape is available in three trims: S ($23,600), SE ($25,100), and Titanium ($29,100). Front-wheel drive is standard; all-wheel drive is available except for the base trim.

Three Engine Choices

A 2.5-liter four-cylinder engine is found on the S model only and makes 168 horsepower and 170 pound-feet of torque. This model makes an EPA-estimated 21 mpg in the city and 29 mpg on the highway.

Both the SE and Titanium models offer a standard 1.5-liter turbo four-cylinder engine making 179 horsepower and 177 pound-feet of torque. Front-wheel-drive models achieve the best fuel economy for the model line, making an EPA-estimated 23 mpg in the city and 30 mpg on the highway.

The two higher trims also offer an available 2.0-liter twin-scroll turbo four-cylinder engine making 245 horsepower and 275 pound-feet of torque. This model makes an EPA-estimated 22 mpg in the city and 29 mpg on the highway.

All three engines are paired with a six-speed automatic transmission. The standard 1,500-pound towing capacity with the base model can be upgraded to 3,500 pounds with the 2.0-liter engine and with the available Class II trailer tow prep package ($495) optioned.

Exterior Highlights

Equipment levels vary (and in some cases widely) from base to high-end model. Standard exterior equipment includes a black grille, 17-inch wheels, halogen headlamps, and power side mirrors.

Upgrades bring in a chrome-accented grille, Bi-Xenon high-intensity discharge headlamps, fog lamps, side mirror turn signal indicators, roof rack rails and cross bars, and a power liftgate. In addition, SE ($1,295) and Titanium ($725) models offer sport appearance packages

Interior Highlights

Keyless entry is standard; push-button start is found in the Titanium model only. Inside, cloth or leather seat trim is included. A power-operated driver’s seat starts at the SE level. Although the Escape offers room for five, it is best suited for four — consider the middle seat position your comfort space with its pull-down armrest and two cup holders (not available in the S model).

Power accessories, a six-speaker audio system, SYNC voice recognition, and climate control is standard. As for the Escape Titanium, a Sony 10-speaker audio system is included. Steering wheel-mounted paddle shifters are found except for the base model.

Standard cargo space is excellent, measuring 34 cubic feet. Not only can you hold all your groceries with ease, but you can pack the back for a long weekend away with the family. If you don’t need the rear seat, then fold it and you’ll double your cargo carrying capacity.

Safety Equipment and Packages

On the safety front, the 2017 Escape achieved “good” scores from the Insurance Institute for Highway Safety (IIHS) in four categories: moderate overlap front, side, roof strength, and head restraints & seats. The Institute assigned an acceptable score in the small overlap front test. “Good” is the IIHS’ highest score followed by acceptable, marginal, and poor.

All 2017 Escapes come with a suite of airbags, including a driver’s knee airbag. A rearview camera is standard. Incidentally, most driver assist technologies show up on the Titanium level, but only as part of a $1,995 technology package.

That package includes bi-xenon high-intensity discharge (HID) headlamps with LED signature lamps; auto high beams; enhanced active park assist system with parallel parking, park out assist, reverse perpendicular parking, and forward and side sensing systems; lane-keeping system; rain-sensing windshield wipers; heated steering wheel; and a supplemental PTC heater. Notably, a blind spot information system is a standalone standard item on the Titanium and part of a $1,395 tech package for the SE trim.

On the Road

Our all-wheel drive test model was equipped with the larger turbo engine. Let me say this: it provides much more power than what most people need, but having access to its enhanced performance isn’t something you’ll easily dismiss once experienced.

To illustrate, the mighty four acts like a strong V6 — a generation ago it would have beaten not a few small block V8s in overall performance. Wonderfully, this twin-scroll engine is imbued with better technology than a traditional turbo as it gathers engine exhaust from cylinder pairs in alternating sequence. Specifically, these alternating pushes go far in eliminating lag, the bane of turbo engines.

All things considered, you’ll zip away from a dead stop and tap robust power as you race down the road. No, the Escape isn’t meant for racing, but with all-wheel drive, adept steering, and confident handling, you’ll shine on the straightaways. Twisty roads mean you’ll experience some body roll, but it is far from what you’d face with front-wheel drive only or with larger, more cumbersome models. The Escape shares its DNA with the Ford Focus, one of the more competent small cars out there.

Parting Thoughts

Clearly, the 2017 Escape is a compelling model. It also becomes quite pricey when choosing the Titanium model, the available twin-scroll engine, and several packages. As a matter of fact, more than $35,000 pricey when fully loaded. That’s a high price to pay for a small SUV.

Instead of the Titanium, consider the SE trim. If you need all-wheel drive and prefer such equipment as BLIS, reverse sensing, an upgraded audio package, and SYNC 3, then the $1,395 equipment group is a must. Add in a panoramic vista roof ($1,495) and the power liftgate ($495) and you’ll pay about $30,000 to acquire this vehicle. At any rate, that’s a price point in line with it competitors, although you’re also forgoing the more powerful engine and a number of driver assistance features.

Recent Review — Introducing the Second-Generation GMC Acadia

Lincoln Brand Expands its Concierge Services

June 29, 2016 by admin Leave a Comment

Pickup and delivery service goes brand-wide for 2017.

2016 Lincoln MKC.

The Ford Motor Company’s Lincoln brand is exploring new ways to win over customers. This week, Lincoln announced plans to turn its experimental trial pickup and delivery service program into a permanent effort, effectively expanding its current concierge services. The Lincoln Service Valet rolls out across all 2017 nameplates, beginning with the all-new Lincoln Continental arriving this summer.

Lincoln Service Valet

According to the manufacturer, the Lincoln Service Valet will pick up a client’s vehicle at a mutually agreed upon location, supplying a complimentary Lincoln loaner vehicle while the client’s vehicle is being serviced at the dealership. Upon completion of the service, Lincoln owners can arrange for their washed and serviced vehicle to be returned to them at the location of their choice. The loaner vehicle is then returned to the dealer.

“Lincoln Pickup and Delivery service revolves around complementing our luxury vehicles with outstanding luxury experiences,” says Andrew Frick, Lincoln North American director of sales and services. “This kind of Quiet Luxury provides an exclusive and personally crafted service experience that enhances their lifestyle and saves them what is a true luxury item – their time.”

Lincoln began its pilot program in May 2015, choosing a select group of dealers to fine-tune the project. The manufacturer claims an overwhelmingly positive experience based on customer reactions.

Specifically, 98 percent of the clients indicated they would be more likely to receive services from that Lincoln dealer in the future. Another 98 percent said they would recommend Lincoln and the service to a friend. Importantly, 93 percent said they are likely to purchase another Lincoln vehicle. These are the numbers any luxury brand would aspire to.

2017 Lincoln Continental.

Lincoln Business Plan

The latest concierge service initiative comes from a business plan adopted in 2012 to merge product offerings, provide a peerless service, and to supply a superior experience for brand customers. It will be added to an existing line of services to extend the original initiative.

That initiative is composed of multiple programs, including Lincoln Concierge, Black Label, Date Night, and the Lincoln Institute.

Lincoln Concierge provides customers with a personal advisor, available to assist customers around the clock. Although other luxury brands offer this service, Lincoln extends the service further by providing a video chat function.

The Black Label service, launched in 2015, involves more than 90 participating dealers. The service provides personalized shopping by helping customers identify their vehicle by providing paint and wood samples in their home or other location. Special privileges are also included such as maintenance coverage on wear items.

2016 Lincoln MKX.

Other services include “date night” whereby participating dealers provide extended test drives for up to 48 hours. Lincoln says the program resulted in an 11 percent increase in sales. Some 70 percent of clients came from other luxury brands. As for the Lincoln Institute, it provides hospitality training for brand dealers and includes a series of workshops to help Lincoln teams to improve their processes with luxury clients.

Strong US Sales Through May 2016

Lincoln’s US sales are up 14.7 percent in a market that is up just 1.1 percent. Importantly, Lincoln is ahead of many of its competitors, including arch-rival Cadillac. Indeed, Cadillac sales are down 12.5 percent through May 2016.

Further, among the premium brands, only Volvo (up 20 percent) and Jaguar (up 24.6 percent) are outpacing Ford’s luxury marque. That means a revived Lincoln — is outpacing such industry stalwarts as Lexus, Mercedes-Benz, Acura, BMW, Land Rover, and Audi. Lincoln currently occupies ninth place among luxury automotive brands. In 1998, Lincoln outpaced all comers, but its sales fell dramatically over the next 15 years.

See Also — Lincoln MKX: Masseuse on the Go

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