Ford made a trucker hat that might save drivers' lives Truck driving is an exhausting job that requires constant attention to the road. Falling asleep during long stretches is an occasional – and sometimes lethal – concern. That's why Ford helped develop the SafeCap, a hat that senses head movements associated with sleepiness and wakes the driver up with sound, light and vibration. To help celebrate 60 years of producing trucks in Brazil, Ford partnered with the Sao Paulo-based creative agency GTB to make the cap.(Engadget)
Ford CEO: Dumb cars will vanish but smart ones won't Ford's top executive says cars aren't going to disappear on tomorrow's connected roadways – as long as their brainpower can keep up. Jim Hackett, who became Ford's CEO when his predecessor was ousted in May, is pushing to accelerate the automaker's moves into connected, electric and self-driving cars around the globe. Ford announced a joint venture to manufacture and sell a new line of battery-powered cars in China. (Automotive News)
Subscription-based car buying picks up steam Buying a car keeps going the way of Netflix, as more automakers and dealers adopt subscription-based purchase models that give buyers access to multiple models for a fixed monthly rate. Cadillac, which launched its Book By Cadillac program in New York in January, announcedMondayit's expanding the service to Los Angeles and Dallas. Monthly memberships run for $1,800 plus a $500 sign-up fee. Volvo and Porsche this fall launched their own subscription services.(Ad Age)
Digital storefront firm Roadster expands platform Roadster, the California startup that created digital storefronts on dealer sites that allow consumers to buy vehicles online, is broadening the scale of its platform. Roadster’s Express Storefront can now be used on sites at the dealership group level through what the company calls the Express Marketplace. It had previously focused on delivering its storefronts on an individual, store-by-store basis. (Automotive News)
This will hurt this Q's numbers. F-150 is their cash-cow. _____________________ News: Dow Jones Ford Expected to Temporarily Lay Off Several Thousand Workers At Michigan Pickup Truck Plant -- Sources Print Comment Recommend (-) 5-8-18 5:52 PM EDT | Email Article By Christina Rogers Ford Motor Co. expects temporarily to lay off several thousand workers at a Michigan factory that assembles its top-selling F-150 pickup truck after a fire last week damaged the premises of a parts supplier, people familiar with the matter said. The blaze, which occurred Friday at a Michigan plant operated by Meridian Lightweight Technologies, has already disrupted production of Ford's pickup trucks at a factory in Missouri. Meridian is an automotive-interiors supplier owned by China's Wanfeng Auto Holding Group, which makes components for Ford and other car makers. Ford said its F-150 factory in Dearborn, Mich., is expected to run out of Meridian-supplied parts and halt production as early as Wednesday, the people familiar with the matter said. They cautioned that the situation was fluid and final decisions on exact timing hadn't been made. Ford said Monday that its other main F-150 plant, in Kansas City, Mo., would be idled this week because certain parts are in short supply after the fire. The two plants, which together employ 7,600 people, could face several weeks of down time as the auto maker seeks ways to make up the parts shortfall, the people said. The F-150 is Ford's best-selling vehicle and generates the bulk of its global profit. A prolonged shutdown of the plants could dent the company's second-quarter revenue and profit, said Jamie Albertine, an auto analyst at Consumer Edge Research. Mr. Albertine estimates the two plants combined produce some 10,000 to 15,000 F-150s a week, citing figures from AutoData Corp. He said Ford dealers should have a few months of inventory on the ground to prevent shortages in showrooms, but the company would face cost pressures from paying workers during idle time and while ramping back up to offset lost production. The fire also disrupted production at a Fiat-Chrysler Automobiles minivan plant in Windsor, Ontario, and a BMW sport-utility factory in South Carolina, those companies said Monday. BMW said Tuesday production has resumed. A Meridian official said the company is "supporting its customers." --Mike Colias contributed to this article.
Perhaps but they have 88 days of inventory. If they can go 6-8 weeks then things will be okay. But look at it this way.....if the plant shuts down and reduces their inventory, then the 2019's should be arriving in the Summer with a lean inventory of 2018's. Every year they have end of year sales, with big discounts and low interest loans. If their inventory is low, then they will be less compelled to do that this year. Perhaps they will make money by giving away less. Just an idea.......
Ford is restarting production of the F-150 on Friday. They only lost a week's production. Good recovery.
Ford Rating Moody's has cut Ford's credit rating to one notch above junk, with a negative outlook. The ratings agency has little confidence in the iconic carmaker's ability to restructure its business effectively, and notes that its "global business position" is slipping. CEO Jim Hackett's "fitness initiative" is necessary, Moody's said, but "it will take several years for material financial and operating benefits of the program to be realized" and "success could be challenged by having to address the serious performance problems in multiple business units simultaneously." Bloomberg
Ford Hit Ford CEO James Hackett said yesterday that the Trump administration's steel and aluminum tariffs have cost his firm around $1 billion in profits. "If it goes on any longer, it will do more damage," he added. Honda has also taken a hit to the tune of "hundreds of millions dollars" and is now considering higher vehicle prices in the U.S. as a result, said that company's EVP for North America, Rick Schostek. Reuters
Ford to tighten operations, cut salaried workforce Phoebe Wall Howard, Detroit Free Press (Photo: Gene J. Puskar/Associated Press) Ford Motor Company confirmed Friday plans to reorganize its salaried workforce worldwide, flatten its business operations and create a more efficient company that results in fewer white-collar jobs overall. The largest car manufacturing employer in America, Ford has more than 85,000 U.S. employees, and 201,000 globally, including an estimated 70,000 salaried workers. No one can say yet how many jobs will be impacted. “We need to dig into the process deeper before we know the absolutes,” said Mark Truby, vice president, global communications at Ford, in an interview with the Detroit Free Press. “What we’ve kicked off is a redesign of our global salaried workforce — in North America, Europe, Asia, South America. ... ” The Dearborn-based automaker revealed the plan to employees Thursday, saying the entire team is part of an overall assessment to identify how the company can become stronger by limiting corporate bureaucracy and identifying weaknesses in all areas of business, from communications and finance to manufacturing and human resources. Efficiency vs. head count There was no mention of shutdowns or specific strategies. Truby said details are unfolding in coming months and announcements will come as decisions are made. “At the highest level, this is really about changing the way we work,” said Kiersten Robinson, Ford group vice president and chief human resources officer. “You’ve heard (CEO) Jim Hackett talk about fitness and how we need to be more responsive, innovative, agile. Given that, it’s really important when you consider how we modernize the workforce, skills and capabilities we need. Yesterday we shared with our global employees that we’re in the early stages of reorganizing the salaried workforce. This is designed to help us become more fit as a business.” The process is not about cutting headcount as much as figuring out who is needed, what is needed and where resources must be devoted, she said. “It’s just launched in the past day or so. The net result of this will be a much flatter organization, less hierarchical,” Robinson said.“By doing that, we’re going to change the way we work. This will allow us to make decisions faster and allow employees to have a much greater impact.” The 115-year-old company wants to empower managers to have a “greater span of control,” Truby said. “Over time, we’ll have fewer layers, ultimately less people. The goal is to streamline the organization. It’s a cascading process. It will mean a reduction in workforce.” Bottom line: Ford is kicking off a reorganization of its global salaried workforce to support the company’s strategy and objectives. The company will survey employees. Teams will be tighter and more autonomous. “This is a process that’s very participatory. People will dig in and think about the organization and the resources needed," Truby said. “This process won’t be completed fully until the second quarter of next year. We’re going to go through various waves. We’re in the early stages.” He continued: “There is not going to be one day where everything gets announced.” Between now and the second quarter of next year, as decisions get made with workforce reductions, we’ll announce them as they come.” Hackett said a year ago, during his 100 Day report to investors, that he planned to make the company “more fit.” Ford employees were worrying in August 2018 about whether "fitness" would translate into job losses. The Times of London reported the money-losing European division faced significant cuts. And Moody's Investment Services even downgraded the Ford rating to just above junk status. Wall Street watching Analysts predict Wall Street will be thrilled by the latest news. “A lot of people have expected these changes to happen sooner,” said Ivan Drury, senior manager of industry analysis at Edmunds. “The new CEO arrived almost a whole year and a half ago.” Any business as traditional and established as Ford can likely use an overhaul, especially a company that has told the world about plans to cut car production and shift to SUV and truck products, he said. “If I worked on the Fusion or Focus, well, I would be afraid my job is at risk. If I’m working on the Lincoln Navigator, which is making a lot of profit, I don’t worry so much. But there is always an initial wave of fear, frustration, confusion. It can be positive in the end.” Some industry observers wondered about the slow rollout of Ford's plan, which will continue until spring 2019. “Talk about dragging things out and maximizing anxiety and agony for employees — I have never seen such a dragged-out process in all my years in the industry," said Jon Gabrielsen, a market economist who advises automakers and auto suppliers. “This will absolutely hurt Ford by having no one do much of anything for as long as it lasts, and hurt local metro Detroit consumption as no one dare buy anything lest they lose their jobs," he said. "And that will not be limited to Ford employees. Any employee of any automaker or supplier and anyone working in support roles will also recognize they could be the next company to begin layoffs.” However, the strategy depicted by Ford sounds like a surgical strike that Wall Street will see as a path to higher profits, analysts said. Hackett, who spent 30 years in the furniture business, let go 12,000 employees during restructuring at Grand Rapids-based Steelcase and earned respect for his ability to transform business.