mackinaw

Another take on GM's dominance in the 1950s' and 1960s'. From the "Automotive News" GM 100th anniversary issue: "GM was the nation's biggest taxpayer, accounting for about 4 percent of all corporate-profit taxes collected. It employed 750,000 people, about 600,000 in the United States and Canada. "GM dictated to the market the terms of design, vehicle content and pricing. "They were the pricing leader, when GM announced prices, everyone followed." "GM's executive team was extraordinary. I never met a GM executive who was not outstanding; they had outgunned the industry."

You're absolutely right. In 1954 GM had 54% of the U.S. market (read that again, 54% of the U.S. market). They were so domineering and so controlling Teddy Kennedy even suggested Chevrolet be split off from the rest of GM. Hard to believe today.

Do you mean North America, specifically the U.S., or world-wide? I got to believe that with China and India, the odds are good that Ford will greatly increase production as the years go by, maybe to all time high (for them) levels. Sidenote: I use to work in the old Powertrain and Engine Engineering building while I was going to college. Talk about history!

"China's Zhejiang Geely Holding Group, vying to buy Ford Motor's (F.N) loss-making Volvo unit, has developed a turnaround plan under which it hopes to double Volvo's sales to near 1 million vehicles a year, media reported on Wednesday. Under the plan, Geely would build a new Volvo plant in China with annual capacity of 300,000 vehicles a year to draw on China's market potential and inexpensive labour, the Wall Street Journal reported, quoting a source close to Geely." Reuters article here: http://www.reuters.com/article/CARMFG/idUSHKG33294720091111

Again, here's another snippet from Mulally's interview in this week's Automotive News: Volvo will soon be sold. How do you create a credible luxury business with Lincoln when those dedicated Lincoln-Mercury dealerships are declining? What's the plan for Lincoln? "Lincoln is a great brand. And many people believe we have the finest Lincoln family now that we've ever had. And we're going to keep enhancing it. They're not just rebadged Fords going forward. We really believe Lincoln has a great name in the United States and a lot of people believe it would be a good brand worldwide, too." Is there a chance you could expand it globally? "Yeah, but our focus right now is to really make a compelling luxury United States Lincoln brand." "Maybe in the past, there hasn't been as much differentiation between a Lincoln and a Ford. But clearly with what we're doing going forward, that Lincoln product is going to be a more of a luxury brand promise. The whole bar's moving up because the Ford vehicles are getting better and all the luxury brands are getting better."

Mulally was interviewed this week in Automotive News. Here's another part of the Q&A session. Note the last sentence: Do you see a rebound in the pickup segment? "It's already rebounded. Even though fuel prices are up, there was still a tremendous market for pickups because 50 percent are used for work. We really learned a great lesson: No matter what the size vehicle, the owner wants a vehicle that works for their life, but they also want it to be fuel-efficient. But we'll be trying to give them that kind of capability in a little bit smaller, more efficient vehicle."

From today's Automotive News, article by Amy Wilson. Portion of a Q&A session with Mulally. Pretty clear where he stands on the issue of stand alone L-M dealerships: The number of Mercury nameplates is shrinking. You're pushing for more dual Ford-Lincoln-Mercury stores. What is your intention for stand-alone Lincoln Mercury dealerships? Is eliminating them part of the strategy? "Our focus is on a distribution network where they can be profitable. Many people really like the volume and the breadth of having Ford-Lincoln-Mercury together." But is there enough for the stand-alone Lincoln Mercury dealers? "I think in the future you will see more and more dualing of the dealerships." Will we eventually see the stand-alone Lincoln Mercury store go away? "I think we'll see more Ford-Lincoln-Mercury dealerships." Any tips for how the remaining stand-alones can stay in business and make a profit? "I think we'll just see more Ford-Lincoln-Mercury dealerships." But does that make sense in the metro areas? "I think we'll see more Ford-Lincoln-Mercury dealerships."

From today's Automotive News, article by Amy Wilson: DETROIT -- Ford Motor Co. will not sell the Ford Ka minicar or the global Ford Ranger pickup in the United States, CEO Alan Mulally says. Mulally previously had said both vehicles were under consideration for sale here. But the Ka, a minicar developed with Fiat S.p.A., has been deemed too small for American tastes. The Ka is smaller than the subcompact Ford Fiesta, which will go on sale in the United States early next year. "Our view is that Fiesta is about the smallest vehicle that we think will be a real success in the United States," Mulally told Automotive News. "The global Ranger is a new compact pickup, different from the aging Ranger currently sold here. It was developed in Australia for worldwide markets. Production of the U.S. Ranger is scheduled to end in 2011. Ford has been looking for options to fill the compact pickup segment. Last year, Ford shelved a lightweight version of the F-150. It is unclear what product, if any, will fill the current U.S. Ranger's spot."

Some of the analysts that have seen it say that it's a good looking car.

I don't think people realize how small the 500 is. How about 7" shorter than the standard Mini. We're talking B-class car (actually a bit smaller). I just don't think Americans will ever pay serious attention to any vehicle that small.

This will probably only interest the manufacturing types. From today's Automotive News, article by Richard Truett: "Joe Hinrichs, Ford Motor Co.’s manufacturing and labor relations chief and one of the company’s fastest-rising executives, will run Ford’s Asia and Africa regions starting Dec. 1. "John Parker, 62, currently vice president of Ford Asia Pacific and Africa, is retiring after 41 years with the automaker. "Hinrichs, 42, currently group vice president, global manufacturing and labor affairs, joined Ford nine years ago as manager of the company’s Van Dyke Transmission Plant in suburban Detroit. "Since then, he has risen quickly through several key management positions. Hinrichs has been in charge of planning and logistics for Ford’s global manufacturing plants. He also was CEO of Ford Motor Co. of Canada. “Joe’s keen business sense, his ability to foster strong relationships with key business partners and his leadership skills will serve him well as he builds upon the momentum Ford has in the Asia-Pacific region,” Ford CEO Alan Mulally said in a statement. "Also today, Ford said John Fleming, CEO of Ford of Europe, will take Hinrichs’ old job and run global manufacturing and labor affairs. Fleming will remain in Cologne, Germany."

Interesting article from today's Detroit News. Even during this current economic downturn, the auto industry is investing big-time in the future: http://www.detnews.com/article/20091101/AU...search-spending

Whatever happened to contract parity? For decades, the UAW insisted on a one-contract-fits-all format (with some local adjustments). Back during the Big 3 glory years, Ford, GM and Chrysler all hoped to be the initial UAW strike target so as they could draft an agreement best suited to their specific company. The other companies went along with whatever contract was drafted because they had no choice. Now it seems that it's every man for himself. Fine, but if the UAW rank-and-file walk away from contract parity, they better realize that Ford can walk away from building vehicles, or parts, in the U.S. Nobody says they have to build stuff here.

From today's Automotive News. Article by David Barkholz: "Ford Motor Co. intends to follow through with the closure of its St. Thomas, Ontario, assembly plant and commit to new investments under concessionary contract amendments agreed to today by the Canadian Auto Workers union. "As part of the accord, Ford agreed to put an undisclosed new global platform in the Oakville, Ontario, assembly plant at a later date, Lewenza said. Today, Oakville builds the Ford Edge and Flex and Lincoln MKX and MKT crossover vehicles. "St. Thomas will cease production at the end of 2011 as previously announced. The plant builds the Ford Crown Victoria sedan, Mercury Grand Marquis and Lincoln Town Car. “There no getting around it: We're losing about 1,400 jobs at St. Thomas, and we won't be able to make that up,” said Lewenza in a phone interview following a press briefing today. "Lewenza said the CAW bargaining committee unanimously approved the contract changes as did local plant CAW leadership brought in to review the details."

The dollar/euro thing came up on a recent Autoline Afterhours. All on the panel agreed that the U.S. could become a big exporter of vehicles during the next few years. The Kuga could be the first of many vehicles built in the U.S. and sent to Europe.

Other problems have recently cropped up with Geely's interest in Volvo. From Reuters, "Geely Holding's attempt to buy Ford Motor Co's (F.N) Volvo car unit is in danger of stalling over disagreements about intellectual property rights, a source close to the talks said on Wednesday." http://www.reuters.com/article/cyclicalCon...G24116620091021

Note that this JP Morgan analyst stands alone. From today's Detroit Free Press, "However, Patel's expectations stand in contrast to a consensus estimate from Wall Street analysts. The consensus estimate of 13 analysts tracked by Thomson One analytics is for a loss of 16 cents per share. While Patel acknowledged his outlook is optimistic, he is confident that Ford is on track to outperform expectations." http://www.freep.com/article/20091020/BUSI...-quarter-profit

No doubt Ford is behind in China. Whether we (U.S folks) like it or not, China is now the biggest auto market in the world. Any auto manufacturer worth their salt is aware of that. That's where major growth will be, not the U.S. (or Europe).

How about a better gal? Her name is Susan Docherty. http://www.freep.com/article/20091007/BUSI...P-of-U.S.-sales

From today's Detroit News. Click on the videos in the upper right corner to view the new 15 second ads. http://www.detnews.com/article/20091007/AU...tar-in-Ford-ads

From today's Detroit Free Press: http://www.freep.com/article/20091006/BUSI...demand-in-Calif.

Interesting read. http://www.detnews.com/article/20091004/AU...coBoost-engines

Very interesting discussion a few weeks back on Autoline After Hours (a podcast). Tim Leuliette, of Dura Automotive Systems and somebody who's been involved in the car industry for 20+ years, points out that the current exchange rate makes it very hard for any car company to export a vehicle from Australia and make money. I'd love to see the Falcon here, but doubt that we will. On related note, I recently had a ride in a Pontiac G8. Very impressive vehicle, from the passenger's seat.

Jim Hall, an auto analyst on a recent "Autoline Afterhours" podcast, stated that it's not just RWD cops are looking for, but also body-on-frame construction. I'm not sure why this is a big deal, but apparently it is.

He was referring to the financial side. They've (maybe) figured out a way to import a G8 based car from Australia and make money.