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Ford Gets Earning Boost, Might Drop Taurus/C-Max


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you sure you aren't thinking of the new plant in San Louis Potosi?

 

Yup. I'll see if I can find the article... here it is:

 

 

http://billingsgazette.com/business/investment/markets-and-stocks/why-ford-s-decision-to-move-the-focus-to-china/article_1f3c0482-bd13-5b32-87f3-21c80b453622.html

 

 

So why did all of that lead Ford to take a $248 million charge? I asked Ford's chief financial officer, Bob Shanks, to explain:

 

We made announcements [earlier this year] around not building the Focus in Mexico, at Hermosillo. Instead, it'll be coming primarily from China, where we have our biggest global footprint for Focus production in the world. Some will come from Europe as well, but a little bit later than the initial job one. We had already done some work on the next-generation Focus in Hermosillo, so this [one-time charge] is a recognition that while we can reuse some of the tools and some of the other things that we had started to invest in there, some of what we did we can't or won't reuse. This is just the write-offs of that.

 

And there's a little bit of that also in South America, because we have decided we're not going to invest in South America for local production of the next-generation Focus.

 

Long story short: Ford had begun ordering new tooling or doing some work at the Hermosillo factory to build the Focus, and some of that work and tooling is now being written off, as is a small amount of work that had been done in South America. Those write-offs are the reason for Ford's $248 million second-quarter charge.

 

Ford said this past week that it took one-time charges totaling $248 million against its second-quarter earnings to cover the costs of its decision to move production of the next-generation Focus out of North America.

Edited by rmc523
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I think after Saint Luis Potosi was canceled, Ford initially planned to move Focus to Hermosillo. But the possibility of bring Mondeo from Spain to Mexico, and the added capacity lift in China for Focus means Focus no longer needed at Hermosillo.

 

The decision to skip new Focus in South America is interesting. I wonder if they will get the next gen Escort instead.

Edited by bzcat
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I think after Saint Luis Potosi was canceled, Ford initially planned to move Focus to Hermosillo. But the possibility of bring Mondeo from Spain to Mexico, and the added capacity lift in China for Focus means Focus no longer needed at Hermosillo.

 

The decision to skip new Focus in South America is interesting. I wonder if they will get the next gen Escort instead.

 

That makes sense. Folks need to remember that Ford is global and as such they are looking to maximize their global production including moving vehicles to other plants/continents to consolidate global production or to make room for new models.

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Well there goes some of that cost savings they where talking about when moving it to China...damn

 

Well, wasn't it $1B total savings ($500M for cancelling Saint Luis Potosi, and another $500M by moving to China or something like that?), so this would knock off a quarter of that, meaning $750M?

Edited by rmc523
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He knows that, I think he was saying because the previous numbers didn't account for the cost of what they had already done to Hermosillo

 

Exactly....plus how much was spent at the plant that was started? Wasn't that another expense they had to write off?

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  • 2 weeks later...

I haven't seen anything about the future of the Taurus PI. Municipal depts. (as in city and towns here in CT) are overwhelmingly embracing the Explorer.. However CT State Police love their car-based PI's and are buying Taureses and still holding onto their beloved Crown Vics as long as they move from point A to Point B! Is Ford going to do the same thing they did with the CV's and make only Tauruses for the police market?

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I haven't seen anything about the future of the Taurus PI. Municipal depts. (as in city and towns here in CT) are overwhelmingly embracing the Explorer.. However CT State Police love their car-based PI's and are buying Taureses and still holding onto their beloved Crown Vics as long as they move from point A to Point B! Is Ford going to do the same thing they did with the CV's and make only Tauruses for the police market?

 

Nope, there's no way they dedicate factory space to it.

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I haven't seen anything about the future of the Taurus PI. Municipal depts. (as in city and towns here in CT) are overwhelmingly embracing the Explorer.. However CT State Police love their car-based PI's and are buying Taureses and still holding onto their beloved Crown Vics as long as they move from point A to Point B! Is Ford going to do the same thing they did with the CV's and make only Tauruses for the police market?

 

I thought there would be a Fusion police car.

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I haven't seen anything about the future of the Taurus PI. Municipal depts. (as in city and towns here in CT) are overwhelmingly embracing the Explorer.. However CT State Police love their car-based PI's and are buying Taureses and still holding onto their beloved Crown Vics as long as they move from point A to Point B! Is Ford going to do the same thing they did with the CV's and make only Tauruses for the police market?

 

Most municipal and government agencies in Connecticut are now buying the Police Interceptor Utility (Explorer) instead of the Taurus based model. The Explorer gives them a lot more storage room and is more comfortable.

Edited by ice-capades
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ice-capades, is it 'remarkable' to have any OG, even a LEO one, come out this far in advance?
&
could there still be MAJOR changes, like the engine used??

 

 

No question that having the 2019 Police Responder Order Guide released so early is a big surprise! It was actually released on 05/25/2017. Perhaps the Police Responder will launch along with the next generation Fusion which is certainly due sooner rather than later. And with the Police Responder Order Guide being released so early, it's entirely possible that there will specification changes prior to the Job #1 Date. Time will tell.

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