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Filed under: Economy , Hirings/Firings/Layoffs , Hatchbacks , Ford , Earnings/Financials Click above for a high-res gallery of the 2009 Ford Fiesta With all the news surrounding General Motors and Chrysler's slicing and dicing to profitability, it's a breath of fresh air to hear that Ford is taking a different tack. The Blue Oval is betting the farm on new models that will lure consumers into showrooms rather than reworking existing models and cutting back development spending. Speaking with the Detroit News , Ford CEO Alan Mulally said, "We're only going to be in business if we create products that people really do want and value. This is the essence of creating a viable Ford." Part of the automaker's plan is to invest in the development of small cars in the U.S. and to make those models as profitable as their European counterparts. The recently renegotiated contracts with the UAW should help, but offering the features U.S. consumers crave in a small, inexpensive...
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Filed under: Coupes , Economy , Sedans/Saloons , Plants/Manufacturing , Chevrolet , GM , Earnings/Financials Click above for more high-res shots of the Chevy Cobalt SS General Motors cites the success of the current Chevy Cobalt as the reason for delaying the launch of the Cobalt's replacement, the upcoming Cruze , in the States. In order to meet the market's soaring demand for small cars in general, and the Cobalt in particular, earlier this year GM added a third shift to the Lordstown Plant where the Cobalt is built. For '09, the General plans to build an extra 70,000 Cobalts, expecting fuel prices to remain high and demand for its compact sedan and coupe to follow suit. Unfortunately for the struggling automaker, those extra cars may not necessarily add up to extra profits, with the Cobalt priced below its main competitors from Japan. For this reason, GM will be adding a few bucks to the bottom line of the Cruze , in a pricing move similar to the recently released Malibu...
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Filed under: Economy , Sedans/Saloons , Plants/Manufacturing , Hatchbacks , Ford , Earnings/Financials Click above for high-res gallery of the Euro Ford Focus For years, enthusiasts have been clamoring for Euro-only Blue Oval models to be sold in American dealerships. This dream is finally coming true, starting with the new Ford Fiesta and next-gen 2010 Ford Focus . Mark Fields has revealed that the European Focus and Focii built in North America will share 90% of their parts compared to just 20% today. Not only will this make for better cars, it also allows Ford to realize a double-digit profit improvement on each Focus compared to what it's earning today. This is certainly a positive development, as the automaker believes that the small car segment will nearly double in the next few years. We're inclined to agree unless Exxon discovers that the Earth's core is made of crude. The other part of Ford's plan is to make its North American plants flexible enough to respond quickly...
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Filed under: Economy , GM , Earnings/Financials GM currently owns about 13% of the small car market. With demand for small vehicles increasing with the price of black gold, GM is out to increase that market share. Nevertheless, even if it doesn't increase its share, it plans to make more money off of each small car sold. How? By raising the price, naturally. The plan is simple: make better small cars, charge more for them. The upcoming Cruze could run you a few thousand more than the outgoing Cobalt, for instance. The test is to see whether cars like the Cruze will be worth the premium. GM Global Design Chief Ed Welburn said, "In North America, we never did a good small car." The General plans to bury that piece of its history... but it's going to charge you, the consumer, for the funeral. The idea that GM can lasso the small car market while charging a premium, at the same time as slashes its marketing budget by $1.5 billion, takes some effort to swallow. One analyst...
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Filed under: Economy , Government/Legal , Green , Hirings/Firings/Layoffs , Plants/Manufacturing , Chrysler, LLC. , Ford , GM , Earnings/Financials Back in the late seventies and into early eighties, Chrysler had gotten itself into such horrid financial shape that the U.S. government decided to step in and fix the situation itself. Considering the sorry state of affairs that all three of the Detroit automakers find themselves in today, some may wonder if a government-funded bailout is in the cards. Not so much... at least according to John McCain. "Frankly I just don't see a scenario where the federal government would come in and bail out any industry in America today," says the Republican. So, what plan does McCain have in store for the Detroit 3? More Chevrolet Cobalts and Pontiac G5s for one, as the Arizona Senator said the above words after touring the plant in Lordstown, Ohio where the GM compact cars are made and a where third shift has just been added. "I am convinced...
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Filed under: Economy , Sedans/Saloons , SUVs , Trucks/Pickups , Crossovers/CUVs , Ford , Honda , Earnings/Financials Click above for high-res gallery of the Ford Explorer America Concept For years, the success of vehicles such as the Ford F-Series pickups and Explorer SUV kept the Blue Oval brand from improving its line of mostly uncompetitive sedans. Automakers like Honda, though, never went the way of body-on-frame trucks and SUVs, preferring instead to continually improve its range of cars and crossover utility vehicles. That strategy is paying dividends in these days of high fuel prices, and Ford has taken notice. Asked whether he would prefer a more car-oriented model-mix, like that of Honda or Toyota, CEO Alan Mullaly recently answered, "Absolutely. We just don't have enough of those small or medium-sized vehicles yet, and that's what we need to concentrate on." Of course, all is not lost. As Automotive News points out, Ford has a new F-150 on the horizon, which...
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Filed under: Car Buying , Economy , Plants/Manufacturing , Ford , Earnings/Financials Click above for high-res gallery of the 2008 Ford Focus SES Coupe We'll admit it. We didn't think sales of the 2008 Ford Focus would take off like they have, even after we had a 2008 Focus SES Coupe in the Autoblog Garage and for the most part liked it. The redesign for 2008 just left a bad taste in our mouths, and we didn't think anyone would fall for those garish fender vents. For whatever reason, be it the car's smooth ride, competitive pricing or exclusive availability of the SYNC system, the 2008 Focus is selling like crazy. Ford says that it sold 49,070 Focuses this year through March alone, which is up 23 percent compared to last year. More importantly, all of those additional Focus sales were to retail customers, not fleets. Last year the Blue Oval built 191,000 Focuses, but today it has announced that production will be ramped up at its Wayne Stamping and Assembly Plant so that...
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Filed under: Green , Chrysler , Earnings/Financials Detroit's sharp intake of breath over the very real possibility of increased federal fuel economy standards apparently doesn't include Chrysler's voice. CEO Robert Nardelli has told The Car Connection that rather than waste lots of time and energy opposing the likely increase to a 35 mpg fleet average, Chrysler will put its head down and get it done. Attaining the goal will not be without pain, however. Cuts will be made, and the books are still in the red. There is hope, though, if Chrysler and parent Cerberus Capital can stick it out. A new contract with the UAW eases some of the automaker's financial burden, allowing that money to be plowed into development of more fuel efficient vehicles. There's a new two-mode hybrid system, co-developed with Daimler, GM, and BMW, which should help lift the fleet average without Chrysler abandoning their bread and butter moneymakers. With a lineup heavy in less-frugal vehicles...
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Filed under: Trucks/Pickups , Plants/Manufacturing , GM , Earnings/Financials , UAW/Unions The housing crisis is being blamed for decreased truck sales. In light of the credit crunch, fewer loans are being disbursed and fewer construction workerss are...
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