Ford posted an $8.7 billion loss for the second quarter of 2008 that it claims is due to sagging sales in North America and one time charges associated with plant closings. The Blue Oval's brutal second quarter included revenues that were down $5.6B to $38.6B and losses from continuing operations that totaled $1.4 billion. Virtually all the bad news came from North America, as Europe posted a $582m profit, and South America ended the quarter in the black as well. Ford also wrote down $8B in special charges related to its restructuring.
The bigger news came in the form of sweeping changes to Ford's lineup that will begin with switching three truck and SUV plants to car production beginning in December. The Cuautitlan, Mexico; Louisville, KY; and Michigan Truck Plant will all be converted to produce small cars. Cuautitlan will build the Fiesta, and the other two plants will build vehicles based on Ford's next gen C architecture based on the Euro Focus. Below are the main changes Ford announced for 2009 and beyond, and the list is pretty substantial. Note a new car for Mercury, which should deflect rumors that Ford's middle child is getting kicked out of the house. We'll give you more information as we receive it.
Convert the entire Ford, Lincoln and Mercury lineup by 2010
Delay closing Ford Ranger plant from 2009 to 2011
Double hybrid production for 2009
Add European Transit Connect small van to North America in 2009
Add a new Lincoln seven-passenger crossover in 2009
Introduce a new small Mercury for 2010
Add European Ford Fiesta sedan and hatchback in early 2010.
Bring next gen Euro Focus sedan and hatchback in 2010.
Build unibody Ford Explorer in 2010 with fuel savings of 25%
Click above for a hi-res gallery of the Mustang AV8R
The Ford Mustang AV8R is a one-off, aviation-themed Mustang that's been modified with a suite of upgrades from Ford Racing, including the Handling Pack, a Whipple blower, cold air intake, and a new exhaust. Power from the 4.6L V8 subsequently jumps to 400 horses, and the car is further individualized with a custom exterior and interior. Outside, its Satin Silver finish is offset by a black hood and decklid, red accent lines, dark gray side stripes, an Air Force star on each front quarter panel, and an oversized, etched AF star on the glass roof. The faux gas cap on the trunklid also gets a white star motif, and the rear spoiler is black with a red stripe and the AV8R logo in the corner. The front and rear bumpers are swiped from the California Special, while the grille is the same one used on the Bullitt, only with red trim instead of a metallic finish on the lower lip. It's a very sharp-looking car.
Inside, the two-tone leather seats have embroidered AV8R logos, and their brown inserts are reminiscent of an old bomber jacket. Brown hide also adorns the shifter boot. In the video after the jump, we also learn that the interior trim appliqués are pre-production Bullitt units. The car will be auctioned off to benefit the Gathering of Eagles program, which is encourages young people to get involved in aviation.Back in 2006, the first Shelby GT-H brought $250,000 at an auction benefiting the same organization. If you want a shot at the AV8R, you'll need to get yourself out to Oshkosh this weekend. If you're feeling confident, just book a one-way flight. Maybe you'll be able to drive home.
Click above for a high-res gallery of the 2010 Ford Mustang at Road America.
You read that right folks. The 2010 Ford Mustang will make its official debut at the LA Auto Show on November 19th. According to a source speaking with InsideLine, the new 'Stang won't be shown in Detroit as originally rumored, conceivably as a response to the Camaro hype-machine we've had to endure over the last two weeks.
When the wraps are pulled off the 2010 Mustang, expect all-new front and rear fascias, including a new grille, headlamps and taillights, along with a tweaked hood and a few cues rumored to be pulled of the Guigiaro Mustang concept.
Speculation about powertrains has been running rampant for months, but a reworked V8 and V6 is part of the package, and possibly a new turbocharged, EcoBoost bent-six further down the line. Sales will begin late early next year.
The Detroit News is reporting that a worker at Ford's Woodhaven Stamping Plant in Michigan was killed this morning. While the family has requested the man's name not be released, sources at the factory told The Detroit News that he was a die-setter and was killed while loading a transfer press. Workers on the morning shift were immediately sent home so the accident could be investigated, but second shift workers will be back on the job today. Our thoughts go out to the family and friends of the deceased worker.
The Internet got a sneak peek at the new 4.4L Ford diesel engine last April when somebody snapped a pic of the complete package sitting on the floor at Ford's national dealer conference. Now, thanks to some eagle-eyed sharp shooters, we can see the new oil-burning mill in its natural habitat under the hood of a Ford F-150. Sure, there's lots of black plastic covering all the good stuff, but we can get a glimpse of all the assorted plumbing that will make this engine squeaky clean. We can also have a good shot of the intercooler, peaking out between the grille and the radiator.
This engine is labeled as a Power Stroke, Ford's long-running moniker for the diesels equipped in its Super Duty trucks. For years, those mills have been made by Navistar, but after the fallout between the automaker and the supplier, Ford is now using a derivative of the diesel from Land Rover in Europe, though the 4.4L iteration will be made in Mexico for the North American market. Offering 20-percent more fuel economy than the 5.4L gas-powered Triton, along with a considerable bump in power, this could be one very important addition for the Ford Motor Company and will likely make its official debut at next year's Chicago Auto Show.
When we see things like this, we feel like Bruce Banner... having to contain our anger... at not getting... the Euro Focus. But hopefully tomorrow our fortunes will change, and if they do, here' s a look at the Focus we could get in 2011.
We were happy enough about the second-gen Focus, and this is even better. With a massive front maw, revised panels throughout, and a well executed sportback rear, the Focus Mk. 3 is, as the English would say, a bit of all right. The highlight show continues inside with better materials and an HMI-like control system. The UK will get the car later this year.
Although this Focus isn't slated (yet) for an RS version, it will put on an ST badge and mods at some point, and will come in three-, four-, and five-door variants, plus a wagon and a convertible. And if you're in Spain, you'll get a special edition diesel Focus WRC-S, with a 2.0-liter four-cylinder pumping 134 bhp. Each one of 666 samples will be signed by Ford WRC driver Marcus Gronholm. Prices have not been announced for any of the new Focus models.
Click above high-res gallery of the 2009 Ford Flex
Ford has been banking on strong sales of its crossover vehicles to help counter the sinking ship that is its line of SUVs. While the new Ford Edge and Lincoln MKX, along with the brand new Ford Flex and revised Escape, have sold well enough to post a meager 2.8-percent gain in overall sales so far this year, that number apparently isn't high enough to warrant a third shift at Ford's Oakville, Ontario plant that the automaker was hoping would be necessary. Unfortunately, this shift cancelation means that 350 workers who had planned on showing up for their first day next Monday are now left jobless.
While there are certainly buyers out there who require the capability to haul around their entire families and their associated gear, all large passenger vehicles -- crossovers like the new Flex included -- face an uphill battle now to overcome current market conditions, as this latest announcement once again proves.
After nearly eight years of getting little or no attention from the White House, it seems as though Detroit's automakers will be a major focus the 2008 Election. With the economy looking worse by the day, lawmakers in Washington have been kicking around the idea of a second economic stimulus package to get people shopping again, and Mowtown's lawmakers want in on the money. Michigan's two Democratic senators are attempting to use the prospect of such a bill to include federally-backed loans to help automakers and suppliers build new factories and engineer new models. The $4B would be used to offset the costs associated with the Treasury Department giving automakers $25B in loans at a discounted rate. Automakers have been against such a loan in the past, but with worsening conditions and tighter lending practices the idea is likely to sound much more exciting this time around.
Presumed Democratic Presidential candidate Barack Obama told the UAW in a letter that he supports the $4B in federal aid, stating that he would "provide real solutions necessary to help this industry compete and win in the global economy." Obama also promised tax breaks for consumers that purchase ultra fuel efficient vehicles and tax credits for automakers as well. Presumed Republican nominee John McCain opposes the idea of federally backed loans, but he does support tax breaks to those that purchase fuel efficient vehicles and a $300M in prize money for electric battery powered vehicles
Mercury has been languishing over the last several years with badged-engineered products barely distinguishable from their Ford brethren. As the market shifts towards smaller cars with higher fuel efficiency, there may be a golden opportunity for the Mercury brand to actually prove its worth as Ford's outlet for European-designed vehicles for the American market. In a move akin to what General Motors has done with Saturn, importing Opels to the U.S. in an attempt to revive the marque, Ford could bring its highly-desirable Euro-only models to the States badged as Mercurys.
According to unnamed sources, the New York Times is suggesting that Ford will begin manufacturing six Euro-spec models right here in America at plants formerly used to produce F-Series trucks, SUVs and vans. We'll have to wait until this Thursday before any official announcements are made by the Blue Oval, but that gives us some time to speculate on which Kinetic-infused products are on their way. That's what the comments are for -- have at.
Ford is hoping to continue the reduction of both the number of vehicles the automaker will produce and, correspondingly, its hourly blue-collar workforce. In order to make good with the UAW, the same buyout packages available last year are being extended to these unionized workers. The packages have not changed since they were offered to Ford employees in Kentucky in June of 2007. These latest buyout announcements involve workers from plants in either Michigan or Ohio, a further blow to the already weakened economies in these two auto-heavy states.
Earlier this year, Ford said it was hoping for another 9,000 hourly workers to take buyouts. Between 2006 and 2007, a total of 33,600 union workers accepted either buyout packages or early retirement packages, a huge percentage of Ford's total employees. At this rate, we wonder how many UAW workers Ford will have left after it's all said and done.
We wrote about it earlier, just as a rumor, but it looks like an announcement is imminent: the Wall Street Journal says that Ford is going to make European cars on this side of the pond. However, it isn't merely North American plants that will be changed over, but American plants. The Journal doesn't give any further indication of where those plants might be or what those cars might be, only saying that the strategy could be revealed during Ford's Q2 earnings announcement this Thursday. But we'll say again: come on, Mondeo! (And Focus and Focus Coupe and Ka and...)
Click above for high-res gallery of the Ford Focus SVT
All the current clamor for the Euro Focus is reminiscent of the happenings nearly a decade ago. Ford's Escort had quite run its course with a third and final design refreshing having hit the streets in 1997. The very next year, an actual small-car contender wearing the Blue Oval launched in Europe. It was capable, well turned out, and wore Ford's sharp New Edge sheetmetal. American customers took one look at the Escort ZX2, which was supposed to fill the shoes of the Escort GT and kick it against the GTI, Civic Si, and others, and decided that it just wouldn't do, decent performance or not. Much like the current U.S.-Focus versus Euro C1 Focus debate, buyers set their gaze across the Atlantic and decreed the grass greener than the warmed over Mazda B platform ZX2.
UPDATE:We've added a video - check it out after the jump
Just as photos of the production version of the Camaro popped up on the web last week ahead of tomorrow's unveiling, Ford decided to trot out the 2010 Mustang this weekend. Unlike the fully-revealed Camaro, the '10 Mustang remained heavily camouflaged as it acted as the pace car for the Kohler International Challenge vintage race at Road America. The prototype 'Stang lead a plethora of ponies from throughout the nameplate's lineage around the natural terrain course at Elkhart Lake, Wisconsin. The Saturday Mustang Corral also was treated as a celebration of the 25th anniversary of the Mustang GTP that won in its debut race at Road America. We won't be seeing the updated Mustang in its birthday suit until Ford drives it onstage at the Los Angeles Auto Show in November. In the meantime, you can check out the photos that Ford took of this event in the gallery below.
Just because there's been new life breathed into small cars doesn't mean buyers are going to clamor for dour, joyless, fun-free clunkers. Ford's well aware of that, so its readying a soft-top version of its lauded new Fiesta. The fabric-roofed little party on wheels will make its debut at next week's British Motor Show and should be on the road by early 2010. The sharp looking little cabrio forgoes the popular folding hardtop trend to save weight and maintain usefulness with a small-folding top stack. Competition is heating up in Europe, with plenty of smartly styled, diminutive 'verts hitting the market. We hope that when the Fiesta takes its boat ride across the Atlantic, some of these are tossed in the cargo hold.
If Willy Wonka made cars, this is what it would look like. The cold, hard reality is that automobiles are ground out like sausages in huge factories that ingest raw materials at one end and spit out shiny metal boxes filled with ticky-tacky at the other end. Marketing's a funny thing, though; building an emotional connection to your product can often lead to sales gold, so Ford's slathering its Fiesta marketing effort in pheromones to make it irresistible to buyers. It's all very trippy and fun, full of primary colors and smiling faces, but the thing is, we already love the Fiesta. They could put Orson Welles out there at his most cantankerous, and that'd be fine. We do dig the creativity, and since it's an entry level car, maybe the target market will be entirely comfortable with the campaign, having just recently graduated from Sesame Street, anyway.
In the wake of GM's Tuesday press conference detailing its plans to have enough cash on hand through 2009, politicians have been eager to voice their thoughts regarding the possibility of a government bailout. President Bush gave the possibility a strong no, but the two guys in line for his job have taken a different route.
Senator Obama has said that he supports automaker's attempts to restructure without outside help, but says he's willing to work with the companies on fuel saving tech. Republican Senator John McCain took an even stronger pro-automaker stance, saying "if it looks like it is approaching that, everyone has to consider every option." The Arizona Senator and presumed Republican nominee has stated in the past that he wouldn't support a buyout, but would instead provide tax breaks and infrastructure support to create more fuel efficient vehicles. McCain's "every option" comment may not sit well with his party, but it could sound good to Detroit automakers. McCain is visiting the GM tech center today. Both presidential candidates are working hard to woo Michigan voters, which will be a key state to win in the November election. Even though GM has stated it isn't looking for a handout, Michigan residents would love to know that the automaker would get one if it really needed it.
We're typically too busy with our nose to the automotive grindstone to goof off. After stumbling across some 50 year old Ford commercials on YouTube during our time with the Ford Flex, we had all the inspiration needed for some weekend fun. The old days of automotive advertising meant long, one- to two-minute commercials, bad camera work, and scripting that was done before the women's rights movement took hold. We had a somewhat retro-looking Ford Flex, a camera and a few spare moments to put something together, and the finished product is available after the jump.
Click the image above for more high res photos of the 2009 Ford Flex
When the Ford Fairlane concept bowed in Detroit in 2005, it proved that Ford could design a stylish crossover recognizable from a mile away. Unfortunately, Ford didn't exactly have a stellar record of bringing hot concepts to market, so expectations were low that we would ever see the Fairlane reach production. Fast forward to 2008, and the Ford Flex is born. It's bigger than the Fairlane, yet it looks very much like the outlandish wagon that we saw in Motor City a few years earlier. Does the Ford Flex have the style, capability and appointments to be a player in the suddenly crowded large CUV market? Or is this modern day Woody just another oversized people hauler that misses the mark? Hit the jump to see how the all-new Flex fared during its stay in the Autoblog Garage.
We busted our humps getting to Podcast #100, and then promptly slacked off. Chris Shunk and Dan Roth make the effort this week to get Autoblog Podcast #101 out the door while the rest of the team remains difficult to corral. The usual banter about what's been in the Autoblog Garage starts us off before we dive headlong into the pithy GM news from earlier this week. Love it? Hate it? Send your comments, suggestions, or anything else to podcast at autoblog daht kahm. Thanks for listening!
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There has been plenty of support for Ford to bring its rest-of-the-world products to the North American market, and with the truck market doing a Roscoe P. Coltrane E-brake turn away from profitability, the Blue Oval's global efforts are becoming increasingly important for its survival. The plan going forward is to utilize small and medium sized vehicles from Ford's European arsenal globally. In North America, the cars will be spiffy, though Ford will be robbing Peter to pay Paul on that count -- spreading the costs of America's premium cars over the breadth of the entire program's worldwide scope.
According to Automotive News, we're getting a big list of Euro-Ford based cars in the near future. The Fiesta will slot in under the Focus, and will share a new platform with Mazda. Also on the Fiesta's underpinnings could be a small crossover or minivan. The Euro Focus will finally get here in 2011, when the next generation drops. 2012 will bring the C-Max, a Mazda 5-ish people mover. The Fusion moves to the EUCD platform, though we hope it doesn't grow too much, lose its joyous demeanor, or come up short on fuel economy. It looks like Ford's going to try to stack the B, C, and D segments with sedans and MPV-type offerings, as well as seriously tweaking all of its offerings to match the new and looming reality.
