Speculation surrounding the retirement of Alan Mulally seems to be never ending. For months and months Mr Mulally has confirmed that he has no plans to retire any time soon. This hasn’t stopped rumour mills from spinning.
Laughed off
The question naturally popped up during Ford’s annual press conference. Jokes and laughs dampened the seriousness of the question with Bill Ford Junior jokingly saying originally that Mr Mullaly would retire in 2030. By that year Mr Mulally would be 85 years old.
Some give it two years
Experts of the American automotive industry believe that Mr Mullaly will indeed leave in the two years. No matter when he leaves it is sure to bring Ford’s stock down.
The Ford One strategy
He has been the main driving force behind the company’s revival. When he took over in 2006, the company were in complete meltdown. He changed the company’s fortunes around by implementing the “One Ford” strategy. His plan was to unify the Ford brand across the world to diversify the brand and lower costs.
Managing to escape bankruptcy
Somehow Ford managed to avoid bankruptcy despite the like of Chrysler Group LLC and General Motors confirmed as bankrupt. They were the only one America’s big three to avoid bankruptcy.
Will the next successor come from within the company?
Despite Mr Mullaly saying that he is staying put, this has not stopped the company searching for the next successor. Mr Mullaly believes that the next successor should come from within the company. Some have pointed towards Mark Fields who is currently in charge of Ford’s operations in the North and South American region.
Work has not been affected
Bill Ford has said speculation of Alan Mulally retiring has not affected top executives at the company. Some may have thought that “I don’t think there’s any anxiety on anyone’s part on timing. There’s no new news, and needless to say the board is more than happy with the way Alan has led the company. It has been really fun for the two of us to work together, and I’d like to see it continue for some time.”
Following the buffet example
Will Alan Mulally follow in Warren Buffet’s footsteps and work until he is 80? Mr Buffet himself has claimed that he would like to work when he is 100.
At Ford’s annual 57th annual meeting, shareholders were full of praise for Ford’s directors following a great year.
Non-stop profits
All 63 shareholders and directors held the meeting for a record time of 45 minutes. Following record debts and near bankruptcy towards the global car crisis in 2008, Ford has since made consecutive profits since. Last year’s total hit $8.8 billion which is the company’s best result since 1998. The mood was so positive that there were no complaints that 29 per cent of stock had fallen since May 10th 2011.
Recovery over, time to move forward
The CEO of Ford, Alan Mulally said that the company are no longer turning a new leaf but moving ahead. He also warned that the company’s market share was unlikely to increase this year following the strength of the overall market getting stronger.
Europe a stumbling block
Europe is one region that appears to be dragging the company down at present. Along with all other mass car producers such as Fiat, Peugeot and Vauxhall are all making losses. Demand for cars in the European region is not hitting production capacity figures.
Looking beyond small cars
Sales from the Asian Pacific region have strong in contrast. Rather than focusing on smaller models such as the Ford Fiesta and the Ford Focus, the company have expanded their horizons. They have broadened their appeal by dedicating more focus on the Ford Fusion and the Ford Escape.
Chinese market crucial to plans
In 2010 Ford managed to sell 5.3 million vehicles worldwide. Mr Mulally has targeted total sales of up to 8 million by the year 2015. In order to do so, Ford has placing a heavier emphasis on the Chinese market, the most profitable emerging car market in the world. Currently they are lagging behind rivals but Ford hope that the Ecoboost SUV will change their fortunes around in China.
That $29.5 million pay cheque
Mr Mulally has clearly pleased shareholders, earning a 2011 pay cheque worth $29.5 million. There is still no indication as to when he is planning his retirement. He has confirmed however that his replacement should come from within the company, with the hiring procedure not being rushed. For now though he seems to be doing a very good job. Ford employees and fans wouldn’t him to leave anytime soon.
Stephen Odell has been quoted in the press to have said that free trade deals with Asian economies will cause job losses here in Europe.
Over the past one year, 450,000 South Korean vehicles have been imported into Europe. This is a stark contrast for the return statistic, as only 75,000 were built here in Europe and exported to Korea. A deal of a similar nature is currently being negotiated with Japan. Mr Odell believes that this type of deal, with such a poor return will cost many their jobs and in general have a negative effect on Europe’s car industry.
Over capacity in both regions
Over capacity in the European region has been a major problem for years. It has forced the likes of mass car producers Vauxhall and Opel to lose out on profits. Demand has not met the amount of cars being produced in recent times. The same can be said for the Japanese car economy, with the Tsumani and Earthquake in Asian regions last year having a devastating effect on the car industry.
He said “Japan has over-capacity at the moment of more than two million vehicles. You add that to an overstretched, over-capacitised Europe – it can only lead to job losses. If you add that into the pot with a 14 million vehicle industry, over time I think something has to happen”.
According to Mr Odell, Europe has the potential to create up to 20 million vehicles, which is a long way off the current demand. This has led to talks of potential factory closures, including the likes of the Vauxhall Ellesmere plant, based in Cheshire.
Fairer trade
Mr Odell continued to say how circumstances needed to be made fairer. He said “Ford are an advocate of free trade, but it has to be balanced and fair free trade. Europe needs to build things. It needs to engineer things – it needs to employ and train people. It cannot therefore surrender, particularly in unfair, unbalanced trade agreements, its industry.”
General Motors lost more than half a billion dollars last year on the European car market. Ford recently announced that they had made a first quarter profit. However this figure would have been a lot more without Ford’s losses in Europe, which hit a total of £92 million. Consumer confidence in cars has decreased dramatically following the Euro Zone crisis.
When will we report positive news on the European car industry?
Ford is set to close plants across Australia for one week it has been confirmed. The decision comes after administrators were appointed at CMI Industrial, a parts manufacturer in Australia.
Sinead Phipps, Ford’s spokeswoman in Australia said that on Thursday the 26th April, car production would come to a halt. She said that business will resume on Thursday the 3rd May.
CMI – Ford’s supplier of parts
As there is no access to parts, Ford factories are unable to operate. CMI’s administrators will take several days to bring the business back to full operation. The news will come as a bitter blow to Ford as a company and especially employees at the factory.
Several days to recover
Ms Phipps said Ford believed it would take CMI administrators several days to stabilise the business and resume production, and it would then be 24 hours before parts were available to Ford. 1800 employees were understood to have stood down at both Broadmeadows and the Geelong plants. Monday 23rd May is supposed to be a scheduled day off and it is to go ahead Sinead Phipps confirmed. Ms Phipps said “We won’t be producing cars on Friday, Monday or Tuesday. Obviously the whole process needs a bit of time to happen before we can start our production line again.”
AdminstartorsAdministrators Grant Thornton and McGrathNicol took control on the morning of 26th April. They are looking for new buyers and in the meantime are attempting to get the company’s finances into order. There have been no indications as to when the factory will reopen as of yet. If the business is restructured then it can reopen into a profitable and important business once again, according to Bill Shorten, a Workplace Relations Minister Bill Shorten. Meetings between Ms Phipps and administrators are set to continue throughout the week,
CMI recovery vital for Ford
Can CMI be saved? Without them it appears that Ford do not have a leg to stand on in Australia. The news is currently in it’s very early stages. As the week continues there could be signs of recovery from CMI.
The news will also have a negative effect on the whole Australian automotive industry and the Australian economy as a whole. It is a shame especially considering that the Australian car market was receiving some positive press in recent times.
Ford’s first quarter profits were an outstanding achievement but they will be dampened by the fact that they have made tremendous losses outside of the United States.
The grass is greener on the other side
One major factor in Ford’s recent rise to prominence is the fact that they have dedicated themselves to pushing out more economical vehicles and technology. During times of record high prices on fuel, Ford have offered more sensible options when compared to most other auto manufacturers.
Performing poorly in Europe and Asia
Net income for Ford was said to have dipped to $1.34 billion. In total it is estimated that Ford have managed to lose $225 million in the European and Asian regions. The European market is proving to be a no go area for all mass car manufacturers. There are over capacity problems as demand is not meeting production. Heavy losses are being made by the likes of Peugeot, Vauxhall/Opel, Renault and many more. The Asian market has occurred tremendous loss figures for many automakers since the floods in Thailand. Joe Hinrichs was quoted in an interview saying “We certainly felt a significant effect in 2011 from both of the natural disaster. We continued to feel that effect in the first quarter.”
South America represents tough competition
The South America region is another disaster zone for Ford at present. There is increasing competition as foreign car makers attempt to flood the region as the country is showing signs of prosperity.
China
Ford are also reporting sluggish sales in China too. All of this has taken it’s toll on Ford’s stock which is down by 25% when compared to one year ago.
Ford’s financial rating
There is a silver lining for Ford however with their Fitch rating being increased. This will mean Ford’s repayments on loans taken from 2006 will be charged at a much lower rate.
Previous heavy financial losses
From 2006 to 2008, Ford lost a staggering $30.1 billion. Ford then managed to recover most of the over the next three years, earning $29.5 billion. Alan Mullay changed the fortunes of the company when he took over. Could the same be done this time round?
Many expect Ford to pick up sales and recover from making such huge losses overseas. Many see the companies new and improved models as a way of fighting back.
The financial aspect of Ford took a positive step today. Fitch ratings have upgraded the company to investment grade. This will allow Ford’s repayment costs down to a minimum. The upgrade was down to Ford’s improvement since their near bankruptcy back in 2006.
Ford’s One Plan
Ford’s “One Ford” plan has brought around a lower breakeven point for the company. Ford have since added some of the best and most desired car technology into their improved car line up and brought around a reduction of risk upon it’s pension scheme.
Ford’s financial ratings improved
Ford’s debt is now making progress from it being rated as junk, a rating which meant higher payback costs. This also meant that the company had a bad reputation when attempting to borrow from banks. Ford can now take out loans with lower borrowing costs. If another credit company were to upgrades Ford’s financial rating, it would significantly help the company in the amount that it has to repay.
Fitch statement
Fitch Ratings released a statement saying “Fitch believes that the work that has been accomplished has put the company in a solid position to withstand the significant cyclical and secular pressures faced by the global auto industry.”
Ford’s Blue Oval
Alan Mulally took drastic steps to borrow money when he took over in 2006. This included mortgaging Ford’s assets of it’s Blue Oval, an intellectual property of the company. This was done in an attempt to borrow £14 billion in order to turn the company around.
Ford reclaiming the famous Blue Oval symbol, a logo that appears on all of Ford vehicles would be a majorly positive step for the company.
Alan Mullaly wishes to continue unifying Ford’s business units, which were previously unattached. He also aims to drive down costs across the board.
More on the way?
Ford may have their ratings upgraded by the other two major ratings agencies later on this year. The last time this occurred was back in 2005. It is hoped that if more borrowing costs are driven down then they will be nicely passed on to Ford’s customers. With Ford vehicles being cheaper, it will then naturally allow room for more sales.
Ford have managed to cleverly change their scope and invest in economical cars. The Focus and Fusion are great examples, with them being some of Ford’s best sellers around the world.
Reports from America state that the Ford Focus Electric has been proven to be a more economical car than the Nissan Leaf.
Environmental Protection Agency statistics
The statistics derive from the United States Environmental Protection Agency (EPA). They claimed that the Ford Focus Electric can achieve 110 MPGE in the city and 99 MPGE on the motorway. Combined the Ford Focus Electric is able to achieve 105 MPGE.
Ford Focus is 6 MPGE more
The Nissan Leaf achieves 6 MPGE less than the Ford Focus. This may seem like a small amount but it will go a long way in Ford’s marketing campaign and swaying customers away from the Leaf. Both cars will be in direct competition with each other, being vehicles of very similar types in terms of stature.
Why is the car more economical in the city?
Oddly enough the Ford Focus Electric is more economical in the city rather than on the motorway. This represents a major difference when compared to petrol vehicles which burns more in the city. Braking and accelerating are two massive energy burners, both of which are constantly being utilised in the city. Energy being recovered from braking and accelerating means that electric vehicle do not suffer during these constant actions in the city.
Other advantages other the Nissan Leaf
What other advantages does the Ford Focus Electric have over the Nissan Leaf? Firstly it can charge a lot faster, in half the time it takes the Nissan Leaf to fully charge. The engine is more powerful too giving owners a better performance. Inside the cabin there is more practicality with more head and leg room, making the car more suitable for families.
Driving distance better
The Ford Focus Electric can achieve a driving distance of 76 miles. The Nissan Leaf is able to achieve a driving distance of 73 miles. If the Ford Focus was to be driven in the most fuel efficient way possible, it would achieve a driving range of 100 miles.
The great deal with the built in battery
The battery in the Ford Focus electric can be charged in just four hours with a 240 volt pipe. The charging point is on the driver’s side which offers great convenience (for American drivers as they will use petrol station attendants). The expensive lithium ion battery comes with either an 8 year or 100,000 mile warranty.
The 2013 Ford Super Duty Platinum has been unveiled in North America. Its unveiling was quite an event as the car made a spectacular entrance into an American stadium.
First Platinum model
A Platinum model was first offered by Ford back in 2009 for the best selling light duty truck the Ford F-150.
Super Duty Platinum the highest level variant
The Super Duty Platinum trim vehicle is the top level variant of the Ford F-Series Super Duty pickup. It is said to be made available later in the year upon the F-250, F-350 and the F-450.
Engines available
In terms of engines, the choices will be a 6.7 litre PowerStroke diesel or a petrol 6.2 litre V8.
Exterior colours available:
- Ruby Red
- Kodiak Brown
- Ingot Silver
- Tuxedo Black
- White Platinum
Interior choices
- Pecan
- Midnight Black
Beautifully design exterior
The Super Duty Platinum comes with a beautifully styled grille integrating a great looking type of mesh with satin chrome. Chrome is a major feature on the vehicle with it being on the mirror caps, the door handles, exhaust tip and running boards. There are also great looking 20 inch alloy wheels that come with black detailed paint too.
Great looking interior
Inside the car comes a beautiful looking interior with plenty of luxury throughout. There is a great deal of soft leather features along with nice touches of wood.
Infotainment system – MyFord Touch
Ford’s Sync infotainment system is a highly intelligent feature. This allows motorists to utilise features such as satellite navigation, remote start, a rear view camera, power adjustable pedals and power telescoping mirrors.
Easier to use
The touch screen MyFord Touch interface is a wholly fantastic feature which will perhaps be one the main attractions within the vehicle. It is now much easier to use with four large knobs and various buttons to help control the functionality within the 8 inch screen. The MyFord touch system will not be added to the lower end Super Duty models it has been confirmed.
Heated steering wheel
There is also a heated steering wheel, a quality that is usually only available in the most luxurious vehicles.
Pricing not yet confirmed
The pricing for the vehicle has not yet been confirmed. Reports from the United States claim that the pricing details will be released at some point in April.
The new Ford Mondeo is expected to go on sale near the end of next year. The new Mondeo will be showcased at the Paris Motor Show.For the first time ever there will be a hatchback version available as well as a four door sedan and an estate version.
Ford Evos inspiration
When the Ford Evos concept was unveiled at the Frankfurt Motor Show last year, it received a tremendous amount of praise and interest thanks to it’s beautiful and futuristic style. The new Ford Mondeo has been heavily influenced by the car which has pleased many and the car more attractive. Some have even described the front grille as looking like an Aston Martin type of feature.
Now the Ford Mondeo has been made larger. It now stands at 13mm more in length and sits 26mm higher. It looks like a more muscular car now.
There is a large amount of head and leg room within the cabin for passenger and storage space as you would expect with the car, as it is made to be wholly practical.
The Ford Fusion
The Ford Fusion will be sold in the North American market later on in the year, which is identical to the Mondeo. In America, motorists will be treated to a sedan which is able to produce 179 BHP containing a 1.6 litre engine, a 2.0 litre engine which is able to contain 237 BHP, an EcoBoost turbocharged engine along with two separate hybrid models.
The 2.0 litre engine is the same as the one which is installed within the highly successful Range Rover Evoque.
The two hybrid engines will consist of one that which is a plug in hybrid (known as Energi) and the other being a petrol engine combined with an electric motor. Both cars are capable of running on all electric.
The 2.5 litre inline 170 BHP engine will contain V6 technology, neither will any other engine in the line-up. Every car will come with a six speed automatic gearbox. The 1.6 litre will have an option of a six speed manual, available only in the United States.
The car now adopts a Mazda6 based platform rather than the previous Ford Mondeo platform, in accordance to adjust the vehicle for the American driver in a more obvious manner. The 2.0 litre variant will have an all wheel drive feature available too in America.
Ford has recently won an award for the technology installed in their all B-Max model where the emergency services are contacted during the event of a crash.
The prestigious award in question is the “Best Mobile Innovation for Automotive, Transport or Utilities”, which was won at the 2012 Global Mobile Awards in Barcelona.
A very intelligent and sophisticated safety system
The technology itself is very intelligent and a potential life saver. The Ford B-Max is European based. Ford’s Emergency Assistance system contacts the emergency services in the correct language, depending on where the car is in Europe. It defines the correct language by using the GPS coordinates where the vehicle is based. This is the most sophisticated system of it’s type within the automotive industry and is one of the highlights of the Ford SYNC system, which is to be debuted in Europe coming installed with the B-Max.
The system is free for life for all customers
Stephen Odell, the Chairman and Chief of Ford’s European operations gave a speech at the award ceremony highlighting why the Emergency Assistance system is so beneficial to the company. He said “Ford is delighted to see the potentially life-saving benefits of SYNC with Emergency Assistance recognized by international communications technology experts. Emergency Assistance makes full use of mobile communications technology to deliver an extremely valuable service to Ford customers, free-of charge for the lifetime of their vehicle.”
Emergency services called upon during specific events
The emergency services are contacted during the instance of a fuel pump cut off being executed or when an airbag is deployed.
A phone call puts you straight through
The exact co-ordinates of the accident are found using the onboard GPS system along with map and the owners connected mobile phone network information. A call will then be placed using the mobile phone automatically and the owner will be put straight through to customer services.
Developed in association with the EENA
The European Emergency Number Association (EENA) was involved in the development of the Ford Emergency Assistance feature. The EENA had a very valuable input as they aim to respond to a high number of emergency calls across Europe.
Savings thousands of lives across Europe
Gary Machando, the Executive Director of EENA said how pleased he was with the collaboration and how this device will greatly contribute to saving lives of thousands in Europe.
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