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Obama to herald auto industry turnaround from idled Ford plant

President Barack Obama will tout the recent successes of the American auto industry in a speech on Wednesday. This would be a fine and dandy plan aside from two small hitches. First, the president is visiting Ford's Wayne, MI factory, which is rather strange considering the government bailed out the company's local rivals, Chrysler and General Motors. Even more worrying, considering the topic of the speech, is that the Wayne facility has been idled due to a lack of demand. According to The Detroit News, the White House said the speech will focus on "the workers in the resurgent American automotive and manufacturing sector now that the auto rescue has been completed and the decision to save the auto industry and the over one million jobs that went with it." Wayne Assembly employs some 5,100 Michiganders when its lines are up and running, but as gas prices have plunged below $2 per gallon in some areas over the past month, its fuel-efficient products – the Focus and C-Max – have seen their sales plummet, as well. In December, the Focus' year-over-year sales were down 4.4 percent, while the C-Max dipped 3.3 percent, Ford told The News. Lagging sales for the two compacts aren't a new thing, though. Focus sales in all of 2014 were down 6.4 percent, while the C-Max struggled with a 21.6-percent drop last year. According to The News, Ford made the decision to idle the factory before being approached by the White House. Considering that, we wonder what the team at 1600 Pennsylvania Avenue was thinking when it selected the Ford facility, and what impact the location will have on the president's message. News Source: The Detroit NewsImage Credit: Mira Oberman / AFP / Getty Images Celebrities Government/Legal Plants/Manufacturing Ford

Ford books $2.6B pretax quarterly profit

While its crosstown competitors at General Motors are smarting over a drastic drop in net income to $200 million in the second quarter, Ford has reason to celebrate. The Blue Oval has announced its own Q2 financial results, including a growing net income of $1.3 billion, a $78 million increase over last year. Pretax profits for the company reached $2.6 billion, up $44 million from 2013, but total revenue dropped slightly to $37.4 billion, down from $37.9 billion. Profits per share before one-time charges totaled 40 cents per share, beating Wall Street analysts' expectations of 36 cents a share.
Regionally, the Blue Oval performed strongly, as well. North America posted a record quarterly pre-tax profit of $2.4 billion, a $119 million increase. Europe also showed signs of turn around with its first profit in three years of $14 million after a loss of $306 million in Q2 2013. Ford is actually predicting profitability in the troubled region in 2015. Asia Pacific operations also performed well with $159 million in profits, up $29 million from last year. The only region where the business posted a loss was South America.
According to Automotive News, Ford also announced more precise plans about the changeover to build the aluminum-intensive 2015 F-150. In August, the Dearborn plant will shutdown for eight weeks to retool and its Kansas City plant will do the same next year.

2020 Ford Escape plug-in vs. Toyota RAV4 Prime, Mitsubishi Outlander PHEV: How they compare on paper

This year is when the entry-level plug-in crossover market really starts to heat up. Both Ford and Toyota have new models in the 2020 Ford Escape and the 2021 Toyota RAV4 Prime. They join the segment veteran Mitsubishi Outlander PHEV, which has been available in the U.S. since the 2018 model year. And of course that means it's time to look at how the numbers add up while we wait for our chance to drive the new competitors. You can find a chart with all the details immediately below, followed by more detailed analysis. Powertrain One of the key factors for any hybrid, particularly plug-in models, is how little fuel they use. Overall, the Ford Escape is the winner with 100 mpg-e, the fuel economy equivalency for the vehicle when assessing it with a full battery. The Toyota is close behind with 94 mpg-e. We're expecting the Escape to also be a bit more efficient when running only on gas, as it reportedly gets 41 mpg. The RAV4 will likely get 40 mpg, or possibly slightly less, since the non-plug-in RAV4 Hybrid achieves 40 mpg combined. Running solely on electric power, though, the RAV4 edges out the Escape with 42 miles of range versus 37. Behind both of them is the Mitsubishi with just 22 miles of range, 25 mpg on gasoline only, and 74 mpg-e with a full battery. One unique feature the Mitsubishi claims is DC fast charging capability, meaning 80% of its electric range can be restored in just 25 minutes, possibly allowing for more electric use depending on where you're driving it. While fuel economy is a priority for hybrids, customers won't want to compromise on other features. The Toyota is easily the least compromising, as it returns impressive range and efficiency while also providing a whopping 302 horsepower and all-wheel drive. The Mitsubishi also has all-wheel drive, but a comparatively paltry 190 horsepower. The Ford produces slightly more power at 200, but is front-wheel-drive only. While low in comparison to the RAV4 Prime, the Mitsubishi and Ford have very competitive output to many comparably-sized conventional crossovers with base engines, such as the Honda CR-V, Chevy Equinox and others. Size and space Naturally one of the reasons for buying a crossover is for its practical shape for comfortable hauling of people and stuff. In this regard, all three crossovers are very close. The Escape wins out with legroom, the Toyota with shoulder room. Headroom is split between the Toyota and Mitsubishi.