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Ford and GM link bonus checks to quality scores

The poor first quarter earnings of Ford and General Motors are having an effect all the way up the food chain. Both automakers struggled with recalls in the first three months of the year, and, according to The Detroit News, they have responded by increasing the percentage of bonuses tied to vehicle quality for salaried workers, including top executives.
GM announced that 25 percent of bonuses (up from 10 percent) for all salaried workers would be tied to its vehicle quality standards. The automaker revealed in its financial report that it spent $1.3 billion on recall-related repairs in the first quarter, and net income was down 86 percent.
Ford also increased the quality proportion of bonuses for about 26,000 salaried workers all the way up to CEO Alan Mulally from 10 percent to 20 percent. The company announced in its report that the amount paid out in warranty and recall claims was about $400 million higher than expected in the first quarter. Its net income fell 39 percent from the previous year. "The change reflects how critical quality is to our overall business," said spokesperson Todd Nissen speaking to Autoblog.

Cadillac ELR, Nissan Resonance and Ford Atlas win Eyes on Design awards

This year's annual Eyes on Design awards were presented at the end of press days for the Detroit Auto Show on Tuesday. Given out for the best production and concept car designs that debuted at the show, and voted on by an esteemed panel of actual car designers, this year's award for best production vehicle design went to the 2014 Cadillac ELR. The 2014 Chevrolet Corvette, which was the show favorite among Autoblog editors, apparently did not impress the Eyes on Design judges enough with its all-new vent-festooned design.
The award for best concept design was actually split as a tie among the Nissan Resonance and Ford Atlas concepts. Last year's winners were the 2013 Ford Fusion and the Lexus LF-LC concept.
The Eyes on Design organization also presented a new honor this year called the Catalyst Award to Bob Lutz, former Vice Chairman of General Motors. Lutz is reported to have given a defense of design in his acceptance speech, arguing that advancements in quality across the industry as a whole have made good design a key differentiator for buyers.

Feds Probe Power Steering In 938,000 Ford Midsize Cars

U.S. safety regulators are investigating complaints that the power-assisted steering can suddenly fail on three Ford midsize car models. The probe covers 938,000 Ford Fusion and Lincoln MKZ cars from the 2010 through 2012 model years, as well as the 2010 and 2011 Mercury Milan. The National Highway Traffic Safety Administration says it has received 508 complaints alleging that the cars lost power-assisted steering, causing increased steering effort. Four complaints say the problem caused crashes, but no injuries were reported. The agency says in documents posted Monday on its website that in many cases, a warning message appeared as the failure happened. Restarting the car corrected the problem in some cases, but the problem returned in others. The agency says it will check the scope and frequency of a problem. It could seek a recall. Ford says it's cooperating with the probe. Shares of Ford Motor Co. rose 6 cents to $14.65 in morning trading Monday. Its shares are down 14 percent over the past year. Related Gallery Our Favorite Hot And Sporty Cars For 2015 Recalls Ford Lincoln NHTSA Ford Motor Company power steering mercury milan investigation