2014 Ford F150 Stx on 2040-cars

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Hot sales have Detroit automakers shortening summer shutdowns

Back in May, there was speculation that the Detroit Three automakers would maintain or perhaps even extend their traditional summer shutdowns, mostly due to a bitingly cold winter that saw below-freezing temperatures infiltrate the southernmost reaches of the US, putting a chill on auto sales. Now, though, the numbers are in, and thanks to some promising sales figures, it looks like some domestic line workers are going to be working clear through July, in some cases.
According to Automotive News, Ford has slashed its traditional two-week hiatus for factory workers in half at four of its plants, while both Chrysler and General Motors will keep factories running nonstop (two plants in Chrysler's case and a third of GM's factories).
This is, as we said, thanks to some positive numbers. Chief among those is the Seasonal Adjusted Annual Rate, which was at an eight-year high of 17 million units. Individual figures were less promising. GM, embroiled in its recall scandal, still saw a one-percent increase while Ford dropped six percent in year-over-year sales. Chrysler was the big winner, though, with a nine-percent jump in June.

Ford books $1.2B profit in second quarter on strength of trucks

Ford is rolling along nicely, with a positive second-quarter sales report and a $2.3 billion profit in North America. The Dearborn, Michigan-based manufacturer captured $1.2 billion globally from April to June, with a $177 million profit in Asia. Even in Europe, the land of doom and gloom for automakers not named Mazda, Ford saw some success as it lowered its expected full-year loss from $2 billion to $1.8 billion. The company lost $348 million in Europe during the second quarter, which, believe it or not, represents a $56-million improvement over 2012.
According to the report on CNBC, Ford enjoyed a three-percent increase in pre-market trading thanks to the news. The strong demand for the F-150 propelled growth in the US market, while Ford's 47-percent increase in Asian sales can be attributed to the new EcoSport crossover and Kuga (Ford Escape in the US) arriving in the somewhat fragile Chinese market.
Pre-tax profits for Ford are expected to be in the neighborhood of $8 billion by the end of the year, with sales the US, Europe, and China all looking up. The company also shifted $4.78 billion of asset-backed debt in the form of bonds, according to a report by Bloomberg. This move came amidst rumors of the Federal Reserve cutting back on its $85-billion-per-month bond purchases. Ford wasn't alone among automakers looking to sell off debt, though, as Mercedes-Benz and Nissan shifted around $1 billion each in bonds relating to auto loans.

Ford Focus Electric gets $6,000 price drop, now starts at $29,995

In early 2013, the Nissan Leaf shed a massive $6,500 from its $35,200 base price to offer a new starting price of $28,800. Since then, we have seen numerous other plug-in vehicles get smaller price tags, from the Honda Fit EV (lower lease price) to the Chevrolet Volt (around $5,000 lower) to the Mitsubishi i (a $6,130 drop). Last year, Ford lowered the $39,200 price of the Focus Electric by around $4,000, but that hasn't been enough to get the Ford EV to really compete, saleswise, with other plug-in vehicles on the market. But wait, as they say, there's more. This past weekend, Ford lopped another $6,000 from the price of both the 2014 model year Focus EVs currently on dealer lots as well as the redesigned 2015 models that are now rolling out (they're basically the same car, minus some appearance changes). Ford spokesman Aaron Miller confirmed to AutoblogGreen that the Focus EV will now start at $29,995 and said that reducing the price should make the Blue Oval's only pure EV competitive. "We hope by reducing the price we're giving consumers another reason to consider it," he said. Through the end of September 2014, Ford has sold just 1,534 Focus EVs in the US (the model sold 1,335 in the first nine months of 2013). For comparison's sake, the Nissan Leaf starts at $29,010 and sells around 3,000 units a month in the US. Miller notes that the Focus EV has been selling the best on the West Coast, and is also doing well on the East Coast. After that, he said Atlanta and the Great Lakes area also see decent sales of model's admittedly small pie. We can only assume that offering the EV for under $30,000 will make that pie somewhat bigger.