2014 Ford F150 Xl on 2040-cars

Auto blog

New UAW boss Williams talks tough, vows 'no more concessions'

Dennis Williams, the newly elected president of the UAW, had some tough words for American automakers in his inauguration speech at the 2014 UAW Convention, striking down the possibility of any additional concessions from the 400,000-strong union.
"No more concessions. We are tired of it. Enough is enough," Williams said during his speech. UAW employees have not received a raise in nearly 10 years, according to Reuters.
Considering the recent strong results for Ford, Chrysler and General Motors, the union's demands are likely to carry a bit more weight in next year's negotiations. And considering Williams' tough stance, we could be in for some fireworks once negotiations commence.

Ford Q1 profits dragged down by warranty costs

General Motors isn't the only Detroit automaker posting falling profits in the first quarter. Ford just released its Q1 2014 financial data, and it reported a net income of $989 million, down $622 million from Q1 2013. The drop is partially blamed on higher warranty and recall expenses than the company had anticipated.
Financially, Ford suffered a rough quarter almost across the board. Its pre-tax profit of $1.4 billion was also down $765 million from a year ago. Things were even worse in the North American market where operating profit fell significantly to $1.5 billion, down from $2.392 billion in Q1 2013. However, its global revenue ticked up slightly to $35.9 billion, from $35.6 billion in this period in 2013.
Ford admitted that it spent about $900 million on expenses that it hadn't planned for during this quarter. According to Reuters, the company paid about $400 million in additional warranty and recall costs in North America. The automaker didn't explain why the costs were so much higher than expected. However, in the last three months, Ford has had several recalls, including on the 2001-2004 Escape for rust, Explorer for its steering, Edge for its fuel line and others.

Ford Focus RS will go global, come to US

"We are transforming our approach to performance." – Mark Fields Ford will launch a new high-performance Focus RS around the world, including the United States, company CEO Mark Fields confirmed at a press conference Thursday morning. It is expected to debut in January at the Detroit Auto Show, though launch timing is unclear. "We are transforming our approach to performance," Fields said. The RS will serve as a hotter variant of the Focus, which will be redesigned next year as part of Ford's 16 product launches. Our spy photographers have already captured images of a purported RS, which you can see above. Ford last sold a Focus RS in Europe in 2009, and it continues the long lineage of RS-badged performance cars, which dates to 1968. "The RS has a significant heritage and pedigree," Ford product chief Raj Nair said. The Focus RS will slot above the Focus ST, which will continue, a spokesman said. The ST runs a turbocharged, 252-horsepower four-cylinder that's paired with a six-speed manual transmission. It also has chassis and design upgrades to reinforce its athletic dynamics. The most recent intel suggests that the new RS could use Ford's 2.3-liter turbo-four, tuned to anywhere from 325 to 350 hp. All-wheel drive is also rumored to be part of the new RS formula. Meanwhile, Ford announced it is putting all of its sporty units under the umbrella name of "Ford Performance," which will be led by Mustang chief engineer Dave Pericak. Ford Performance will include Ford Racing, SVT (which is responsible for the Raptor and Shelby GT350) and RS. "We're changing Ford's performance business," Nair said. Ford is placing a renewed emphasis on performance, as the customers tend to be younger, wealthier and better educated, Nair said. In other news, Nair said the company is working on a Raptor version of the new, aluminum-bodied F-150, which launched this year. "I want to get it out as quickly as we can," he said.