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Project Ugly Horse: Part IX

One Step at a Time
Nearly every flavor of exotic driveline has been shoved into the ubiquitous Ford at some point or another.
Chuck Schwynoch had been patiently listening to my ramblings on the other end of the phone for a solid half hour. I'm not too big of a man to know when to ask for help, and at this point, I desperately needed some assistance. The truth is, working on a machine like a Fox Body Mustang is as easy as breathing thanks to the wealth of information available on the web. Nearly every flavor of exotic driveline has been shoved into the ubiquitous Ford at some point or another, and odds are the sorry souls behind those builds shared the highs and lows of their torment with the internet community.

Ford profiles surprisingly affluent Focus ST buyers

It comes as no surprise when Ford says that 32-percent of Focus ST buyers are under 35, but we weren't expecting this: the average annual salary of Focus ST buyers is $127,000. Twenty-two percent of non-ST Focus buyers are under 35, while their average annual salary is $67,000.
We like the Focus ST because it has 252 horsepower, is genuinely fun to drive and offers great value for performance-minded car enthusiasts; facts that are not lost on customers, it seems. Ford says that the Focus ST has the highest percentage of conquest sales for a non-hybrid model it sells, and that the top-four trade-ins are from Honda, Chevrolet, Mazda and Toyota. Demand for the hot Focus is strongest in Los Angeles, Detroit, Houston and Orlando.
"[The Focus ST is] having this kind of halo effect for other vehicles we'd hoped for when we invested in the ST brand," says John Felice, vice president of US marketing, sales and service, because it's helping to boost sales of other Ford vehicles.

Detroit 3 and UAW set for showdown over tiered wages

This week, thousands of United Auto Workers will converge on Cobo Center in Detroit for the Special Convention on Collective Bargaining, an every-four-year event that lets members tell UAW leaders what the negotiating priorities should be during contract negotiations. This is where a lot of sand and a lot of lines start coming together in preparation for contract negotiations between the UAW and the Detroit 3 automakers, which will happen later this year. Number one on the UAW agenda is the end of the two-tier wage system created in 2007 to help the automakers get through bankruptcy; veteran workers are paid the Tier 1 rate of around $29.00 per hour, new hires are paid the Tier 2 rate of between $15 and $20 and get about half the benefits of Tier 1. Tier 2 hiring has been an undoubted success for the automakers, allowing them to keep factories in the US and hire more workers. By agreement, it is capped at a certain percentage of each automaker's workforce, and while the union's ultimate position is to get rid of the dual-scale system entirely; one leader said Ford could easily afford the $335 million it would take to convert all its workers to Tier 1 out of its $6.9 billion in 2014 North American profit, and General Motors could do the same out of the $5 billion it is handing to investors through the (admittedly forced) share buyback. Other delegates say that at the very least they'd be happy with enforcement of the current caps in the new contract. The automakers, conversely, would welcome expansion of the Tier 2 ranks. Including benefits, import automakers pay workers "in the high $40 range" per hour, according to an analyst, while Ford and GM pay about $59 in wages and benefits per hour. More Tier 2 workers on the rolls would let those two companies get labor cost parity with the competition. Fiat-Chrysler pays wages closer to the imports because of special exceptions in its UAW contract that allow unlimited Tier 2 hiring; those exceptions will end on September 14 and bring FCA into line with the other domestics, unless the new contract maintains them. FCA CEO Sergio Marchionne is opposed to the two-tier system, having called it "almost offensive." One analyst says the UAW might win a sizable pay raise for Tier 2 and a small increase for Tier 1, but the keystone issue will be how the hiring matrix can help the automakers keep overall wages in line with the imports.