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Trump did talk to Bill Ford, but the Kentucky plant was never moving to Mexico

President-elect Donald J. Trump has been butting heads with Ford for a while now. A lot of it seems to stem from misunderstanding or misrepresenting facts about how the automaker currently does business and its plans for the future. After a sit-down with executive chairman Bill Ford Jr., the misunderstandings continue, but Trump has apparently convinced the company to make some changes. During his campaign, Trump claimed that Ford was going to fire US workers and move manufacturing to Mexico. That wasn't the case – yes, Ford planned to transfer Focus and C-Max production from Wayne, Michigan, to Cuautitlan, Mexico, but no, that wouldn't mean anyone losing their job. The Wayne plant will continue to operate, and likely busier than before, as it will be the home of the new Bronco and Ranger. So Ford CEO Mark Fields responded with the facts, and then chairman Bill Ford Jr. sat down with Trump over the summer. Things apparently weren't resolved to Trump's satisfaction, so he and Bill Ford spoke on the phone yesterday as he claims in this tweet: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Let's pick that apart. First off, it's not a Lincoln plant, per se – the Louisville Assembly Plant currently builds the Ford Escape and Lincoln MKC, two small crossovers that share a platform. Ford was considering moving MKC production out of Kentucky to Mexico, but it would not have resulted in many lost jobs if any – the union had already agreed to moving the MKC in 2015 negotiations, and taking production of the slow-selling Lincoln out of the plant would open up capacity for more Fords. Be that as it may, Ford has decided not to move MKC production out of the plant, either for political reasons of placation or because it didn't make the greatest deal of business sense, maybe a combination of the two. That means Trump isn't really saving any American jobs in the short term. If anything, this move could keep Ford supply-constrained and result in reduced sales, which in turn brings the company less money and affects the bottom line and all employees. But that's speculation, so we won't tweet it. There is of course the possibility that Ford will be convinced, either by sheer will or by a more attractive trade situation, to invest in increased US production, which could bear fruit later on. We are told by Ford that the two men did in fact speak yesterday.

Ford Focus PHEV on the way?

A refreshed Ford Focus is in the works and that means a few details are leaking out. Spy shots from last month indicated the Focus will have a gaping grille just like its "One Ford" global C-segment comrade, the Fiesta. While Ford is being quiet about it, the Focus could also be getting an "Energi" option, joining the C-Max Energi and Fusion Energi in Ford's plug-in hybrid family. The Focus will likely use technology originated in the C-Max Energi that combines a 2.0-liter gasoline engine with an electric motor capable of a 20-mile range, according to Autoexpress. The pure electric Focus is expected to stay in the lineup despite its slow sales; its price range should be similar to what's on the market now. The third-generation Focus looked good enough to become the top-selling nameplate in the world in 2012. Some exterior changes to look for in the Euro-spec model at the Geneva Motor Show in March include a reshaped hood, front wing endplate and rear bumper. Interior spy shots have hinted at an updated dashboard design and a simplified, less cluttered control panel with updated climate controls. Under the hood, there are quite a few power options rumored to be available - a gasoline EcoBoost with up to 123 horsepower and two turbo-diesel TDCI options, a 1.6-liter or 2.0-liter mills that would produce between 94 hp and 161 hp. Then there are new 1.5-liter diesel and 1.5-liter EcoBoost gasoline variants that meet regulations in China, Brazil and Russia.

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.