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2015 F-150 launch to curb Ford profits?

Ford is making a big bet on aluminum with its new 2015 F-150, and it's possible that the decision will hurt the company financially, at least in the short term. After earning a record $8.6 billion in 2013, the Blue Oval does not expect to set another record in 2014. According to Automotive News, that's "largely attributable to F Series," says Bob Shanks, Ford's Chief Financial Officer.
To retool for the new F-150, Ford will idle its Dearborn Truck Plant in Michigan for 11 weeks and the Ford Kansas City Assembly Plant in Missouri for 2 weeks. "3 of the 13 overall weeks occur during what normally is our summer shutdown timeframe," said Mike Levine, Ford Trucks Communication Manager, in an email to Autoblog. The extra 10 weeks will be preparing for the more aluminum-intensive construction for the trucks and will mean over 2 months of no F-150s being made. For comparison's sake, Chrysler boss Sergio Marchionne just confirmed that the 200 plant in Sterling Heights, MI will be down for 30 days to retool for the new model, but obviously there are many more F-150 production variables than for the midsize sedan.
Levine notes that Ford is already running three shifts at both plants, and says the automaker has plans to ensure that there is adequate supply of the full-size pickups during the retooling process. The company does not want to suffer a shortage of the vehicle that accounted for 31-percent of its 2013 US sales and an even bigger percentage of its profits.

Ford Fiesta 1.0L EcoBoost sales robust in early going

Okay, okay, okay, so I was just a smidge wrong. Those that read my review of the Ford Fiesta with the new 1.0-liter, EcoBoost engine will know that while I really enjoyed the torquey little three-cylinder, I was concerned that Ford's decision to force 1.0-liter owners into a manual transmission, steel wheels and one trim level might hurt sales of the new engine. I was also concerned that the promised 45-mile-per-gallon highway rating wouldn't be enough to tempt buyers into trying an engine that's so far outside of what the general public is use to. My concerns, though, seem to have been for naught.
While not doing a booming business on the triple-equipped Fiesta, Ford is seeing a take rate of four to eight percent per month in the engine's first few months on sale. Now, four to eight percent might not sound like a lot - if, like last year, the Fiesta sells around 71,000 units, there'd be barely 5,600 1.0-liter models on the road. It is also small potatoes relative to the take rate on EcoBoost-equipped vehicles across the Ford range, which US sales analyst Erich Merkle estimates to be roughly 35 to 40 percent of retail sales. Still, according to The Detroit News, the 1.0-liter is getting adopted at roughly the same rate as the sparkling Fiesta ST, which should be a solid indication of just how well this little engine is doing.
The 1.0-liter's success "really speaks volumes, not just to what we're doing with the Fiesta, but with EcoBoost in general," Merkle told Autoblog.

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.