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Ford reports $3B profit in Q4, $6.9B for the year

Good news out of Dearborn today, as Ford announced $3 billion in profit for the last quarter of 2013, a 90-percent increase over the same period of 2012. Net income for all of last year, meanwhile, jumped to $7.2 billion from $5.7 billion in 2012, while pre-tax profits sat at a decade-topping $6.9 billion for all of 2013.
The results of the substantial profit increases are bigger profit-sharing checks for UAW employees. How big? A record $8,800 on average for 47,000 UAW workers, making 2013 the biggest year for profit sharing in Ford history. In total, $414 million will be paid as part of the profit-sharing scheme.
Now, it should be pointed out that a fair portion of Ford's Q4 profits were due to tax benefits, totaling $2.1 billion, according to Automotive News. Total profits would have also been higher, had there not been a significant recall on the Escape, as well as plant issues in South America.

Ford idling Michigan Assembly Plant to trim Focus, C-Max supply

Ford will be putting the brakes on production at its Michigan Assembly Plant in Wayne, MI, idling production during the weeks of October 28 and December 16. Ford is citing the first drop in US sales in 27 months, a 4.2-percent dip in September, as the impetus for trimming their supplies, according to Automotive News.
Ford's deft management of its supplies has been part of its success over the years, and seeing supplies of Focus and C-Max, the two vehicles built at MAP, rise from 58 and 108 days, respectively, to 71 and 122 days over the span of a month was apparently all that was need to justify the trimming. As AN points out, the rule of thumb for many automakers is to maintain a 60-day supply of vehicles.
"Ford has been focused on keeping their pricing in check. Their operating margin is in double digits. Nobody else is there and they're obviously very proud of that," Alan Baum, an auto analyst with Baum & Associates told AN. Keeping the supply chain operating smoothly and not increasing supplies too much is crucial to that healthy profit margin. After all, a large supply lowers prices ,which, in turn, cuts profit. So while this news might not be great for employees at MAP, who now have an extra two weeks of vacation time, it's far from a sign of problems in Dearborn. Quite the opposite, actually.

Mark LaNeve named head of Ford US sales and marketing

Ford continues to rework the positions of its top marketing executives as Jim Farley moves to take over the Blue Oval in Europe and Stephen Odell becomes head of global sales. The latest shift brings Mark LaNeve in as the new vice president of US marketing, sales, service and dealer relations, effective February 1. LaNeve replaces John Felice, who is retiring. Felice was with the automaker for the last 30 years and held his most recent job since November of 2013. In addition to coordinating marketing and sales, LaNeve's other duty is to build "innovative new digital communications and transforming the retail experience for customers," according to the automaker's press release announcing the change. He reports to both Odell and Joe Hinrichs, Ford's boss of the Americas. LaNeve has a long history in the auto industry. He spent a portion of his early career with Cadillac but eventually was hired as the CEO of Volvo Cars North America. He also headed up US marketing at General Motors for several years in the 2000s. Since 2012, LaNeve has been the chief operating officer at Global Ford Team, which is responsible for the company's worldwide advertising. There's an interesting challenge ahead of LaNeve in leading the Blue Oval's US marketing and sales in 2015. Ford was the bestselling auto brand here in 2014 but overall sales fell about 1.1 percent. According to Automotive News, the company's market share dropped to 14.9 percent, a one-percent reduction and the lowest level since 2008. Read below for the automaker's official announcement of LaNeve's new job. JOHN FELICE RETIRING AFTER 30 YEARS; FORD NAMES MARK LANEVE TO LEAD U.S. MARKETING, SALES AND SERVICE TEAM John Felice is retiring as vice president, U.S. Marketing, Sales and Service, after 30 years of service Mark LaNeve, named vice president, U.S. Marketing, Sales and Service and elected a Ford Motor Company officer; former chief operating officer at Global Team Ford brings nearly three decades of automotive marketing and sales experience to Ford Ford Motor Company [NYSE: F] announced today changes in its senior leadership team as it continues to deliver and accelerate the company's One Ford plan while driving for product excellence and innovation. John Felice, vice president, U.S. Marketing, Sales and Service, has elected to retire after 30 years at Ford, effective Feb. 1, 2015.