1964 - Ford Mustang on 2040-cars

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2015 Ford F-150 to get up to 26 miles per gallon

The 2015 Ford F-150 is one of the most important US vehicle debuts in years, be it in the pickup segment or the entire marketplace. While we've already known about the truck's engine lineup, its payload ratings and we've even learned a bit about how it drives, the truck's EPA-estimated fuel economy ratings have remained a mystery. The wait is finally over. Ford has announced numbers that put the latest F-150 as the mileage leader among gasoline-powered, full-size pickups in the US, with its new 2.7-liter EcoBoost V6 topping the charts. Starting with the entry-level naturally aspirated 3.5-liter V6, the rear-wheel-drive F-150 is rated at 18-miles-per-gallon city, 25-mpg highway and 20-mpg combined. Opting for four-wheel drive drops those numbers slightly to 17/23/19. If fuel economy is your absolute priority, then upgrading to the 2.7-liter EcoBoost V6 is the hot ticket. It improves things further to 19/26/22 in rear-wheel drive trim or 18/23/20 with four-wheel drive. The carryover naturally aspirated 5.0-liter V8 is rated at 15/22/18 as a 4X2 or 15/21/17 as a 4X4. Finally, the flagship 3.5-liter EcoBoost V6 tops the range in available torque and offers buyers 17/24/20 ratings with rear-wheel drive or 17/23/19 with four-wheel drive. "We are delivering with the toughest, smartest and most capable F-150 ever – and now the highest EPA-estimated fuel economy ratings of any full-size gas-powered pickup in America," said Raj Nair, Ford group vice president, Global Product Development, in the company's announcement. Depending on engine and drivetrain configuration, Ford contends that the 2.7-liter EcoBoost's top rating puts fuel economy up between 5 and 29 percent over the current generation, thanks in large part to the truck's lighter aluminum construction. Obviously, these are EPA estimates, and your mileage may vary – ours has. Recently, Autoblog team members have had real difficulty even approximating government mpg estimates on many EcoBoost models, including the new F-150. Scroll down to read Ford's full announcement, including comparisons to rival models.

Buy Ford and GM stock and make 5%

Want to make a five-percent return when 10-year treasuries are paying around two percent? Ford (F) and General Motors (GM) have solid balance sheets, strong cash flow, solid earnings, and growing markets. By all accounts, they are smart investments. But the market is down on these stocks. Why? Some of the stupid excuses include: They are cyclical companies The Detroit 3 have lost 3.5 million in sales since 2000 The world economy is shaky GM recently filed for bankruptcy Their markets have peaked They haven't changed their ways Let's take these criticisms one by one: They Are Cyclical Companies Yes, they are cyclical. Every company is cyclical. Every industry is cyclical. Some more than others, but not every company is immune from swings in the market. Banks used to be 'non-cyclical' leader, not anymore. Airline stocks are just as cyclical as auto stocks, yet they are trading at multiples greater than the auto industry. Why? And what accounts for the irrational stock price for Tesla (TSLA)? At least Ford (F) and General Motors (GM) make money and have positive cash flows. In fact, both companies have a net positive cash position. They have more cash on hand than liabilities. Auto sales in the United States hit a record 17.5 million vehicles in 2015. During the Great Recession, Ford (F) and General Motors (GM) cut their break even points to 10 million vehicles per year. Anything above an annual U.S. volume of 10 million vehicles is profit. And what a profit they make. Sales of Ford's F-150 continues to be the best-selling vehicle in the United States for over 30 years. Detroit 3 Have Lost 3.5 million in Sales Since 2000 Automotive News reports General Motors (GM), Ford (F) and Chrysler (FCA) have lost a combined 3.5 million vehicles sales since 2000. So how can they be making more money? Two big reasons – Fleet Sales and the UAW. Fleet Sales The Detroit 3 used to own car rental companies to keep their factories running. Ford owned Hertz (HTZ), General Motors owned all of National Car Rental and 29 percent of Avis, and Chrysler, the forerunner to Fiat Chrysler (FCA), used to own Thrifty Car Rental and Dollar Rent-A-Car. The Detroit 3 owned these rental companies to have a place to sell their bad product and keep their factories running. These were low margin sales, and in many cases, were money losers for the Detroit 3. They no longer own auto rental companies.

Foreign automakers pay from $38 to $65 per hour to non-union workers

As leaders for the United Auto Workers gather in Detroit for their Special Convention on Collective Bargaining to work out the negotiating stance for this year's new labor agreements with the Detroit 3 automakers, what they most want to do is figure out how to eliminate the two-tier wage scale. However, the lower Tier 2 wage has allowed the domestic automakers to reduce their labor costs, hire more workers, and compete better with their import competition. As it stands, per-hour labor rates including benefits are $58 at General Motors, $57 at Ford, and $48 at Fiat-Chrysler – a reflection of FCA's much greater number of Tier 2 workers. The Center for Automotive Research released a study of labor rates (including benefits) that put numbers to what the imports pay: Mercedes-Benz pays the most, at an average of $65 per hour, Volkswagen pays the least, at $38 per hour, and BMW is just a hair above that at $39 per hour. Among the Detroit competitors, Honda workers earn an average of $49 per hour, at Toyota it's $48 per hour, Nissan is $42 per hour, and Hyundai-Kia pays $41 per hour. The lower import wages are aided by their greater use of temporary workers compared to the domestics. Automotive News says the ten-dollar gap between those foreign camakers and the domestics turns out to about an extra $250 per car in labor, which adds up quickly when you're pumping out many millions of cars. That $250-per-car number is one that, come negotiating time, the Detroit 3 will want to reduce, as the UAW is trying to raise both Tier 1 and Tier 2 wages. Another wrinkle is that the domestic carmakers are considering the wide adoption of a third wage level lower than Tier 2. Some workers who do minor tasks like assembling parts trays kits and battery packs already make less than Tier 2, but the UAW will be quite wary about cementing yet another wage scale at the bottom of the system while it's trying to fight a bigger battle at the top. News Source: Automotive News - sub. req., BloombergImage Credit: AP Photo/Erik Schelzig Earnings/Financials UAW/Unions BMW Chevrolet Fiat Ford GM Honda Hyundai Kia Mercedes-Benz Nissan Toyota Volkswagen labor wages collective bargaining labor costs