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Ford profits soar as problems mount

Ford is doing well. It can't make enough examples of its new Fusion, it can barely make enough of the aging F-150, it's getting good brand rankings, people like its turnaround story, it's selling oodles of product and its quarterly profit numbers end in the word "billion." As other high-flying examples have demonstrated over the past few years, though, big numbers can come with problems that aren't exactly small.
Automotive News has published a good "nutshell" report of Ford's progress and problems. The Dearborn automaker's optimistic "general label rule" determination of gas mileage for the C-Max Hybrid has led to lawsuits, hybrid software updates, a downward revision of C-Max fuel economy and millions in rebates. AN notes the C-Max was the "worst-scoring model in this year's J.D. Power Initial Quality Study," but Ford will probably be happy that it managed not to be mentioned further in the study's results after last year's mediocre showing. Its MyTouch and SYNC systems, the bugbears sabotaging Ford's J.D. Power results, have also led to lawsuits, software updates, more software updates and a center console rethink. On top of that, the 1.6-liter EcoBoost in the 2013 Ford Escape that Ford called a "hero" was soon catching fire for three different reasons. And let's not even get into the troubled launch of the Lincoln MKZ.
The Automotive News piece notes that industry observers have been surprised at Ford's stumbles because everything has been looking so good. Nevertheless, there is still the issue of those billions in profits - the company is doing plenty of things, plural, right. Ford says it is tackling its problems, hiring engineers and instituting new quality control processes as part of its effort to find solutions. The test will be to see if in a year from now we begin the discussion of these issues with "Remember when Ford...", or "Problems continue at The Blue Oval."

Hot-selling Ford Expedition, Lincoln Navigator get production boost

Ford is investing an additional $25 million in its Kentucky Truck Plant in Louisville to increase by 25 percent production of the hot-selling and all-new Lincoln Navigator and Ford Expedition SUVs. The investment adds to $900 million in previously announced spending at the plant, which also builds F-Series Super-Duty pickups and employs 8,400 workers. Assembly-line workers are putting in overtime and working voluntary weekend shifts to keep up with demand. The new investment will cover upgrades to the assembly line but does not involve further hiring, Ford spokeswoman Kelli Felker says. The popularity of the Ford Expedition and Lincoln Navigator is a bright spot as Ford stock has been battered by Wall Street amid concerns concerns about the automaker's future vision and slowness to detect trends. Ford says the investment is an example of its bid to improve "operational fitness," one of CEO Jim Hackett's common refrains. Ford says Navigator retail sales more than doubled in January, and Navigators are spending an average of just seven days on Lincoln dealership lots as customers trade in vehicles including Land Rovers and Mercedes-Benz. Nearly 85 percent of buyers are opting for high-end Black Label and Reserve trim packages, contributing to an average transaction price increase of more than $21,000 in January compared to a year ago. The 2018 Navigator won the North American Truck of the Year award and also topped a Detroit News poll of public favorites at last month's Detroit Auto Show. Sales of the Expedition, meanwhile, were up almost 57 percent last month as the full-size SUVs also spent an average of just a week on dealer lots. Platinum trim models represented 29 percent of sales, pushing transaction price increases up $7,800. Ford gave the 2018 Expedition an all-aluminum body to save mass in its first significant redesign since 2007. The plant last year got nearly 400 new robots, mainly in the body shop, to help increase line speed, and Ford added a robot lab where employees can test software tweaks or troubleshoot issues away from the factory floor. The Louisville plant also benefits from extensive new data analytics, with seven big-screen monitors providing minute-by-minute updates showing progress against hourly targets or alerting workers to pending parts shortages. A huge spare-parts "vending machine" lets workers more quickly locate needed parts and keep inventory at necessary levels.

The next-generation wearable will be your car

This year's CES has had a heavy emphasis on the class of device known as the "wearable" – think about the Apple Watch, or Fitbit, if that's helpful. These devices usually piggyback off of a smartphone's hardware or some other data connection and utilize various onboard sensors and feedback devices to interact with the wearer. In the case of the Fitbit, it's health tracking through sensors that monitor your pulse and movement; for the Apple Watch and similar devices, it's all that and some more. Manufacturers seem to be developing a consensus that vehicles should be taking on some of a wearable's functionality. As evidenced by Volvo's newly announced tie-up with the Microsoft Band 2 fitness tracking wearable, car manufacturers are starting to explore how wearable devices will help drivers. The On Call app brings voice commands, spoken into the Band 2, into the mix. It'll allow you to pass an address from your smartphone's agenda right to your Volvo's nav system, or to preheat your car. Eventually, Volvo would like your car to learn things about your routines, and communicate back to you – or even, improvise to help you wake up earlier to avoid that traffic that might make you late. Do you need to buy a device, like the $249 Band 2, and always wear it to have these sorts of interactions with your car? Despite the emphasis on wearables, CES 2016 has also given us a glimmer of a vehicle future that cuts out the wearable middleman entirely. Take Audi's new Fit Driver project. The goal is to reduce driver stress levels, prevent driver fatigue, and provide a relaxing interior environment by adjusting cabin elements like seat massage, climate control, and even the interior lighting. While it focuses on a wearable device to monitor heart rate and skin temperature, the Audi itself will use on-board sensors to examine driving style and breathing rate as well as external conditions – the weather, traffic, that sort of thing. Could the seats measure skin temperature? Could the seatbelt measure heart rate? Seems like Audi might not need the wearable at all – the car's already doing most of the work. Whether there's a device on a driver's wrist or not, manufacturers seem to be developing a consensus that vehicles should be taking on some of a wearable's functionality.