2001 - Ford F-150 on 2040-cars

Auto blog

F-150 just the start of Ford's aluminum plans

Not only have we been told that the 2015 Ford F-150 is tougher, more durable and up to 700 pounds lighter than the current truck, Ford COO Mark Fields said it's also "CAFE-positive." That means, for the first time in the history of corporate average fuel economy standards, the F-150 would be a positive contributor on Ford's CAFE balance sheet instead of being a vehicle it needs to counterbalance with frugal offerings.
Fields' comments made at the Detroit Auto Show were among quotes from other Ford execs that confirmed the carmaker will be using aluminum for more of its vehicles. CEO Alan Mulally said it would "proliferate across our lineup," with speculation being that we'll see it applied to crossover and sport utility models first, since they'll benefit the most. Even gaining the massive scale of using aluminum on the world's best selling vehicle for its first effort - on average, the company sells two times as many F-150s in a single day as Land Rover sells of its aluminum Range Rover in a month - Ford will be looking to further spread the cost of its five-year development investment in aluminum technology. And that should mean better handling and fuel economy for those of us who don't need to wear hardhats at the office.

Weekly Recap: Hackers demonstrate auto industry's vulnerability

There's always been a certain risk associated with driving, and this week cyber security came into focus as the latest danger zone when researchers demonstrated how easily they could hack into a 2014 Jeep Cherokee from across the country. The incident raised concerns over the vulnerability of today's cars, many of which double as smartphones and hot spots. During the now-infamous experiment, Chris Valasek and Charlie Miller infiltrated the Jeep's cellular connection and were able to control the infotainment system, brakes, and other functions. The hackers told the Jeep's maker, FCA US, of their findings last year, the company devised a software fix. Though Valesek and Miller hacked a Cherokee (like the one shown above), several FCA products, including recent versions of the Ram, Grand Cherokee, Dodge Durango, and Viper were also affected, illustrating potentially wide exposure that could reverberate across the sector. "For the auto industry, this is a very important event and shows that cyber-security protection is needed even sooner than previously planned," Egil Juliussen, senior analyst and research director for IHS Automotive, wrote in a research note. "Five years ago, the auto industry did not consider cyber security as a near-term problem. This view has changed." Hours after the Cherokee hacking incident was publicized on Tuesday, Sens. Ed Markey (D-Mass) and Richard Blumenthal (D-Conn) introduced legislation to direct the National Highway Traffic Safety Administration and Federal Trade Commission to establish national standards for automotive cyber security. The bill also would require vehicles to have a cyber-rating system to alert consumers how well their cars' privacy and security are defended. "Drivers shouldn't have to choose between being connected and being protected," Markey said in a statement. "We need clear rules of the road that protect cars from hackers and American families from data trackers." Though FCA and its Jeep Cherokee were in the spotlight this time, they were just the latest to showcase how automotive technology has advanced faster than safety and regulatory measures. IHS forecasts 82.5 million cars will be connected to the internet by 2022, which is more than three times today's level. "Cyber-security will become a major challenge for the auto industry and solutions are long overdue," Juliussen said.

Ford books $1.2B profit in second quarter on strength of trucks

Ford is rolling along nicely, with a positive second-quarter sales report and a $2.3 billion profit in North America. The Dearborn, Michigan-based manufacturer captured $1.2 billion globally from April to June, with a $177 million profit in Asia. Even in Europe, the land of doom and gloom for automakers not named Mazda, Ford saw some success as it lowered its expected full-year loss from $2 billion to $1.8 billion. The company lost $348 million in Europe during the second quarter, which, believe it or not, represents a $56-million improvement over 2012.
According to the report on CNBC, Ford enjoyed a three-percent increase in pre-market trading thanks to the news. The strong demand for the F-150 propelled growth in the US market, while Ford's 47-percent increase in Asian sales can be attributed to the new EcoSport crossover and Kuga (Ford Escape in the US) arriving in the somewhat fragile Chinese market.
Pre-tax profits for Ford are expected to be in the neighborhood of $8 billion by the end of the year, with sales the US, Europe, and China all looking up. The company also shifted $4.78 billion of asset-backed debt in the form of bonds, according to a report by Bloomberg. This move came amidst rumors of the Federal Reserve cutting back on its $85-billion-per-month bond purchases. Ford wasn't alone among automakers looking to sell off debt, though, as Mercedes-Benz and Nissan shifted around $1 billion each in bonds relating to auto loans.