2015 Ford F350 on 2040-cars

Auto blog

Ford Explorer problems gutted third-quarter sales

In early September, the Detroit Free Press published a feature noting numerous problems Ford's having with the 2020 Explorer and 2020 Lincoln Aviator launches. Issues with both SUVs, built at Ford's Chicago Assembly Plant, were so rife and dire that the automaker was trucking the vehicles 275 miles away to Michigan for repairs. Bloomberg reported earlier this month that Explorer's third-quarter sales dropped 48 percent compared to the previous model in 2018, with dealers unable to get enough units on lots for customers. Nor is the snafu over: Automotive News reports that another "batch of about 2,500 Explorers in need of repairs" arrived recently in Michigan, and sales through the first nine months of 2019 are down 31 percent. Sales dips during model changeovers are to be expected as old inventory gets sold down and new production ramps up, but this is different. Ford U.S. sales boss Mark LaNeve told Bloomberg earlier this month, "We’ve got adequate inventory in our stores. For Q4, availability wonÂ’t be an issue. WeÂ’ll be able to hit our stride with Explorer starting now." It's hard to know whether that's true, with thousands of Explorers still piling into Michigan; the batch AN mentioned represents about 5 days of sales during an average month in 2018, before the drawdown and interruptions hampered matters. And when Consumer Reports tested the Ford Explorer it bought this summer, it titled the review, "2020 Ford Explorer drives nicely but has many flaws / Poor interior quality and a high price overshadow the SUV's improvements."   On top of that, the AN piece mentions a new impediment to uncorking the Explorer sales stream: Worker strife in the Chicago plant. Allegedly, "Roving groups of workers are intimidating other employees, creating a hostile environment, the people said. ThatÂ’s driving up turnover and leaving some vehicle assembly unfinished, contributing to the company having to complete the work at the Michigan factory or at dealerships, the people said." Ford's been fined twice before for the same kinds of issues at its plants, once in 1999, again in 2017, but a spokesperson said Ford isn't aware of any such problems now. The pressure otherwise has got to be unpleasant for everyone on the Explorer team, from CEO Jim Hackett down. The automaker was meant to be "turning the corner" in April, but as of now, shares are down, credit rating is down, earnings are down.

Ford making Fusion production moves to challenge Camry on volume

The Ford Fusion may already beat the Toyota Camry in terms of models offered, transaction price and sales increase so far this year, but if the Fusion wants to make a run at the title of best-selling car in the US, Bloomberg reminds us that volume is key. Opening a second production line at the Flat Rock, MI assembly plant will reportedly allow Ford to produce around 350,000 Fusions annually, which compares Toyota's ability to crank out 475,000 Camrys and Honda's capacity to build around 450,000 Accords.
For the Fusion, that's an extra 100,000 units compared to the car's current pace, and the article adds that the Fusion is "Ford's best shot" to regain the passenger car sales crown - a title it (or any other US automaker, for that matter) hasn't held since the mid-1990s. Despite hiccups with recalls and fuel economy numbers, the Ford Fusion is still red hot when it comes to sales. Fusion sales are up 13 percent so far this year (compared to a 0.6 percent decrease for Camry), and its average transaction price of $26,343 is about $2,300 more than its rival from Toyota.
The Fusion's popularity has helped Ford improve its sales in California; the Dearborn-based automaker has a market share of 18 percent in the state, which is just a fraction of a percentage behind Honda. And this popularity should continue as Ford ups Fusion production and expands the model lineup even further for 2014 with a new 1.5-liter EcoBoost engine soon to become an option.

Quitting Mexico factory helps bring down Ford earnings $200 million in 2016

Ford released its 2016 earnings report this morning, and despite a fourth quarter net loss it proved to be the automaker's second most successful year ever, following record breaking numbers in 2015. Losses for the year come from a number of sources, including accounting changes and a $200 million hit for backing out of the small-car factory in San Luis Potosi, Mexico. Despite the loss, come March 9 about 56,000 UAW-represented employees will receive a $9,000 profit-sharing check. That, like most of Ford's other 2016 metrics, is slightly down from the year before, but it's still the second best profit-sharing payment ever. Total net income was $4.6 billion, down $2.8 billion from 2015. Total revenue for 2016 was $151.8 billion, up $2.2 billion. Ford's earnings report lists a global market share of 7.6 percent, down a tenth from 2015. Ford's European and Asia-Pacific markets posted their best and second best pre-tax profits respectively. The South American, Middle East, and African markets all took hits because of unstable economies and other external factors. Ford expects to have another down year in 2017 as it invests in new and emerging markets and focuses more on its mobility projects.Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. News Source: Ford via Automotive NewsImage Credit: Getty Earnings/Financials Plants/Manufacturing UAW/Unions Ford Lincoln Mexico ford earnings