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Ford cuts 950 Russian jobs on weak demand

The Russian auto market, in decline for the past year and further hit by the declining value of the ruble and recent sanctions over its annexation of Crimea, has forced Ford to cut jobs and shifts at two of its joint venture plants there. Around 700 of the 2,700 total workers who build the Russian-market Focus and Mondeo will be cut at the plant in Vsevolozhsk, near St. Petersburg as it drops to a single production shift. A second plant about 700 miles away in Yelabuga, in the Tartarstan region, will lose 250 workers. That plant builds seven vehicles, including the Explorer, Kuga and Edge.
The Moscow Times says Ford has been especially hit by the market decline, the overall market losing 5.5 percent in 2013 compared to the year before, but Ford sales dropping 18 percent in 2013 year-on-year. This year isn't going any better, with The Blue Oval posting a 21-percent decline through the first two months of 2014. That's why, though the Yelabuga plant builds the CUVs that customers are moving into, even it is facing cuts.
The job cuts in Vsevolozhsk come on top four-week plant shutdown planned so that the paint and body shops can go to one shift. In a statement, the company said, "Ford Sollers remains absolutely committed to the Russian market and is confident it has the right product plan, people and assets to deliver long-term profitable growth."

Toyota, Ford not interested in FCA merger

Sergio Marchionne will preach the benefits of mergers to anyone who'll listen, but his calls for industry consolidation may be falling on deaf ears. At least, that is, the ears of those who the Fiat Chrysler chief would most like to bend. Not only is General Motors uninterested, but according to The Detroit News, neither are Toyota or Ford. "It's something we would not be interested in," said Toyota's North American chief Jim Lentz, at the groundbreaking ceremony for the new Toyota Technical Center. "At 10 million (vehicles) we have enough scale right now to do what we need to do. There really would be no advantage for us." Toyota isn't the only one unenthused by the prospect of merging with Fiat Chrysler Automobiles. The Detroit News also reports that Ford, though it may yet to have been approached by Marchionne, wouldn't be interested either. "We're not a suitor for FCA," said Ford CFO Bob Shanks. "We don't see that type of opportunity as one that applies to us." With GM, Toyota, and Ford expressing disinterest in Marchionne's merger idea, the FCA chief will likely start looking elsewhere – or look for other ways to compel his primary candidate to reconsider. He may eventually find a partner – more likely in the Far East or within Europe – but it may not take the form of the major player Sergio has hoped for. News Source: The Detroit NewsImage Credit: Bill Pugliano/Getty Chrysler Fiat Ford Toyota Sergio Marchionne FCA merger fiat chrysler automobiles

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.