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10 automakers shack up in Detroit hotel to talk Takata airbags

Since Takata has decided not to take the lead concerning potential issues with its airbag inflators, the automakers have. Perhaps that's unsurprising, since it's the automakers, not Takata, that will take a beating on the dealership floor if consumers decide its models are a health hazards. The Detroit News reports that Toyota, Honda, General Motors, Ford, Chrysler, Mazda, BMW, Nissan, Mitsubishi and Subaru met in a hotel conference room near the Detroit Metropolitan Airport last week to sort out a way to understand the technical issues involved. So far, faulty airbag inflators have been ruled the cause of five deaths and 50 injuries around the world, but neither Takata nor investigators understands exactly why the inflators are malfunctioning. The National Highway Traffic Safety Administration recently asked Takata to issue a national recall, Takata declined, citing a minuscule failure rate and the fact that it's still investigating the issue. Toyota and Honda then made an industry-wide appeal for "a coordinated, comprehensive testing program" that would pinpoint the problem inflators and get them replaced, and that's what the Detroit meeting was about. Numerous issues, however, will make this a long row to hoe: simply getting the parts to replace the nearly 20 million inflators in cars recalled around the world so far - even working with other suppliers - will take a years, but more importantly, no one knows if the replacement inflators currently being installed will suffer the same issue. Answers will hopefully come quickly with Takata, the ten automakers and NHTSA all independently investigating the problem.

Mulally will stay close to Ford after he steps down, plans to advise Fields [w/video]

Ford CEO Alan Mulally has less than a week left in his role of leading the Blue Oval before he hands off duties to Mark Fields on July 1. It doesn't look like Mulally is going to be shuffling off into his retirement anytime soon, though. The 68-year-old is being rather secretive about his next move, but he tells Bloomberg in a recent interview that he plans to stay close to Ford. Also, if Fields wants to ask for any advice, Mulally is happy to help.
Mulally took over at Ford in 2006 and led the company through a seriously rough patch in the auto industry. According to Bloomberg, he became famous or his Thursday meetings where executives were forced to deal with any problems before they could leave. Since announcing his retirement from Ford in May, Mulally has been insuring a smooth transition of power by traveling the world to all of company's major locations and saying goodbye to employees and dealers.
In terms of the future at Ford, Mulally doesn't predict any big changes in management style because the rest of the executive team is staying in place. He believes that Fields is going to maintain the processes already in place to keep things going. After all, it seems to be working. The company is predicting a return to profitability in Europe next year and is opening 88 new dealers in China. If the business could get its recalls under control, things could get even better.

Ford not backing down on MPG-based marketing strategy

The Blue Oval may have to back off a bit from the green messaging. Ford has had to lower fuel-economy ratings on a number of 2013 and 2014 model-year vehicles, namely its hybrids. And that may force the US automaker to rethink some of its marketing strategy, Automotive News reports. Ford has spent much of the year pushing its fuel-efficiency improvements, with everything from a Super Bowl ad saying its Fusion Hybrid gets "almost double" the fuel efficiency of an average vehicle (after the recalculation, it's now more like 75 percent better) to claiming the Fiesta is the most fuel-efficient non-hybrid in the US (it's actually the Mitsubishi Mirage) to stating the C-Max Hybrid gets better fuel economy than the Toyota Prius V (it doesn't). Nonetheless, Ford doesn't plan on changing its mpg marketing emphasis anytime soon, the company said in an e-mailed statement to AutoblogGreen. "Providing customers great fuel economy is a key part of our Ford vehicle DNA." "Providing customers great fuel economy is a key part of our Ford vehicle DNA," the company said. "We will continue to highlight our vehicles features and attributes in our advertising and marketing, which includes fuel economy and fuel-saving technologies like EcoBoost and hybrids." Earlier this month, Ford said it would lower the fuel-economy ratings of models such as the C-Max, Fusion and Lincoln MKZ Hybrids as well as most of the Fiesta line because of mistakes in the company's internal testing data. It was the second change for the C-Max Hybrid. The good news for Ford is that its fleetwide fuel economy is up almost 40 percent from a decade ago, compared to an improvement of around 23 percent for Toyota. Still, while sales of Ford hybrids and plug-ins are about even with last year through the first five months of 2014, C-Max Hybrid sales have plunged 49 percent from a year earlier. Earlier this year, Ford admitted that the first fuel economy downgrade had a negative effect on sales and we can find proof in the numbers. Before that the change was announced, in August 2013, Ford was consistently selling over 2,000 – and sometimes over 3,000 – C-Max Hybrids a month. In September, it dropped to 1,424, then to 1,438 in October. It didn't climb back above 2,000 until May 2014. The second mpg adjustment was announced in June.