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Ford and GM link bonus checks to quality scores

The poor first quarter earnings of Ford and General Motors are having an effect all the way up the food chain. Both automakers struggled with recalls in the first three months of the year, and, according to The Detroit News, they have responded by increasing the percentage of bonuses tied to vehicle quality for salaried workers, including top executives.
GM announced that 25 percent of bonuses (up from 10 percent) for all salaried workers would be tied to its vehicle quality standards. The automaker revealed in its financial report that it spent $1.3 billion on recall-related repairs in the first quarter, and net income was down 86 percent.
Ford also increased the quality proportion of bonuses for about 26,000 salaried workers all the way up to CEO Alan Mulally from 10 percent to 20 percent. The company announced in its report that the amount paid out in warranty and recall claims was about $400 million higher than expected in the first quarter. Its net income fell 39 percent from the previous year. "The change reflects how critical quality is to our overall business," said spokesperson Todd Nissen speaking to Autoblog.

What next for Alan Mulally?

Alan Mulally has emerged as a hero when it comes to American manufacturing. He came to Ford in 2006 after serving as head of Boeing's commercial aircraft division, streamlined operations, sold off the costly elements of its Premier Automotive Group and saved Ford from having to be bailed out by the federal government like its cross-town rivals Chrysler and General Motors did. But as we reported mere days ago, he's widely expected to step down from the chief executive's office at Ford shortly.
So what's next for one of the most successful executives in the business? Hard to say, but don't expect Mulally to disappear into retirement. Though he didn't ultimately take the top job at Microsoft, industry insiders expect to see him in another influential position - likely as a board director or even chairman of another company. (We say "another company" and not Ford because while Bill Ford may have stepped aside as CEO to bring Mulally on board in the first place, we don't see him giving up his chairmanship of the board also.)
Mulally has likely already lined up his next move, and could either announce what that move will be as soon as Ford confirms Mark Fields as his successor, or could wait awhile. Insiders speculate that he could leverage his transportation and aerospace experience into a position at General Electric or a major airline, his manufacturing expertise to benefit a company like Procter & Gamble or his management skills at a consultancy firm.

Autoblog Minute: 2017 Ford F-Series Super Duty truck reveal

Competition in the heavy duty truck segment heats up as we get our first look at the 2017 Ford F-Series Super Duty lineup. Autoblog's Adam Morath reports on this edition of Autoblog Minute. With commentary from Autoblog's senior editor Greg Migliore and an interview with Doug Scott of Ford Motor Company. Update: This post has been updated to reflect that the entire Ford F-Series Super Duty lineup is new for 2017, not just the F-250 model. Show full video transcript text [00:00:00] Competition in the heavy duty truck segment heats up as we get our first look at the 2017 Ford F-Series Super Duty trucks. I'm Adam Morath and this is your Autoblog Minute. As Ford prepares to release its new Super Duty line to the American worker, we spoke with Doug Scott of Ford's Truck Group to find out what customers can expect from this latest super duty offering: [00:00:30] [Doug Scott Interview] For more on what the changes to Super Duty mean for the segment we go to Autoblog's Greg Migliore: [00:01:30] [Greg Migliore Interview] Will a larger cabin and increased towing capacity help these heavy duty trucks take off like the smaller F150? And, how will the other HD giants, Chevy, GMC, and Ram respond? Truck fans, be sure to sound off in the comments below. For Autoblog, I'm Adam Morath. [00:02:00] Show Logo Autoblog Minute is a short-form video news series reporting on all things automotive. Each segment offers a quick and clear picture of what's happening in the automotive industry from the perspective of Autoblog's expert editorial staff, auto executives, and industry professionals. Chevrolet Ford GMC RAM Truck Autoblog Minute Videos Original Video ford f-250 f-250 super duty