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Ford, GM still doing new business with Takata amidst airbag crisis

Lengthy vehicle development times make it difficult for automakers to cut and run from the supplier. You might expect automakers to be fleeing any connection with beleaguered supplier Takata in the wake of the company's exploding airbag inflator crisis. After all, with a Senate hearing, pending lawsuit, plummeting stock value and demand for a national recall, the tier-one supplier isn't at its strongest right now. However, years of cooperation mean that automakers are standing by Takata, and necessity may be playing a role, as well. About 39 percent of Takata's business comes from airbags, and seatbelts make up another significant chunk of the operation too, says Bloomberg. The long-term relationships and lengthy vehicle development times make it difficult for automakers to cut and run from the supplier. "Takata has so much product breadth that I don't really see that they could just disappear," said AutoPacific analyst Dave Sullivan to Bloomberg. For example, Takata helped develop the unique front center airbag with General Motors in models like the Chevrolet Traverse and Buick Enclave. Outside of safety tech, it is also a partner with Ford on the adaptive steering system available on the upcoming 2015 Edge. These long-lasting partnerships make change difficult now that there's a problem. According to Reuters, automakers claim it would take a year or longer to set up with a different supplier for replacement airbag inflators. Switching to a completely different part for the repairs might not be a viable option either, because of the engineering time needed. BMW is taking action, though. According to Reuters, the Bavarian brand is working with the supplier to move inflator production from Monclova, Mexico, to a Takata factory in Freiburg, Germany. The Mexican plant may be the source of some of the faulty parts. News Source: Bloomberg, ReutersImage Credit: Jens Meyer / AP Photo BMW Ford GM Safety Takata airbag recall

Ford owns Automotive Loyalty Awards, Audi and Subaru are king of conquests

Customers are a commodity in the automotive industry, and like any other commodity, automakers trade them back and forth. Only nobody wants to give up their customers - just to keep the ones they have and try to attract others.
That's what the Polk Automotive Loyalty Awards are all about. Every year the industry research body names the automakers, brands and models that manage to keep their customers coming back for more - and attract buyers to switch from other makes. Ford usually does pretty well, but this year it rose above even its own track record.
Not only did Dearborn win the Overall Loyalty to Manufacturer award, but also the Overall Loyalty to Make. Ford also took the African American category, and the F-150 was named the top full-size half-ton pickup in customer loyalty. Ford COO Mark Fields (pictured above) accepted the awards and gave the keynote address at the awards ceremony.

Ford Mondeo Hybrid could beat unloved diesels in Europe

Predicting changes in the European auto market isn't easy, and Ford is hedging its bets there with the introduction of the Mondeo Hybrid. The Blue Oval has no expectation of the electrified version of the sedan being a rollicking sales success, but the model is a fuel-efficient alternative in case the recent backlash against diesel turns into an outright ban somewhere. This is the first time Ford is selling a hybrid version of the Mondeo (a cousin to the Fusion in the US) in Europe. The vehicle pairs a 2.0-liter Atkinson cycle four-cylinder with a 1.4-kWh battery pack to make a total of 185 horsepower and emit 99 grams per kilometer of CO2. The Blue Oval expects to sell around 100,000 units of all versions of the sedan annually there, according to Automotive News Europe. However, fewer than 5,000 of those are predicted to be the gas-electric model. "Legislation around Europe is so different it's very difficult to predict," Roelant de Waard, Ford of Europe sales boss, said to ANE. "If you're betting only on one horse you might be lucky, but you also may be very unlucky." Ford is probably smart to have alternatives ready, and it also already offers the Focus Electric and hybrid C-Max there. Governments in Europe are rapidly turning against diesel, especially in France. The country considered offering buyers 10,000 euros ($11,300) if they trade in an old oil-burner on a new electric vehicle, and the prime minister calls backing the fuel for so long a mistake. The UK's Labour Party is making similar declarations. News Source: Automotive News Europe - sub. req.Image Credit: Ford Government/Legal Green Ford Emissions Green Driving Diesel Vehicles Hybrid Sedan