Ford, struggling in a changing industry, replaces its CEO

Three years ago, Ford Motor brought in a new chief executive, Jim Hackett, to streamline the company’s inner workings and raise profits.

Now, after he achieved mixed results, the company is again turning to a new boss, hoping he can accelerate the process and finish the job.

On Tuesday, Ford said Hackett will retire Oct. 1 and will be succeeded by James D. Farley Jr., whose promotion to chief operating officer in February had fueled speculation that Hackett’s tenure was nearing an end.

“I am very grateful to Jim Hackett for all he has done to modernize Ford and prepare us to compete and win in the future,” said William Clay Ford Jr., Ford’s executive chairman.

Farley will take the titles of president and CEO, and join Ford’s board of directors, the company said.

Hackett, a former chief executive of Steelcase, an office furniture manufacturer, was named to the top job at Ford in May 2017. Hackett promised to revitalize Ford’s operations and steer the company toward vehicles that would generate profits — pickup trucks and sport-utility vehicles — and invest in emerging technologies like electric and self-driving vehicles.

The company is starting to introduce some of the models developed under Hackett, including a redesigned F-150 pickup truck and a new series of SUVs under its dormant Bronco brand. The Mustang Mach E, an electric SUV styled to resemble the storied sports car, has generated lots of buzz and is set to go into production later this year.

“We have lots of work ahead of us to complete our mission, but thanks to Jim, we are a very different company today than we were three years ago,” Ford said in a conference call to discuss the leadership change.

Ford’s profits fell in 2018 and 2019, dropping to $47 million last year. This year, the pandemic has hammered its business, and the company lost $876 million in the first half of the year.

Farley, 58, joined Ford in 2007 from Toyota Motor, where he played a key role in launching the company’s Lexus luxury brand. Since arriving at Ford, he has held a variety of jobs, including running the company’s marketing, its European operations and a new business strategy group.


-2020 The New York Times Company-

Auto industry races to make ventilators during virus crisis

The automotive industry is offering its expertise and manpower to the hospital sector as it gears up to build mechanical ventilators during the coronavirus pandemic, an initiative that is being met with some scepticism.

American auto manufacturers General Motors and Ford, French car companies PSA and Renault, and Formula 1 engineers have joined the ranks in response to a massive global shortage of the vital piece of medical equipment.

As hospitals around the world face a surge of patients with breathing difficulties from COVID-19, the scarcity of ventilators has forced doctors to make life-or-death decisions.

Repurposing car factories for emergency production has drawn comparisons to World War II, when they were used to build tanks and fighter planes.

But some experts say that in this situation, building critical care ventilators will require different techniques and procedures from what a car factory normally sees.

US President Donald Trump used wartime economy analogies to justify his appeal to the automobile industry as the country grapples with a mounting number of coronavirus cases. He ultimately used a 1950s law concerning defence production to force one of GM's plants to make ventilators.

In France, meanwhile, a consortium of industrial companies has been created -- including PSA and automotive equipment supplier Valeo -- to manufacture "10,000 ventilators by mid-May", President Emmanuel Macron announced Tuesday.

For its part, Mercedes has asked its Formula 1 team, which was idle due to postponed or cancelled Grand Prix races, to get to work.

The six-time world champion team built a less-invasive respiratory device in order to reserve ventilators -- which require breathing tubes and sedation -- for the most severely affected patients.

The team says it could manufacture some 1,000 units a day with the help of six other UK-based F1 teams which have committed to help build the devices.

A version of the device -- which increases air and oxygen flow into the lungs and is often used to treat sleep apnea -- has already been used in hospitals in Italy and China to help COVID-19 patients.

The "Project Pitlane" mission takes advantage of "the core skills of the F1 industry: rapid design, prototype manufacture, test and skilled assembly," Formula 1 said in a statement.

- Dependent on suppliers -

Some look sceptically on the car industry's entry into the world of medical equipment, however.

The Bulletin of the Atomic Scientists, a non-profit organisation founded after the creation of the atomic bomb and which is known for its symbolic "Doomsday Clock", said in a recent article that car manufacturers are not best placed for assembling medical equipment.

"Ventilators might resemble the pumps and air conditioners used in automobiles, but few automakers build their own -- they buy them from specialised producers," the group pointed out.


While carmakers have under-utilised production capacity at the moment, they are still dependent on suppliers who are often overseas, at a moment when supply chains have nearly ground to a halt, it said in its report.

"Facile images of Ford assembly lines building World War II bombers can only get us so far in solving the ventilator problems of today," the group said.

But car manufacturers say they are up to the task.

Renault has put its "technocentre" outside of Paris, its largest research and development centre in France, to work on developing a prototype using state-of-the-art equipment such as 3D printers

In the world race to get ahead of the coronavirus, time is of the essence.

For Formula 1 and University College London engineers, "it took fewer than 100 hours from the initial meeting to production of the first device," the team said.

This may be a typical lead time in motor racing, but not necessarily in other industries.

Agence France-Presse

Moody's downgrades Ford to 'junk' status on weak outlook

NEW YORK - Moody's downgraded Ford's credit rating to speculative or "junk" status on Monday, citing the company's weak financial outlook as it embarks on an ambitious restructuring.

Characterizing the auto giant's current overhaul as "unprecedentedly large and challenging," the ratings agency slashed Ford's debt to the non-investment-grade "Ba1" -- saying prospects for its cash flow and profit margins through the 2020-2021 period were poor.

Ford's performance has eroded "during a period in which global automotive conditions have been fairly healthy," Moody's said. 

"Ford now faces the challenges of addressing these operational problems as demand in major markets is softening and as the auto industry is contending with an unprecedented pace of change relating to vehicle electrification, autonomous driving, ride sharing and increasingly burdensome emission regulations."

However, Ford "does have a sound balance sheet and liquidity position from which to operate," said Moody's senior vice president Bruce Clark.

The US automaker faces operational inefficiencies in all key regional markets, as well as a much-diminished outlook in China, which has seen profits sink from more than $1 billion in 2016 to a major loss, according to Moody's.

Ford has made progress in lowering costs in China but the outlook is still uncertain because of an "increasingly competitive" auto market and the country's weaker near-term growth rates, Moody's said.

Considerably better is the outlook in North America, where revamps of the lucrative F-series pickup trucks should boost operating projects.

Moody's said the company's alliance with Volkswagen held promise but that it will have only "minimal impact" on Ford's earnings and cash flow before 2022.

Shares of Ford fell 2.9 percent to $9.27 in after-hours trading.

source: news.abs-cbn.com

Ford to cut 7,000 jobs, 10 pct of global salaried staff

NEW YORK -- Ford plans to cut 7,000 jobs, or 10 percent of its global salaried workforce, as part of a reorganization as it revamps its vehicle offerings, the company said Monday.

The downsizing will involve some layoffs and reassignments of white-collar staff and should be complete by the end of August, a Ford spokeswoman said. Ford has been phasing out most sedan models in the United States as more consumers have opted for pickup trucks and sport utility vehicles.

The move, which began last year and follows some job cuts announced earlier in other regions, will lead to 800 layoffs in North America in total, including about 500 this week, said Ford spokeswoman Marisa Bradley. 

The company has yet to determine all of the specifics in other regions, she said.

The actions, expected to save about $600 million a year, come as Ford ramps up investment in electric cars and autonomous driving technology, eyeing future growth in those businesses even as current profitability is tied closely to sales of conventional vehicles in North America, including its best-selling F-150 pickup trucks.

Ford's downsizing also comes as car sales cool in key markets, including the United States and China.

"To succeed in our competitive industry, and position Ford to win in a fast-changing future, we must reduce bureaucracy, empower managers, speed decision making, focus on the most valuable work and cut costs," Chief Executive Jim Hackett said in an email to employees.

Ford had 199,000 employees, including its unionized workforce, at the end of 2018, down from 202,000 a year earlier, according to securities filings.

EARLIER MOVES 

Ford in March announced it would eliminate more than 5,000 jobs in Germany. Bradley said Monday's figures included salaried staff in Germany affected by that move but that some of the figures in the German announcement related to hourly staff.

Ford also previously announced moves to exit the commercial heavy truck business in Brazil, restructure its Russia operations and cease production at two plants in that country while ending production at a plant in Bordeaux, France.

Ford had signaled it expected significant job cuts in April 2018 when it announced it would phase out several small models in North America. 

"As we have said, Ford is undergoing an organizational redesign process helping us create a more dynamic, agile and empowered workforce, while becoming more fit as a business," Bradley said.

"We understand this is a challenging time for our team but these steps are necessary to position Ford for success today and yet preparing to thrive in the future."

General Motors has also undertaken job cuts over the last year for similar reasons, announcing plans to shutter seven plants worldwide, including five in North America.

The GM announcement drew heavy criticism from US and Canadian politicians, including US President Donald Trump. Earlier this month, GM said it was in talks to sell an Ohio plant to Workhorse, a Cincinnati-based company that focuses on producing electric delivery vehicles.

Shares of Ford ended down 0.1 percent at $10.28.

source: news.abs-cbn.com

Ford, VW call off joint auto show appearance to announce alliance

DETROIT -- The Detroit auto show was abuzz over what Ford and Volkswagen would announce Tuesday, after the car giants called off a joint appearance during which they were widely expected to announce an alliance.

The two car giants have been in discussions for more than 6 months over a partnership to develop self-driving and electric technologies. But a source close to the talks told AFP that they had so far only produced a deal over commercial vehicles.

A highly-anticipated announcement at the US's premiere auto show in the Motor City was called off late Monday, and the two sides planned a conference call with reporters instead for the following morning.

"We don't have enough details yet to go out in front of more than 500 journalists, so we decided to call it off," Ford spokesman Mark Truby told AFP.

Earlier in the day, Ford Chairman Bill Ford had told reporters that discussions were going well but that they would have "more to say later this week."

Both Ford and Volkswagen CEO Herbert Diess appeared optimistic about a potential partnership.

"Volkswagen is a really big car company worldwide... but we are not as big in small commercial vehicles," Diess told the Detroit Free Press newspaper.

"So we decided to join forces there. And we will become very, very competitive together in this segment -- which consists of small commercial vans and small and midsize pickup trucks."

TRUCKS AND SPORTS CARS

Aside from the abrupt cancellation by Ford and VW, the show began as scripted, with SUVs, trucks and sports cars center stage, with extra showmanship to pump up the excitement despite fewer carmakers and more uncertainty this year.

Automakers have all but abandoned compact cars and sedans, an ever-shrinking portion of the North American market, as evidenced by what models were on display.

Trucks, SUVs and high-performance vehicles dominated the new debuts. Volkswagen was among the few exceptions with a new Passat sedan.

For the first time, Ford publicly displayed a redesigned Explorer SUV, including a hybrid version, which first debuted in Detroit on Friday.

Fiat Chrysler unveiled redesigns of larger models of its popular Ram truck.

For those looking for an alternative, carmakers were emphasizing sporty cars and nostalgic pasts -- largely eschewing the traditional sedan in favor of flashier options.

With a flair of showmanship that included virtual-reality goggles and a sports car levitating down from the ceiling, Ford revealed a high-powered version of the Mustang called the Shelby GT500 -- boasting of more than 700 horsepower.

A practically jubilant Akio Toyoda introduced a refresh of his beloved sports car Supra, which Toyota stopped producing 17 years ago.

Toyoda trotted out Spanish racecar driver Fernando Alonso to attest to the car's racing authenticity with an everyman appeal.

"It's like a race car you can drive quite comfortably every day," Alonso said during a scripted presentation.

FUTURE 'LESS POSITIVE'

Aside from VW, German carmakers abandoned the Detroit show this year, amid competition from events in New York, Miami and Las Vegas where increasingly tech-centered car announcements were presented.

Hoping to revitalize the show, organizers were holding the event for the last time in January and will move to June next year to allow for outdoor activities such as test drives.

For the industry at large, the hope was that bigger and more profitable SUVs and trucks would help weather economic storms -- whether from tariffs or fewer consumers buying cars due to rising prices, higher interest rates or a lagging world economy.

Analysts predicted slowing sales in 2019, following a decade of growth.

The Detroit show was also clouded by uncertainty in US trade policy.

Beijing and Washington remained locked in a trade war that could escalate as soon as next month, when the Commerce Department is expected to deliver a report on possible new auto tariffs.

Analysts predict rapid contraction in the auto industry should more tariffs take effect.

"Tariffs would be devastating to the entire industry," said Robert Carter, chief of Toyota's North American sales, adding that vehicle prices would increase and suppress sales.

"Not only would it affect the Toyota brand, it's going to affect every brand in the industry, every car in the industry."

The president of Chinese automaker GAC, Yu Jun, said the ongoing trade war had delayed the company's entry into the US market from 2019 to the first half of 2020.

"We have postponed our plans due to the recent development on trade. We're making steady progress towards it," Yu said, according to a company interpreter.

source: news.abs-cbn.com

Ford recalls F-250 pickups that could roll while in park

Ford Motor Co is recalling about 52,600 F-250 pickup trucks sold in the United States and Canada because the vehicles could roll after the driver moves the automatic transmission lever into park position, the company said on Saturday.

The recall, the third announced by Ford this week, affects 2017 model year F-250 vehicles powered by 6.2-liter gasoline engines and built in its Louisville, Kentucky, truck plant, it said in a statement.

Ford, the second-largest US automaker, also said it was unaware of any injuries or accidents associated with the latest issue.

The company said on Wednesday it was recalling 211,000 vehicles in North America to replace potentially faulty side door latches.

Another recall involves 230,000 vehicles that present a fire risk in the engine compartment. Ford said it had reports of 29 fires related to that issue but no injuries.

The Dearborn, Michigan-based automaker had previously recalled nearly 4 million vehicles for door latch issues in six separate announcements since 2014, including 2.4 million vehicles recalled in late 2016.

(Reporting by Frank McGurty; Editing by G Crosse and Bill Trott)

source: news.abs-cbn.com

Chided by Trump, Ford scraps Mexico factory, adds Michigan jobs

FLAT ROCK, Michigan/WASHINGTON - Ford Motor Co. on Tuesday scrapped a planned Mexican car factory and added 700 jobs in Michigan following criticism by Donald Trump, as the US president-elect turned his attention toward rival General Motors Co. with the threat of a "big border tax" over compact cars made in Mexico.

Ford CEO Mark Fields called the move "a vote of confidence" in Trump, but primarily a response to a decline in North American demand for small cars like those that would have been made at the Mexican plant. He said Ford would have made the same decision even if Trump had not been elected.

Ford will cancel plans unveiled in April to spend $1.6 billion to build the new plant in San Luis Potosi, Mexico, a project Trump urged the automaker to abandon and called an "absolute disgrace" during the election campaign.

The No. 2 US automaker also said it would invest $700 million to expand the Flat Rock, Michigan factory and would make new electric, hybrid and autonomous vehicles there.

Trump's efforts to browbeat the US car industry show he may go further than other modern presidents to try to influence corporate decisions, especially those related to trade and investment.

In a Twitter post hours before Ford's announcement, Trump wrote, "General Motors is sending Mexican made model of Chevy Cruze to US car dealers-tax free across border. Make in USA or pay big border tax!" GM, the largest US automaker, said making some of the Cruze cars in the plant in Coahuila, Mexico was part of its strategy to serve global customers, not sell those vehicles in the United States.

Trump's GM tweet was his latest broadside aimed at an American company over jobs, imports and costs even before he takes office on Jan. 20.

Mexico's government said it regrets Ford's decision and has ensured that the company will reimburse San Luis Potosi state for any costs associated with the investment.

"Obviously, this isn't a good decision for us," said Mexico's economy minister, Ildefonso Guajardo.

Ford said it still will shift production from Michigan of its Focus compact car to an existing plant in Hermosillo, Mexico. Fields said he expects Michigan to give incentives for Ford's investment in Flat Rock.

Ford spokeswoman Jennifer Flake said the automaker will save $500 million by not opening the new plant in the near term, but will have some undisclosed costs to retool the other Mexican plant to build the Focus.

Ford shares closed up about 3.8 percent. GM shares rose about 0.9 percent.

TRUMP NOTIFIED

Top Ford executives personally notified Trump and Vice President-elect Mike Pence of their decision. Fields praised tax and regulatory proposals advocated by Trump and his fellow Republicans who control Congress.

"Our view is that we see a more positive US manufacturing business environment under President-elect Trump and the pro-growth policies and proposals that he's talking about, so this is a vote of confidence for President-elect Trump and some of the policies that they may be pursuing," Fields said.

Union workers gathered at the Flat Rock factory cheered Fields' announcement. Hiring of the 700 new workers there will probably start in 2018 with the majority of it in 2020, Fields said.

Trump said during the presidential campaign that if elected, he would not allow Ford to open the new plant in Mexico and would slap hefty tariffs on imported Ford vehicles. Trump also accused Mexico of sending criminals and rapists into the United States and vowed to build a border wall to combat illegal immigration.

Since winning the Nov. 8 election, Trump has targeted a wide range of American companies also including United Technologies Inc, Boeing Co. and Lockheed Martin Corp. Trump also has touted decisions by companies to keep some production in the United States, including United's Carrier unit in Indiana.

Trump previously vowed to hit companies that shift production from America to other countries with a 35 percent tax on their exports into the United States. He also has denounced the North American Free Trade Agreement between the United States, Mexico and Canada.

Fields said there were no negotiations between Ford and the incoming president over canceling the Mexico plant or investing in Michigan.

Ford will build a battery electric SUV with a 300-mile (482-km) driving range at the Michigan plant by 2020, and will launch production there by 2021 of a fully autonomous vehicle without a steering wheel or a brake pedal for use in ride services fleets. Ford also plans new hybrid versions of its F-150 pickup truck, Mustang and police vehicles by 2020.

GM said it sold about 190,000 Cruze cars in the United States in 2016. All of the sedan versions sold in the United States, about 185,500, were built at its Lordstown, Ohio plant. About 4,500 hatchback Cruze versions were assembled in Mexico and sold in the United States.

source: news.abs-cbn.com

Nissan, Ford recall hundreds of thousands of cars

WASHINGTON - Nissan and Ford issued recalls of hundreds of thousands of cars Wednesday to address problem parts that could lead to injuries.

Nissan said it was calling in around 768,000 Pathfinders, Infiniti JX35s, QX60s and Rogues around the world to repair two problems.

On Pathfinders, Infiniti JX35s and QX60s of certain model years, the hood latch might not lock, potentially allowing it to spring open while the vehicle is moving.

For 2007 to 2014 Rogues, water, snow and salt leaking into the car could cause a short at a certain point of the wiring and potentially a fire, Nissan said.

Ford recalled nearly 205,000 Ford Taurus, Lincoln MKS and Ford Police Interceptor sedans from the 2010 to 2013 model years, saying the doors could open in a crash due to a problem with the handles.

In addition, Ford is recalling 16,000 2014 Transit Connect vans for incorrectly tightened seat-belt fasteners. The company said it knew of no injuries related to either problem.

source:  www.abs-cbnnews.com

Ford shows off 'smart' Mustang at Taiwan tech show

TAIPEI -- US auto giant Ford showed off its new Mustang at Asia's biggest tech fair Tuesday, billing it as "the smartest Mustang to date," with voice controls and early warning collision systems.

Due to go on sale in Asia-Pacific in 2015, the slick sports car can connect to drivers' mobile apps using a platform which will be introduced to Taiwan, New Zealand and Thailand next year for the first time, the company announced at the Computex conference in Taipei.

Ford already introduced the AppLink technology -- which allows drivers to make their mobile apps respond to voice commands -- in China, Australia and India earlier this year.

Celebrating 50 years of production, the original Mustang was launched at an event on top of the Empire State Building in 1964 and quickly became a byword for cool among America's youth, who loved the highly customizable "pony car" that stood out next to their parents' bulky sedans.

But the latest edition may put the reins on rebellious teens, with a feature which allows parents to limit top speeds and audio volume.

Despite this sensible streak, Trevor Worthington, vice president of product development in Asia Pacific, said the classic car continued to "resonate" with drivers.

"This enhances every aspect of driving, whether you're listening to music, changing the radio station, optimizing your car for track driving or adjusting it for different road conditions," he said of the new model which has an aviation-inspired dashboard and comes with a choice of two different engines.

Smart technology and the Internet of Things -- a term used to describe the connection of everything from cars to household appliances to cyberspace -- is a major theme of Computex this year.

The Mustang adjusts the car's speed automatically to keep a safe distance from vehicles in front and can boost brakes if it anticipates a collision

Drivers can also set modes to normal, snow-wet, sport or track.

Ford displayed the new Mustang at the Beijing Auto Show in April in a bid to break into China's sports car market.

Tuesday was the first time it had been put on show in Taiwan.

In addition to the Mustang, Ford will demonstrate new vehicle-to-vehicle technology at Computex, which it says will allow cars to share information and potentially prevent accidents.

source: www.abs-cbnnews.com

Ford to recall more than 10,000 Escapes for carpet problem

Ford is recalling more than 10,000 2013 Escape crossover vehicles to fix a carpet issue that could give drivers a problem reaching the brake pedal.

The recalled vehicles, manufactured from March 8 through June 7, feature mispositioned carpet padding in the center console trim panel. That can cause the driver to hit the side of the brake pedal when moving the foot from the accelerator pedal, according to the National Highway Traffic Safety Administration. That could increase stopping distances and the risk of a crash, the agency said.

Dealers will remove the carpet padding and left-side console trim panel and replace it for free. The recall is expected to begin on July 23.

NHTSA said 8,226 vehicles would be recalled in the U.S.

Ford spokeswoman Marcey Zwiebel told the Associated Press that an additional 2,000 Escape vehicles in Canada and a couple of hundred in Mexico would also be affected. She said the automaker had not received any reports of accidents or injuries related to the problem.

source: latimes.com

PHL car parts makers’ statement on planned Ford Philippines closure

Getting foreign investors in is commendable. Getting them to stay though is the bigger and more important challenge that must be hurdled.

This is the message local auto parts makers are trying to relay. “This is in view of the sadness that is now sweeping the local parts making industry due to the impending closure of the plant operations of Ford Philippines. We plead for Private Sectors, Government and end-users to take concrete steps so that the remaining auto assemblers will not go Ford’s way”, says MVPMAP president Ferdi Raquelsantos.

“Of course we cannot blame Ford since this was a business decision. But then again, this is definitely a big blow to some 50,000 workers including those in the upstream and downstream industries dependent on the parts making industry. With most of our members’ plants operating at below 50 percent of their rated plant capacities and the increasing importation of completely-built units (CBU), this would be another obstacle in our attempt to get back on our feet”, he adds.

Ford Group Philippines last week stunned the local auto industry with the announcement that by December 31, 2012, they will close their production plant in Sta. Rosa, Laguna. Reasons cited for the plant closure were below-par operational efficiency, the low consumer demand resulting in a sales volume not enough to give them economies of scale and problems on the availability of some parts locally and the lack of a broad domestic supply base. The good news is that Ford will continue with their national sales activities and all related services.

“It is about time that the government takes a look at why Ford is closing shop. Why are companies like them relocating their production operations to our neighboring countries like to Thailand, India, China or even Vietnam? Why are some investors shying away from the Philippines? What incentives are given to them by our neighbors that we do not give? Why is our demand low? Why are our production costs and prices relatively higher? Over time, why have we not developed our local supply base? What needs to be done to make local auto parts making and vehicle assembly catch up with our Asian neighbors? These are but just some of the questions that we hope to see answers to and concrete solutions taken in the next few months if we ever hope to see the industry recover”, Raquelsantos adds.

MVPMAP vice president Rommel Juan explains that for starters, maybe the government should take a second look at EO 877-A or the Motor Vehicle Development Program which was approved two years ago. ”A firm decision must be made as to whether this should be scrapped altogether and be replaced with another one. If acceptable, then the proper implementing rules and regulations must be crafted for everyone’s benefit. What we want to see is a firm resolve on government’s part to put in place an MVDP that would provide fiscal and non-fiscal incentives not only to assemblers but to end users as well. It has to be one that will encourage local manufacturing rather than just trading” he adds.

“The government must also look into helping fast track the approval of pending legislative bills that would aid the sunrise industries in the local auto market such as the Alternative Fuel Vehicles bill that would help grow the LPG, CNG and electric vehicle market in the country. In the end, what we want to have is a business environment that would induce foreign investments then have them stay for good”, he concludes. — MVPMAP

source: gmanetwork.com

Ford Philippines to close Sta. Rosa factory in December

Ford Philippines on Wednesday said it will discontinue manufacturing operations in its Santa Rosa, Laguna, factory starting next year, citing supply and operational efficiencies as main reasons.

"Effective December this year, we would cease our manufacturing operations at our Santa Rosa, Laguna, plant after we rolled out the last assembly of Ford Escape," Peter Fleet, Ford Asean president, told reporters in a press briefing in Makati City.



"The lack of supply base and economies of scale are the major issues in coming up with this very difficult decision," said Fleet.

The car maker is the only car exporter in the Philippines.

The company explored possibilities of bringing a number of different products that might click with the Philippine market, but the two major reasons cited convinced them to stop operations, said Fleet.

"This is a very difficult decision,” said Randy Krieger, Ford Philippines president.

“The company studied every possible scenario and opportunity but we could not make a strong enough business case for future manufacturing," Krieger noted.

"We are extremely proud of the world-class vehicles assembled in our Santa. Rosa, Laguna, plant and our exceptional team, and we will provide them with all the support they need to help them through this transition," Krieger added.

Around 250 employees will be affected by the decision.

Krieger said employees who would be displaced may work at any Ford factory overseas.

"But this depends on their choices, if they want to go with us," Fleet said.

However, the dealerships would continue operating and selling imported cars.

The sales network of Ford in the country would be maintained and even expanded. "From 20 dealerships, we will make it 40 by 2015," said Fleet.

He clarified that the decision was based on purely business and economic reasons. "I just want to point out that this business decision has nothing to do with any government policy or lack of government support for us," Fleet said.

Ford remains committed to growing its business and serving customers through its national sales company, the Ford Group Philippines, Fleet claimed.

Backing up his claim, Fleet said the commitment would reflect on the eight all-new One Ford vehicles to be introduced by 2015 the expansion of dealerships nationwide.

Among the new models to be introduced starting this year are Ford Ranger, Focus, and Mustang this year.

With this stoppage in operations by December, there will be no participant in the country's car export program. Ford is currently the lone participant to the program.

Once the Santa Rosa plant is shuttered, Ford’s national sales headquarters in may also be relocated. No specific place has yet been decided on by the company.

The Santa Rosa factory, which sits on a 21.4-hectare lot, has a yearly capacity output of 36,000 units.

Since 2002, Ford has been the first and only volume exporter of completely built units.

With cumulative exports of over 80,000 units valued at $1 billion, the shipments were mainly for Thailand, Malaysia, and Indonesia. —VS, GMA News

source: gmanetwork.com

Ford recalls 539,000 minivans, SUVs worldwide

Ford Motor Co, the No. 2 U.S. automaker, recalled about 539,000 vehicles worldwide in two separate actions to repair flaws that may lead to fires in some SUVs and the loss of power in some Mercury and Ford minivans.

Ford will recall 286,000 Ford Escape SUVs made for the 2001 and 2002 model years. It will also recall nearly 253,000 Ford Freestar and Mercury Monterey minivans for 2004 and 2005 model years, Ford spokesman Dan Pierce said on Wednesday.

Most of the affected vehicles are in the United States.

The Escape recall follows a similar action in 2007 to fix a flaw in the antilock brake system, according to a Ford filing with the National Highway Traffic Safety Administration.

But some SUVs may not have been completely inspected or received a proper fix, Ford said in Wednesday's filing.

Some of those SUVs were outfitted with a faulty brake master cylinder reservoir cap that could leak brake fluid. That could cause an electrical short in the antilock brake system leading to smoking or fire.

"There are reports of property damage as a result of fire beyond vehicle-only damage," Ford said in its report. There have been no reports of injuries due to the problem.

The defective part was built from October 1999 to July 2002 in a factory that is now closed. In some cases, parts shortages could delay the necessary repair.

"While the potential for fire is low, it is recommended that a customer park their vehicle outdoors away from structures until this recall repair is performed," Pierce told Reuters in an email.

In a separate recall, Ford told U.S. safety regulators that it would recall the Ford and Mercury minivans due to a defective torque converter. Ford discontinued the Mercury brand in 2010.

If the converter malfunctions, the vehicle could lose "motive" power, or the ability to move forward and reverse, without warning.

When a vehicle loses motive power, it can still be steered and stopped because the engine continues to run, Ford said. But the condition increases the risk of a crash.

Ford shares closed 2.3 percent higher at $12.07 on the New York Stock Exchange.

source: abs-cbnnews.com