Autoblog http://www.autoblog.com Autoblog http://www.blogsmithmedia.com/www.autoblog.com/media/feedlogo.gif Autoblog http://www.autoblog.com en-us Copyright 2009 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[27,000 Ford workers have officially left the building]]>http://www.autoblog.com/2007/06/14/27-000-ford-workers-have-officially-left-the-building/http://www.autoblog.com/2007/06/14/27-000-ford-workers-have-officially-left-the-building/http://www.autoblog.com/2007/06/14/27-000-ford-workers-have-officially-left-the-building/#commentsFiled under: ,



The Detroit Free Press is reporting today that since Ford began offering buyouts and early retirement offers to its hourly employees last year, about 27,000 have accepted and left the company. Since the offer was made last October to hourly workers at all of Ford's plants in North America, about 8,000 before the ball dropped on 2007 and 19,000 so far this year. Fortunately for Ford, about half were not eligible for early retirement, which means the automaker takes on less long-term retiree health care liability. Some of the workers who clocked out early include employees of Visteon plants, as well.

[Source: Detroit Free Press]

27,000 Ford workers have officially left the building originally appeared on Autoblog on Thu, 14 Jun 2007 16:12:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>buyoutsearly retirementEarlyRetirementexpire-images:2008-6-13fordford workersFordWorkersturn aroundTurnAroundway forwardWayForwardThu, 14 Jun 2007 16:12:00 EST<![CDATA[See? A car company can turn around. Just ask Fiat]]>http://www.autoblog.com/2007/05/09/see-a-car-company-can-turn-around-just-ask-fiat/http://www.autoblog.com/2007/05/09/see-a-car-company-can-turn-around-just-ask-fiat/http://www.autoblog.com/2007/05/09/see-a-car-company-can-turn-around-just-ask-fiat/#commentsFiled under:

When it comes to turnarounds, Fiat serves as a case study. The Italian institution that rules over Fiat, Lancia, Alfa Romeo, Ferrari, and Maserati, trucks, agricultural equipment, construction equipment, and automobile components, lost $1 billion in 2000. Contrast that with 2006, when it posted a 35% jump in revenues year-on-year, and its operating profit was $384 million -- a far cry from the $332 million loss of 2005. Fiat's current market cap is more than that of GM and Ford combined in Europe, at $32.5 billion.

Sergio Marchionne, CEO of the Fiat Group, is the man who led the charge, beginning in 2000 when he was hired from a Swiss firm. CNN has a lengthy profile on the Italian that delves into how he did it. The story will be familiar to all of us: "The car company had the talent, knowledge and skills, but it lacked leadership." It was "a problem of culture - big offices, big waste, and nobody responsible for anything." Too many vehicle discounts. Too many platforms. Too many people doing the same thing across brands. Cars not selling enough. Models not updated. To fix it, Marchionne, an outsider to the auto industry, sheared away excess layers of management, streamlined the design process, rationalized platforms, boosted production, didn't pick fights with the unions, forged partnerships in China, India, Russia, and Turkey, and got out of the partnership with GM (for which Fiat made $2 billion).

Continues after the jump.

Thanks to everyone who sent in a tip!

[Source: CNN]

Continue reading See? A car company can turn around. Just ask Fiat

See? A car company can turn around. Just ask Fiat originally appeared on Autoblog on Wed, 09 May 2007 18:01:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>fiatmarchionnesergioturnaroundWed, 09 May 2007 18:01:00 EST<![CDATA[Subaru's 'new course' soon to be outlined]]>http://www.autoblog.com/2007/02/26/subarus-new-course-soon-to-be-outlined/http://www.autoblog.com/2007/02/26/subarus-new-course-soon-to-be-outlined/http://www.autoblog.com/2007/02/26/subarus-new-course-soon-to-be-outlined/#commentsFiled under: , ,



Back in June of last year, Ikuo Mori took the helm as Fuji Heavy Industries' CEO. His task: end Subaru's five-year long sales slump. Subaru's retail efforts have not lived up the automaker's expectations set in 2002, with a failed attempt at moving the brand up market and the slow sales of its visually challenged B9 Tribeca SUV (does the backend remind anyone else of a Morlock?) doing little to improve the brand's bottom line.

Little has been revealed about Mori's turnaround efforts, but in Subaru's annual report, he hinted that the automaker's focus on engineering over consumer appeal might be one of the first things to be nixed. A more focused effort on the company's core business - automobiles - will be at the forefront, with a reduction in some of FHI's outlying endeavors, including its work in the aerospace industry.

Whether or not the future of Subaru lays in better brand management, with a special focus on its devotees, remains to be seen. But outside of several niche automakers, Subaru has a number of dedicated buyers in the U.S. and if Subaru wants to expand its market share, they'll have to make an attempt to encapsulate that enthusiasm to attract more people into their showrooms.

[Source: Automotive News - Sub. Req.]

Subaru's 'new course' soon to be outlined originally appeared on Autoblog on Mon, 26 Feb 2007 10:05:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>subaruturn aroundTurnAroundMon, 26 Feb 2007 10:05:00 EST<![CDATA[Ford's Mulally Fighting the Good Fight against Corporate Culture]]>http://www.autoblog.com/2007/01/30/fords-mulally-fighting-the-good-fight-against-corporate-culture/http://www.autoblog.com/2007/01/30/fords-mulally-fighting-the-good-fight-against-corporate-culture/http://www.autoblog.com/2007/01/30/fords-mulally-fighting-the-good-fight-against-corporate-culture/#commentsFiled under: ,

When Bill Ford Jr. stepped down in September, a lot of people were surprised. When he went outside the automotive industry all-together to find his replacement, a lot of insiders were stunned. Now, however, things are starting to make more sense. Word has been leaking out about the depths of corporate cancer that had spread throughout the Blue Oval. In-fighting, cronyism, and back-stabbing stifled programs and new ideas while breeding an atmosphere of failure. Promoting any individual within Ford would have kept the culture intact. An executive from another automaker could bring his or her own baggage to the table.


Alan Mulally, who shined brightly at Boeing during tough times, was brought in to destroy the culture at Ford. Weekly meetings where executives must be accountable for their team's performance have been taking place since the very beginnings of the Mulally regime. Talks with the UAW about contract negations started in JANUARY - months before they ever have before. The company's downsizing is also moving at a torrid pace, with 27,000 employees leaving by the end of 2008. While ground-breaking products take time, for the near-term Mulally is doing everything he can to put a positive spin on everything Ford Motor Company does. In the end, product will always tell the tale of a CEO's success and failure. We need to see more outstanding Ford product and we're sure you do too.

[Source: The Car Connection]

Ford's Mulally Fighting the Good Fight against Corporate Culture originally appeared on Autoblog on Tue, 30 Jan 2007 08:05:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>FordFord motor companyFordMotorCompanyMulallyTurnaroundTue, 30 Jan 2007 08:05:00 EST<![CDATA[Chrysler to present restructuring plan in February]]>http://www.autoblog.com/2006/12/26/chrysler-to-present-restructuring-plan-in-february/http://www.autoblog.com/2006/12/26/chrysler-to-present-restructuring-plan-in-february/http://www.autoblog.com/2006/12/26/chrysler-to-present-restructuring-plan-in-february/#commentsFiled under: , ,



Chrysler Group CEO Tom LaSorda travelled to DaimlerChrysler's headquarters in Stuttgart, Germany, last Wednesday to present a restructuring plan to the company's management board. The Detroit News reports that the plan will involve job cuts and and the closing of at least two plants in the U.S. The plan will be reviewed by the DCX management board and likely announced in February when the company reveals its performance numbers for 2006, which analysts expect to be billions in the red.

Just like Ford with its Way Forward restructuring plan, Chrysler needs to trim down the production side of its business to meet lower demand for its vehicles that led to a loss of $1.5 billion in Q3 of 2006. In addition to shrinking its production capacity, any analyst will tell you that Chrysler also needs more small cars in its lineup, which at the moment is overrun with trucks, minivans and SUVs.

Though the Chrysler Group is still run by Tom LaSorda, many are speculating that Dieter Zetsche wants to bring back his guy pal Wolfgang Bernhard, current head of the Volkswagen brand, to run the stumbling automaker. Other initiatives that are already happening include bringing in executives from Mercedes-Benz to the Chrysler Group reduce the cost of each vehicle it produces by $1,000. Clearly DaimlerChrysler is putting effort into fixing what's broken at the Chrysler Group, though some analysts speculate that the restructuring plan announced in February will be its last attempt before selling off the automaker it had "merged" with back in 1998.

Chrysler to present restructuring plan in February originally appeared on Autoblog on Tue, 26 Dec 2006 13:03:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>dieter zetscheDieterZetscherestructuringrestructuring planRestructuringPlantom lasordaTomLasordaturn aroundTurnAroundTue, 26 Dec 2006 13:03:00 EST<![CDATA[So long, friend: Ford producing the last Taurus next week]]>http://www.autoblog.com/2006/10/19/so-long-friend-ford-producing-the-last-taurus-next-week/http://www.autoblog.com/2006/10/19/so-long-friend-ford-producing-the-last-taurus-next-week/http://www.autoblog.com/2006/10/19/so-long-friend-ford-producing-the-last-taurus-next-week/#commentsFiled under: , ,

It's twisted and a bit pathetic, but I will be shedding a tear next week in honor of the Ford Taurus officially and finally going out of production. It had a 21-year run that in retrospect is the longest fall from grace in history. During that time Ford sold 7 million Tauruses and another 2 million Mercury Sables. Since January 1st of this year, however, Ford had halted sales of the Taurus to the public, accepting orders only from fleet and rental companies. Despite that, the Taurus remained Ford's best selling passenger car almost every month this year, selling more units than the Focus and even the red hot Mustang. The Taurus saved Ford when it was introduced in 1985 and immediately sold 263,000 units during that first year. That number would rise to 410,000 units in 1992 when the Taurus overtook the Honda Accord to become the best selling passenger car in the U.S., a title it held for five straight years.

We've been talking a lot around here lately about what mistakes Ford has made in the past that are responsible for its current dire straits. Perhaps the single biggest one is abandoning the Taurus. Ford knew the controversial redesign of the third generation Taurus wasn't going to recapture the passenger car sales crown from the Toyota Camry, and SUV sales at the time were beginning to gain momentum. Rather than reinvest in the car, Ford spent the next ten years pissing away the good name of the Taurus by abandoning development on the car or a competitive replacement, as well as not bothering to market the car responsible for saving the company in the mid-Eighties.

Workers at Ford's plant in Hapeville, GA are particularly upset over the Taurus being discontinued, not just because the plant will be closed and they'll be unemployed, but also because the team had become a world class workforce, even raising quality levels at the plant after Ford announced it would be closed. Mark Fields, Ford's current President of the Americas, admits even he doesn't understand how the company strayed so far from the Taurus. He also claims he's attempting to lead Ford's current turnaround with appealing new products, just like the Taurus led the turnaround back in 1985. We're sorry Mr. Fields, but the impact of the original Taurus is unlikely to be matched by anything in the Blue Oval pipeline right now.

[Source: Yahoo News]

So long, friend: Ford producing the last Taurus next week originally appeared on Autoblog on Thu, 19 Oct 2006 20:13:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>closingdiscontinuefordmidsizesedantaurusturnaroundThu, 19 Oct 2006 20:13:00 EST<![CDATA[Ford to shrink dealer network over three years]]>http://www.autoblog.com/2006/09/11/ford-to-shrinkdealer-network-over-three-years/http://www.autoblog.com/2006/09/11/ford-to-shrinkdealer-network-over-three-years/http://www.autoblog.com/2006/09/11/ford-to-shrinkdealer-network-over-three-years/#commentsFiled under: , ,

Reuters is reporting that Ford will be shrinking its dealer base over the next three years in order to better align its distribution network with a market share that is smaller than it has been in the past. Dealers were told of the planned reduction at the dealer meeting in Las Vegas last month. The East Coast and California have the highest saturation of Ford dealerships and are likely to see the largest reduction in numbers. At the moment there are about 4,300 Ford dealerships operating in the U.S.
This is tough but smart call by Ford. It would be easy for Ford to use the belief that its market share will begin climbing again in the near future as an excuse to keep its dealer network intact. However, shrinking the dealer network now to more comfortably handle its reduced production capacity, it appears Ford is accepting its current situation and trying to build a smaller, more efficient Blue Oval.

[Source: Reuters]

Ford to shrink dealer network over three years originally appeared on Autoblog on Mon, 11 Sep 2006 18:51:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>dealerdealer networkDealerNetworkdealershipford dealerFordDealermarket shareMarketShareturnaroundway forwardWayForwardMon, 11 Sep 2006 18:51:00 EST<![CDATA[GM increases warranty to five years/100,000 miles]]>http://www.autoblog.com/2006/09/06/gm-increases-warranty-to-five-years-100-000-miles/http://www.autoblog.com/2006/09/06/gm-increases-warranty-to-five-years-100-000-miles/http://www.autoblog.com/2006/09/06/gm-increases-warranty-to-five-years-100-000-miles/#commentsFiled under: ,

Billed as the best warranty of any full-lined automaker (sorry Hyundai/Kia), the new coverage for all General Motors vehicles is now a fully transferable five-year, 100,000 mile powertrain warranty with no deductible. The new warranty will cover all 2007 model and beyond cars and light-duty trucks sold in the U.S. and Canada, and any 2007 model already sold will receive the new warranty retroactively. In addition, GM has expanded its roadside assistance and courtesy transportation programs to five years, as well. A website has been set up to provide further details to customers and GM will officially introduce the new warranty on NBC tomorrow night during the NFL season opener between the Steelers and Dolphins.

This a shrewd move on GM's part that has been years in the making. The automaker's quality levels have only recently improved to the point where a warranty extension wouldn't saddle the company with overwhelming warranty repair costs. At this point, however, many GM brands have risen to the top half of J.D. Power and Associates quality and dependability studies, and the company reports that warranty repairs are down 40 percent over the last five years.

Hyundai has used its industry leading warranty to great effect in changing public perception of its vehicles, and we see GM starting down that path with this new warranty. It's all fine and good that GM has begun producing better quality vehicles, but backing it up with a robust warranty is how the company will convert those quality gains into more sales.

Read what Bob Lutz has to say about the new warranty on the GM FastLane Blog.

(GM's full press release can be found after the jump)

[Source: GM]

Continue reading GM increases warranty to five years/100,000 miles

GM increases warranty to five years/100,000 miles originally appeared on Autoblog on Wed, 06 Sep 2006 13:46:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bloggingstocksgeneral motorsGeneralMotorsmarketingturnaroundwarrantyWed, 06 Sep 2006 13:46:00 EST<![CDATA[Bill Ford outlines 3-point plan to employees]]>http://www.autoblog.com/2006/09/03/bill-ford-outlines-3-point-plan-to-employees/http://www.autoblog.com/2006/09/03/bill-ford-outlines-3-point-plan-to-employees/http://www.autoblog.com/2006/09/03/bill-ford-outlines-3-point-plan-to-employees/#commentsFiled under: , ,

In an effort to assuage the fear of his employees over the current direction of Ford Motor Company, Bill Ford sent out a company-wide memo on Friday that details a three-point strategy for ushering the Blue Oval out of hard times. The Detroit News describes the strategy in a nutshell as 1) fixing Ford's North American business, 2) leveraging the company's global assets, and 3) bolstering its leadership team from within and outside the company. Easier said than done, right?

In the memo Ford admits the business strategy that fueled Ford for decades has stopped working (i.e. a myopic reliance on trucks and truck-based SUVs). In order to achieve profitability again in North America, Ford has charged Mark Fields and his team with developing products that drive revenue and rapidly reducing costs, as any CEO should we think. Mazda and Volvo will also apparently contribute more to Ford's North American turnaround than they have in the past. Ford's last point about leadership development is already in practice, as the aforementioned Mark Fields, president of the Americas for Ford, has Bill Ford's new progressive policies to thank for his title.

Bill Ford's memo contains nothing that hasn't been suggested before, but its purpose wasn't to unveil Ford's revised "Way Forward" plan, which is due in detail later this month. The note to employees is rather an effort, we believe, to make workers at the company feel more like they're in the loop while Ford wrestles with changing his company's course.

[Source: The Detroit News]

Bill Ford outlines 3-point plan to employees originally appeared on Autoblog on Sun, 03 Sep 2006 15:59:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>Bill FordBillFordemployeesFord Motor CompanyFordMotorCompanyMark FieldsMarkFieldsmemoturnaroundWay ForwardWayForwardSun, 03 Sep 2006 15:59:00 EST<![CDATA[Analyst gives bump to Ford; says GM nearing end of its upward run]]>http://www.autoblog.com/2006/08/16/analyst-gives-bump-to-ford-says-gm-nearing-end-of-its-upward-ru/http://www.autoblog.com/2006/08/16/analyst-gives-bump-to-ford-says-gm-nearing-end-of-its-upward-ru/http://www.autoblog.com/2006/08/16/analyst-gives-bump-to-ford-says-gm-nearing-end-of-its-upward-ru/#commentsFiled under:

An analyst with Bear Stearns delivered an interesting assessment of the domestic automakers today, stating that Ford's credit rating deserves a boost on the basis of its upcoming expected turnaround performance. The stock's rating was cranked up two notches from "underperform" to "overperform", and indeed its value has enjoyed an increase of nearly 15% in the last month (granted, it's coming off a slump that saw it nearly touch on its 52-week low, and it's still over 20% down from its peak in the last year).

General Motors, on the other hand, is viewed as having reached its peak in the near term, and was knocked down from "overperform" to "peer perform". That automaker's stock is up 50% since the beginning of the year on the basis of GM's turnaround efforts, but that ride is considered to be mostly over, and any further gains are now viewed as being incremental and tied to sales results.

Also interesting is Bear Stearns' strategy towards making money from domestic automaker stocks. Instead of looking for returns from holding onto the stocks over the long term, the firm looks to shift its money around as the restructuring cycles roll through Detroit.

[Source: Marketwatch]

Analyst gives bump to Ford; says GM nearing end of its upward run originally appeared on Autoblog on Wed, 16 Aug 2006 06:53:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>bankruptcyfinancialsfomocofordgeneral motorsGMinvestmentsrestructuringstocksturnaroundWed, 16 Aug 2006 06:53:00 EST<![CDATA[Ricky speaks! General Motors chief Rick Wagoner talks turnaround on FastLane Blog]]>http://www.autoblog.com/2006/07/29/ricky-speaks-general-motors-chief-rick-wagoner-talks-turnaround/http://www.autoblog.com/2006/07/29/ricky-speaks-general-motors-chief-rick-wagoner-talks-turnaround/http://www.autoblog.com/2006/07/29/ricky-speaks-general-motors-chief-rick-wagoner-talks-turnaround/#commentsFiled under: , , , , , , , , ,

General Motors chairman and CEO Rick Wagoner chose to fill us in on GM's turnaround progress via the company's FastLane Blog, a soapbox usually reserved for one Bob Lutz.

GM's chief reiterated some of the statements he made earlier in the week to the business media, spinning away a second quarter loss of $3.2 billion by focusing on the company's success in cutting the ranks of hourly workers, promising June numbers in terms of retail sales and market share, and building up an enviable product pipeline including the nation's "most affordable hybrid SUV" in the Saturn Vue Green Line, the sold-out Pontiac Solstice and Saturn Sky, and the scene-stealing Chevrolet HHR.

While the ship might not have done a complete 180 yet, it's well on its way, Wagoner says.

[Source: GM FastLane Blog]

Ricky speaks! General Motors chief Rick Wagoner talks turnaround on FastLane Blog originally appeared on Autoblog on Sat, 29 Jul 2006 11:02:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>bob lutzBobLutzfastlane blogFastlaneBlogGM financialGmFinancialrick wagonerRickWagonerturnaroundwagonerSat, 29 Jul 2006 11:02:00 EST