2011 Mustang may
get up to 30 mpg

Scott Burgess / The Detroit News -Nov 30, 2009

The base model of the 2011 Ford Mustang will come with nearly GT power and could get up to 30 miles per gallon in highway driving, Ford Motor Co. announced today.

Ford will debut a new V-6 engine for the sports car this week at the Los Angeles Auto Show and says it will give the basic Mustang power to rival the performance-oriented Mustang GT, which has a V-8 under its hood.

The 3.7-liter powerplant, which replaces the 4-liter V-6 now in Mustangs, will produce 305 horsepower and 280 pound-feet of torque while also offering better gas mileage.

Ford projects the engine will get 19 mpg in the city and 30 mpg on the highway. The 2010 Mustang's 4-liter engine creates 210 horsepower and 240 pound-feet of torque, while achieving 18 mpg in the city and 26 mpg on the highway.

The new Mustangs will be available at dealerships in the spring.

Stephanie Brinley, an automotive analyst at Southfield-based consulting firm AutoPacific Inc., said the additional power catches the Mustang up to the V-6 Chevrolet Camaro and should help it stay at the top in pony car sales next year.

"The V-6 Mustang is Ford's best-selling Mustang and this is a lighter car, so it should feel faster," she said. "For people looking for these kinds of cars, Mustang is still the place to go."

According to Autodata Corp., which compiles car sales statistics, Ford sold 56,469 Mustangs through October, down 32.4 percent from the same period last year.

The Mustang remains about 8,000 units ahead of the Camaro, which was reintroduced this year by General Motors Co.

The new powertrain suggests that the GT will have to show some big improvements soon, Brinley added.

The 2010 GT with a 4.6-liter V-8 produces 315 horsepower and 325 pound-feet of torque. It gets 16 mpg in the city and 24 mpg on the highway.

By raising the base model's vitals and performance level, Ford likely will have to do the same to the 2011 GT, though the carmaker has not announced a new powertrain for that car.

The V-6 Mustang will come with a six-speed automatic or manual transmission, dropping its well-used five-speed.

Ford has promised to include six-speed transmissions on 90 percent of its vehicles by 2013 in another effort to make its vehicles more fuel efficient.

The new Mustang V-6 engine, built in Cleveland, boasts a number of high-tech features such as variable camshaft timing and variable valve overlap to improve the car's emissions, fuel economy and power. Ford has dubbed the system Ti-VCT.

"Drivers are going to notice improved low-speed torque and increased fuel economy and peak horsepower," Jim Mazuchowski, Ford's manager of V-6 powertrain operations, said in a news release. "Plus, there are benefits they won't notice, too, such as reduced emissions overall, especially at part-throttle."

Ti-VCT can lower the engine's emissions by controlling the NOx -- nitrogen oxide -- and hydrocarbons.

Ford will also announce at the Los Angeles show that it will introduce a performance package for the V-6 Mustang.

It will include a different rear axle for faster off-the-line acceleration, struts, stabilizer bars and brakes from the GT, unique badges and other features.

The performance V-6 Mustang will be available at dealers in the summer.

2010 Ford Fusion: A stride
ahead of its predecessor

Ford's 2010 four-cylinder Fusion is fast enough and frugal enough, good-looking enough outside and tastefully revised enough inside that its overall flavour - despite an element of "leftovers" in this mid-sized dish -is much enhanced, better balanced and far more appealing.

The mid-size Fusion first appeared for 2006, a sort of "fusion cuisine" mix of some much-revised Mazda6 technology wrapped in styling and equipped in a fashion it was felt would suit a North American palate content with blander fare.

Now, with even mainstream fast-food brands offering bolder-flavoured versions of their traditional offerings for the more daring burger buyers, Ford has given its latest Fusion a zippier taste too. Albeit one that one that won't put the family value "burghers" who buy one - the four-cylinder version anyway - off at first bite.

The Sport that tops the range offers real motoring zest with its 3.5-litre, 263-hp V-6, all-wheel-drive, sport-tuned suspension and 18-inch wheels and tires. Think of the four-pot-powered Fusion SEL we're taking a look at as the white-bread model, but made with enriched ingredients.

Four-cylinder Fusions come in a quite well-equipped S form at $21,499, a better-equipped SE grade at $22,799 and in feature-enhanced SEL versions for $25,799. The test SEL was also equipped with a Moon & Tune option package: moon roof and Sony Audiophile 12-speaker audio, plus a rear spoiler and block heater. With destination charges, the final tally, less taxes, was $28,879.

While the basic structure may still be based on the original architecture, it has been so extensively revised it just about qualifies as "new." And while the suspension design and braking system remain essentially the same too, they have also been updated.

It's hard to describe, but the structure of the Fusion feels not solid so much as taut. And the spring and damper rates chosen, combined with the new electric power steering's positive feel and the linear response you get, make it much more enjoyable in pure driving terms than Ford's first Fusion. Ride comfort is fine, too.

There's also more power, with the previous 2.3-litre unit increased to 2.5 litres, horsepower increased by 15 to 175 hp at 6,000 rpm and torque increased by 16 lb-ft to a peak of 172 lb-ft at 4,500 rpm. This is vectored to the front wheels by a choice of six-speed manual or automatic transmissions.

The SEL comes with the latter and it helps generate solid off-the-line surge and plenty of acceleration through the gears. And it kicks down to an appropriate gear to tap into optimum engine output to provide strong acceleration for passing or merging.

Its tall top gear helps put up a highway fuel economy number of 6.4 L/100 km and a city rating of 9.4. After about 500 km, much of it Highway 401 driving, the onboard readout on the test Fusion was showing an average of 8.0 L/100 km. At a highway cruise, it was showing an average of just 6.0 L/100 km.

Ford claims the base S with automatic is the most fuel-efficient mid-sizer in Canada with ratings of 8.9 city/5.8 highway (there's also a Hybrid that does even better).

Mechanically, this latest four-cylinder Fusion is a stride ahead of its predecessor, with more than enough performance to make it easy to opt for rather than the pricier and less fuel-efficient V-6.

These updated bits and pieces are wrapped in bodywork that from the windshield back has a familiar look, a revised rear deck and taillights aside, but is fronted by arched fenders, a high-rise power dome hood and a massive three-barred grille. The latter wouldn't look out of place on Ford's F-150 pickup in terms of size and sheer chrome splendour. It all seems to work though, giving the Fusion a distinctive and decidedly less frumpy look.

This is also true on the inside, where there's plenty of head/shoulder/knee room front and rear, an all-new instrument panel with an electro-luminescent green-tinted gauge display and a leather-wrapped wheel with audio and cruise controls. Door caps are in a semi-soft material and silver trims the panels for the window controls, the centre stack (flanked by even nicer metal mesh trim) and the console - with some chrome touches here and there to add a little sparkle.

Seats aren't anything special, but have long enough cushions and between them are chrome-trimmed and blue-lit cup holders. In fact, there are a lot of nice detail touches, including lighted vanity mirrors and grab handles. Headlights are average and noise levels at speed low.

The trunk holds a useful 467 litres, made even more so by the 60/40-split rear seat and fold-flat passenger seat.

Minor quibbles are the high angle of the signal/wiper stalk, the headlight switch and info display button being located a long reach away down by your left knee and the presence of a high hump behind the rear seat that's more noticeable than a real nuisance.

The SE comes with power windows and driver's seat, air conditioning and audio, and the SEL adds alloy wheels, eight-way power driver's seat, auto-dimming mirror with microphone and compass, dual-zone automatic climate control, Ford Sync voice-activated entertainment and communications, automatic headlamps, keyless entry and bright trim outside. A pretty rich mixture for the asking price.

With this latest Fusion, Ford has boosted its passenger car game, as it has with its new entry-level Fiesta, the compact Focus and the now-full size Taurus. All are worth a look.

And hey, if you buy a Fusion right now they'll throw in a set of winter tires and rims, a nice (and novel) little added inducement with winter in the offing.

2010 FORD FUSION SEL

Type: Mid-size FWD sedan

Base Price: $25,799; as tested, $28,879

Engine: 2.5-litre, DOHC, inline-four

Horsepower/torque: 175 hp/ 172 lb-ft

Transmission: Six-speed automatic

Drive: Front-wheel-drive

Fuel economy (litres/100 km): 9.4 city/6.4 highway; regular gas

Nortel approves more exec raises

CBC NEWS - Nov 27, 2009

Management at Nortel Networks Corp., already under fire for handing out executive bonuses, approved a plan this fall to give another round of raises to its top managers, according to an internal corporate document obtained by CBC News.

The raises, in the form of increases in salary, investments or bonuses, are part of the company's plan to retain employees as it restructures after filing for bankruptcy protection in January.

But they come at a time when many laid-off and retired Nortel employees are having to fight the company in court for their severance packages, pensions and disability payments.

The former employees contacted by CBC were outraged at what they say is another example of corporate greed.

"I am shocked," said Melanie Johannink, who worked for Nortel for 18 years before being laid off in the spring. "It kind of makes you wonder where the money is going."

Former Nortel president Bob Ferchat told the CBC he was also surprised at the extent to which executives at a company in bankruptcy protection were rewarding themselves.

"My reaction, frankly, to the document is 'Here we go again'," said Ferchat. "It's another round of people dividing the proceeds, eating the carcass of the company before it's even dead."

14 executives to earn over $500K

The internal document obtained by CBC outlines a new compensation scheme for 72 Nortel executives that will see them get a total of $7.5 million US on top of their current salaries in 2009.

Of those 72 executives, 14 will be getting compensation of $500,000 or more.

The biggest earner under the new compensation plan is former treasurer John Doolittle, who took over as head of the company's corporate group in August after the departure of chief executive Mike Zafirovski. Doolittle's total compensation has been bumped to $1.68 million this year, an increase of 1.12 million over 2008, when he earned $390,000 US in salary and an estimated $170,000 US in investment and bonus money.

Nortel confirmed a new compensation scheme had been approved but would not confirm the specific information in the document CBC obtained.

Former CEO defended bonuses

Before departing in August, Zafirovski had already riled up retired and laid-off employees when he proposed $45 million in bonuses to key executives. The bonuses were approved by a U.S. bankruptcy court in March, a month after the company announced 3,000 job cuts.

Zafirovski defended the payments, saying they were necessary to retain vital executives who might otherwise flee the flagging company as it tried to maximize the sale of its assets and pay off creditors.

However, he told a House of Commons finance committee looking into Nortel's situation that the company's constrained cash resources and competing creditor claims meant it wasn't possible to pay severance to laid-off employees. He also said the company decided to trim the value paid out for pension benefits to reflect the pension plan's current funding levels.

He said the refusal to pay severance was an "agonizing" decision.

"It has weighed on me greatly," he told the committee.

"The decision not to pay severance was not taken lightly."

Zafirovski further enraged retired Nortel employees when he made a filing in October with a U.S. bankruptcy court naming himself as a creditor and claiming more than $12 million US from the company, about half of which was for pension benefits. That claim is still under review.

Workers seek pension reform

Nortel's pension deficit was estimated to be between $2.5 billion and $2.8 billion when it filed for bankruptcy protection in January.

Don Sproule, chairman of the national committee for members of Nortel's pension plan, has said about 17,500 retired Nortel employees have been affected by the bankruptcy.

Sproule said the issue for retirees is that Nortel's pension plan is about 69 per cent funded, leaving 31 per cent up in the air and in the hands of bankruptcy courts, which consider retirees and workers seeking severance or disability payments a lower priority than other creditors.

The pension deficit was discussed on Parliament Hill, and in October, federal Finance Minister Jim Flaherty introduced new rules for public pensions to ensure companies do a better job funding their plans. But the reforms would do nothing to address shortfalls in private pension plans at companies like Nortel. Ottawa has been reluctant to use taxpayer funds to guarantee private pensions.

Earlier in October, the Quebec government vowed to safeguard the pensions of 3,750 Nortel employees in the province for a maximum of five years. National assembly member François Ouimet called the measure a "special situation."

The NDP has proposed changes to the Bankruptcy and Insolvency Act that would designate workers seeking to claim the unfunded portion of their pensions preferred creditors in bankruptcy proceedings. NDP Leader Jack Layton has said the party is working on similar legislation for disability payments.

Disability payments on hold

For 62-year-old Alice Campbell, the loss of funds from her disability pension would be devastating. Campbell says she has been on disability for 15 years since a series of unsuccessful surgeries and pays more than $1,000 a month for medications.

"To lose their support on my pension... the cost of my drugs is unreal," she said. "I don't know what I would do, I really hate thinking about it."

Like Johannink and Ferchat, Campbell was dismayed that executives are being rewarded while rank-and-file workers go without the money they are owed.

Superlux Ford Taurus coming

Larry Edsall / Special to The Detroit News
November 26, 2009

You can't buy the Superlux version of the Ford Taurus at your local Ford dealership, at least not yet.

But Tommy Zondervan of Hudsonville hopes lightning strikes again after his Superlux Taurus made its debut at the recent Specialty Equipment Market Association (SEMA) automotive aftermarket trade show at Las Vegas.

When he was in his early 20s, Zondervan started creating exterior paint designs and personalized interiors for friends who were building hot rods and custom cars and trucks. His automotive artistry blossomed into Tommy Z Design, which until recently had shops in Troy and Western Michigan (now consolidated into a 4,000-square-foot facility in Hudsonville).

Though he has no formal automotive design education, Zondervan got his big break in 2004 when Chrysler launched its 300C sedan. Zondervan did sketches of how he'd tweak the styling and showed them to several Chrysler dealers.

A dealer in Chicago liked his ideas so much that he offered up a car, which Zondervan used as a full-scale canvas for a customized 300C he displayed at the 2004 SEMA Show. That car received such positive response that Zondervan soon found himself not only designing grille and body kits for vehicles such as the Chrysler 300 and Dodge Charger, but also in the aftermarket manufacturing business.

Earlier this year, he was approached by Ford to apply his style to a Taurus for display on its corporate stand at the 2009 SEMA Show. Ford already had its sporty, aggressive, twin-turbocharged Taurus SHO. The Tommy Z Design vehicle was to show how the Taurus might look as a luxury car.

Zondervan started with the mid-grade Taurus SEL. He created an attractively tasteful, rather than overly aggressively aerodynamic body kit and handsome mesh grilles. He added light-emitting diode (LED) headlamps, some chrome trim and Vibrance by PPG aspen white custom paint. To enhance the stance, he installed Pedders Suspensions XA springs and bolted on 22-inch OZ Racing wheels.

Inside the passenger compartment, he designed special perforated leather and suede seating and trim -- black with white double-stitching -- and created an enhanced audio/video system using Audiovox and Jensen components.

To make sure the car was ready for show as well as go, he freed up the engine's breathing -- air filter and exhaust hardware -- and supercharged the car's 3.5-liter V-6 engine, which now pumps out 430 horsepower.

Now that he's home from SEMA, he's working with his manufacturing partner, Jaycor Inc. of Belding, on tooling to produce similar components that he hopes will allow Taurus owners and Ford dealers to create similar vehicles. He anticipates that the body kit will cost around $1,200; the leather package around $1,000; and the supercharger $2,500-$3,000. Customers will be able to select items a la carte or simply drive away with a dealer-modified turn-key vehicle.

Ford fixes its own problems

For Ford Motor Co., the past year really has
been the best of times and the worst of times

Bryce G. Hoffman / The Detroit News
November 25, 2009

Like the rest of the auto industry, Ford sales plummeted worldwide. But the Dearborn automaker also scored major points with American consumers by foregoing a federal bailout and avoiding bankruptcy.

That good will, together with a strong lineup of new cars and trucks, meant Ford fell neither as far nor as fast as the rest of the industry. The company was finally able to pull out of a market share nosedive that began in the mid-1990s. In fact, it gained market share here and abroad while raising the average transaction price of its vehicles.

Influential surveyors including Consumer Reports and J.D. Power and Associates have lauded Ford's quality gains, delivering important endorsements to products such as the Ford Fusion and Fusion Hybrid.

Wall Street has taken notice, too, pushing the price of Ford shares north of $8.50 a year after they bottomed out at just over a buck.

"It's really gratifying to see that everybody is appreciating the Ford plan, plus the progress we are making on the plan," CEO Alan Mulally told The Detroit News.

The question now is can Ford's gains be sustained?

"Absolutely," Mulally said. He recently boosted the company's financial forecast and now expects to be "solidly profitable" by 2011. But Mulally also warned that 2010 will be a challenging year for Ford and the rest of the auto industry.

Sales remain depressed around the world. For Ford and its competitors, that means less revenue at a time when they need to spend more money to meet new fuel economy and emissions regulations.

Ford also faces some unique challenges.

General Motors Co. and Chrysler Group LLC may have damaged their credibility with consumers by filing for Chapter 11, but they also were able to eliminate billions of dollars in debt in bankruptcy court. Moreover, Ford will be more vulnerable in 2011 during the next round of national contract talks with the United Auto Workers after failing to secure the strike protection its crosstown rivals negotiated with the union as part of their government bailouts.

Still, there is no question that Ford has emerged from the turmoil of the past year as the strongest American automaker.

While GM and Chrysler begged for taxpayer aid, Ford, which bet everything on a massive $23 billion financing deal just before the global credit markets seized up, did what America loves best -- pulled itself up by its bootstraps.

That was enough to convince many consumers to visit a Ford showroom.

What they found was a new generation of cars and crossovers that boasted world-class quality and left the automaker's previous ho-hum designs in the dust. Not only was Ford fixing its problems without Washington's help, it was offering cars that rivaled Japan's best.

A year ago, Ford's share of the U.S. light vehicle market was 12.4 percent. Now, it stands at 14.6 percent. More importantly, Ford made those gains without resorting to big incentives. As GM and Chrysler slashed sticker prices and increased rebates, Ford cut back on incentives and raised the price of some of its most popular vehicles. As a result, the company increased its net pricing -- what consumers pay for vehicles, minus any incentives -- by $3.8 billion at the end of September.

"The momentum that we've gained is primarily around the products that we've introduced into the marketplace because, at the end of the day, customers are coming in to buy a product. They're not coming in because a company either did or did not take (taxpayer) money," said Ford Americas President Mark Fields. "At the same time, we've also gotten the benefit of customers saying, 'You know what, we feel good about Ford because you are doing this on your own.'"

Maintaining its momentum will require Ford to keep delivering new and better products, said analyst Aaron Bragman of IHS Global Insight in Troy.

"That's really going to be critical for them going forward," he said. "As we start to see the market rebound, the competition is going to be fierce. But Ford is in a good position because they do have a lot of new product. That's one of the key things that Mulally did -- accelerate the cycle plan."

Next year will see Ford introduce the first in a series of small cars from Europe that are the backbone of its future product strategy. If Ford is to meet its turnaround goals, they need to be an unqualified success.

Jim Farley, Ford's chief marketing officer, is confident they will be. He said the U.S. marketplace changed dramatically over the past year, and so did Ford's place in it. Instead of competing with GM and Chrysler, he said Ford is now competing with Toyota Motor Corp. and Honda Motor Co.

"That's a new place for us in the U.S.," he said. "The good will for the company grew when we decided that we didn't need help. There was a lot more people paying attention to Ford."

But Farley said Ford's work is far from finished -- especially when it comes to consumers' perception of the Blue Oval, which remains colored by years of disappointing products.

"It took a lot of time to get where we are," Farley said. "It's going to take a lot of time to get customers back. But we really have seen tremendous progress."

WASHINGTON -- Toyota Motor Corp. said Wednesday it will replace accelerator pedals on 3.8 million recalled vehicles in the United States to address problems with the pedals becoming jammed in the floor mat.

Ford's progress reflected
in stock's rally

FORD STOCK Nov 23, 2009

Bryce G. Hoffman / The Detroit News
Nov 24, 2009

A year ago, Ford Motor Co.'s stock was struggling to get back above $1.50 a share, a few days after slamming into the bottom at $1.01 a share.

What a difference a year makes.

On Monday, shares in the Dearborn automaker closed up 9 cents at $8.73. If you had invested $1,000 in Ford a year ago, it would be worth $5,596.15 today.

If you did not, but wish you had, imagine how billionaire investor Kirk Kerkorian must feel.

Last year, his Tracinda Corp. spent nearly $1 billion purchasing 140.8 million shares in Ford at an average price of $7.10 a share. By the end of that October, the casino mogul was cashing in his chips, dumping his Ford stake just over two bucks a share -- a move that would cost him hundreds of millions of dollars.

If he had kept them, Kerkorian's Ford shares would be worth nearly $1.23 billion today.

Those gains have not been lost on other high-rollers. Last week, billionaire investor George Soros revealed that his Soros Fund Management LLC had purchased 7.3 million shares in Ford over the past three months.

Ford Motor Co. CEO Alan Mulally would not comment specifically on Soros' investment, but he said the progress his company has made over the past year makes it an attractive investment target. Ford not only eschewed a federal bailout and avoided bankruptcy, but managed to grow its U.S. market share by nearly two points while increasing the amount of money paid for its cars and trucks by $3.8 billion.

"I can see why people are very interested in investing in Ford," Mulally said. "Our plan is to create long-term value for all the stakeholders."

Stock expert Peter Cohan of Massachusetts-based Peter S. Cohan & Associates said Soros' Ford play is a vote of confidence in the company by one of Wall Street's most savvy financiers.

"It should encourage investors," he said. "He's an extremely shrewd investor."

Unlike Kerkorian, who sought to influence Ford's management with his stock play, Soros appears interested in Ford only as an investment. His stake amounts to just two-tenths of 1 percent of the outstanding shares.

Cohan said the attraction for someone like Soros is obvious.

"Ford didn't need to take government money and it got a lot of cash when people were still giving money away," he said. "Ford is clearly the strongest player. It got ahead of its competitors and is well-positioned for when the economy recovers."

But Ford, like the rest of the automobile industry, still faces significant challenges. Though the company recently raised its financial outlook, Mulally warned that 2010 will be a tough year for his company and its competitors.

Though Ford is traded publicly, the company is controlled by the Ford family through its exclusive ownership of Ford's super-voting Class B shares.

The inside story of the
GM, Chrysler bailouts

David Shepardson / Detroit News Washington Bureau
Nov 24, 2009

Washington -- Detroit's Big Three automakers came closer than America realized to becoming the Big Two.

General Motors Corp. ended merger talks with Chrysler LLC in November 2008 to focus on getting emergency federal aid, but Chrysler continued to believe a tie-up with GM was its best chance for survival.

In April, as both automakers were surviving on government aid and fighting bankruptcy, Obama administration officials spent two weeks working on a plan for GM to acquire Chrysler's best assets and keep the doors open on a third of its factories.

Some members of President Barack Obama's auto task force saw it as a fallback position if Chrysler failed to reach a partnership deal with Italy's Fiat SpA. Other members opposed it. But top task force officials ultimately decided it was too late in the game for a merger, too complicated and would cost too many jobs compared to an alliance with Fiat.

The GM-Chrysler tale is among new details that emerged in Detroit News interviews with more than a dozen insiders -- automakers as well as government officials -- over the past two months.

They reveal the much greater government role in the historic bailout of both companies than has been disclosed previously.

Faced with the prospect of losing 1.1 million direct and indirect American jobs, as well as a major leg of the nation's economy, the government believed it could not afford to let the industry fail.

In the end, the GM and Chrysler bailout resulted from fortunate timing and the work of a group of unknown Wall Street veterans. Under the aegis of the White House, and without congressional approval, they forced a restructuring that the automakers themselves had been unwilling or unable to accomplish -- even as the saw disaster looming.

Among the other revelations from those inside the auto industry bailout:

• The White House auto team negotiated with billionaire investor Carl Icahn to buy parts supplier Delphi Corp., but the deal wasn't sweet enough for him to sign on. Delphi is now in the hands of its bankruptcy lenders.

• GM told the government it couldn't exit bankruptcy in the end of August or September, but was pressured by the task force to exit in early July.

• GM asked the United Auto Workers to freeze the hourly pension plan; the UAW refused.

2008 changed everything

In 2007, hard-won contracts with the United Auto Workers were heralded as game-changers that would reshape the U.S. auto industry, leveling the playing field with foreign rivals.

But the world changed in 2008.

Gas prices spiked and truck sales fell precipitously. GM announced in June that it would shutter four North American truck plants. And it quietly began trying to line up government help -- just in case.

On Aug. 1 of 2008, GM reported that second quarter revenues dropped 30 percent and it lost $15.5 billion. The company cut production by 300,000 vehicles, canceled its dividend and ordered the elimination of another 5,000 white collar jobs -- 15 percent of the salaried workforce. GM stock slid below $10 a share to its lowest level in 50 years.

A month later, the credit crisis hit. Lehman Brothers collapsed Sept. 15, filing the largest bankruptcy in U.S. history and sparking a worldwide panic. People couldn't get car loans.

U.S. sales fell below 1 million vehicles in September for the first time in 15 years.

By October, GM's position was dire. After losing $80 billion over the previous four years, the automaker was burning through cash at more than $2 billion a month. Privately, its board was considering bankruptcy.

On Oct. 13, GM CEO Rick Wagoner, accompanied by board members Erskine Bowles and John Bryan, asked the Treasury Department for an emergency bailout.

It would turn out to be one of the most significant days in the history of the nation's financial system.

The 8:30 a.m. meeting on Columbus Day, in Treasury Secretary Henry Paulson's office, also included Commerce Secretary Carlos Gutteriez and other key Bush administration officials, according to Paulson's calendar.

During the 40-minute session, GM used a Power Point presentation to explain why it would soon need a government loan to pay its bills.

Bryan, also a board member at Goldman Sachs, where Paulson had been chairman and CEO, was there to introduce Wagoner and help him make GM's case.

"You don't go bankrupt because you lose money; we've been doing that for years. You go bankrupt because you run out of money," Bryan recalled. "That prospect was very much on our minds before that first trip to Washington."

The day got worse for Paulson.

The CEOs of the nation's nine largest financial institutions came to the Treasury and agreed to a government capital infusion of $250 billion to try and stabilize the credit market.

Less than a month later, after meetings with influential lawmakers, GM released devastating third-quarter financial results Nov. 7 and said it might not survive into early 2009 without a government bailout.

GM also said it would drop talks to acquire Chrysler from private equity firm Cerberus Capital Management LP, to focus on winning emergency loans.

Around that time, Paulson directed aides to prepare a contract outlining government financing, in case GM was forced into bankruptcy.

On Nov. 30, a Sunday, Paulson met with Commerce Secretary Carlos Gutierrez and top Bush White House officials, as well as members of the incoming Obama administration.

"At that meeting, we -- the Bush team -- floated a proposal to establish an auto czar," said Keith Hennessey, a top economic adviser to Bush.

The administration would have created the position to advise the president on automakers' "restructuring plan for viability"

"The key to success of this plan was that the Obama team would publicly link arms with us and agree that they would continue the Paulson policy statement when they took over after Jan. 20th.Thus, the auto company's stakeholders would know that they had no wiggle room, and that they had no chance of getting additional funding from the next administration," Hennessey said.

The White House instead negotiated with Senate Democratic leaders in an effort to shift $25 billion for emergency loans for automakers.

Hearings fell apart

The nation's eyes focused on the industry's troubles Nov. 18 and 19,when GM's Wagoner, Chrysler CEO Robert Nardelli, Ford CEO Alan Mulally and UAW President Ron Gettelfinger appeared before House and Senate committees to make their case for federal help.

The session was a disaster. Hostile critics lambasted them for flying expensive corporate jets to Washington to seek taxpayer help, and for failing to clearly articulate why they needed the money, how they'd use it and when they would repay it.The executives were sent back to Detroit with orders to return in early December with detailed plans on how they would restore profits, restructure the industry and ensure their futures.

Having learned at least one lesson, the CEOs drove to Washington for the second round of hearings and presentations. But it wasn't enough. Late on Dec. 11, the Senate blocked auto bailout legislation, leaving it up to President Bush to decide whether the government would step in.

After failing to convince Congress to rechannel money from a $25 billion industry retooling program to a bailout account, Bush went it alone. He reluctantly stepped in on Dec. 19 with $13.4 billion.

But the lifeline came with strings.

The automakers were required to present viability plans to the government -- with a new president at the helm -- by Fe b. 17. They were directed to order fast, deep cost cuts, secure agreements from creditors to eliminate most of their debt, and win UAW concessions to bring labor costs into line with U.S. plants run by foreign automakers.

If they came up short, GM and Chrysler would have little choice but to file for bankruptcy, with few prospects to secure financing to pay for their restructuring.

Michele Davis, a spokeswoman for Paulson, said the administration agreed to rescue the companies in part because Congress didn't act and it "fell into our laps."

"With the economy in a clear downturn," Davis said, "we felt the best option was to provide short-term aid and force the companies to take drastic steps toward viability."

Task force gets to work

The new Obama administration quickly assembled an auto advisory team. Treasury Secretary Timothy Geithner flew to New York to ask Wall Street financier Steven Rattner to head the effort.

The task forceeventually numbered about 12 Wall Street dealmakers and lawyers, supplemented by dozens of people from three consulting firms retained by the government.

It met at 8 a.m. every day, tackling an agenda that went out at 5 a.m. It focused on June 1 as a key deadline for GM, because that was the due date for a $1 billion payment to bondholders.

In early February, GM Chief Financial Officer Ray Young called White House aide Brian Deese to say GM wouldn't submit its viability plan by the Feb. 17 deadline. Larry Summers, head of the White House National economic Council -- and co-auto task force chair -- immediately called GM lobbyist Stuart Eizenstadt, who as a White House advisor had helped craft the 1979 Chrysler bailout. Eizenstadt apologized and assured him that GM would meet the deadline. And it did.

Chrysler executives, who said a merger with GM was its best chance for survival, had lobbied the government to give money to GM to buy Chrysler. But GM rejected it.

While the two automakers met the Feb. 17 deadline -- Ford Motor Co. did not seek federal loans -- GM and Chrysler had to wait more than a month for a decision from the administration. But internally, the task force quickly discarded the plans as inefficient.

Obama rejected the Chrysler and GM viability plans. They were given one last chance to come up with an acceptable turnaround blueprint.

Chrysler had until April 30 to cut its debt, win labor concessions and secure a tie-up agreement with Fiat in preparation for a government-financed Chapter 11 bankruptcy. GM was ordered to take similar same steps by June 1, when a key $1 billion bond payment was due.

The pre-negotiated bankruptcies would allow the automakers to emerge from court protection quickly, shedding their burdensome obligations and saving the good assets.GM's final draft, accepted by the government, eliminated Saab, Saturn, Pontiac and Hummer and retained Chevrolet, Cadillac, Buick and GMC.

Panel split on Chrysler

Chrysler's road back from the brink was marked by harrowing moments.

In mid-March, the task force was split, 4-4, on whether to save it at all.

An economic analysis presented to Obama said up to300, 000 jobs would be lost immediately if Chrysler was liquidated. And the government's costs of liquidating Chrysler -- paying pension benefits, health care coverage to retirees, unemployment insurance -- would be in the billions.

"None of us were brave enough," Rattner said. "We just said to ourselves, 'That's 300,000 jobs in one day, when you have an alternative that's not stupid."

The administration ultimately endorsed the Fiat-Chrysler alliance -- in part because Fiat said it would become much more active in running Chrysler. Fiat CEO Marchionne would also be Chrysler CEO.

Around 10 p.m. April 10, two White House task force members called Nardelli, looking for the final operating plan between Chrysler and Fiat.

"We were under the impression that they were finalizing it," one former task force member said. "The point of the call was to check in and say, 'We are going to need it now.'"

In fact, Chrysler and Fiat remained far apart on some major issues. The task force needed an approved agreement between the two automakers in hand by mid-April, so it could have two weeks to finalize it before the April 30 deadline.

After Nardelli's unacceptable response, the task force's Clay Calhoon, 26,and Brian Osias, 32, were on the first flight from Washington to Michigan the next morning. The two advisors and some consultants arrived at 11 a.m. at Chrysler headquarters in Auburn Hills. They met with Chrysler and Fiat executives, around the massive, board room table.

"We're going to sit in the conference room until we're done," Calhoon told Nardelli.

Calhoon didn't leave the conference room until 2 a.m. Just one key issue was unresolved: What incentives would be needed to meet sales volume goals?

On Sunday, the Fiat and Chrysler team reconvened again to try to nail down the incentives but made little progress until Ron Bloom, the No. 2 official on the auto task force, called Fiat CEO Sergio Marchionne. They resolved it during a five-minute conversation.

Chrysler filed for bankruptcy April 30, after two, non-stop days of final negotiations with Fiat and government officials at the Treasury's New York law firm offices.

Its best assets were sold to Fiat and it emerged from bankruptcy as a new company, Chrysler Group LLC, June 1. The rest of the automaker's holdings were left behind to be sold or liquidated.

Other partners considered

But Fiat wasn't the only potential partner under consideration for Chrysler.

The Detroit News learned that administration officials, led by Calhoon, spent a week in Aprilworking with GM on a plan to acquire Chrysler's best assets and keep the doors open on roughly one-third of its factories.

Those talks reached the highest levels of GM, including Fritz Henderson, who took over when the government ousted Wagoner.

"What do we do in the event that we can't get the Chrysler-Fiat deal done or if the president says the terms are unacceptable to him?" said a person involved in the talks. "We didn't want to just let Chrysler liquidate. Could we save some of the assets? How would that look and how much value would be generated?

Henderson rebuffed overtures from Chrysler in February, but two months later he raised with the task force the possibility of acquiring parts of Chrysler, if a deal with Fiat faltered.

"If the Chrysler deal doesn't go through, we're interested in some pieces of Chrysler," Henderson said, according to a person familiar with the situation.

"We're interested in Jeep. We're interested in a couple of the powertrains."

GM was most interested in Chrysler's jewels: the Jeep brand, Dodge trucks and minivans.

"Fritz's view on the Ram was, it's a brand new Ram. You run it for five years for cash and not do a new one," said a person involved in the talks.

Also under consideration in GM's corporate mind: eliminating Chrysler's dealer network, and selling Chryslers at GM dealerships.

Some task force members believed a Chrysler-GM tie-up made more sense than a Chrysler-Fiat alliance because it could have added $20 billion to GM's market value, lowered the overall cost to rescue the two companies, and benefited the industry as a whole by reducing factory capacity.

On April 19, task force member and Wall Street vet Harry Wilson flew to Washington to make a "passionate plea" for supporting a GM-Chrysler tie-up. But others on the task force showed little interest, saying it was too late short of the Fiat-Chrysler deal falling apart.

But another government official noted that many of the jobs saved would have been in Canada -- and that potentially only one-quarter of Chrysler's U.S. jobs would have been saved. The dominant view became this was only an alternative if the Fiat talks collapsed.

Revenue biggest concern

GM faced more opponents in bankruptcy court, since many attorneys general and other investors who didn't object in the Chrysler case did so in the GM bankruptcy.

GM's biggest concern during bankruptcy was revenue: How much would it lose at a time when nearly all of its plants were shut down?

"We basically battened down the hatches because we really didn't know how long we would be out," said Joe DaMour, executive director of GM's finance staff. He helped lead a team of 40 overseeing the automaker's day-to-day restructuring efforts.

The administration "foamed the runway," to guard against a collapse of GM and Chrysler by guaranteeing vehicle warranties and providing fast, government-backed payments to suppliers.

DaMour said the GM bankruptcy succeed because it had to -- and because of a team of dedicated GM employees.

"You can have a lot of complex explanations for this but we knew we had no choice," DaMour said.

"There isn't this debate about (what) we should or shouldn't do.... We aren't discussing or debating this. This is what we have to do."

"On May 1 and May 15, the auto task force held eight-hour planning sessions on GM's planned bankruptcy filing at the automaker's New York law office. More than 100 participated by phone or in person.

GM planned to present a 300-page slide presentation at the first meeting. The Obama team wasn't interested. Instead, they went through 15 major issues and assigned deadlines to specific people.

With the efficiency of a drill sergeant, task force member and Wall Street vet Harry Wilson, went through each item and got a commitment of when it would be completed.

GM filed for bankruptcy June 1.

CFO Ray Young said that due to its complex accounting system, GM couldn't exit by Aug. 31 or even Sept. 30, the end of a quarter.

Wilson was incredulous: GM would lose at least $100 million a week during bankruptcy, and would be willing to incur as much as $1 billion in additional losses, because it couldn't resolve accounting issues.

"I can't think of a problem in the world I can't solve for a $1 billion," Wilson said, according to participants.

GM exited bankruptcy as General Motors Co. on July 10.

No other choice

Former GM board member John Bryan believes GM's collapse was inevitable -- whoever had been on the board, or in the CEO's office.

"(GM) could not have prepared themselves -- not in the recent years -- for a sales drop of that magnitude, given the cost structure," Bryan said. "That fault belongs to a generation or so." A "few little moves" in recent years, he said, "would not have mattered."

The board had no choice in filing for bankruptcy, Bryan said. "The government told us what to do," he said. "Life outside liquidation rested on choices made by the government."

Key finding #1

Interviews with key government and industry players revealed new details about the auto bailout negotiations and the bankruptcies of GM and Chrysler:

• In April, senior GM executives -- including CEO Fritz Henderson -- held meetings in Detroit with the Obama auto task force about making a new offer to acquire a sizable chunk of Chrysler's assets.

The meetings were initially prompted by a discussion between Henderson and former auto czar Steven Rattner that GM might be interested in buying Chrysler's prized possessions: the Jeep brand, Dodge trucks and minivans, and keeping about a third of Chrysler plants and employees.

But GM's interest -- on the heels of merger talks last summer -- came too late as the Obama administration backed a deal to turn control of Chrysler to Italy's Fiat SpA. Some in the Obama administration argued the deal could have added $20 billion to GM's market value and lowered the overall cost to rescue the two companies.

Key finding #2

• The Bush administration initially planned to announce a package of roughly $25 billion in aid to four companies on Dec. 19: GM, Chrysler, Chrysler Financial and GMAC.

But talks broke down with the two finance companies in the middle of the night -- hours before President George W. Bush's announcement. GMAC would finally reach a deal 10 days later for $7.5 billion in aid, while Chrysler Financial wouldn't get its loans for nearly a month.

Key finding #3

• The Obama auto task force held secret talks in April to sell Delphi Corp. to billionaire investor Carl Icahn. The talks collapsed when Icahn held out for a better deal. Ultimately, the government backed the bid of Platinum Equity, but the Troy-based firm was eventually acquired by its bankruptcy lenders.

Key finding #4

• GM told the government it couldn't exit bankruptcy in the end of August or September, but had to be prodded by the task force to exit in early July.

Key finding #5

• GM asked the United Auto Workers to agree to a freeze of the hourly pension plan; the UAW declined. GM also apologized to UAW President Ron Gettelfinger at one point during the talks over an incorrect labor cost figure submitted to Treasury. Talks between Gettelfinger and Fiat CEO Sergio Marchionne were so heated at one point that Gettelfinger stormed out of a meeting at Treasury.

Key finding #6

• The Obama administration sat in on several GMAC board meetings -- its right as owner of 35 percent stake in the company -- but has since stopped. Auto task force members also held face-to-face talks with American Axle & Manufacturing Holdings Inc. CEO Dick Dauch to finalize a financing deal between GM and the auto supplier.

Safety officials have investigated hundreds of Toyota complaints

Nov 23, 2009

U.S. safety regulators have looked into hundreds of reports of uncontrolled acceleration in Toyota and Lexus vehicles over more than five years. The complaints vary from sudden engine bursts that can be controlled by applying the brakes, to unintended acceleration that persists despite the driver's effort to slow the vehicle.

The reports are linked to 15 fatalities, including four people killed in a 2009 Lexus ES 350 that crashed on Aug. 28 after its driver was unable to slow the car, according to the National Highway Traffic and Safety Administration.

Its investigations and those conducted by Toyota have led to three recalls, the first in 2007 to replace driver-side, all-weather mats that could entrap the gas pedal.

Toyota announced in September that it would recall 3.8 million vehicles. It is now in discussions with NHTSA about new measures to address this long-standing issue.

March 3, 2004 -- NHTSA opens its first investigation into allegations of unintended acceleration in Toyota vehicles equipped with electronic throttle control, also known as drive-by-wire technology. The investigation covered 2002 and 2003 model year Lexus ES 300, Toyota Camry and Camry Solara sedans.

NHTSA's Office of Defects Investigation could not determine the cause of the trouble reported in some complaints because of insufficient information, and said other complaints described unrelated issues. It found nothing abnormal or defective in the pedal configuration, brakes or electronic throttle control. It closed the investigation on July 22, 2004.

Aug. 5, 2005 -- NHTSA investigates a complaint alleging defects in the throttle and brake systems, or a combination of the two, causing unintended acceleration. "Neither the reports, nor the interviews conducted by ODI, identified any vehicle-based cause to explain the incidents," it said. NHTSA closed the investigation on Jan. 5, 2006.

Sept. 14, 2006 -- NHTSA opens an investigation into a complaint of an engine surge in a 2006 Toyota Camry. The Office of Defects Investigation did not find a vehicle-based defect and its investigators did not observe an unintended surge in engine power when they tested the vehicle. Evaluation of a throttle actuator, an electro-mechanical device that opens and closes the throttle in response to commands from the engine control module, showed no component problems. Warranty and parts sales are unremarkable, it said. "These data do not support the existence of a widespread defect or ongoing concern." NHTSA closed the investigation on April 3, 2007.

March 29, 2007 -- NHTSA opened a formal investigation into reports of unintended acceleration, sometimes for long periods, of Lexus ES 350 sedans. While drivers said braking was effective in slowing the acceleration, they were unable to stop the vehicle. They said they weren't able to turn off the engine by pressing the control button. Later, they said they were unaware that it needed to be depressed for fully three seconds to stop a car in motion.

The Office of Defects Investigation said it had "observed that an unsecured Lexus accessory all-weather floor mat can trap the throttle pedal in an open position resulting in significant unwanted acceleration." It said two vehicles it inspected showed brake damage due to overheating. It said Toyota acknowledged that improperly installed mats may have been related to some of the incidents, and agreed to alert owners. On Aug. 8, 2007, NHTSA upgraded the investigation to an engineering analysis to study the problem further.

Aug. 8, 2007 -- The investigation identifies unsecured mats that can entrap the pedal as a cause of unintended acceleration. It said the risk posed by improperly secured mats was not made clear to owners, who sometimes received their new vehicles with loose mats. NHTSA said drivers also need to be told how the ignition button functions. Toyota issued recall notices to owners of Lexus and Toyota vehicles to replace 55,000 all-weather mats with redesigned ones. The investigation was closed Oct. 11, 2007.

Jan. 31, 2008 -- NHTSA investigates allegations of uncontrolled acceleration of a 2006 Tacoma pickup. After studying complaints from other Tacoma owners, it said the information suggesting a possible defect was "quite limited," and closed the investigation on Aug. 27, 2008.

Jan. 14, 2009 -- Toyota recalls 26,500 Sienna minivans to replace retention clips that secure the floor carpet cover, to prevent it from jamming the gas pedal.

Sept. 29, 2009 -- NHTSA issued a consumer alert telling owners of eight Toyota and Lexus models to take out removable driver-side mats and not replace them. Toyota recalled 3.8 million vehicles to address the risk of removable mats jamming the gas pedal. Nov. 4, 2009 -- NHTSA rebuked Toyota after the automaker said the agency had ruled out a vehicle-based defect. The removal of unsecured mats, NHTSA said, "is simply an interim measure. This remedy does not correct the underlying defect in the vehicles involving the potential entrapment of the accelerator by floormats, which is related to accelerator and floor pan design." NHTSA said it was waiting to hear Toyota's plan "to correct this very serious defect."

Toyota's image under scrutiny

Christine Tierney / The Detroit News

For years, Toyota Motor Corp. has investigated complaints from drivers saying their Toyota and Lexus vehicles accelerated all by themselves, and the company has identified essentially one cause. The trouble, according to Toyota, occurs when loose or ill-fitting floor mats, carpet covers or detached trim jam the gas pedal.

But after a highly publicized crash in August that killed four people when the driver lost control of a Lexus sedan, Toyota has come under intense pressure to reduce the risk of unintended acceleration.

The Japanese automaker and U.S. safety regulators are discussing changes to the gas pedal, as well as adjustments that would make it easier to stop a car that's accelerating, according to sources familiar with the negotiations. The U.S. National Highway Traffic Safety Administration says 15 fatalities, including the four in August, are linked to hundreds of reports of unintended acceleration of Toyotas it has received since 2002.

While that's a fraction of the casualties associated with some high-profile vehicle-safety cases, such as the Ford-Firestone debacle, the issue is deeply worrying to U.S. safety officials and could be very damaging to Toyota.

It has generated more bad publicity for the automaker, which has been stumbling through a series of misfortunes, including financial losses. Toyota also faces mounting skepticism about its response. Some drivers say they couldn't slow down or stop when they applied the brakes.

"Toyota has always been seen as producing very, very safe, bullet-proof cars," said George Peterson, president of AutoPacific Inc. in Tustin, Calif. "That's the image that has been cultivated for decades. This is making people think, is the Toyota of today the same as the Toyota of yesterday?"

Besides the damage to its reputation, Toyota faces a financial risk from lawsuits. The issue could be costly, Peterson said, if the company is found to be at fault -- and if juries are convinced Toyota knew about the problem.

Toyota is expected to outline ways to reduce the risk of unintended acceleration as early as next week. It is expected to redesign the pedal so that it can't be entrapped by a loose or ill-fitting mat. "We're very confident that the root cause is a pedal-trapping by an unsecured or inappropriate floor mat," said Brian Lyons, a spokesman for Toyota Motor Sales in Torrance, Calif. "We're looking at a vehicle-based remedy to help avoid that entrapment."

Toyota also is considering a system that would prevent the vehicle from accelerating if any pressure is being applied to the brake. This technology is already available on some cars, mostly German, and is recommended by independent safety experts.

A perplexing problem

U.S. safety investigators say they receive complaints of unintended acceleration involving many brands. But some safety advocates say Toyota has received more than its share -- particularly since it adopted drive-by-wire technology 10 years ago. In cars equipped with this system, a driver stepping on the gas pedal sends an electronic signal to the throttle.

Clarence Ditlow at the Center for Auto Safety in Washington, D.C., said its database shows that "since the late '90s, Toyota has generated more complaints on unintended acceleration than any other manufacturer."

But unlike certain defects, such as corrosion or faulty components that can easily be identified, unintended acceleration is a term that has been used to describe a wide range of occurrences and can be hard to diagnose.

There may be several causes, including driver error, say government and independent experts. There could be a problem with the brakes, acceleration or transmission. Or the electronics controlling the engine or transmission may be calibrated incorrectly.

A federal safety official likened the Toyota investigation to the long, frustrating inquiry in recent years into reports that cruise control deactivation switches on some Ford Motor Co. vehicles were causing fires. That led to a big recall by Ford, which has nonetheless preserved its reputation for building good cars.

Volkswagen AG's Audi brand suffered a near collapse in U.S. sales for several years from the mid-1980s to the early 1990s after a flurry of reports that Audi cars were prone to unintended acceleration. But after years of investigations in three countries, no defect was found in the vehicles.

Audi adopted a fail-safe measure preventing the transmission from shifting out of park unless the driver is applying the brake.

Since 2003, Audi cars have been programmed to automatically stop accelerating if there's pressure on the brake. Such a solution is one of the measures that NHTSA and Toyota are discussing to help prevent some of the incidents that customers described.

Toyota rebuked by NHTSA

Complaints range from sudden surges of engine power that can be controlled by applying the brakes to more frightening instances of unintended acceleration at high speeds. That was the situation that preceded the crash in Santee, Calif., near San Diego, of a Lexus ES350 driven by Mark Saylor, an off-duty California Highway Patrol officer. He and three family members were killed.

A month later, owners of eight Lexus and Toyota models were told to remove the driver-side mats, and Toyota later issued its largest-ever U.S. recall -- for 3.8 million vehicles.

Investigators looking at Toyota vehicles that crashed after alleged unintended acceleration, including the Lexus in California, found mats jammed near the gas pedal.

But this month, when Toyota cited a NHTSA document as evidence the mats were the sole cause of the problem, the agency rebuked the carmaker.

On Nov. 4, NHTSA said merely removing the mats didn't remedy the underlying defect, which it said was "related to accelerator and floor pan design."

But safety advocates say the mats and pedal configuration also don't explain all the complaints.

"The evidence continues to surface that we're dealing with more than a mechanical interface between the floor mat and the pedal," said Sean Kane, founder of Safety Research & Strategies Inc. in Rehoboth, Mass.

Kane, who has identified around 2,000 reports of unintended acceleration in Toyota vehicles since 1998, said some drivers saw dashboard lights flashing in a way that suggests an electronic glitch.

In 2002, soon after adopting drive-by-wire technology, Toyota issued a technical service bulletin to recalibrate the engine control module to prevent the vehicle from surging at certain speeds. That, Kane said, suggests that an electronic problem "is not out of the realm of possibility."

Toyota says it hasn't found such a problem. "From the reports and in our investigations, we've found no evidence of electronic glitches in the software or in the engine control system," Lyons said.

NHTSA officials also said that over more than five years of investigations, they have not found a defect in the electronic throttle.

Trebek tours Ford plant
before 'Jeopardy!' taping

Kimberly Hayes Taylor / The Detroit News
Nov 22, 2009

Dearborn -- Alex Trebek, host of "Jeopardy!," one of the nation's most popular quiz shows, made a rare visit to Metro Detroit Thursday to tape clues for the show at Ford Motor Co.

His appearance means that sometime soon, "Jeopardy!" fans will see clues about the automotive pioneer. But if you want to know exactly when the Ford trivia clues will air on the show that runs 7:30 p.m. weekdays on WDIV-Local 4, Trebek says "You'll have to watch every day to catch them."

During the day, Trebek spent time at a Ford assembly line, and says he was blown away by the modern technology that makes it easier for assembly workers to do their jobs. In fact, the surprisingly hilarious Trebek says he wants to take one of the robotic arms home to put in his garage to make his work around the house easier.

While taping some clues on the lawn at the Ford Research and Innovation Center in Dearborn, Trebek learned that Henry Ford, who introduced the Model T in 1908, selected Detroit because he was born on a farm in Dearborn. The host also wanted to know why other auto makers selected the region, and learned the Detroit River made it convenient to transport the vehicles. When he asked how many acres Ford Motor Company covered, he was surprised to find out the properties covered many miles of real estate.

Trebek says he has fond memories of Detroit because he took his first flight from Miami to the Detroit area many years ago, had two aunts who lived in Detroit in the 1950s and an uncle who worked for the J.L. Hudson Department store in downtown Detroit. The Canadian also acknowledged he grew up as a Red Wings fan, but changed his allegiance when the team's star player, Canadian Gordon "Gordie" Howe, left the Wings in 1980.

Perhaps most importantly, Trebek says he was so impressed with Ford technology that he's decided to purchase a new Raptor pickup truck next year. Trebek says he has another reason for his special allegiance to the Ford Motor Company.

"Ford is the only American automaker that didn't ask for a bailout," he says.

In addition to that, Trebek says he knows Michigan has the nation's highest unemployment rate, even higher than California's, and he wanted to show his support for the state.

"We want you folks to know we're aware of that, and anything we can do to cheer you up and brighten up your day, we're here for you."

Ford Motor to invest $2.3B in Brazil

Bryce Hoffman / The Detroit News
Nov 21, 2009

Ford Motor Co. will invest nearly $2.3 billion in Brazil over the next five years to modernize factories and expand production in South America's largest market.

Ford Americas President Mark Fields outlined the investment plan at a ceremony Friday at the company's manufacturing complex in Camaçari in the northern state of Bahia, sharing the podium with Brazilian President Luiz Inacio Lula da Silva.

More than half of the money will be spent to expand production at the factory, which is Ford's most advanced assembly plant in the world, and to modernize production at Troller Veículos Especiais S/A in Horizonte, Ceará, which Ford bought in 2007. The rest will be reserved for future product investments.

Ford spokeswoman Jennifer Flake said it represents the largest five-year investment in Ford do Brazil's 90-year history.

"It will give us greater manufacturing flexibility," she said.

Michael Robinet, vice president of global vehicle forecasting at CSM Worldwide in Northville, called the investment well-timed.

"It is an important market," he said, adding that Brazilian consumers are becoming more sophisticated and are no longer satisfied with cast-off models from Europe and the United States. "Going forward, Ford knows that it will be a critical market for global platforms."

Robinet said it is unlikely Ford will use its added capacity in Brazil to export to America because of distance and currency considerations. The Brazilian car market has been growing this year, thanks to low borrowing costs and government incentives.

Ford is the fourth-largest automaker in this key emerging market after Fiat SpA, Volkswagen AG and General Motors Co.

Flake said the investment will allow Ford to increase the output of its Camaçari plant by 50,000 annually. The factory, which produces the EcoSport compact sport utility vehicle and a series of products based on the old Fiesta, already produces about 250,000 vehicles each year. About 1,000 new jobs will be added at the factory.

Prosecutor to appeal bond of man charged in Ford theft

Doug Guthrie / The Detroit News
Nov 20, 2009

Detroit --A federal prosecutor said Thursday she will appeal a judge's decision to grant bond to a Chinese citizen accused of stealing up to $32 million worth of Ford Motor Co. engineering plans.

Xiang Dong Yu, also known as Mike Yu, 47, of Beijing was a Ford product engineer for 10 years. He left the company and moved to China in 2007, allegedly taking with him computerized copies of about 4,000 pages of confidential documents.

Yu was arrested last month at Chicago's O'Hare International Airport when he returned from China.

The government says a laptop computer Yu was carrying contained thousands of pages of proprietary Ford documents and a large number of confidential documents belonging to another company not named at Yu's arraignment on charges of theft of trade secrets, attempted theft of trade secrets and unauthorized access to a protected computer Thursday in U.S. District Court.

Although Yu has remained in federal custody since his arrest, Magistrate Judge Mark A. Randon on Thursday tentatively ordered his release on $100,000 bond to Pastor Peter Wu of the Chinese Gospel Church in Livonia. The church has rented Yu an apartment in Westland.

Randon delayed issuing his order to release Yu to give federal prosecutors time to appeal his decision.

Assistant U.S. Attorney Cathleen Corken told the judge Yu might flee.

"His whole life is in China," said Corken, who claimed that although the government has seized Yu's passport, he could walk into a Chinese consulate and get new travel documents.

"We have no extradition treaty with China," Corken said.

Government agents discovered on Yu's computer an application for Canadian citizenship and passport. Yu's lawyer, George Donnini, argued the government is unfairly assuming that any Chinese citizen is a flight risk. He said his client would accept conditions that included travel restrictions and an electronic tether.

According to a federal indictment, Yu had access to and made copies of "system design specification documents" prior to leaving his job in Dearborn in 2007.

Ford declined to comment.

If convicted, Yu could face up to 10 years in a federal penitentiary.

The Associated Press

WASHINGTON–Ford, Subaru and Volkswagen lead the insurance industry's annual list of the safest new vehicles, according to a closely watched assessment used by car companies to lure safety-conscious consumers to showrooms.

The Virginia-based Insurance Institute for Highway Safety awarded its "top safety pick" on Wednesday to 19 passenger cars and eight sport utility vehicles for the 2010 model year. The institute substantially reduced the number of awards compared with 2009, because of tougher requirements for roof strength.

Ford Motor Co. and its Volvo unit received the most awards with six, followed by five awards apiece for Japanese automaker Subaru and German automaker Volkswagen AG and its Audi unit.

Chrysler Group LLC received four awards followed by two each for Honda Motor Co. and General Motors Co.

Toyota Motor Corp., BMW AG, Mazda Motor Corp. and Mitsubishi Motors Corp. were shut out in the annual IIHS review.

Ford's recipients include the Ford Taurus and Lincoln MKS passenger cars and the Volvo S80 and C30 passenger cars and the XC60 and XC90 SUVs.

Ford said in a statement it is "committed to providing customers with safe vehicles for a broad range of real-world crash conditions.''

Subaru recorded winners with the Subaru Legacy, Outback and Impreza cars and Tribeca and Forester SUVs. Subaru was the only automaker with an IIHS winner in all four vehicle classes in which it competes.

The automaker, which has bucked the brutal U.S. sales market with a 13 per cent increase during the first 10 months of 2009, attributed its safety success to a unique engine design that sits low in the vehicle chassis and moves down and under occupants in a frontal collision.

Tom Doll, executive vice president and COO of Subaru of America, said the awards were a "tribute to the engineering that goes into Subaru products.''

Volkswagen scored with the 4-door versions of the Jetta, Passat and Golf, the Audi A3 and the Volkswagen Tiguan, a small SUV. Mark Barnes, Volkswagen of America's chief operating officer, said the "safety of our cars is of the utmost concern, from the initial design stages all the way through the maintenance procedures at dealerships.''

Chrysler won the award for the Chrysler Sebring and Dodge Avenger sedans equipped with optional electronic stability control, the Dodge Journey midsize SUV and the Jeep Patriot with optional side thorax air bags.

Scott Kunselman, Chrysler's senior vice president-engineering, said the awards underscore the Auburn Hills, Mich., automaker's ``engineering capability and leadership in occupant protection.''

General Motors Co. and Honda Motor Co. both received two awards. GM was recognized for the Buick LaCrosse and the Chevrolet Malibu while Honda won for 4-door versions of the Civic with optional electronic stability control and the Honda Element.

Other winners included the Nissan Cube, the Kia Soul and the Mercedes C Class.

The vehicles are selected for best protecting motorists in front, side and rear crash tests based on Institute evaluations during the year. The vehicles are required to have electronic stability control, or ESC, to qualify for the award. Earlier this year, the Institute said vehicles would need to receive its highest score in its roof strength evaluation to qualify the safety pick designation.

"With the addition of our roof strength evaluation, our crash test results now cover all four of the most common kinds of crashes," said Institute president Adrian Lund. "Consumers can use this list to zero in on the vehicles that are on the top rung for safety.''

The Institute awarded its top prize to 94 vehicles in 2009 and attributed the decline in awards this year to the roof strength requirement. The Honda Accord and the Ford Fusion both dropped off the list because 2010 versions didn't earn high enough scores on the roof test.

The Toyota Camry would have made the list, the Institute said, if it had received the highest rating in rear crash protection. The Institute said the Camry's seats and head restraints were rated marginal for protection against whiplash injuries.

Fans mark end of the Edsel line

Bill Glauber / Milwaukee Journal Sentinel Nov 19, 2009

Racine, Wis. -- Before the Ford Pinto, AMC Pacer and Chevy Chevette, there was the Edsel.

It was a vision of Detroit at its mid-20th century worst, an overhyped, overpriced automotive monstrosity produced by the Ford Motor Co.

The oval front grill was ridiculous -- some suggested it looked like a toilet seat. The workmanship during the first model year was mediocre and the vehicle became a national joke. The car was named after Henry Ford's son, Edsel.

It was introduced in September 1957, became an almost overnight automotive bust and was quietly shelved Nov. 19, 1959. There, the story might have ended, an American dream turned to American rust.

But in this country, there are many people who love the unloved, especially when the object of their desire packs eight cylinders under the hood.

David Hooten is one of those whose heart flutters at the sight of an Edsel. He is the president of the Wisconsin Edsel Club, which has about 30 members.

This week, Hooten will join a few dozen other Edsel enthusiasts from around the country in making a pilgrimage to Louisville, Ky. At the site of an old Edsel plant, they'll celebrate the 50th anniversary of the car's demise.

"The car had such a bad rap," Hooten said. "I bought one just to be different."

Just how different can be found inside his garage.

Hooten owns a restored Edsel from the final model year, 1960, when the last of the vehicles rolled off the assembly line.

It is an Edsel Villager, a two-door station wagon with a tailgate.

For an 18-foot-long, 4,100-pound vehicle with flat bench seats and no seat belts, it doesn't handle too badly.

It goes from zero to 60 in about 15 seconds and, amazingly, gets around 15 miles per gallon in highway driving. And, given that the steering wheel is roughly the size of a tire, it's pretty easy to maneuver around town.

Hooten, who is 49 and works as an auto body mechanic, has been driving Edsels since he was in high school. He sticks to his belief that the cars got a bad rap.

OK, maybe the 1958 Edsel models, which, he said, weren't very well made and featured such things as push-button transmission in the steering wheel and a self-lubricating front suspension. The other two model years were just fine, he said.

For Edsel enthusiasts, there really is a certain beauty in the vehicle and sadness about the failure of the car to find a market.

Beyond becoming a punch line, though, the Edsel provides a reminder that Detroit has miscalculated in the past only to rebound. That's something to take comfort in during a time of auto bankruptcies and cash-for-clunkers sales.

2010 Ford Fusion named Motor Trend's 'Car of the Year'

Magazine's staff cites Ford's improvements, sedan's broad appeal

Bryce G. Hoffman / The Detroit News Nov 18, 2009

Dearborn --Motor Trend on Tuesday named the 2010 Ford Fusion its "Car of the Year."

The award marked the second consecutive year that Ford Motor Co. claimed one of the influential magazine's top honors. Last year, the 2009 F-150 pickup claimed "Truck of the Year."

Ford's midsize sedan beat out 22 other contenders, including the new Toyota Prius, Nissan 370Z and BMW 7 Series.

Members of the magazine's editorial staff told The Detroit News they were impressed by the improvements Ford has made to every aspect of the Fusion since it debuted in 2005.

"Ford has proven its resilience in these tough times by delivering to market a car with broad appeal to a broad range of consumers," said Motor Trend Editor-in-Chief Angus MacKenzie.

"The Fusion range has matured into a competitive roster of midsize sedans, able to compete with sales juggernauts such as the Toyota Camry and Honda Accord."

Despite one of the worst markets in automotive history, the Fusion has set a new full-year sales record this year, gaining market share and becoming the best-selling car from any U.S. automaker.

CEO Alan Mulally called the Motor Trend award "another proof point" that Ford's turnaround is working.

Ford's new products have been drawing accolades all year from key arbiters of public sentiment, such as Consumer Reports and J.D. Power and Associates.

But analyst Erich Merkle of Autoconomy.com in Grand Rapids said the Motor Trend award is even more influential.

"It's one of the most important honors," he said, adding that it can only strengthen "already impressive" sales.

Motor Trend made the announcement at a special ceremony at Ford world headquarters.

"Cars just don't happen," editor MacKenzie told a crowd of Ford employees. "Every one of you here in this room has a little piece of this trophy."

Motor Trend was particularly impressed with the new Fusion Hybrid.

"What it means is that you can have an economical and a fun product. You don't have to make trade-offs. It doesn't have to be odd looking," said Nancy Gioia, director of Ford's electric vehicle programs. "It shows what an American company can do."

Ford got an endorsement of a different sort this week from billionaire investor George Soros.

His Soros Fund Management LLC revealed Monday that it had purchased 7.3 million shares in Ford over the past three months. That helped push Ford's share price to $9 Tuesday for the first time in two years, before settling back to close at $8.98 -- a gain of 27 cents, or 3.1 percent.

Derrick Kuzak, Ford's global product development chief, said the Motor Trend award, other public recognition of Ford's progress and the company's financial performance have given a big boost to employee morale.

"Last year, it was the F-series," he said. "We really need to start thinking of this as an annual event at Ford."

GM on the road to paying
back bailout loans

Auto maker will start payments next month, but GM's equity value
must rise to $66-billion for Ottawa, Ontario to get their money back

Globe & Mail Greg Keenan and Shawn McCarthy
Novemebr 17, 2009

General Motors Co. has promised to begin paying back part of the bailout money provided by the federal and Ontario governments, but taxpayers are unlikely to get all their money back unless the auto maker's market capitalization hits a level it has never reached.

GM will repay $1.54-billion (U.S.) of the $9.5-billion it borrowed from the two governments by making eight quarterly payments of $192-million starting next month, company officials said Monday as they revealed the first financial results for GM since it emerged from Chapter 11 bankruptcy protection on July 10.

Repaying U.S. and Canadian taxpayers is “a personal commitment,” said GM chief executive officer Fritz Henderson. GM will first repay the $1.54-billion directly.

But the longer-term payback plan involves GM becoming a widely held public company again, allowing governments to monetize their shareholdings.

The U.S. and Canadian governments hold 72.5 per cent of the common shares: 11.7 per cent of those are owned by the federal and Ontario governments.

Ottawa and Ontario also hold about $400-million worth of preferred shares.

The governments would need to receive about $7.6-billion from the proceeds of a GM initial public offering if they are to be repaid all the $9.5-billion they provided to the company.

But the total equity value of GM must amount to more than $66-billion if all governments are to be repaid in full, according to an analysis by the U.S. government's Government Accountability Office (GAO). That value could be a tall order for GM; the GAO study showed GM's market capitalization peaked at $57-billion in 2000.

“It is my mission to disprove the GAO,” Mr. Henderson declared, “to create value in the company, generate results in the company so in fact the taxpayers can get a return on the investment.” GM is preparing for an IPO in the second half of next year, he added.

The federal government still hopes to be repaid in full, despite Prime Minister Stephen Harper's comments in June that Ottawa was not counting on getting money back from the sale of the equity stake.

It could take eight years to unwind the equity position, but Ottawa will move as quickly as possible, while still aiming to maximize its return. Other opinions suggest governments could be repaid if GM's market capitalization hits $57-billion.

“We are not in the auto business for the long term,” a senior official said Monday. “We expect to see taxpayers' dollars returned to the government.”

GM added that it contributed $4-billion to its Canadian pension plans to restore them to health, confirming filings it made with Ontario pension regulators in September.

The announcement of the loan payback came as the auto maker reported that revenue and market share rose, structural costs fell and billions of dollars of debt were wiped out.

But one thing did not change – the company lost money in the equivalent of the third quarter.

The results are “certainly better than our plan going into bankruptcy, but nevertheless it is a loss and you cannot be satisfied with it,” Mr. Henderson told reporters.

GM lost $1.2-billion in the period July 10-Sept. 30, which was better than an expected loss of $4.2-billion was forecast with its bankruptcy filing. Results were better than expected in North America, although GM is still losing money in its home market. It lost $651-million before interest and taxes. It also posted a loss in Europe, another troubled market where it is trying to restructure its key Adam Opel GmbH division.

Profits in Latin America and the Asia-Pacific region, which includes China, did not offset losses in North America and Europe. Asia-Pacific operations registered $429-million in earnings before interest and taxes.

A full comeback for GM depends, however, on vehicle markets improving around the world, particularly in North America and Europe. GM also needs to roll out more hit vehicles that replicate the success of such Canadian-made vehicles as the Chevrolet Camaro and Equinox and GMC Terrain, while executing a successful restructuring of Opel.

“We need at least another year of consistently improving results” before assessing whether GM can return to full health, said industry analyst Bill

GM's $1.2B loss signals
a turn-around

Automaker plans to start repaying U.S. government loans in December

Nov 16, 2009 - Toronto Star

DETROIT–General Motors Co. says it lost $1.2 billion (U.S.) from the time it left bankruptcy protection through Sept. 30, far better than it has reported in previous quarters and a sign that the auto giant is starting to turn around its business.

The company also says it will begin repaying $6.7 billion in U.S. government loans with a $1.2 billion payment in December. It could pay off the full amount by 2011, four years ahead of schedule.

GM said its improved performance was fueled by new products including the Chevrolet Camaro muscle car, and the Chevrolet Equinox and GMC Terrain midsize crossover vehicles. The company's top sellers through October were the Chevrolet Silverado pickup truck and Impala full-size car.

Also, GM's global presence helped the company, particularly in China, where its sales of 478,000 in the third quarter increased 6 per cent over the second quarter.

The company cautioned that the earnings numbers mean little because they don't comply with U.S. accounting standards and cover only the part of the quarter after GM left Chapter 11 bankruptcy protection on July 10.

Even more unusual is the $79.4 billion profit the troubled automaker is reporting for the first nine days of the third quarter, when it remained under bankruptcy court protection but was able to scrap colossal amounts of debt and other obligations from its balance sheet.

"We have significantly more work to do, but today's results provide evidence of the solid foundation we are building for the new GM," CEO Fritz Henderson said in a statement.

Chief financial officer Ray Young said it's impossible to compare the third-quarter results to any previous quarter because GM is still reviewing the value of its assets and liabilities post-bankruptcy to comply with accounting principles.

"Direct comparisons are not necessarily applicable. You can make some judgments in terms of trends," Young said.

GM maintains the numbers show a company making progress, riding dramatically reduced structural costs to a far better performance than the $6 billion loss GM reported in the first quarter, the last full quarter for which its numbers met accounting standards.

GM took in $3.3 billion more cash than it spent for the third quarter, far better than the $10 billion the company burned through during the first quarter.

Its third-quarter revenue totaled $26.4 billion, also an improvement over the first quarter when it saw revenue drop nearly 50 per cent from the same period in 2008 to $22.4 billion. Revenue was aided by sales boosts in July and August from the U.S. government's Cash for Clunkers rebates.

GM said its global market share was 11.9 per cent in the third quarter, up three per centage points from the first half of the year. The U.S. share stayed flat for the quarter at 19.5 per cent.

Many customers stayed away from GM showrooms in the first and second quarters as it headed into bankruptcy protection, fearing the company wouldn't be around to honor warranties and service their vehicles.

Young said GM accountants are in the process of cleaning up the new company's books, revaluing assets and liabilities and changes to pension and health care costs that came from bankruptcy and a new contract with the United Auto Workers union.

GM expects to meet accounting standards when it reports full-year results for fiscal 2009, but those figures probably won't be released until March as accountants go through the complex process of figuring out just how much the company is now worth.

But Young said the third-quarter results still are useful to management in spotting trends and measuring whether the company is making progress.

GM lost $78 billion from 2006 through the first quarter of this year. The gargantuan losses and debt eventually choked the company to the point where it could no longer operate without government help.

GM entered bankruptcy protection with roughly $94.7 billion in debt. It emerged with $17 billion, including the $6.7 billion owed to the U.S. government. The government has given GM a total of $52 billion, $45.3 billion in exchange for a 61 per cent equity stake in the company.

The automaker also says it will begin repaying $1.4 billion it owes to the Canadian and Ontario governments in December. The loan repayments will come from escrow accounts set up for the company by the U.S. Treasury Department and Canadian governments. GM also has paid $700 million on a $1.3 billion loan from the German government to keep GM's Opel division in operation. The balance will be repaid this month, GM said.

Although the company reported positive cash flow for the third quarter, it does not expect that to continue into the fourth quarter because of the government loan repayments and a $2.8 billion payment to help Delphi Corp., its former parts division, out of bankruptcy protection.

GM has said it plans to sell stock to the public late next year so taxpayers can recoup at least part of their remaining investment, though GM Chairman Ed Whitacre said last week the timing of any GM IPO remains uncertain and depends on when the company returns to profitability.

Ford vehicle sales outlook:
'Worst is over'

Bryce G. Hoffman / The Detroit News
Nov 15, 2009

Ford Motor Co.'s top sales analyst said this November U.S. sales appear to be at least as strong as October, meaning the industry has once again found its footing after one of the worst declines in history.

"So far, so good. We won't fall backwards from October," said George Pipas, head of sales analysis and forecasting at Ford. "The worst is over -- both from an economic standpoint and from an automotive standpoint."

However, he warned that the recovery remains fragile, largely because too many Americans remain out of work.

"(Unemployment) is a drag on consumer psychology," Pipas said. "The recession may be over and the recovery may have begun, but for many, many consumers it may not feel like it's over even 12 months from now."

As a result, Ford is projecting only modest sales gains in 2010.

Speaking Friday at the Automotive Press Association, Pipas said the industry that emerges from this downturn will be changed dramatically, with more consumers opting for smaller cars and crossovers. He said these vehicles will represent the largest market segment in the United States by 2013.

That is partly due to concerns about fuel prices, which Pipas said will remain volatile. He predicted that gasoline will hit $4 a gallon again -- probably next summer.

Analyst Jim Hall of 2953 Analytics LLP in Birmingham said that is convenient, considering that Ford has shifted its entire product strategy in that direction. But he believes new, fuel-saving technologies will keep American motorists in larger vehicles.

"Some of the best of these (technologies) are too expensive to put into small cars," Hall said, adding that innovations like advanced six-speed transmissions and smaller turbocharged engines should allow automakers to meet tougher federal emissions requirements with larger vehicles, too.

"There's no penalty for big in this country."

But Pipas said the shift to smaller vehicles is about more than fuel prices.

He said it reflects changing demographics and a new, less-ostentatious aesthetic.

"Consumers in the future will be more careful about living within their means," he said.

Ford fast-tracks new cop car to replace Crown Vic

Bryce G. Hoffman / The Detroit News
November 14, 2009

Ford Motor Co. today confirmed that it is developing a new police interceptor to replace the Ford Crown Victoria when production of that model ends in 2011.

As The Detroit News first reported in August, the Dearborn automaker has decided to abandon the elderly Crown Vic platform in favor of an all-new police sedan, which will most likely be built off the new Ford Taurus platform.

"We have heard the repeated requests from the law enforcement community to continue uninterrupted support of the law enforcement community," said Ford Americas President Mark Fields. "Ford is answering the call with the new Police Interceptor -- engineered and built in America."

Ford said the new vehicle -- dubbed the Ford Police Interceptor -- will offer greater durability, better safety, stronger performance and greater fuel-efficiency than the venerable Crown Vic, which is the leader in the law enforcement segment, accounting for 75 percent of the police pursuit business in the United States today.

The new Police Interceptor is being developed with input from Ford's Police Advisory Board, which includes representatives from major police departments around the country.

"Ford's commitment to the law enforcement community produced the Crown Victoria, the benchmark police vehicle," said Lt. Brian Moran, fleet manager for the Los Angeles County Sheriff's Department and a member of the advisory board. "This commitment has continued, and Ford has been working closely with the Police Advisory Board on developing the new Police Interceptor. I am confident that the next-generation Ford police vehicle will meet the future needs of the law enforcement community and will set the new standard."

Ford said it will unveil the new model in the first quarter of 2010 to give law enforcement agencies time to develop transition plans and outfitters time to develop aftermarket equipment for the vehicle.

"Ford long has supported our public servants with vehicles that work as hard as they do," said Ken Czubay, head of marketing, sales and service in the United States. "We intend to build on this legacy with a new generation of municipal and police vehicles that set even higher standards."

Ford Fusion has record year

Bryce G. Hoffman / The Detroit News
Nov 13, 2009

Sales of the Ford Fusion have topped 151,000 units this year, making it the best-selling car from a domestic manufacturer.

Ford Motor Co. today said its popular midsized sedan already has set a new annual sales record -- pasting its previous high of 149,552 units set in 2007.

"It's extraordinary that a car could set a sales record in an environment where overall industry sales are down 26 percent from a year ago," said Ford sales analyst George Pipas.

In the first 10 months of this year, Fusion sales were 15 percent higher than they were during the same period in 2008, making it one of the top 10 best-selling vehicles in the country.

Fusion sales received a big boost from the new Fusion Hybrid, which now accounts for nearly 20 percent of all Fusion retail sales. And Ford said more than 60 percent of those buying the hybrid model are converts from other brands -- primarily Toyota and Honda.

It also has been helped by stellar ratings from influential publications like Consumer Reports, which says its quality is now superior to competing models from Japan's leading carmakers.

The Fusion was introduced in 2005 as a 2006 model. It is produced in Hermosillo, Mexico.

Kansas Ford plant voting
on strike over workload

Bryce G. Hoffman / The Detroit News
Nov 13, 2009

Workers at Ford Motor Co.'s Kansas City Assembly Plant in Claycomo, Mo., are holding a strike authorization vote today after a disagreement over workloads, but no work stoppage is expected.

The dispute began during the company's annual "rebalancing" talks with the union, which are aimed at increasing the plant's efficiency.

According to people familiar with the situation, the United Auto Workers feels that some of the proposed changes would give some workers too many tasks to perform. A strike vote is typically taken in such cases as a way of increasing pressure on the company, though these rarely result in actual work stoppages.

However, the situation at the Kansas City plant, which produces the Ford F-150 and Escape, the Mercury Mariner and the Mazda Tribute, remains volatile after 92 percent of UAW members there rejected a recent agreement on concessions between the union and Ford.

Ford spokeswoman Marcey Evans said senior managers are at the plant, negotiating directly with local leaders and leaders of the UAW's national Ford section.

"We are working together with the union to address their concerns," she said. "We have a contractual process that we follow to address such issues, and this is part of that process."

While several strike votes have been taken nationwide, Evans noted that none have resulted in a work stoppage at any Ford plant in the past 20 years.

Ford confirms plant
closing as GM invests

GREG KEENAN

From Tuesday's Globe and Mail Published on Tuesday, Nov. 10, 2009

Ford Motor Co. has made it official, confirming that it will shut its St. Thomas Assembly Plant in Southwestern Ontario in the third quarter of 2011.

A letter making the closing official was distributed to the 1,500 employees yesterday, the same day that General Motors of Canada Ltd. was announcing that its Cami Automotive Inc. operation in Ingersoll, Ont., about 45 minutes east of the Ford plant, is receiving a $90-million upgrade to increase production capacity.

The good news-bad news scenario for the Ontario-based auto industry and two plants contrasts sharply with the recent history of the two companies. That history includes a trip through Chapter 11 bankruptcy protection for General Motors Co. and a surprise third-quarter profit at Ford, which stayed out of bankruptcy protection and did not receive a government bailout.

Nonetheless, "unprecedented economic conditions and market forces have required the company to aggressively restructure our business and to consolidate our capacity in order to position the company for future success," Jim Tetreault, Ford's vice-president of North American manufacturing, said in a letter distributed to employees yesterday. "The vehicles manufactured at the St. Thomas Assembly Plant will no longer be required in our product portfolio and no incremental product could be identified to be manufactured at the facility," Mr. Tetreault said.

Those vehicles are the Ford Crown Victoria, Mercury Grand Marquis and Lincoln Town Car full-sized sedans, pushed off in recent years mainly to fleet customers such taxi companies and police forces.

But the gas guzzlers are pariahs now among governments, which are forcing the fleet owners they regulate and own to purchase more environmentally friendly vehicles.

Canadian Auto Workers president Ken Lewenza said although Ford made it clear during recent contract talks that the plant is closing, "this is very tough news."

Mr. Lewenza praised GM and the federal and provincial governments, however, for the GM investment, which will bring 150 Cami workers back from layoff and lead to increased production of Chevrolet Equinox and GMC Terrain compact crossover utility vehicles.

Retooling one of two body shops at Cami will enable the plant to increase production by about 40,000 vehicles a year.

Olive: Can Chrysler be fixed?

Fiat's Marchionne is taking a 'weird' approach to putting the brakes on automaker's demise

Toronto Star Nov 8, 2009

Sergio Marchionne and his executives set the appropriate tone this week at their marathon, six-hour-long unveiling of Chrysler's rescue strategy. The strategy is bizarre, and so was the meeting.

In his impassioned windup to the more than 300 industry analysts, dealers, government officials and auto journalists gathered at Chrysler's headquarters in suburban Detroit, Marchionne quoted Bill Clinton, Machiavelli and Bobby McFerrin.

Weird.

Marchionne, who spent most of his career in Toronto before a short stint with an Italian firm brought him to the attention of a then-crippled Fiat, had allowed earlier in the day that he bought a Fiat in 1968 in Toronto and was not impressed.

"If you had told me then I would be running Fiat, I would have laughed my head off."

Chrysler's salvation, should it come about, is entirely tied to its "Fiat-ization." To the adoption of Fiat styling, engine and drivetrain technology, and supposedly state-of-the-art manufacturing methods.

Decades after Fiat was driven out of a North American market where it had failed dismally, the stigma of "Fix it again, Tony" still falls readily from the lips of auto enthusiasts when the word Fiat is mentioned. Why remind us?

Weird.

Fiat's Canadian boss bragged that Chrysler's upscale Town and Country minivan, assembled in Windsor, is moving through Canadian showrooms like "chickenpox through a kindergarten class." Veteran auto analyst Nick Bunkley, who was live-Twittering the event, tweeted: "I can't make this crap up."

Marchionne has had precious little to say about his plan to restore Chrysler to viability since it exited bankruptcy in June. He did give one interview in which he complained that Chrysler was in much worse shape that he had imagined. A real confidence builder, that. Marchionne was at it again on Wednesday, boosting morale with his observation that Chrysler's in trouble "but it's not terminal"

This desultory tone was consistent with Marchionne's regard for Chrysler since Day One last spring. He insisted then that he would not take the reins at Chrysler, until Washington told him that was not on. He held out for a gratis 35 per cent stake in Chrysler until Barack Obama told him that was too greedy. (Marchionne had to settle for 20 per cent.)

He made war on Chrysler dealers by loading them up with inventory and then shutting them down. He fired the heads of the Dodge and Chrysler brands, posts to which he had just promoted them, when they broke Marchionne's directive not to talk to the auto press at the Frankfurt auto show. Omniscience and pettiness aren't an ideal mix in a turnaround CEO, whose troops already balk at keeping Marchionne's work hours. (The boss gets by on four hours' sleep.)

Despite four months to prepare, Wednesday's crucial tone-setting presentation fell flat. Not only from the gaffes, but the shoot-the-moon goals Marchionne proclaimed, described by one of the analysts at the Detroit event as "boldly delusional."

As one executive after another talked of doubling sales of a brand or boosting market share by unrealistic amounts, there were collective gasps in the audience. What are these guys smoking?

Still, it was a friendly audience. The auto press would love a Chrysler comeback story. There had to be a less petty way for Marchionne to deal with unstated skepticism than to say it is a "worldwide sport of beating people who are down."

The truth about Chrysler is that it's not down, but out. In a glut of global capacity, what the industry needs is for this chronically mismanaged firm to go away. Instead, Washington, Ottawa and Queen's Park have extended a total of about $14 billion in emergency loans to a company that hit the wall in the early 1970s, again a decade later, and survives now only on government life support – the latter an expression of goodwill that Marchionne might someday show some appreciation for.

Fiat has none of its own money on the line in this latest gambit to make Chrysler sustainably viable. It got its 20 per cent equity stake in the firm in exchange for taking on the task of fixing it. Marchionne has vowed not to commit a single euro of Fiat's own money to reviving Chrysler. Fair enough, since Fiat itself is bleeding cash back home in Europe.

In a nutshell, Marchionne proposes to spend $23 billion (U.S.) to develop 21 new bestselling vehicles that will roughly double Chrysler's North American market share in the short space of three or four model years. To make Chrysler profitable in just two or three years – something that earlier Chrysler owner Daimler AG could not do in nine years – and to pay off its $14 billion in government emergency loans by 2014.

Chrysler's sales volume has cratered by 50 per cent over the past two years. Its year-over-year market share has plummeted to 7.9 per cent in October from 11.3 per cent.

Where is the $23 billion (U.S.) going to come from, if not from Fiat? From a miraculous upturn in sales of Chrysler's current, unpopular product line, which will get a slapdash sprucing-up (inexpensive improvements to interiors, exterior trim and so on).

"It's cosmetics," shrugged Rebecca Lindland, of IHS Global Insight, telling the Detroit Free Press she cannot imagine that showroom dust-collectors like the Chrysler Sebring and Dodge Avenger are suddenly going to move like H1N1 through a crowded subway car.

Those 21 new Fiat-based models won't start arriving at Chrysler dealers for at least two years – the time needed to retool Chrysler plants, and for Chrysler hands to learn Fiat's manufacturing methods. That's too late. A resurgent Ford Motor Co. will have replaced its entire lineup by then. Also, its other rivals won't be watching grass grow under their feet.

The real problem is the Fiat-ization of Chrysler. Americans have never taken to Fiat styling. Fiat is the unlikeliest candidate to erase Chrysler's abysmal reputation for poor quality. Fiat itself ranks in the bottom quarter of more than 20 brands in J.D. Power's latest customer satisfaction survey in the company's core European market.

The word crapshoot comes to mind to describe what Marchionne is embarked on, that's how pie-in-the-sky it is. Except in that game, you play with your own money.

Inflatable seatbelts
coming to Ford Explorers

Bryce G. Hoffman / The Detroit News - Nov 6, 2009

Dearborn --For Srini Sundararajan, the new inflatable seat belt system that Ford Motor Co. debuted Thursday represents the culmination of a decade of work and the realization of his dream to make automobile transportation safer.

The 47-year-old biomedical engineer has spent nearly half of his 21-year career at Ford working on the first-ever system, which will debut on the new Ford Explorer next year and promises to provide unprecedented protection for back seat passengers -- particularly for children and the elderly.

"It's exciting. It's thrilling," he said Thursday. "We are finally done!"

Ford's new system incorporates small air bags inside the rear seat belts. These are deployed during a crash, spreading the force of impact over five times more area of the body than conventional seat belts, thereby greatly reducing pressure on the chest and helping to control head and neck motion.

Dr. Stewart Wang, a leading trauma surgeon at the University of Michigan and an expert on automobile crash injuries, said Ford's new seat belt air bag could be a real life saver -- especially for children and the elderly who are most vulnerable and most often sit in the rear passenger seats.

"It's hard to know for sure ahead of time, but this air bag has tremendous benefit by increasing the surface area (of the seat belt), and that allows them to restrain the torso better on a frail body," he said. "I think that the potential benefits are quite substantial."

Ford said the optional safety device, the first ever offered by an automaker, will ultimately be available on all of its cars and trucks worldwide for a "modest" additional cost.

The company unveiled its first prototype of the new safety system at the Detroit auto show in 2001. Since then, Sundararajan has led the team working to take the seat belt air bag from the show stand to the showroom. He says it has been an arduous journey.

The original plan was to put the system in the trunk of the vehicle, but Sundararajan said it rattled. He and his team then moved to other configurations before fixing on a location beneath the rear seats.

That worked, but the system was too expensive.

"We wanted to make it affordable for everybody," Sundararajan said. "That was a real challenge."

Ford wants to make this a mainstream offering.

That is why it is breaking with its recent practice of introducing new cutting-edge technologies in its Lincoln brand and only making them available on Ford products a year or two later.

"This is really about improving family safety, and we really think the Explorer fits that," said Sue Cischke, Ford group vice president in charge of sustainability, environmental and safety engineering.

Analyst Erich Merkle of Autoconomy.com said the seat belt air bag will resonate with parents, adding that it builds on other safety innovations the automaker has introduced in recent years that have helped the Dearborn automaker claim more five-star safety ratings from the federal government than any other manufacturer.

"Safety certainly gives you a competitive advantage," he said. "It's one more thing Ford is doing right."

Stay Home if You Have Swine Flu, Unless You Work at Wal-Mart

Ford Workers Should Be Applauded, Not Ridiculed

by Norm Kujawa | Mon, 11/04/2009

Editor’s note: Ford workers rejected a proposed concessions package last week that included a six-year wage freeze for new hires (who make half of current workers’ pay), combining of skilled trades, and giving up the right to strike for contract improvements. Ford had made some weak assurances of continued work and offered a $1,000 bonus.

The United Auto Workers announced the vote as 70 percent 'no' among production workers and 75 percent 'no' in skilled trades. UAW President Ron Gettelfinger’s home local in Louisville, Kentucky, voted no by 84 percent. The Dearborn Truck unit, whose president broke with International officials to urge a ‘no’ vote, rejected by 92.5 percent.

The pre-vote period was characterized by rank-and-filers producing leaflets that they distributed in the plants, and at least one raucous meeting in which UAW VP Bob King was shouted down.

UAW officials said they would not bring the concessions package back for a re-vote but would wait until the contract expires in fall 2011 to negotiate again.

To read how the Detroit newspapers tell it, you would think that union members dealt a death blow to Ford Motor Company when UAW-Ford workers voted overwhelmingly against another round of concessions to their 2007 contract. Rather than place blame for a corporate failure that may not occur, news media should applaud union members for doing something they have not done in over 30 years – vote against the wishes of their top union leaders.

While published reports have said that Ford will have a large, business-threatening debt load in 2011, workers in 2009, eight months after giving concessions at their leadership’s request, do not see the urgency to give more to Ford, especially since Ford reported financial gains in the second quarter, and—right after the vote—announced a $1 billion profit for the third quarter.

Concessions were double-edged idea

The drive to ask the membership for concessions was likely a double-edged idea from Ford management and UAW leaders, long known for their labor-management harmony. Management, seeking to reduce the predicted debt load and reach competitive equality with General Motors and Chrysler, whose workers were forced to give concessions due to the GM and Chrysler bankruptcy filings, thought workers would be understanding of their needs and voluntarily give up more from their contract, even while seeing increased sales and profits since voting to help the company with previous concessions.

The UAW sought to maintain pattern bargaining, a staple of the union since Walter Reuther’s days as president. Pattern bargaining, done by the UAW for over 60 years, was always a tool to bring the workers in the weakest bargaining position to equality with workers in the strongest bargaining position. This is the first time that pattern bargaining has been attempted to bring the strongest company down to achieve the pattern with the poorer companies.

With the GM and Chrysler concessions last May, Ford workers stood ahead of their brethren in many areas, including entry worker pay, job classifications, and work rules. Instead of waiting out the contract, the UAW chose to bring the Ford workers in line with GM and Chrysler workers now, at a time when Ford has been selling the government, the media, the public, and Wall Street on the idea that their business plan, management team, and labor relations are the best of the three U.S. auto companies.

No clear explanation

Ford workers said throughout the process that they had given back enough and did not see the necessity in giving the company more from their contract while increased sales and profits were being announced. They certainly do not feel that they have to endure the same pain that GM and Chrysler workers were forced to endure by the U.S. government. Yet the International UAW kept insisting that the concessions were necessary, without clearly explaining the financial situation that Ford may find themselves in in two years.

Attempts were made by Ford management to tell workers how bad the business situation might be in two years. Executives were sent to plants around the country to give slide show presentations and give gloom-and-doom speeches. After the tentative agreement was reached, UAW-Ford negotiators traversed the same path across the country to explain the concessionary agreement to a confused membership. The necessity to give concessions to a company announcing profits certainly confused many union members, and is something that UAW members have not seen before.

Several employees, not wanting to risk the future of their plant, voted for the concessions. Several plants were promised product if the agreement passed, while others would be considered for product. Giving up the right to strike and freezing wages for new hires for six years, not just the remainder of the current contract, was not a concern to those that voted for the agreement.

Workers change course

Unconvinced of Ford’s impending 2011 failure and tired of being asked to foot the bill for management’s business failures, UAW members at Ford chose not to stand by but to be an active participant in the labor relations process. Management, with the UAW’s buy-in, was able to present a good business case for concessions just a few months previously. They have not done so in this instance.

In the past, workers went for the money. This time, despite a $1000 bonus offered if the agreement passed, workers declined the money and instead stood up for what they believed was right. The years of being told they had to sacrifice again and again had finally taken a toll.

Some reporters and bloggers have said that UAW members cannot see the big picture, and undoubtedly Ford management and UAW leadership feel the same way, but asking for concessions while telling the world of your profitability simply isn’t smart.

Shop floor a forgotten place

While UAW members get ridiculed for making too much money, having too good a benefit package, and apparently not understanding big business, the know-it-all commentators and those negotiating concession packages have either forgotten, or know nothing about, the shop floor and working conditions auto workers perform under.

Today’s auto factories are nothing like the factories of decades ago, but the culture and environment inside the auto factories is still highly stressful. The much-talked-about relationship between Ford management and the UAW has not rolled down to the shop floor. In the real Ford plant world, employees have to deal with supervisors that care more about the numbers of product being produced than how it is being done, and management that seemingly cares more about climbing the next rung on the corporate ladder than managing effectively.

These realities, coupled with a selection process that discourages the best candidates from getting involved in union leadership, has led to a chaotic environment that places workers in a survival mode where every day brings new challenges, new drama, non-stop politics, and few escapes from the pressure that workers constantly find themselves under. Fixing the way business is conducted inside plant locations would go a long way toward fixing the mindset of the workforce where harmonious labor relations, spoken so highly of at the corporate level, are just a fantasy.

Workers have been beaten down by the media, the general public, and their own union and company leadership for so long, it should not have been a surprise to anyone that the concessions agreement was voted down. Those that were surprised simply are out of touch with the reality of worklife inside an auto plant. Perhaps this is the beginning of a new workers revolution, one that will gain the respect of those that negotiate on their behalf and redefine the direction of the UAW.

[Norm Kujawa was editor of the UAW Local 3000 Guide for 17 years. Local 3000 represents workers at AutoAlliance, the Mazda-Ford joint venture in Flat Rock, Michigan.]

St. Thomas plant closure
may doom 10,000 jobs

Nov 4, 2009 Canadian Press

The closure of Ford's assembly plant in St. Thomas, Ont., will not only affect the 1,400 workers currently employed at the facility, but also thousands more in the auto parts and transport industries.

Auto industry analyst Bill Pochiluk says approximately 2,500 jobs will be lost among auto parts suppliers in both Canada and the United States as a result of the closing.

And Canadian Auto Workers economist Jim Stanford says as many as 10,000 jobs in total could be lost due to the spinoff effects on the community of St. Thomas and surrounding areas.

The plant's closure will also cost the St. Thomas area more than $3 million in tax revenue.

The St. Thomas region of southwestern Ontario has been hit hard by the distress in the Canadian manufacturing sector and the auto industry in particular.

Stanford says it's probably the second-hardest hit community in Canada after Windsor, Ont.

FORD CANADA POSTS FIFTH CONSECUTIVE YEAR-OVER-YEAR SALES INCREASE; SALES UP 20%

Led by double-digit increases of Ford Fusion
and Taurus October Highlights:

• Overall vehicles sales were up 20% compared to last October
• Car sales increased 8% compared to same period last year
• Ford Taurus sales rose 57%
• Ford Fusion sales were up 65%
• Ford Mustang sales increased 8%
• Ford Flex sales rose 38%, best October on record
• Ford Edge sales were up 38%, best October on record
• Ford Escape sales increased 19%, best October on record
• Ford F-Series sales were up 59%
• Ford Explorer sales increased 21%
• Ford Expedition sales were up 46%
• Lincoln MKX sales rose 90%
• Overall Lincoln sales jump 22%

OAKVILLE, Ontario, November 3, 2009 – Ford Motor Company of Canada, Limited saw sales increase 20.1 per cent compared to the same period last year marking the company's fifth consecutive month of year-over-year sales gains. Strong sales were led by the award-winning Ford Taurus, which was recently named "Best New Family Car" in the over $30,000 category by the Automobile Journalists Association of Canada (AJAC).

Also, Ford Fusion and Ford Taurus delivered strong performances with sales increases of 64.5 per cent and 57.1 per cent respectively.

October also marked the twelfth consecutive month of market share growth, with cars and trucks from both Ford and Lincoln showing sales increases.

"We are making steady progress and remain fully focused on our plan to build a strong and sustainable Ford," said David Mondragon, president and CEO, Ford of Canada. "Consumers are seeing the signs of recovery and are gaining confidence in the quality, fuel efficiency, safety and smart technology incorporated in our new product lineup. In fact, 90 per cent of our sales come from our new models."

In addition to the 8.4 per cent increase in car sales, total truck sales were up 23.6 per cent compared to last October. The results were driven by products like the Ford Taurus, Fusion, Escape and F-Series along with the Canadian-built Ford Flex, Ford Edge and Lincoln MKX.

Due to its overwhelming success, Ford is extending its 'Recycle Your Ride' program through until January 4, 2010. With this program, consumers turning in 15-year-old (or older) vehicles for recycling will get up to $3,000 toward the purchase of a new vehicle. Ford's scrappage program builds on the Canadian government's 'Retire Your Ride' initiative which offers $300 and other benefits to eligible participants. So far, Ford of Canada has been able to scrap 1,419 clunkers under the program -- more than any other automaker.

"The Recycle Your Ride program is helping Canadians afford new vehicle ownership and is great for the environment because these older, high-polluting vehicles are taken off the road," said Mondragon. "The key to the success of Ford's program is reaching out to dealers and consumers directly so that getting a refund from the program is fast and easy."

Ford Motor Company of Canada, Limited
October 2009 Vehicle Sales

Gettelfinger says failed Ford pact worth modest price

DETROIT -- UAW President Ron Gettelfinger (pictured) said today that the Ford-UAW contract modifications rejected overwhelmingly by Ford's 41,000 hourly U.S. workers would have saved the automaker just $30 million.

In a phone interview today, Gettelfinger said he pushed the modest concessions to lock in future product commitments at Ford plants and to bring the Ford agreement with the UAW into pattern with union agreements with General Motors Co. and Chrysler Group.

Gettelfinger said a little-publicized provision of the modifications would have allowed the UAW to call a strike at Ford if the company failed to meet its product commitments. The UAW had no such provision to strike over product commitments in its GM and Chrysler contracts, he said.

A key reason that rank-and-file voters opposed the new concessions was wording that required binding arbitration over any bargaining impasses in the 2011 contract talks.

Gettelfinger said the UAW agreed to binding arbitration to bring the Ford contract into pattern with no-strike clauses negotiated this year with GM and Chrysler.

“In good times, you establish a pattern, and in bad times, you stay with the pattern,” Gettelfinger said.

He said he saw no long-term damage resulting from the contract rejection either to Ford or the UAW.

The UAW announced today that 70 percent of voting Ford production workers rejected the contract, while skilled trades workers turned it down by 75 percent.

Gettelfinger said that after paying each of the 41,000 hourly workers a $1,000 bonus called for in the modifications, or $41 million, the contract would have saved Ford just $30 million.

Ford spokeswoman Marcey Evans declined to comment, except to note that the rejected modifications were more about operating improvements than saving Ford money. In addition to binding arbitration, the modifications called for combining some skilled trades and a freeze on wages for entry-level workers.

Gettelfinger said the Ford product commitments, which meant job security for union workers, were airtight and approved by Ford's board of directors.

If Ford had failed to live up to those commitments, the union had an immediate right to strike over that issue, Gettelfinger said.

The contract language also had a caveat that product commitments were subject to market demands, he acknowledged.

But “market demand” is often debatable, providing the union with the ability to strike in a close call. “It had real teeth,” Gettelfinger said.

Gettelfinger credited Ford in the negotiations with sticking to a pledge not to ask for additional concessions on retiree health care.

On Jan. 1, Ford must make a $1.9 billion payment into a UAW-administered voluntary employees' beneficiary association, with at least $1.3 billion of the amount in cash and the rest in Ford stock. In contrast, GM negotiated a much bigger reduction in the amount it must pay in cash Jan. 1 -- to $585 million.

All told, Ford must pay $6.5 billion of a $13.2 billion obligation to the VEBA in cash, while GM's cash payment is just $2.5 billion for an obligation that was $20 billion before new concessions were negotiated just before the automaker's bankruptcy filing June 1.

Said Gettelfinger: “Ford kept its word.”

UAW rejects new concessions
to Ford, no new talks

* UAW membership rejects concessionary deal with Ford
* Says Ford's Q3 results reflect workers' past concessions
* Says will not return to bargaining table

DETROIT, Nov 2 (Reuters) - The United Auto Workers union overwhelmingly rejected a proposed cost-cutting deal with Ford Motor Co on Monday, delivering a setback for the automaker as it seeks to bring its labor costs in line with U.S. rivals.

The UAW said that 70 percent of production workers and 75 percent of skilled trades workers voted to reject a proposed agreement the union leadership and Ford negotiated in October to change the 2007 contract.

The deal would have brought the automaker's labor costs in line with General Motors Co [GM.UL] and Chrysler Group LLC, both of which won additional concessions as part of their government-financed bankruptcies.

UAW President Ron Gettelfinger said in a statement the union's past concessions have positioned Ford to be a strong competitor in a tough market and its surprise quarterly net profit announced early on Monday provided further evidence of the contributions the workers have made.

"While we will not be returning to the bargaining table, our ... membership will continue to work with Ford on a daily basis in an effort to keep new products coming into our plants," Gettelfinger said.

The UAW represents about 41,000 U.S. factory workers at Ford.

STATEMENT: UAW-FORD TENTATIVE AGREEMENT RATIFICATION RESULT

Note: The following statement is attributable to Joe Hinrichs, group vice president, Global Manufacturing and Labor Affairs, Ford Motor Company.

Dearborn, Mich., Nov. 2 – We appreciate the UAW leadership for working with us to reach a tentative agreement on further modifications to our national labor agreement. Ford is disappointed that the additional changes were not ratified.

In March, the UAW-Ford membership ratified changes to the 2007 UAW-Ford national labor agreement and the Voluntary Employee Beneficiary Association health care trust that went most of the way in moving Ford to competitive parity with foreign-owned automakers. The additional modifications we sought recently were designed to honor pattern bargaining and provide Ford with similar additional efficiencies as those ratified this year for our domestic competitors. 

All of us at Ford are absolutely committed to continuing to make progress on our transformation plan, and we will take the necessary steps to be competitive with the best in the business. 

Moving forward, we will work with the UAW to discuss the next steps to ensure Ford remains competitive so we can continue to make product commitments and invest in our manufacturing facilities here in the United States.

CAW Members at Ford
Approve New Agreement

November 1, 2009

(Toronto) Thousands of CAW members working at Ford facilities in Oakville, Windsor, St. Thomas and Bramalea have voted in favour of a new agreement, ratifying the deal by 83 per cent during a series of meetings held over the past two days. The deal was reached on October 30 between the two sides.

“No one should mistake workers’ approval as satisfaction with the new agreement,” said CAW President Ken Lewenza. “Members had faith in the union to negotiate the best agreement possible and protect their interests over the long term, but the problems faced by industry cannot be resolved at the bargaining table.”

We need government and policy makers to wake up to the fact that the country’s industrial base is rapidly eroding and with it, the entire middle class.”

The deal is the second cost-cutting agreement reached between the CAW and Ford in 18 months and includes cuts to benefits, a reduction in vacation, break times and co-pays on health care, all of which were pattern items from the agreements with Chrysler and General Motors. 

During the negotiations Ford also announced it would be closing the St. Thomas assembly plant in 2011, eliminating 1,400 jobs in the already hard-hit community. Workers at the plant manufacture the Ford Crown Victoria, Mercury Grand Marquis and Lincoln Town Car.

“This has been an extremely stressful and difficult year for Ford workers, just as it has been for hundreds of thousands of workers right across the country,” said Mike Vince, chairperson of the CAW-Ford Master Bargaining Committee and president of CAW Local 200.  “Our members have been dealing with terrible insecurity as a result of financial crisis and recession and this new agreement will give a greater deal of job security right until 2012.”

The new agreement expires on September 17, 2012 and covers approximately 7,000 Ford workers.

The results by location are as follows:

CAW Local 1520, St. Thomas
Production:  80% in favour
Skilled Trades: 81% in favour
Combined total: 80% in favour

CAW Local 200, Windsor
Production: 81% in favour
Skilled Trades: 75% in favour
Combined total: 80% in favour

CAW Local 707, Oakville
Production: 90% in favour
Skilled Trades: 91% in favour
Combined total: 90% in favour

CAW Local 584, Bramalea
Total: 85% in favour

CAW Local 240
Office: 100% in favour

CAW Local 1324
Office: 83% in favour

Combined Totals:
Total Production: 84% in favour
Total Skilled Trades: 81% in favour
Total Office: 94% in favour

Overall total: 83% in favour

Ford's mantra of difference was taken to heart by its UAW workers

Nov 1, 2009 BY TOM WALSH
FREE PRESS BUSINESS COLUMNIST

UAW workers to Ford Motor Co. and Chief Executive Alan Mulally: “We think we’re OK where we are.”

That’s the clear message in a decisive rejection by Ford hourly workers of the Dearborn automaker’s latest plea for concessions on pay and work rules to match what Chrysler and General Motors gained in bankruptcy.

And it’s proof that words can come back to haunt you.

Remember Mulally’s statement of Nov. 18, 2008, testifying before Congress?

When asked whether he would work for $1 a year during the auto industry crisis, Mulally replied, “I think I’m OK where I am.” (He made $4.9 million last year in salary bonus and benefits, and was awarded stock options valued at $8.7 million.)

You can bet the rank-and-file workers remember.

They also remember Ford management’s repeated use of the word “different” over the past year, intended to set Ford apart from crosstown rivals GM and Chrysler.

If Ford is so happy being different and better off than GM and Chrysler, the workers are asking, what’s wrong with us being better off, too?

Ford was different, its executives said, because it didn't run out of cash like GM and Chrysler.

Different because it didn't take taxpayer money to survive like GM and Chrysler.

Different, different, different. Pounding the drumbeat of difference clearly has helped Ford's public image, its car and truck sales and its stock price.

But when it comes to the wages, benefits and work rules of its UAW workforce, Ford doesn't want to be different. It wants the same labor cost savings that GM and Chrysler achieved in Chapter 11 bankruptcy.

It's easy to understand, in that context, the defiance so many Ford UAW workers have shown in recent days toward coughing up another round of contract givebacks.

They're OK with being different.

That doesn't mean, however, that Ford is wrong to ask for more concessions.

Indeed, Ford must keep insisting on cost parity with GM, Chrysler, Toyota, Honda and every other major competitor if the company is to survive and prosper.

Ford's management must continue to push the envelope on costs. Otherwise, by repeating the old cycle of avoiding confrontation by appeasing its labor union, Ford risks winding up again with the bloated legacy costs and debt loads that have made the Detroit automakers so uncompetitive with foreign rivals for the last 25 years.

Alan Mulally, Ford's president and chief executive officer, along with Executive Chairman Bill Ford Jr. and the rest of the Dearborn hierarchy, have stated bluntly that Ford Motor cannot allow itself to be disadvantaged by the bankruptcies of GM and Chrysler.

And, in fact, they convinced UAW President Ron Gettelfinger and UAW Ford Vice President Bob King that the history of pattern bargaining among the Detroit Three should be kept intact. Ford should get the no-strike clause, more flexible work rules and a freeze on entry-level worker pay that GM and Chrysler had been granted.

To persuade the concessions-weary UAW workers in the Ford plants to go along, a number of promises were made about where production of future models would be located. And the jobs that go along with those decisions, of course. Workers also were offered $1,000 bonuses.

But even with those sweeteners, the UAW rank and file has turned its thumbs down.

So what now?

Wall Street lifts an eyebrow of worry about Ford's future? Gettelfinger and King, the would-be successor to Gettelfinger as UAW president, have a little egg on their faces because they couldn't deliver a ratification vote?

So what?

Both sides need to regroup, jawbone some more and do whatever it takes to ensure that Ford stays competitive and keeps its momentum.

There's no need for an immediate revote.

Nor would it be wise for Ford management to take a high-profile, obviously punitive action like relocating production of some promising new model from Michigan to Mexico.

Still, it must be steadfast about cost control. This is the Detroit auto industry's last chance to get it right. No time for weak knees.

But it should remember to choose its words carefully.

*************************************

Download the flyer in favor of contract changes (PDF)

Download the flyer in opposition to contract changes (PDF)

Ford deal with UAW
goes down to defeat

Bryce G. Hoffman and Louis Aguilar / The Detroit News

In a fatal blow to an accord with Ford Motor Co., United Auto Workers members at three of the automaker's largest locals voted Friday against ratification of the proposed contract changes.

At the Dearborn Truck Plant, 93 percent of the votes were cast against the agreement; 53 percent of workers casting their ballots at the Romeo Engine Plant voted against the deal. And at UAW Local 862 in Louisville, which represents workers at both the Louisville Assembly Plant and Kentucky Truck Plant, 84 percent voted no.

Though UAW voting will not be completed nationwide until Sunday, enough plants now have rejected the deal to make it virtually impossible for the agreement to win enough votes for approval.

"I think it's over," said Gary Walkowicz, one of union dissidents who has led the opposition to ratification. "People are saying 'No more.' We've had enough concessions already. We've given up enough already."

While the UAW pact is headed for defeat, the Canadian Auto Workers announced a tentative agreement Friday with Ford that matches concessions union members already gave to General Motors Co. and Chrysler Group LLC.

UAW members at Ford have been angered by language that limits the union's right to strike over pay and benefit increases in the next round of national contract talks in 2011.

Workers at GM and Chrysler already approved a much broader "no strike" clause as part of agreements negotiated during those companies' government-mandated bankruptcy reorganizations earlier this year.

Union dissidents say Ford already is doing better than GM and Chrysler and does not warrant the same treatment.

But UAW leaders say giving Ford at least a measure of parity with its cross-town rivals is essential to ensuring the continuation of pattern bargaining.

CAW President Ken Lewenza made a similar pitch to his members Friday.

"Pattern bargaining has done wonders for our members, and it stays in place," he said of the new deal with Ford. "Without a pattern, Ford would be trying to extract more from our members."

Deal means more work

The tentative agreement between Ford and the CAW exactly matches the terms the union negotiated with GM and Chrysler as a condition of the Canadian government's bailout of those automakers earlier this year -- including a wage freeze for the life of the contract, a freeze on cost-of-living adjustments after June, the elimination of one paid week off and increased insurance co-payments.

In exchange, Ford agreed to add additional work at its Windsor engine factory and committed to bring a new global platform to its Oakville Assembly Plant sometime after 2012. About 10 percent of Ford's North American production will remain in Canada, which is equal to its sales there.

But Ford will close its assembly plant in St. Thomas, Ontario, in September 2011 when production of the Ford Crown Victoria and Lincoln Town Car ends. That means approximately 1,400 Ford CAW members there will lose their jobs, along with about 6,000 workers employed by suppliers and other companies that support Ford's operations there, according to the union.

"This is devastating for Canada," Lewenza acknowledged, though he said the CAW had negotiated "good" severance benefits for its members, along with a commitment by Ford to offer early-retirement packages at its plants in Windsor and Oakville that could create openings for workers who want to stay at Ford.

Lewenza said the only alternatives were much worse.

"They actually talked about disinvesting in Canada if we didn't extend the pattern to them," he said.

"Our costs are high, relative to U.S. plants -- particularly given the strength of the loonie."

Workers at some UAW plants that voted against the new deal with Ford also are worried that they could lose work if the agreement fails to win ratification.

UAW members at Ford's axle factory in Sterling Heights began circulating a petition Friday calling for a revote after local leaders warned that Ford could transfer new products promised to that plant to a German supplier.

However, UAW President Ron Gettelfinger told reporters later that he would not approve another vote.

More locals reject Ford pact

On Thursday, workers at three more U.S. Ford factories voted against the proposed contract changes, which also would freeze wages and benefits for new hires and give the company greater flexibility in how it deploys employees.

Workers at two Chicago-area complexes soundly rejected the modifications Thursday, as did UAW members at Ford's parts factory in Saline.

Approximately 80 percent of workers at UAW Local 588, which represents workers at Ford's Chicago Stamping Plant, voted against the deal, while 70 percent voted no at UAW Local 551, which represents the Chicago Assembly Plant. At Saline, 75 percent of workers voted against ratification.

While the UAW is not releasing official figures until voting is completed, at least 11 locals now have rejected the agreement. At least four have voted in favor of ratification. A simple majority of Ford's 41,000 UAW-represented workers must approve the deal for it to pass.

While Lewenza stressed that the UAW vote is "not relevant to our decisions here," he said CAW members are certainly aware of the surprise opposition to the U.S. agreement. But he urged them to think differently.

"Our members face a critical choice," Lewenza said.

"Ford is not in good financial shape. ... They have a lot of debt."

What Ford does have, he said, is new product that is beginning to win back consumers in both Canada and the United States, and he said workers need to do what they can to help the company's turnaround succeed.

Retirees Thanksgiving Luncheon Oct 9, 2009

Click here for more Pictures

Click on picture below to see video of their story

(Note: Short advertisement at the beginning)

John Mlacak 73
Former Nortel Manager faces a 30% pension loss

Leroy Pickett 67
39 Years at a steel factory, his pension cut by 30%

Ernie MacInnis 58
Laid off from his factory job of 40
years, he's living on a pension that's
underfunded by 10 per cent

Fielding Smith, 62
After 41 Years of work he now
collect bottles for extra cash

Avtar Loodu, 60
His company went bankrupt with a
30 per cent pension deficit

RETIREMENT LOST: PART ONE

RETIREMENT LOST: PART TWO

RETIREMENT LOST: PART THREE

RETIREMENT LOST: PART FOUR

RETIREMENT LOST: PART FIVE

RETIREMENT LOST: PART SIX

RETIREMENT LOST: PART SEVEN

More UAW locals
vote no on Ford deal

Canadian union reaches tentative
agreement with U.S. carmaker

Bryce G. Hoffman and Louis Aguilar / The Detroit News
Oct 31, 2009

In a fatal blow to an accord with Ford Motor Co., United Auto Workers members at three of the automaker's largest locals voted Friday against ratification of the proposed contract changes.

At the Dearborn Truck Plant, 93 percent of the votes were cast against the agreement; 53 percent of workers casting their ballots at the Romeo Engine Plant voted against the deal. And at UAW Local 862 in Louisville, which represents workers at both the Louisville Assembly Plant and Kentucky Truck Plant, 84 percent voted no.

Though UAW voting will not be completed nationwide until Sunday, enough plants now have rejected the deal to make it virtually impossible for the agreement to win enough votes for approval.

"I think it's over," said Gary Walkowicz, one of union dissidents who has led the opposition to ratification. "People are saying 'No more.' We've had enough concessions already. We've given up enough already."

While the UAW pact is headed for defeat, the Canadian Auto Workers announced a tentative agreement Friday with Ford that matches concessions union members already gave to General Motors Co. and Chrysler Group LLC.

UAW members at Ford have been angered by language that limits the union's right to strike over pay and benefit increases in the next round of national contract talks in 2011.

Workers at GM and Chrysler already approved a much broader "no strike" clause as part of agreements negotiated during those companies' government-mandated bankruptcy reorganizations earlier this year.

Union dissidents say Ford already is doing better than GM and Chrysler and does not warrant the same treatment.

But UAW leaders say giving Ford at least a measure of parity with its cross-town rivals is essential to ensuring the continuation of pattern bargaining.

CAW President Ken Lewenza made a similar pitch to his members Friday.

"Pattern bargaining has done wonders for our members, and it stays in place," he said of the new deal with Ford. "Without a pattern, Ford would be trying to extract more from our members."

Deal means more work

The tentative agreement between Ford and the CAW exactly matches the terms the union negotiated with GM and Chrysler as a condition of the Canadian government's bailout of those automakers earlier this year -- including a wage freeze for the life of the contract, a freeze on cost-of-living adjustments after June, the elimination of one paid week off and increased insurance co-payments.

In exchange, Ford agreed to add additional work at its Windsor engine factory and committed to bring a new global platform to its Oakville Assembly Plant sometime after 2012. About 10 percent of Ford's North American production will remain in Canada, which is equal to its sales there.

But Ford will close its assembly plant in St. Thomas, Ontario, in September 2011 when production of the Ford Crown Victoria and Lincoln Town Car ends. That means approximately 1,400 Ford CAW members there will lose their jobs, along with about 6,000 workers employed by suppliers and other companies that support Ford's operations there, according to the union.

"This is devastating for Canada," Lewenza acknowledged, though he said the CAW had negotiated "good" severance benefits for its members, along with a commitment by Ford to offer early-retirement packages at its plants in Windsor and Oakville that could create openings for workers who want to stay at Ford.

Lewenza said the only alternatives were much worse.

"They actually talked about disinvesting in Canada if we didn't extend the pattern to them," he said.

"Our costs are high, relative to U.S. plants -- particularly given the strength of the loonie."

Workers at some UAW plants that voted against the new deal with Ford also are worried that they could lose work if the agreement fails to win ratification.

UAW members at Ford's axle factory in Sterling Heights began circulating a petition Friday calling for a revote after local leaders warned that Ford could transfer new products promised to that plant to a German supplier.

However, UAW President Ron Gettelfinger told reporters later that he would not approve another vote.

More locals reject Ford pact

On Thursday, workers at three more U.S. Ford factories voted against the proposed contract changes, which also would freeze wages and benefits for new hires and give the company greater flexibility in how it deploys employees.

Workers at two Chicago-area complexes soundly rejected the modifications Thursday, as did UAW members at Ford's parts factory in Saline.

Approximately 80 percent of workers at UAW Local 588, which represents workers at Ford's Chicago Stamping Plant, voted against the deal, while 70 percent voted no at UAW Local 551, which represents the Chicago Assembly Plant. At Saline, 75 percent of workers voted against ratification.

While the UAW is not releasing official figures until voting is completed, at least 11 locals now have rejected the agreement. At least four have voted in favor of ratification. A simple majority of Ford's 41,000 UAW-represented workers must approve the deal for it to pass.

While Lewenza stressed that the UAW vote is "not relevant to our decisions here," he said CAW members are certainly aware of the surprise opposition to the U.S. agreement. But he urged them to think differently.

"Our members face a critical choice," Lewenza said.

"Ford is not in good financial shape. ... They have a lot of debt."

What Ford does have, he said, is new product that is beginning to win back consumers in both Canada and the United States, and he said workers need to do what they can to help the company's turnaround succeed.

Sam Gindin: The economy should be transformed
to meet climate change challenge

Ford to close St. Thomas
assembly plant

Workers to vote this weekend on closeout deal
after union says there's no way to avert shutdown

Sterling Heights Ford UAW local may ask for revote

Workers fear 'no' vote will lose axle work for site

Oct 30, 2009

Bryce G. Hoffman / The Detroit News

Ford Motor Co. could shift work promised to its Sterling Heights axle factory as part of a tentative agreement with the United Auto Workers to a German supplier after the local union voted overwhelmingly against the deal, according to a union source.

Now, some workers there are organizing a petition urging UAW President Ron Gettelfinger to call for a revote.

Spurred on by union dissidents who say the time for concessions is over, rank-and-file members at plants across the country have cast their ballots against the proposed contract changes, which were negotiated by Ford and UAW leaders earlier this month. While the union has not released any numbers, people familiar with the situation said about 3,000 more workers have so far voted against ratification than have voted in favor of it.

Under the terms of the agreement, Sterling Axle was supposed to get new rear-wheel drive work that would have added about 100 jobs. Now, union sources fear that work will be given to Getrag Corp., a German supplier with a nonunion factory in North Carolina. Local union leaders also were told Ford is considering outsourcing other components made at the plant, where 80 percent of workers voted against ratification.

The company says any change in its plans for Sterling will not come until after voting is completed at all locals.

"We haven't made any decision," said Ford spokesman Mark Truby. "We're not going to comment on future product sourcing during the ratification process."

With voting scheduled to continue through Sunday at the remaining UAW locals, momentum could still shift in favor of the agreement. But Ford executives have little hope of that happening.

"This may be the start of a little hard ball," said David Cole, chairman of the Center for Automotive Research. "If Ford can't be competitive on labor, I think we'll see more outsourcing."

On Thursday, results from two Ohio locals were released, providing more bad news to the company and union leaders. UAW Local 420, which represents workers at Ford's Walton Hills Stamping Plant, voted 88 percent against ratification. At UAW Local 863, which represents workers at the Sharonville Transmission Plant, 75 percent of workers voted no.

Now, attention is focused on UAW Local 862 in Louisville, where workers from Ford's Kentucky Truck Plant and Louisville Assembly Plant are casting their ballots.

That is Gettelfinger's home local, and the UAW president traveled there on Sunday to urge members to support the deal.

Opponents are critical of a clause that would limit the UAW's right to strike in the upcoming 2011 contract negotiations. But Ford says these limits are necessary to maintain a measure of parity with its domestic competitors, which negotiated even broader "no-strike" deals with the UAW during their recent bankruptcies.

The deal also offers the promise of new work to plants like Sterling Axle.

"I don't think people here really understood that the work we had been promised was contingent on ratification," said Sterling Axle UAW member Brian Pannebecker, who voted in favor of the agreement and is now helping to organize a petition in support of revote.

Ford lauded for
'world-class' reliability

Consumer Reports says carmaker has
achieved 'world-class' quality status

Alisa Priddle / The Detroit News
October 28, 2009

Detroit -- Ford Motor Co. is the most reliable domestic automaker, and continued quality improvements have brought its vehicles almost bumper to bumper with its Japanese competitors, Consumer Reports magazine said Tuesday.

"Ford has secured its position as the only Detroit automaker with world-class reliability," Consumer Reports said in releasing its 2009 Annual Car Reliability Survey to the Automotive Press Association here.

The endorsement for Ford comes as Detroit's Big Three fight to retain market share against strong foreign competitors and as General Motors Co. and Chrysler Group LLC strive to show the government and American taxpayers that a strong domestic auto industry is worth saving and can lead the field. GM and Chrysler, however, didn't fare as well as Ford and still have work to do, Consumer Reports said.

This is just one more proof point, but it's a great testament because that's not a statement (Consumer Reports) has always made about us," said Bennie Fowler, Ford's global quality chief.

And it's the result of dedicated work to get there.

When Ford first closed the quality gap with Honda and Toyota a few years ago, "we didn't know if it was a fluke or if they could maintain it," said Rik Paul, automotive editor for Consumer Reports. But Ford continued to produce well-made vehicles that testers and readers appreciate.

Ford CEO Alan Mulally spoke repeatedly about reliability when he took over the company, and he visited the magazine to better understand and address lackluster findings that the company's vehicles had previously suffered.

Efforts at Ford today include a system that sends information about a problem to team members on the assembly line within 24 hours of a vehicle being brought into a dealership so changes can be made to correct the issue and prevent a recurrence.

Toyota, which consistently does well in the survey, also takes any slips seriously -- such as the Lexus GS that was rated below average.

"Historically, when a car's quality has slipped, the problem is rectified the following year," said Toyota Motor Corp. spokesman Curt McAllister. "We're not sure what the problem was with the GS, but we will go through the data with Consumer Reports."

About 1.4 million readers submitted data on vehicles from 2000 to 2009 model years, and the reliability results augment staff road tests of current vehicles to determine whether a vehicle is recommended to buyers.

Toyota and Honda Motor Co. still dominate the industry for long-term reliability, and the Honda Insight topped the list as the single most reliable vehicle. The Volkswagen Touareg was last in the survey. Of the 48 models with top reliability scores, 36 were Asian brands. Toyota had 18; Honda had eight; Nissan Motor Co., four; and Hyundai Motor Co./Kia Motors Corp. and Subaru each had three.

GM had some "bright spots" and appears to be on the right track if new vehicles such as the Chevrolet Malibu are any indication, but Chrysler "still struggles" and has a long way to go with only a single vehicle recommended by the testers and readers of the magazine. Last year, the Auburn Hills automaker had none recommended.

Bankruptcy filings by GM and Chrysler did not affect results -- the survey was taken in the spring before the companies completed their stints under Chapter 11 protection, Paul said. And bankruptcy should not affect next year's results if readers are objectively noting things that break on their cars, Paul said.

Of 48 GM models, 20 were average. The all-wheel-drive Chevrolet Traverse/Buick Enclave crossovers did well, and the magazine now recommends the Chevrolet Silverado/GMC Sierra light-duty pickups.

"Consumer Reports is one of several third-party inputs GM takes seriously because we realize the influence it has on purchase decisions," said Jamie Hresko, GM vice president of global quality.

Chrysler faces the biggest challenge. Its three brands are among the four worst, and more than a third of Chrysler products are rated much worse than average. Only the Dodge Ram 1500 is recommended, and there are few new cars and trucks on the horizon to boost future scores, Paul said.

As bad as that sounds, it is an improvement over last year when the Chrysler Sebring was the worst single vehicle on the list and no models were recommended.

Chrysler will detail efforts to restore quality in its five-year business and product plan to be unveiled Nov. 4 and is expected to talk openly about the need to correct quality and other errors committed under previous owners. Chrysler's newest partner, Fiat SpA, has implemented its manufacturing processes and quality controls, and improvement already can be seen, Chrysler spokeswoman Jodi Tinson said.

Warranty claims have been reduced 30 percent in the last 18 months, she said, adding that "the Ram represents where we are going."

The problem, said Consumer Reports senior auto engineer Jake Fisher, is that Fiat in Europe is known for its style, not its quality.

"There could be a lot of very pretty cars broken down on the side of the road," Fisher said.

That should not be the case for Ford products, as about 90 percent had average or better reliability, according to the survey.

The Ford Fusion and Mercury Milan beat out the Honda Accord and Toyota Camry for the second year.

"It's rare for Consumer Reports to see family sedans from domestic carmakers continue to beat the reliability scores of such highly regarded Japanese models as the Camry and Accord," said David Champion, senior director of Consumer Reports' Automotive Test Center. The last domestic that had better reliability than the Camry and Accord was the Buick Regal in 2004, he said.

GM's Malibu with a V-6 also did well and "is on par with the most reliable family sedans," Champion said.

Ford's upscale Lincoln brand did not fare as well. All-wheel-drive versions of the Lincoln MKS, MKX and MKZ came in below average. But the MKZ was ranked stronger than the Lexus ES or Acura TL.

The Honda Accord dipped in overall ratings, something Honda spokesman Chuck Schifsky said is not uncommon for a new car. "Customers may have problems with new features and technology they are not used to. But I think the study showcases the hallmarks of the Honda brand: durability, quality and reliability."

The Nissan Armada/Infiniti QX56 large SUVs have brought their reliability up to average, but the magazine expressed concerns with the rear-drive Nissan Titan pickup, Quest minivan and tiny Versa sedan.

Continuing their quality climb are Hyundai and Kia. Scoring well were the Hyundai Elantra and Tucson and the Kia Sportage. Hyundai's foray into the luxury segment with the Genesis proved above average with the V-6 and average with the new V-8 engine. Not as strong are the Kia Sedona minivan and Sorento SUV.

"The results are not an anomaly," said Hyundai spokesman Dan Bedore. "They are the dividends of our huge investment to improve quality."

Small cars fared well. Of 37 in the survey, 20 scored above average, including the Honda Fit, Scion xD and VW Golf.

Half of the 42 family cars tested were above average, including five of eight hybrids in this segment (Prius, Fusion, Milan, Camry and Nissan Altima hybrids).

Among the least reliable vehicles in their class are the all-wheel-drive Lexus GS, Nissan Versa and Subaru Impreza WRX.

European automakers showed some improvement again this year. The reliability of Mercedes-Benz vehicles has improved; most are now average or better, and the new GLK proved a strong new entry in its first year.

Results are more mixed for BMW AG, as the 535i sedan and X3 SUV fell and the new 135i scored below average. The only model Consumer Reports recommends is the BMW 328i.

The VW Rabbit/Golf and new CC were above average, and the Jetta TDI is the only diesel the magazine recommended. The Passat and Audi A3 have improved to average, along with the Tiguan SUV.

Porsche saw its Boxster fall below average and the magazine no longer recommends it.

The reliability report is in the December issue of Consumer Reports, which goes on sale Nov. 3.

Bryce Hoffman and Scott Burgess contributed.

UAW opposition mounts
to Ford concessions

By David Bailey and Bernie Woodall

DETROIT, Oct 28 (Reuters) - Ford Motor Co (F.N) workers represented by the United Auto Workers had rejected concessions at six plants as of Tuesday, threatening to vote down a deal to give the automaker cost parity with U.S. rivals General Motors Co [GM.UL] and Chrysler.

Despite pressure from UAW national leaders to ratify the agreement, rank-and-file workers have objected to giving Ford the same kind of "no-strike" pledge on wages and benefits the union gave GM and Chrysler in bankruptcy.

Workers at a plant in Flat Rock, Michigan, where they build Ford's iconic Mustang sports car, rejected the tentative deal by a margin of 1,265 against and 485 in favor in a tally released on Tuesday afternoon.

The Flat Rock vote followed a landslide 92 percent rejection of the deal at Ford's Kansas City, Missouri, assembly plant that builds the F-150 pickup and the Escape SUV.

Workers represented by UAW local units in Livonia, Sterling Heights, Canton and Ypsilanti also have rejected the agreement.

Workers at five other UAW plants supported the tentative pact last week, leaving passage of the concessionary deal down to a crucial series of votes later this week.

The UAW and Ford announced the tentative agreement on Oct. 13. It includes production commitments from Ford intended to protect jobs and a one-time $1,000 bonus for workers.

The voting so far has been a setback for Ford, which posted net losses of $30 billion over the past three years and expects a return to annual profits in 2011, and the UAW's national leaders who have recommended ratification of the deal.

Ultimately, if Ford workers reject the agreement, they also would be rejecting pattern bargaining that has ruled financial negotiations with the Detroit-based automakers.

Ford has said agreements GM and Chrysler made with the UAW around their government-supported reorganizations would put the company at a disadvantage over the long term.

Ratification is by a cumulative vote of the roughly 41,000 Ford UAW-represented workers at the various locals across the United States.

WORKERS 'APPREHENSIVE AND ANGRY 

"For Ford, they view the contract as key to competing effectively," said Harley Shaiken, a labor law professor at the University of California at Berkeley. "For the UAW, they view the contract as critical to locking in future jobs.

"But you've got a lot of apprehensive and angry members out there because of a dismal economy and an industry that has been on a roller coaster. That combination is proving volatile in these votes."

Voting will not wrap up until Friday at UAW Local 600, which represents several thousand workers at multiple Ford facilities, including the Dearborn truck assembly plant where leaders have voiced opposition to the givebacks.

Kansas City workers raised concerns about the "no-strike" provision, a blurring of job classifications among skilled workers who make higher wages and a lack of limits on new entry-level hiring through 2015, local President Jeff Wright said.

UAW workers have made a series of givebacks to Ford since 2005, most recently approving changes negotiated in February that Ford said would save $500 million per year.

Several local union officials have said they expected a tougher sell this time after the string of recent concessions.

"I supported it," said UAW Local 182 President Steve Zimmerla, who represents workers at Ford's Livonia transmission plant. "I think it was the right thing to do for our future.

"But these are difficult times in the industry and the February concessions are still on everyone's mind."

Analysts see Ford as in a better competitive position than GM or Chrysler and some believe Ford could return to a full- year profit as soon as 2010.

Ford borrowed more than $23 billion in late 2006 to finance its turnaround and remains the only large U.S.-based automaker not to seek emergency U.S. government loans.

But the automaker has much more debt on its balance sheet than rivals GM and Chrysler, which shed billions of dollars of debt through the bankruptcy process.

Ford shares fell 14 cents, or 1.87 percent, to close at $7.33 on Tuesday on the New York Stock Exchange. (Reporting by David Bailey and Bernie Woodall; editing by Maureen Bavdek and Andre Grenon)

Disabled Nortel employees lose out

October 27, 2009

Robert Meynell Government Relations Associate for March of Dimes Canada

As Nortel divvies up its assets and former CEO Mike Zafirovski paws for $12.3 million (U.S.), employees on long-term disability are forgotten and abandoned, providing yet another example of how more than 40 per cent of Canadians with disabilities find themselves earning less than $10,000 per year.

Imagine that you have a good job at Canada's premiere telecommunications manufacturing company. You choose to make regular contributions to your company's long-term disability (LTD) benefit plan because, while you are unlikely to ever need it, you don't wish to risk finding yourself living in poverty or possibly institutionalized as a result of an accident or disease.

One day Fortune knocks, recruiting you into the world of the disabled. Though you've lost much, you are thankful that you're not also left penniless. Then you receive a letter from your employer informing you that, regrettably, your LTD plan was not really covered by an insurance company and when the business evaporates so will your paycheque.

This financial spiral is the reality faced today by the 409 people on LTD at Nortel, except that they have yet to receive the letter. Indeed, Nortel's lawyers are not disclosing much.

It turns out that while Sun Life administered the LTD payments, most of the money came from Nortel's operating revenue, which means that if Nortel stops operating, those on disability are on their own.

Unlike Nortel's 17,000 retirement pensioners, the law does not require Nortel – or other employers that do not insure liability benefits (the majority of them) – to keep the money in trust for those on disability. And unlike the tens of thousands of other Nortel employees who have lost their jobs, those on disability leave are unable to find new employment.

In the United States, France and Britain, there are statutes that protect LTD beneficiaries but Canada has no federal or provincial legislation that protects those who are most in need. Corporate directors get their bonuses. Lawyers and secured creditors walk away with full pockets. Pensioners are hurt (possibly losing more than 30 per cent of their pension) but still afloat. But the 409 people on disability may be left with nothing.

These are the most vulnerable. They are unable to work. Many are still trying to meet the cost of raising a family and they have not had the years in the workforce to build a substantial amount of savings. And their small number compounded with their disabilities render them ill-equipped to mobilize a strong defence of their rights in the face of what can only be called systemic discrimination.

Some may wonder why this amounts to discrimination when nearly everyone associated with Nortel is being hurt financially in one form or another. True, thousands have taken a financial hit, but only the 409 on disability are being driven into almost irreversible poverty.

The collapse of Nortel is neither the first nor the last time that corporate bankruptcy in Canada will throw the most vulnerable into poverty. We saw it with Eaton's and Massey Ferguson. In the unsteady economy we face, we are likely to see it again soon.

But we should stop it here – and we can. We owe it to ourselves as a country that cares for its most vulnerable to press Nortel to honour its promise to those on long-term disability and call upon the federal government to reform regulations governing LTD pensions.

This is not a question of charity, it is a question of rights. In the LTD pension plans, Nortel promised financial security in the event that the employee acquired a disability. As Nortel dissolves, it must do its utmost to compensate each of the 409 people now relying on that promise. It was a pension they paid into and it must be honoured as a pension.

UAW, Ford deal is in jeopardy

Bryce G. Hoffman and Louis Aguilar / The Detroit News
October 27, 2009

Sterling Heights --A tentative agreement on concessions between Ford Motor Co. and the United Auto Workers is facing unprecedented opposition, with many workers saying Ford's comparative success makes further givebacks unnecessary.

On Monday, 80 percent of workers voting at Ford's Sterling Axle Plant rejected the proposed contract changes -- a surprising upset, since the factory would gain about 100 jobs if the deal is ratified. That came a day after a stunning 92 percent of workers at Ford's Kansas City Assembly Plant rejected the agreement.

UAW President Ron Gettelfinger has said the concessions are necessary to maintain pattern bargaining, which has for decades essentially assured equality in wages and benefits for workers at Detroit's automakers. But union dissidents appear to be winning the debate on the factory floor.

As of Monday night, locals representing about 8,000 of Ford's 41,000 UAW members had voted against the contract changes.

It is the most serious challenge to Gettelfinger's leadership yet, and he and other union leaders have fanned out across the country in an eleventh-hour bid to save the agreement.

Even if they succeed, the outpouring of opposition has raised serious questions about Gettelfinger's ability to deliver on promises of parity for Ford after granting significant concessions to rivals General Motors Co. and Chrysler Group LLC during their government-mandated bankruptcies earlier this year.

"It's a vote of no confidence in Gettelfinger, and it's a vote of no confidence in Ford's ability to deal with labor issues," said Gary Chaison, professor of labor relations at Clark University in Worcester, Mass.

Gettelfinger sold previous concessions to workers by promising to fight for restoration once Ford returned to profitability, Chaison said. As the Dearborn automaker prepares to announce next week what is likely to be another quarter of better-than-expected earnings, it is struggling to convince workers to give any more.

"Ford's problem is that they have an embarrassment of riches," Chaison said. "They're not bankrupt. Ford has made the case that it's different than GM and Chrysler. That may have helped sales, but it's not helping now. There's been so much encouraging news from Ford that the workers who are still there feel they should be rewarded."

Instead, they are being asked to match at least some of the concessions the UAW granted to GM and Chrysler.

Ford spokesman Mark Truby said the automaker has "been consistent about communicating our plan and fairly presenting our progress against our plan."

Ford's tentative agreement with the UAW includes a freeze on wages and benefits for new hires and changes in work rules that would give Ford greater flexibility in how it deploys workers in factories. But the deal also include limits on the union's right to strike over wage and benefit increases -- the biggest point of contention for workers, and one that could jeopardize pattern bargaining.

"Pattern bargaining has been vital for the union for decades," said labor expert Harley Shaiken, a professor at the University of California-Berkeley. "It has ensured that the gains won by workers at one company are shared by all."

He said union leaders believe that giving Ford at least some of what the UAW gave GM and Chrysler is key to guaranteeing that tradition continues.

Pact maintains pattern

If the proposed agreement is ratified, Ford workers -- like their counterparts at GM and Chrysler -- would not be able to take to the picket lines if they are unable to reach an agreement on any increase to wages and benefits during the next round of national contract talks in 2011.

As The Detroit News first reported Saturday, this was demanded by the Obama administration as a condition of its bailout of GM and Chrysler. The White House did not want to invest billions in taxpayer dollars to make those companies competitive only to see the gains reversed in the next round of negotiations.

If Ford does not receive a similar commitment from the UAW, it will be at a clear disadvantage once bargaining begins.

Dissident leader Gary Walkowicz, a member of the bargaining committee at UAW Local 600 that represents workers at Ford's River Rouge complex, said the union's acceptance of this so-called "no strike" language is the chief reason he and others oppose the agreement. He said Gettelfinger and other UAW leaders sold workers on previous concessions on the grounds that they would fight to restore those givebacks once Detroit automakers were back in the black.

"This shows that never was their intention," Walkowicz said. "People are angry at the union leadership. They feel like they were betrayed and lied to."

Gettelfinger declined to comment for this story. But he and other UAW leaders have accused dissidents of deliberating spreading "misinformation."

At Sterling Axle on Monday, workers opposed to the deal passed out leaflets listing the salaries of top Ford executives for 2007 -- before they took substantial pay cuts.

At Kansas City and elsewhere, the dissidents have shouted down union leaders urging ratification.

Some workers support deal

Not all workers have been swayed.

Brian Pannebecker voted in favor of the agreement Monday at Sterling Axle. As painful as recent concessions have been, he said, they have made Ford competitive for the first time in years. He is worried about the automaker's long-term prospects if it loses the ground it has gained.

"We got into trouble because our labor costs were not competitive with Toyota and Honda," Pannebecker said. "It would be foolish to turn around now and put ourselves at a point where we're not competitive with GM and Chrysler."

Ford has made progress, but its success can only be viewed as such in comparison with its cross-town rivals.

The automaker lost more than $14.6 billion last year, and while Ford posted a surprise second quarter profit of more than $2.2 billion this year, it is not expected to be profitable on a full-year basis until 2011. Ford also remains saddled with tens of billions in debt, while GM and Chrysler were able to shed most of their liabilities in bankruptcy court.

This suggests that Ford and other automakers will face even more resistance from union members as the turnarounds at GM and Chrysler gain traction.

Kansas City and Sterling Axle are not the only factories that have voted against the agreement.

Though their facility received promises of additional work as part of the deal, workers at the Livonia Transmission Plant rejected the contract changes by a 52 percent to 48 percent margin on Friday, according UAW Local 182 President Steve Zimmerla.

Paul Vella, a 16-year-veteran Livonia veteran, voted no.

"We can't afford more concessions," he said.

Workers at a parts facility in Plymouth also voted against the contract modifications.

Union members at other plants -- including Wayne Assembly Plant, Michigan Assembly Plant and three engine plants in Cleveland -- voted narrowly in favor of ratification last week.

At many factories, local UAW leaders have remained neutral in the debate because they fear supporting the deal could cost them their seats in upcoming spring elections, according to sources.

In addition to Sterling Axle, workers at Ford's Auto Alliance Inc. plant in Flat Rock voted Monday, but results were not available.

All voting is expected to be done by Saturday.

Ford's stand: Accept cuts or we invest elsewhere

Ford and the Canadian Auto Workers resumed critical negotiations Monday, with the company stressing that it needed to cut labour costs here or it would have to invest elsewhere in the future.

Joe Hinrichs, Ford group vice-president of global manufacturing and labour affairs, told negotiators for the Canadian Auto Workers union that current labour costs are uncompetitive with their U.S. peers and employees at rival General Motors and Ford in Canada.

Hinrichs said a continuing disadvantage would make it difficult for Ford to invest here, according to CAW president Ken Lewenza.

"He reminded us of that again and that we have to deal with it now," Lewenza said in a brief break from talks at a downtown hotel.

Lewenza said Hinrichs underlined Ford has no plans for more production at the sputtering St. Thomas assembly plant beyond 2011. "He (Hinrichs) told us that was the reality and we have to deal with it. What we have to do now is find some balance and protect Ford investments in Canada."

Ford's current labour costs, including benefits and pension obligations in Canada, are about $16 (U.S.) an hour more than any of its plants south of the border and even higher elsewhere. Ford's labour costs in the United States are in the range of $50-$52 an hour.

Earlier this month Ford indicated its labour costs, which represent less than 10 per cent of the cost of making a car, are higher here than in any country where it operates.

The union represents more than 7,000 production and skilled trades people at operations in Oakville, St. Thomas, Windsor and Brampton. Ford wants concessions like those the union negotiated with General Motors of Canada and Chrysler Canada earlier this year. Those firms gained the concessions to qualify for billions of dollars in government aid to stay alive.

Talks between Ford, which did not seek government aid, and the union started in early September but quickly fizzled into information exchanges this month.

In exchange for concessions, the union is demanding commitments for future assembly or parts production so Ford of Canada would maintain 13 per cent of its North American production here.

Negotiations continued last night with CAW anticipating some company proposals to spur bargaining. Also Monday, Ford workers in Missouri overwhelmingly rejected a new contract – a sign the automaker and United Auto Workers union are having trouble convincing some locals to accept changes that lower Ford's U.S. labour costs to match those at GM and Chrysler.

Under the tentative deal, workers would get a $1,000 bonus but entry-level wages are frozen and trades people have more duties, in exchange for agreeing not to strike on wages or benefits. Other issues could lead to UAW walkouts.

Ford's Kansas City plant
workers vote down proposed contract changes

Bryce G. Hoffman / The Detroit News
October 26. 2009 5:57PM

Workers at Ford Motor Co.'s Kansas City Assembly Plant delivered a stunning defeat to the company and union leaders Sunday when 92 percent voted against proposed contract changes.

The vote came after a stormy meeting at nearby Winnetonka High School where UAW Vice President Bob King, head of the union's national Ford section, made an appeal to workers to support the agreement, which was negotiated by the UAW and Ford earlier this month.

"(He) spoke and was booed," said one worker, who asked not to be identified. "There were a lot of 'No's!' It was a very loud meeting."

Last week, several key plants in Michigan and Ohio approved the deal by narrow margins.

A Ford executive expressed "shock" at the magnitude of the rejection.

Ottawa to take action
on pension funds

RETIREMENT LOST:
PART SEVEN

Reforming a broken system

Canada's gathering pension storm

UAW/FORD FLYERS ON BOTH SIDES

Download the flyer in favour of contract changes (PDF)

Download the flyer in opposition to contract changes (PDF)

Five Ford UAW plants
back contract; vote continues

DETROIT, Oct 23 (Reuters) - Workers at five Ford Motor Co U.S. plants represented by the United Auto Workers have backed a contract aimed at bringing the automaker's labor costs in line with rivals General Motors Co and Chrysler.

Workers at Ford's Michigan and Wayne assembly plants near Detroit voted to ratify the contract, said a source familiar with the process who was not authorized to speak because the ratification has not been completed.

At three Cleveland-area plants, workers backed the proposed contract changes 61 percent to 39 percent, UAW Local President Mike Gammella said. The local represents about 1,300 workers at two engine plants and a stamping plant.

The UAW and Ford announced a tentative agreement Oct. 13 on changes to its 2007 contract that covers about 41,000 workers. The changes include a no-strike clause, wage freeze for entry-level workers and some production commitments.

Other UAW locals have scheduled votes this weekend and next week. Approval of the changes requires a majority of the votes cast by workers.

For The Ford/UAW Contract Agreement Brochure Click Here

Ford union workers
protest contract changes

Bryce G. Hoffman / The Detroit News

Ford Motor Co.'s River Rouge complex has become a hotly contested battlefield as the United Auto Workers and union dissidents square off over proposed contract changes.

Late Wednesday, UAW Vice President Bob King, who heads the union's national Ford section was confronted by members chanting "No! No!" as he tried to address a group of about 600 workers at the factory to clear up what union leaders characterized as "misunderstandings" about a tentative agreement reached between Ford and the UAW last week. That deal still needs to be ratified by rank-and-file members, and voting was due to begin at the factory complex Thursday.

"People are very upset, and they let King know it," said Gary Walkowicz, a member of the bargaining committee at the Dearborn Truck Plant and a leader of dissidents at the Rouge. "We are urging everyone to vote down these concessions."

King stayed to talk to members individually and is expected to return today.

Jerry Sullivan, president of UAW Local 600 that represents workers at Dearborn Truck and the other factories in the Rouge complex, acknowledged that opposition to the new agreement is stronger than anticipated.

"It's become a tougher fight because there's a lot of misinformation out there," Sullivan said. "People really don't understand the agreement."

Many workers at the Rouge and other Ford facilities are upset over what they perceive as an agreement by the union to give up its right to strike.

It is true that Ford had hoped to negotiate a broad "no strike" agreement similar to ones reached with General Motors Co. and Chrysler Group LLC earlier this year. But the Dearborn automaker fell short of that goal. The tentative agreement only limits the union's right to strike in disputes over pay and benefit increases. If Ford tried to cut workers' pay or benefits, they would still be allowed to strike.

And while the agreement matches limits on entry-level wages and benefits that GM and Chrysler won from the union, it does not allow for cuts to retiree benefits that were part of those deals.

Ford would not comment on the union dispute, nor would national union leaders.

Walkowicz vowed to keep up the fight, but Sullivan predicted the majority of his members will support the deal once they understand the details. He will hold an informational meeting for workers today, and voting at the Rouge and other facilities will continue until next Friday.