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VW Forms Clean-Energy Unit in U.S. .............................................................................................................................
OFF DUTY --- Gear & Gadgets -- Rumble Seat: Ford F-150 Raptor: A Substantial Frivolity .........................................6
Ford plans its own Super Bowl kickoff ; 90-second pregame ad highlights carmaker's new 'mobility' mission...............8
Workers Benefit as Auto Sales Rise ...............................................................................................................................9
Trump Offers Auto Makers Relief ..................................................................................................................................13
Trump, in Meeting, Urges Automakers to Build Factories in United States ..................................................................15
Trump tells auto leaders he'll ease rules to spur jobs ...................................................................................................17
Auto Makers in the Crosshairs --- President puts Detroit's Big Three on the defensive about their commitment to U.S.
jobs; 'new territory... ......................................................................................................................................................19
Ford Invests to Promote Online Auto Loans .................................................................................................................23
Autos: Gas Prices Take Backseat for Auto Makers --- Car companies launch more profit-driving SUVs, pickups even
as pump costs rise ........................................................................................................................................................24
U.S. Car Makers' Unlikely Patriots ................................................................................................................................27
CEO: Public-transit solutions can be profitable for ford ; Says ride-sharing plans could include autonomous vehicles ...
28
Auto Makers in Hot Seat As Political Pressure Rises ...................................................................................................30
Auto Makers Equip Cars With AI Software....................................................................................................................32
Ford, a Target of Trump, Cancels a Mexico Plant.........................................................................................................34
Old-Line Firms Chase Startups .....................................................................................................................................37
Business News: Ford Says Buy and Get a Tax Break --- Dealer group urges small businesses to purchase vehicles
before end of year .........................................................................................................................................................39
Business News: Data Hint at Wider VW Woes --- EU is assessing report that suggests cheating on emissions tests
extends to more cars .....................................................................................................................................................40
Business News: Ford Is Set To Raise $2.8 Billion ........................................................................................................42
Sold! Cars flew off the lots in November ; Auto industry has fingers crossed it can break sales record.......................43
Redesigned Ford Fiesta stays true to its roots ..............................................................................................................45
Management -- Boss Talk: Ford Motor Is Rethinking Car of Future --- A pioneer of the open office heads unit
exploring ride hailing, car sharing and self-driving vehicles ..........................................................................................47
Ford's Tango With Trump..............................................................................................................................................49
In Overture, Ford Rethinks Car Plan .............................................................................................................................51
Was Ford move driven by tax or trade policy? ..............................................................................................................53
World News: Ford to Keep Lincoln Line in Kentucky ....................................................................................................55
Trump car tariff bad for economy, Ford CEO warns ; Fields says 35% tax on cars, trucks imported from Mexico would
have 'huge impact' on U.S.............................................................................................................................................56
Page 1 of 186 © 2020 Factiva, Inc. All rights reserved.

Business News: Ford CEO Wary of Trump Tariffs --- But Mark Fields says company believes it can work with the new
administration ................................................................................................................................................................57
Lincoln has good month, but it's not enough to boost Ford ; Carmaker's sales fall 11.9% in October from year-ago
period ............................................................................................................................................................................58
Business News: Ford Turns to Discounts To Lift Sagging Car Sales ...........................................................................59
Ford to kill Flex crossover, union says ; Vehicle's design was polarizing, and it never became a big seller.................60
Business News: Ford, Union Face Deadline In Canadian Labor Talks.........................................................................61
BlackBerry Teams Up With Ford ..................................................................................................................................62
Ford's third-quarter profit, revenue slide........................................................................................................................63
Business News: Ford Profit Falls on Recalls.................................................................................................................64
Detroit Keeps Pedal to Metal With Pickups ...................................................................................................................66
Detroit's Big 3 automakers ARE sending mixed signals ; GM has ramped up production, but Ford is warning of cuts ...
69
Ford Chief Sets Auto Maker on a Dual Track --- Mark Fields recasts firm as transportation- services provider as well
as manufacturer ............................................................................................................................................................71
Business News: Ford Stumbles With New Truck ..........................................................................................................73
Business News: Auto Makers Shift Output to SUVs .....................................................................................................74
Feds probe 'complete loss of brakes' in Ford F-150s....................................................................................................75
Car Dealers Dangle Offers as Sales Slow --- Traffic cools after six years of steady growth; spending increases on
rebates and discounts ...................................................................................................................................................76
Election 2016: Ford Motor, Trump Tussle Over Trade ..................................................................................................78
Ford, UAW strike back on Twitter ; During debate, both rebuff Trump's remarks that automaker is pushing jobs out of
the U.S. .........................................................................................................................................................................80
Ford Says Tech-Bet Payoff to Take Time --- Profit to fall through 2017 on higher costs ..............................................82
Not fast, furious: Ford's self-driving car ; What's it like to take a ride in one of these? We checked it out ....................83
Business News: Ford Unveils Deal to Acquire Bus Service ..........................................................................................85
Ford Expands a Costly Recall of Door Latches.............................................................................................................86
Business News: Ford Cuts Guidance On Recall Charges ............................................................................................87
U.S. auto sales catch a chill in steamy August ; May have reached 'plateau' as sales sink 4.2% industrywide.........88
Information Age: Humans: Unsafe at Any Speed..........................................................................................................89
Uber Plans Self-Drive Taxis ..........................................................................................................................................91
Ford Motor Plans Ride-Hailing Service With Fleet of Driverless Cars by 2021.............................................................94
Ford promises driverless cars by 2021 .........................................................................................................................96
Ford Sets Plans For Cars Without Steering Wheels .....................................................................................................98
Auto Boom in Mexico Drives Up Labor Costs --- Competition for workers is expensive, denting the country's
advantage....................................................................................................................................................................100
Ford recall to fix doors that could swing open .............................................................................................................105

Car Makers' Sales Wheeze After Long Run of Growth ...............................................................................................106
Business News: Ford Profit Declines 9%, Says Industry Risks Grow .........................................................................108
My Ride: A British Land Rover for the All-American Road Trip ...................................................................................110
OFF DUTY --- Design & Decorating -- 20 Odd Questions: Deborah Berke --- The newly appointed head of the Yale
School of Architecture d... ...........................................................................................................................................111
A Turnaround at Ralph Lauren, Following a Road Map Used at Ford .......................................................................113
GM's Rivals Nip at Its Heels ........................................................................................................................................116
Business News: Dealers Say Toyota Is Tops .............................................................................................................118
GM Amps Up Marketing Blitz Targeting Ford .............................................................................................................119
Ford growing but analysts steer toward GM ; Q: Which big automaker's stock is the best?.......................................121
REVIEW --- Summer Books: Henry Ford's Toughest Test..........................................................................................122
Ford Recalls Some F-150 Pickups for Potential Brake Problem .................................................................................124
Business News: Ford Founding Family Keeps Backing of Shareholders ...................................................................125
Ford partners with Pivotal in $182M deal to upgrade software ...................................................................................127
Temporary, part-time workers fight back Other wins by contingent workers ; More pushing for higher pay, benefits --
and even union member..............................................................................................................................................128
A Mom's Engineering Feat: Return to Work After 24 Years ........................................................................................130
Ford posts record first-quarter profit Priceline CEO resigns over relationship ............................................................132
Business News: Ford Profit Doubles as New Models Soar --- Auto maker earned $2.5 billion as margins jump on
higher output, demand for new....................................................................................................................................134
Ford Doubles Profits for a Record Quarter, as Low Prices at the Pump Help Move Pickups .....................................136
Ford and Google Join Driverless-Cars Group .............................................................................................................138
Business News: Fiat Chrysler Narrows Profit Gap --- Nearly all its operating profit, and two-thirds of its revenue came
from North America .....................................................................................................................................................140
Business News: In China, Western Auto Makers Temper Ambitions..........................................................................142
Fast 3-D Printers Earn New Respect ..........................................................................................................................144
Business News: Ford's Sales Gains Come at Price --- Auto makers boost reliance on fleet buyers, sales incentives as
retail growth slows .......................................................................................................................................................147
Ford Revved By China SUV Voom .............................................................................................................................150
Business News: Ford to Audition Supercar Buyers --- Shoppers should be prepared to provide videos, social media to
get limited-edition GT ..................................................................................................................................................151
Ford looks to Silicon Valley in corporate campus redesign ; Plans to renovate or build 7.5M square feet of office
space ...........................................................................................................................................................................153
Business & Energy (A Special Report) --- Ford's Road Map To the Future: Chief Executive Mark Fields gets ready for
driverless cars .............................................................................................................................................................155
Ford's Planned New Headquarters Borrow Some Silicon Valley Sheen.....................................................................157
Fiat Chrysler Cuts Jobs, Pares U.S. Car Lineup .........................................................................................................159

Outcry over Ford's Mexico plan ; New factory will staff 2,800 by 2020; UAW calls it 'very troubling'..........................161
Ford Draws Fire From Trump Over Plan for Factory in Mexico to Build Small Cars ...................................................162
Business News: Ford Plans New Factory In Mexico for Small Cars ...........................................................................164
Soaring Profits Produce Parade of New Cars .............................................................................................................165
Can carmakers redefine mobility again? .....................................................................................................................167
OFF DUTY --- Gear & Gadgets -- Rumble Seat: Ford Puts a Lot of Focus on Performance......................................169
Business News: Holiday Clips Chinese Car Sales --- Lunar New Year cuts demand with GM and Ford hit by 9% year-
over-year sales declines..............................................................................................................................................172
GM comes up short in February as Ford, Fiat Chrysler sales soar .............................................................................174
Discounts Help Car Sales Roar...................................................................................................................................175
Auto Sales Up, Helped by Cheap Gas and Easy Credit .............................................................................................178
Ford CEO leans toward privacy in dispute between Apple, FBI ; 'We want to be trusting stewards' for customers' data,
says Mark Fields ........................................................................................................................................................180
C-Suite Strategies (A Special Report) --- The Challenging Road to Get to the Connected Car: Ford Motor's CIO says
the key is putting just... ................................................................................................................................................182
CFO Journal: Investors Shrug Off Lofty Payouts --- Dividends, buybacks fail to ignite stocks as economic jitters
preoccupy market ........................................................................................................................................................184
Ford plans to launch four new SUVs by 2020 .............................................................................................................186

VW Forms Clean-Energy Unit in U.S.
VW Forms Clean-Energy Unit in U.S.

By Adrienne Roberts
411 words
8 February 2017
The Wall Street Journal
J
B2
English
Copyright 2017 Dow Jones & Company, Inc. All Rights Reserved.
Volkswagen AG launched a U.S. subsidiary Tuesday designed to oversee $2 billion in investments to promote
zero-emission vehicles such as electric cars, a commitment the German auto giant made in the wake of cheating
on U.S. emissions tests for several years.
Dubbed Electrify America LLC, the unit represents an attempt to show a renewed commitment to clean vehicles
by pouring money into electric-vehicle charging stations in the U.S. It comes about 16 months after U.S.
regulators first said Volkswagen installed so-called defeat devices on diesel cars that misstated emissions levels.
Volkswagen isn't alone in creating a subsidiary devoted to future technology. Ford Motor Co. created Ford Smart
Mobility LLC, which focuses on ride hailing, car sharing and other services that could replace vehicle ownership.
Nearly half of Volkswagen's investment will be spent in California, where Volkswagen's diesels were popular and
where electric vehicles sell in the highest volumes.
Electric cars have limited appeal in the U.S. even after several auto makers, including BMW AG and General
Motors Co., have launched models capable of going as far as 238 miles on a single charge.
Volkswagen's funds, committed as part of broader settlements with regulators, dealers and buyers, will go toward
installing chargers in about 15 metro areas. The company will develop a cross-country network of more than 200
charging stations and test initiatives such as a no-emissions shuttle service and a car-sharing program in
California.
Mark McNabb, chief operating officer of Volkswagen of America Inc., will leave that position to lead Electrify
America. He will continue to oversee the implementation of the diesel settlement program.
The auto maker also is developing several electric vehicles, with new models slated to start rolling out around
2020.
The company last year agreed to pay up to $17.5 billion to settle civil lawsuits, including $10 billion in June to
compensate drivers of 475,000 diesel-powered vehicles with 2-liter engines. It reached an agreement last month
to pay $1.2 billion in settlements tied to about 80,000 of its larger diesel-powered vehicles implicated in the
scandal, as well as buying some back from customers and fixing others. Volkswagen agreed to pay another $4.3
billion in criminal and civil penalties to resolve a U.S. Justice Department probe.
License this article from Dow Jones Reprint Service
Document J000000020170208ed2800027

OFF DUTY --- Gear & Gadgets -- Rumble Seat: Ford F-150 Raptor: A Substantial Frivolity
OFF DUTY --- Gear & Gadgets -- Rumble Seat: Ford F-150 Raptor: A Substantial Frivolity
By Dan Neil
1,218 words
4 February 2017
J
D10
English
While it's majestic in every direction, the 2017 Ford F-150 Raptor pickup is especially awing in width, in its
improbable distance from one shining headlamp to the other. This, the second coming of Ford's delightfully
frivolous man-toy, or "high-performance off-road truck," starts life with an already ample F-150 steel frame,
widened with a half-foot gusset of structural steel down the middle.
Truck nuts -- you don't mind if I call you that? -- will recognize the Raptor's widescreen aesthetic as inspired by
Baja trophy trucks, which are not trucks at all but specialized tube-frame racers, driven by insane millionaires who
have lost all feeling in their buttocks. The added span between the wheels has distinct mechanical advantages
having to do with high-speed off-roading and wheel articulation, which I'll get to as soon as the Raptor brings back
the sun.
Oh man, somebody took their girthy pills. The front fenders bulge bigly over the BF Goodrich all-terrain tires,
which themselves stand almost 3 feet tall. The truck's self-love is celebrated with blueprint-like block lettering,
FORD, spanning the grille as if it were written in Panavision (and at night, bracketed by torrid amber light bars).
At 7.2 feet between the front fenders, the Raptor has the broadest shoulders of any light-duty vehicle on the
market, as wide as the original, military-style Hummer H1, and you remember how beloved they were.
Also, tall, by way of the factory lift kit. The roof height is 6.5 feet and the driver seat's comes to about mid-thorax
on me when I stand in the door. Thusly jacked, the new Raptor offers 11.5 inches of ground clearance and
13.0/13.9 inches wheel travel, front/rear. Full-size luxury sedans look like Raptor droppings.
There's big and there's damn big. The Raptor SuperCab (starting at $49,520) is a mere 220 inches long, over a
131.5-inch wheelbase. Our tester was the SuperCrew version ($51,845), with four full-size doors and vast rear
cabin, measuring 231 inches nose to tail, over a 145-inch wheelbase. It's Johnny Long Torso.
Hoisting myself into the cab for the first time, I was keen that I not take off a side mirror or inadvertently crush a
mailbox. To my surprise, the Raptor drives narrower than it is, thanks to its commanding seat height, vast
windows and the human-aquarium outward views. The multi-mode electric-assist steering system is nicely dialed
in, too, well centered and direct, so narrow lanes are negotiated confidently.
In many of the best ways the Raptor is just like any other F-150: well-sorted, comfortable, quiet (minus the dull
roar of A/T tires), and available with fine electronic amenities (trailer-backup assist!) and creature comforts. With
the help of the optional 360-degree cameras, animated guidelines, parking sensors, our Raptor was even fairly
usable around town, though I wouldn't want to deliver pizzas in it.
Other motorists may need time to adjust. At night the Raptor's lane-filling girth and elaborate exterior lighting
make it look like the rescue squad. The truck's high-set LED headlamps always seem to blaze into the rearview
mirror of the car ahead, causing insanity.
Ripped and 'roided, stacked to the rafters, and armed to the teeth with Baja-style race-tech (long-travel coil
suspension with dual-strut Fox shocks, beadlock rims, skid plates, and a bunch of auxiliary cooling circuits), the
Raptor practically seethes bad-ass. But like a 200-mph Lamborghini Aventador sitting in traffic, the Raptor looks
more than a little ridiculous when it's out of its element, like a guy on the elevator in full scuba gear.
The irony is that few Raptor owners will dare exercise theirs properly off-road. Because that would be madness. It
would only take one weekend of pounding trail to turn this glossy, high-tech terrabot into an old truck with a

$1,200-a-month payment. Not only that, the residuals of Raptors are so strong they are practically instant
collectibles. I'd keep mine under a mink blanket.
How about a little hardware? Under that storm drain-looking hood louver is Ford's twin-turbo, 3.5-liter EcoBoost
V6, reinforced top and bottom, and boosted to the stars for the occasion. The high-pressure turbocharging raises
output to 450 hp (and 510 lb-ft of torque), 85 hp higher than the standard EcoBoost tune and even 39 hp more
than the previous V8.
The 6.2-liter V8 is n'more. And even though the V6 produces more power and torque from roughly half the
displacement, it doesn't grumble and shout like a big V8 with dual pipes. I get people's disappointment. If you a
considering a truck as big as a railcar, attention is probably something you crave.
Between the engine and heavy-duty wheel hubs are a brilliant 10-speed transmission and a state-of-the-art
transfer case, combining clutch-based AWD operation (on-road operation), and 4x4 High and 4x4 Low, with 50:1
crawl ratio and mechanically locking center and rear diffs, and limited-slip front axle. Thanks to the terrain-sensing
software, the workings of these systems are virtually automatic. Good to know if you have a coronary driving
through Moab.
Peeking out from behind the mighty tires is, for my money, the Raptor's secret ingredient: the dual-strut Fox
shocks with bypass valving. These dual-stage shocks are the only things keeping the Raptor from wallowing in its
own elasticity, a three-ton Shake Weight. The truck's body control and ride refinement are quite good, actually,
apart from a brief, pneumatic tremor when the big tires brush off a pothole, or Honda Civic.
Of course, trophy trucks live Out West. Here in the pine boonies of North Carolina, I found the Raptor to be a bit
of mixed bag. It can climb, crawl and churn through the deep suck, no problem, and boil dust off a logging road at
three-digit speeds. About the only thing it can't do is follow a Jeep CJ down narrow trails between close-set pines.
We have a lot of them around here. So wide is not a universal good.
Still, broadly speaking, the Raptor is awesome.
---
2017 FORD F-150 RAPTOR SUPERCREW
Base price: $53,140
Price, as tested: $65,965
Powertrain: Twin turbocharged/intercooled, direct- and port-injection 3.5-liter V6, with stop/start; 10-speed
automatic transmission with manual-shift mode; two-speed transfer case, with clutch-based AWD and
mechanically locked 4WD; rear-biased all-wheel drive, with locking center and rear differentials and optional
limited slip front differential.
Power/torque: 450 hp at 5,000 rpm/510 lb-ft at 3,500 rpm
Length/weight: 231.5 inches/5,924 pounds
Wheelbase: 145.0 inches
0-60 mph: 5.1 seconds (Car and Driver)
EPA fuel economy: 15/18/16 mpg, city/highway/combined
Interior cabin volume: 136 cubic feet
Document J000000020170204ed240000c

Ford plans its own Super Bowl kickoff ; 90-second pregame ad highlights carmaker's new 'mobility' mission
MONEY
Ford plans its own Super Bowl kickoff ; 90-second pregame ad highlights carmaker's new 'mobility'
mission
Nathan Bomey
Nathan Bomey, @NathanBomey, USA TODAY
484 words
30 January 2017
USA Today
USAT
FIRST
B.2
English
© 2017 USA Today. Provided by ProQuest Information and Learning. All Rights Reserved.
Ford's bet on reinventing its image among American consumers is ramping up with a major ad airing immediately
before Super Bowl LI and a new hotspot for tourists and locals in New York City.
The Dearborn, Mich.-based automaker will air a 90-second commercial immediately before kickoff Sunday on
Fox, Ford U.S. marketing director Chantel Lenard told USA TODAY. The ad is paired with the opening of a
2,900-square-foot experiential exhibit at the Westfield World Trade Center.
Lenard says both initiatives are designed to highlight the company's bid to remake itself as a provider of
"transportation solutions" instead of just a vehicle manufacturer.
The auto industry is bracing for sweeping change as self-driving cars paired with ride-hailing apps may eventually
present an alternative to car ownership and public transportation.
Ford is "trying to stay ahead of what they see on the horizon," AutoPacific analyst Dave Sullivan said in an email.
"They aren't walking away from cars overnight. People will always need to get from A to B. How we do that will
eventually change. Ford is hoping to be part of that in whatever form it takes the shape of."
Ford CEO Mark Fields told USA TODAY earlier this month that the company wants to begin helping cities
redesign their mass-transit networks possibly for self-driving vehicles. He sees the "mobility" segment as a
significant source of future profit.
"Mobility" is a frequent word you'll hear from Ford executives these days.
Talk is cheap, but Super Bowl ads aren't. And the company's decision to invest in a 90-second commercial
between the coin toss and kickoff could cost close to $15 million, based on reported rates of $5 million per 30
seconds for official game ads on Fox.
Lenard declined to reveal the price Ford paid. It's the first Super Bowl ad for Ford since 2014, and Ford will pair it
with stories about its ride-sharing, bike-sharing and autonomous-vehicle efforts at FordGoFurther.com.
The ad features humorous footage of people getting stuck in life circumstances.
The company hopes the ad encourages people to visit its new FordHub in New York City. Visitors will get the
chance to build a Mustang muscle car in a three-dimensional setting, view local transportation alerts on a massive
video wall, engage in a virtual race featuring regenerative braking, and learn about the automaker's autonomous
vehicles.
The one thing you won't be able to do there: buy a car. Ford is contractually prevented from selling vehicles
without a franchised dealership, so employees will direct buyers to their local dealer, says Elena Ford, vice
president of global dealer and consumer experience.
photo Ford Motor Co.

Document USAT000020170130ed1u0000s

Workers Benefit as Auto Sales Rise
Workers Benefit as Auto Sales Rise

By Chester Dawson, Christina Rogers and John D. Stoll
1,624 words
27 January 2017
J
B1
English
Workers at domestic car factories are reaping the benefits of America's increasing demand for high-margin
pickups and sport-utility vehicles, with union employees expected to take home among the biggest bonus checks
ever.
The three U.S. auto makers began reporting fourth-quarter earnings Thursday, with results showing Detroit's
reliance on light-trucks is fueling profit growth even as the wider U.S. light-vehicle market stagnates.
The bonuses come as auto chiefs signal a willingness to consider adding even more high-paying factory jobs on
U.S. soil. Earlier in January, Ford Motor Co. and General Motors Co. committed to nearly 2,000 new hourly
positions in coming years, and Fiat Chrysler Automotive promised to spend $1 billion to retool a pair of U.S.
factories and create 2,000 new jobs. That company's chief added on Thursday that he would also consider
bringing jobs associated with building heavier-duty pickups from Mexico back to one of its American factories, and
hinted at the possibility of shifting production of more trucks to the U.S. Car makers are stopping short of
committing to new factories in the U.S.
But optimism related to President Donald Trump's views on easing corporate taxes, environmental regulations
and other costs of doing business that executives say are overly burdensome has car makers reconsidering the
role high-cost U.S. workers can play in future strategy.
"The policy direction taken by Mr. Trump is something we appreciate," said Fiat Chrysler Chief Executive Sergio
Marchionne, in a conference call with analysts on Thursday.
"We have the wherewithal now . . . to effectively entertain a repatriation of the truck manufacturing back to the
U.S., which has been one of the things that has been anomalous about the this split of roles between the U.S.
and Mexico for a number of years with such a large portion of the pickup-truck market being manufactured in
Mexico."
UAW workers have generally pushed union leaders to first bargain for wage gains over variable-compensation
schemes. Still, Detroit Three's 146,000 unionized factory workers -- employed in plants mostly located in
Midwestern Rust Belt states that helped secure President Donald Trump's victory in November -- are expected to
reap the rewards of the industry's surge in U.S. sales.
Fiat Chrysler will pay $5,000 on average in profit-sharing based on hours worked to employees represented by
the United Auto Workers, the highest annual bonuses for its 40,000 assembly-line workers since the company's
2009 bankruptcy.
Ford Motor's 2016 payout of $9,000 is among the highest in its 114-year history. Checks from GM -- which is
reporting its results on Feb. 7 -- will likely top the $11,000 paid last year. Assembly workers have seen little in the
way of pay raises since the Chrysler and GM bankruptcies in 2009, but profit-sharing has helped boost the
group's spending power.
"I'm going to pay down debt with pretty much everything I get," said Brian Pannebecker, a 57-year-old worker at
Ford's axle plant in Sterling Heights, Mich.
He recently returned from Washington, D.C., where he attended Mr. Trump's inauguration and bought an
expensive ticket to an inauguration ball.

Mr. Pannebecker, who faces several thousands of dollars in credit-card balances, hopes to retire debt-free in four
years.
Since 2010, when GM shed a six-year streak of annual losses, UAW workers have collected the equivalent of $3
an hour worth of yearly profit-sharing checks on average, representing roughly 10% of the standard hourly wage.
That number is calculated based on North American automotive earnings and is much higher for employees at
Ford and GM, who have traditionally earned at least twice as much as Fiat Chrysler on home turf.
Mr. Marchionne met with Mr. Trump earlier this week along with chiefs from GM and Ford and came away
thinking the company could add manufacturing work in the U.S., particularly if the new Administration carries out
its pro-business agenda. Already, the car maker has retooled its production to better capture light-trucks profit.
Fiat Chrysler's North American operating profit -- considered a critical barometer for an auto maker's health --
soared 15% in 2016 to 5.1 billion euros ($5.45 billion) even as revenue fell, resulting in a 7.4% operating margin
that more closely reflects those reported by Ford and GM.
Ford, meanwhile, swung to a net loss of $800 million in the fourth quarter compared with $1.9 billion in net income
earned in the final three months of 2015. A 4% revenue decline and special charges related to the company's
pension plans and the cancellation of a plant in Mexico overshadowed its strong operating results.
(END)
Workers at domestic car factories are reaping the benefits of America's increasing demand for high-margin
pickups and sport-utility vehicles, with union employees expected to take home among the biggest bonus checks
ever.
The three U.S. auto makers began reporting fourth-quarter earnings Thursday, with results showing Detroit's
reliance on light-trucks is fueling profit growth even as the wider U.S. light-vehicle market stagnates.
The bonuses come as auto chiefs signal a willingness to consider adding even more high-paying factory jobs on
U.S. soil. Earlier in January, Ford Motor Co. and General Motors Co. committed to nearly 2,000 new hourly
positions in coming years, and Fiat Chrysler Automotive promised to spend $1 billion to retool a pair of U.S.
factories and create 2,000 new jobs. That company's chief added on Thursday that he would also consider
bringing jobs associated with building heavier-duty pickups from Mexico back to one of its American factories, and
hinted at the possibility of shifting production of more trucks to the U.S. Car makers are stopping short of
committing to new factories in the U.S.
But optimism related to President Donald Trump's views on easing corporate taxes, environmental regulations
and other costs of doing business that executives say are overly burdensome has car makers reconsidering the
role high-cost U.S. workers can play in future strategy.
"The policy direction taken by Mr. Trump is something we appreciate," said Fiat Chrysler Chief Executive Sergio
Marchionne, in a conference call with analysts on Thursday.
"We have the wherewithal now . . . to effectively entertain a repatriation of the truck manufacturing back to the
U.S., which has been one of the things that has been anomalous about the this split of roles between the U.S.
and Mexico for a number of years with such a large portion of the pickup-truck market being manufactured in
Mexico."
UAW workers have generally pushed union leaders to first bargain for wage gains over variable-compensation
schemes. Still, Detroit Three's 146,000 unionized factory workers -- employed in plants mostly located in
Midwestern Rust Belt states that helped secure President Donald Trump's victory in November -- are expected to
reap the rewards of the industry's surge in U.S. sales.
Fiat Chrysler will pay $5,000 on average in profit-sharing based on hours worked to employees represented by
the United Auto Workers, the highest annual bonuses for its 40,000 assembly-line workers since the company's
2009 bankruptcy.
Ford Motor's 2016 payout of $9,000 is among the highest in its 114-year history. Checks from GM -- which is
reporting its results on Feb. 7 -- will likely top the $11,000 paid last year. Assembly workers have seen little in the
way of pay raises since the Chrysler and GM bankruptcies in 2009, but profit-sharing has helped boost the
group's spending power.

"I'm going to pay down debt with pretty much everything I get," said Brian Pannebecker, a 57-year-old worker at
Ford's axle plant in Sterling Heights, Mich.
He recently returned from Washington, D.C., where he attended Mr. Trump's inauguration and bought an
expensive ticket to an inauguration ball.
Mr. Pannebecker, who faces several thousands of dollars in credit-card balances, hopes to retire debt-free in four
years.
Since 2010, when GM shed a six-year streak of annual losses, UAW workers have collected the equivalent of $3
an hour worth of yearly profit-sharing checks on average, representing roughly 10% of the standard hourly wage.
That number is calculated based on North American automotive earnings and is much higher for employees at
Ford and GM, who have traditionally earned at least twice as much as Fiat Chrysler on home turf.
Mr. Marchionne met with Mr. Trump earlier this week along with chiefs from GM and Ford and came away
thinking the company could add manufacturing work in the U.S., particularly if the new Administration carries out
its pro-business agenda. Already, the car maker has retooled its production to better capture light-trucks profit.
Fiat Chrysler's North American operating profit -- considered a critical barometer for an auto maker's health --
soared 15% in 2016 to 5.1 billion euros ($5.45 billion) even as revenue fell, resulting in a 7.4% operating margin
that more closely reflects those reported by Ford and GM.
Ford, meanwhile, swung to a net loss of $800 million in the fourth quarter compared with $1.9 billion in net income
earned in the final three months of 2015. A 4% revenue decline and special charges related to the company's
pension plans and the cancellation of a plant in Mexico overshadowed its strong operating results.

Document J000000020170127ed1r0002k

Trump Offers Auto Makers Relief
Trump Offers Auto Makers Relief

By Christina Rogers, Peter Nicholas and Mike Colias
959 words
25 January 2017
J
B1
English
President Donald Trump told bosses of the Detroit three car makers that he would work to ease environmental
regulations, cut corporate taxes and push for economic policies favorable to U.S. manufacturing, in an effort to
mend fences with an industry he spent months criticizing.
In a breakfast meeting Tuesday, Mr. Trump pledged to speed up regulatory reviews for business permits and
create a friendlier climate for companies that want to invest in the U.S., stepping up his push to curb the flow of
jobs overseas.
"We're going to make the process much more simple for the oil companies and everybody else that wants to do
business in the United States," Mr. Trump said, in an hourlong meeting with General Motors Co.'s Mary Barra,
Ford Motor Co.'s Mark Fields and Fiat Chrysler Automobiles NV's Sergio Marchionne.
The president also reiterated that companies would pay a steep price should they not comply with his "America
First" credo, echoing his Twitter messages in recent months threatening to slap a border tax on companies
moving factory work abroad.
At the start of the meeting, Mr. Trump pulled out the chair next to him for Ms. Barra, who recently joined his
economic policy team. He went around the Roosevelt Room and asked everyone to introduce themselves,
beginning with himself. "I'm Donald Trump," he said.
Before the meeting, Mr. Trump tweeted: "I want new plants to be built here for cars sold here!"
Persuading car makers to add factories will be a tall order, though. U.S. demand for cars and trucks is cooling,
following seven years of uninterrupted growth.
The Detroit car makers have been generally reluctant to build new auto factories in the U.S., after spending years
getting rid of old plants they didn't need, particularly during the bankruptcies of GM and Chrysler.
Most of the new plants built in the U.S. in recent years belong to foreign auto makers like Volkswagen AG and
Toyota Motor Corp.
Mr. Trump, whose popularity with working-class voters helped propel him to the White House, has blasted the
auto industry for importing cars for sale in the U.S., arguing it is coming at the expense of American jobs. That
has put auto-industry executives on the defensive and led them to announce new investment in U.S. plants in
recent weeks, even though some of the plans had been in the works for months or longer.
For much of his campaign, Mr. Trump targeted Ford, pointing to the company's plans for a new $1.6 billion factory
in Mexico to build small cars currently produced in the U.S. Ford has since altered those plans, opting to build
those cars at an existing plant in Mexico and redirecting part of that sum to U.S. operations.
More recently, Mr. Trump has turned his attention to other auto makers, including GM and Fiat Chrysler, both of
which have large manufacturing operations in Mexico.
Mr. Trump emphasized during the meeting that he would streamline the process by which applicants win approval
to do business in the U.S. and criticized current environmental regulations, describing them as unnecessarily
burdensome.

Mr. Trump later Tuesday signed a pair of executive measures aimed at speeding up regulatory reviews for
businesses seeking permits.
Following the meeting, Mr. Fields told reporters he was encouraged by the president's agenda and praised Mr.
Trump for his decision to withdraw from a 12-nation trans-Pacific trade deal that had been championed by former
President Barack Obama.
Ford has long blasted the deal for not addressing a substantial barrier to trade: currency manipulation. "We
appreciate the president's courage to walk away from the bad deal," Mr. Fields said.
It is unclear whether Mr. Trump's intentions on trade were discussed. Auto executives in recent weeks have said
they needed clarity from the president, who has talked in general terms about tariffs and border taxes but hasn't
outlined specifics.
In a note to investors Tuesday, Barclays analyst Brian Johnson said the Trump administration could use relief
from tougher fuel-economy regulations as a bargaining chip to encourage car makers to expand U.S.
manufacturing.
Car companies are spending billions to comply with the regulations set under the Obama administration and
expected to tighten considerably through 2025. Mr. Johnson said that if those regulations were relaxed, the
estimated savings by auto makers could free up capital investment to support anywhere from 200,000 to 400,000
new U.S. jobs.
Auto executives are still awaiting details of specific trade policies, including what exactly Mr. Trump means by a
"border tax" and if it will be similar to a border-adjusted tax proposed by House Republicans.
The border-adjusted tax, part of a broader corporate-tax blueprint outlined by Republican leaders, would
essentially apply a corporate tax to imports and remove it for exports, incentivizing firms to build more goods at
U.S. factories.
Mr. Fields, Ford's CEO, has described the idea as "interesting", noting that Ford is a major U.S. exporter of
vehicles. The company also builds 78% of the vehicles sold here at U.S. factories, including its top-selling and
highly lucrative F-series pickup trucks, according to WardsAuto.com.
Such a tax would hurt car companies that import a higher percentage of vehicles sold in the U.S. and deal a blow
to the auto-industry supply chain, much of which spans borders. Mexico, for instance, sent an estimated $63
billion in auto parts to the U.S. in 2016, according to the U.S. International Trade Commission.
Document J000000020170125ed1p0002c

Trump, in Meeting, Urges Automakers to Build Factories in United States
National Desk; SECTA

Trump, in Meeting, Urges Automakers to Build Factories in United States
By BILL VLASIC
623 words
25 January 2017
The New York Times
NYTF
Late Edition - Final
15
English
Copyright 2017 The New York Times Company. All Rights Reserved.
President Trump met on Tuesday with the chief executives of the three Detroit automakers and urged them to
build new factories in the United States, and he vowed to change environmental regulations to encourage the
creation of jobs.
The tenor of the White House meeting appeared far more cooperative than adversarial, despite the president's
repeated criticisms of automakers in recent weeks for building cars in Mexico for sale in the American market.
Mr. Trump stuck to the ''America First'' theme of his new administration, and he challenged executives of the
automakers -- General Motors, Ford Motor and Fiat Chrysler -- to add jobs and production in exchange for more
favorable regulations and tax policies.
''It's the long-term jobs we are looking for,'' Mr. Trump said in televised comments before the meeting with the
chief executives -- Mary T. Barra from G.M., Mark Fields of Ford and Sergio Marchionne from Fiat Chrysler.
Earlier in the day, the president made plain his interest in increasing auto jobs in a Twitter post. ''I want new
plants to be built here for cars sold here,'' he wrote.
It is a provocative challenge for the Detroit companies, which have each added more than 25,000 jobs in the
United States since the recession, when auto sales collapsed, and G.M. and Chrysler both went bankrupt and
needed government bailouts to survive.
But with the American market coming off a record sales year of 17.5 million vehicles and car companies reporting
big profits, the Detroit executives sounded eager to participate in the Trump administration's pro-business
agenda.
After the meeting, Mr. Fields said Ford was excited to participate in ''a renaissance in American manufacturing,''
and Ms. Barra said the industry could benefit from cooperating with Washington.
''There's a large opportunity in working together as an industry with the government,'' she said.
Mr. Marchionne said in a statement, ''We look forward to working with President Trump and members of
Congress to strengthen American manufacturing.''
The meeting was notable in that foreign automakers such as Toyota and Honda were not invited, although
factories owned by European and Asian companies account for about 40 percent of the vehicles assembled in the
United States.
It also left open the question of how much more production capacity G.M., Ford and Fiat Chrysler can effectively
add in the United States -- particularly if consumer demand levels off or drops.
While the Detroit companies have significantly increased employment since 2009, the resurgence came only after
extensive restructuring had shuttered dozens of excess plants to cut costs.
All three Detroit automakers have already pledged to add jobs and billions of dollars in new American investment
after Mr. Trump publicly attacked G.M., Ford and Toyota for investing in Mexico. Ford, in particular, reversed
course by canceling plans for a new $1.6 billion Mexican factory.
In his remarks just before the meeting, the president said automakers were ''not being singled out'' in his efforts to
increase jobs in the United States and prevent more American investment in other countries.
Rather, he promised to change the prevailing business climate in the United States ''from truly inhospitable to
extremely hospitable,'' and to streamline the regulatory approval process for new manufacturing operations.
Automakers in general have been supportive of less stringent fuel-economy rules than were enacted under the
Obama administration. And while Mr. Trump declared himself ''an environmentalist'' at the meeting on Tuesday,
he called current regulations ''out of control.''
President Trump speaking to the chief executives of the Detroit automakers Tuesday in the Roosevelt Room of
the White House. (PHOTOGRAPH BY DOUG MILLS/THE NEW YORK TIMES)
Document NYTF000020170125ed1p0003b

Trump tells auto leaders he'll ease rules to spur jobs
A-Section
Trump tells auto leaders he'll ease rules to spur jobs
Steven Overly
755 words
25 January 2017
The Washington Post
WP
FINAL
A12
English
Copyright 2017, The Washington Post Co. All Rights Reserved
President Trump told executives from the country's largest automakers Tuesday that he would ease
environmental rules and other regulations to encourage the return of manufacturing jobs to the United States, a
pledge that some analysts question will be as effective as promised.
Just the day before, Trump told business leaders he would cut regulations by 75 percent and "massively" cut
corporate taxes. When meeting the chief executives of General Motors, Ford Motor Co. and Fiat Chrysler, he
specifically targeted environmental regulations, which he called "out of control."
Though Trump spoke often on the campaign trail about the need to revive manufacturing across the economy, he
narrowed in on the automotive industry in particular in the weeks following his election. He separately criticized
Ford, GM and Toyota for plans to build certain cars in Mexico and then sell them in the United States.
But even the positive overtures Trump offered during the White House meeting - which came after weeks of
taunting the automotive industry over Twitter - may not compensate for the fact that automakers can produce
vehicles more cheaply in Mexico and will probably see softening demand for cars in the coming years, analysts
say.
"No matter how many incentives you offer automakers or [whether you] give them tax breaks, you still have the
labor issue to deal with," said Michael Harley, an executive analyst at Kelley Blue Book. "And you're never going
to be able to meet that on a one-to-one basis."
Trump called himself an environmentalist when he sat down with the leaders of General Motors, Ford and Fiat
Chrysler and said his administration will focus on "real regulations that mean something" while eliminating those
that he finds inhospitable to business.
Executives declined to answer questions after the meeting, including whether the president cited any specific
regulations he would cut. Only a portion of Tuesday's gathering was open to the news media.
Industry leaders contend that complying with increasingly stringent fuel economy standards increases car
manufacturing costs, which must then be passed on to buyers or compensated for with job cuts. Those
regulations were introduced during President Barack Obama's first term to reduce pollution and encourage
investment in eco-conscious technology. The Environmental Protection Agency upheld them in a review
concluded two weeks ago.
Safe Climate Campaign Director Daniel Becker said job creation doesn't need to come at the expense of
regulations that have a positive impact on the environment. The fuel economy standards, in particular, help to
save consumers money at the gas pump and reduce the country's dependence on oil, he said.
"Despite the rhetoric, there is often reason behind regulations, and in this case there is overwhelming evidence of
how beneficial they are for consumers, the industry and overall Americans," Becker said.
Analysts have speculated that Trump could ease those regulations or others that affect the industry as a reward
for companies creating more jobs in the United States.

"There is a huge opportunity working together as an industry with government that we can improve the
environment, improve safety, and improve jobs creation and the competitiveness of manufacturing," General
Motors chief executive Mary Barra told reporters after the meeting.
Ford chief executive Mark Fields and Fiat Chrysler chief executive Sergio Marchionne also attended Tuesday's
meeting.
Vice President Pence, Chief Strategist Stephen K. Bannon, Chief of Staff Reince Priebus and Senior Adviser
Jared Kushner attended on behalf of the administration.
The big automakers also make investments knowing they will outlive any single president, regardless of what
policies or regulations are put in place, said Kristin Dziczek, director of the industry, labor and economics group at
the Center for Automotive Research.
"This industry has been around for 100 years, and plants last for 40 or 50 years or more," Dziczek said. "They
can't be swerving left and right every time there is a political change."
Trump has threatened automotive companies that build abroad with a 35 percent tariff on goods imported to the
United States for sale. Whether Trump has the power to impose such a tax on select companies has been called
into question.
Trump met Monday with business leaders from a smattering of industries, including Fields and Tesla chief
executive Elon Musk. The automotive leaders were told to devise a "series of actions" that will boost U.S.
manufacturing and submit those plans to Trump within the next 30 days.
steven.overly@washpost.com
WP20170125autos0125
Document WP00000020170125ed1p00023

Auto Makers in the Crosshairs --- President puts Detroit's Big Three on the defensive about their commitment to U.S. jobs; 'new territory...
Auto Makers in the Crosshairs --- President puts Detroit's Big Three on the defensive about their
commitment to U.S. jobs; 'new territory for most of us'
By Mike Colias, Christina Rogers and Joann S. Lublin
2,155 words
24 January 2017
J
A1
English
DETROIT -- Auto executives typically spend the end of the year prepping for product debuts and thinking up ways
to spark sales.
This time around, Detroit's chiefs devoted considerable time to trying to figure out how to deal with the nation's
new commander in chief. Union bosses are being called in to consult on how to reshuffle factory work, board
members are trying to figure out who has friends in President Donald Trump's new administration, and task forces
have been created to monitor his Twitter account.
At a dinner party during the Detroit auto show earlier this month, Ford Motor Co. Chief Executive Mark Fields said
he reread Mr. Trump's "The Art of the Deal" over the holidays. He first read it in the 1980s, but wants to better
understand the new occupant of the Oval Office.
American companies, several of which have been scolded by Mr. Trump, often via Twitter, are suddenly grappling
with a new, unpredictable force in their operations. Barbs have included the price the Pentagon pays for
Lockheed Martin Corp. jets and whether Carrier Corp. assembles furnaces in Indiana. AT&T Inc. Chief Executive
Randall Stephenson recently met with Mr. Trump, who had expressed concerns about the telecom giant's
proposed purchase of Time Warner Inc.
Few industries have spent as much time in Mr. Trump's crosshairs as the U.S. auto sector. Less than a decade
after U.S. auto makers bounced back from near catastrophe thanks to a bailout from Washington, they have been
rattled by a series of tweets by Mr. Trump accusing them of not being sufficiently committed to U.S. jobs and
investment, given their heavy reliance on overseas production.
"It's new territory for most of us," Fiat Chrysler Automobiles NV Chief Executive Sergio Marchionne said during a
discussion with reporters earlier this month. "None of us have had a tweeting president before. It's a new way of
communication, and we're going to have to learn how to respond."
Mr. Marchionne and the other heads of Detroit's Big Three auto makers -- Mr. Fields and General Motors Co.
Chief Executive Mary Barra -- are scheduled to meet with Mr. Trump for breakfast Tuesday to talk about jobs,
White House press secretary Sean Spicer said on Monday.
A spokesman for the Trump administration didn't respond to requests for comment. In a recent interview, Mr.
Trump defended pressuring individual companies to commit to U.S. investment. "I'm not micromanaging," he said.
The leaders of both GM and Ford have talked with Mr. Trump. Ford Chairman Bill Ford, Henry Ford's
great-grandson, made a trip to Manhattan during the summer in an attempt to tone down campaign rhetoric.
Mr. Trump has thanked each of the Big Three auto makers for committing to U.S. investments, but his rhetoric on
trade and import taxes continues to rattle auto executives. During a meeting of business leaders at the White
House Monday that included Ford's Mr. Fields, the president said: "If you go to another country. . .we are going to
be imposing a very major border tax."
Mr. Marchionne told reporters earlier this month: "This whole notion of discussing trade relations [on Twitter], I'm
in the dark as much as you are."
Mr. Marchionne doesn't use Twitter, and Mr. Fields doesn't actively tweet from a personal account. GM's Ms.
Barra uses the tool sparingly. Her account has published 318 tweets in 47 months of existence.
Mr. Marchionne was one of the few auto captains to get out in front of Mr. Trump's salvos, announcing on the eve
of the Detroit auto show that Fiat Chrysler would invest $1 billion in two Midwest factories and create 2,000 new
jobs. Manufacturing investments aren't typical fodder for press releases issued during a major auto show. Mr.
Marchionne denied any Trump influence on the timing of the news. The investments have been in the works for
many months.
The Big Three's current difficulties in Washington represent the second time in less than a decade that auto
executives have had to carefully negotiate their position there. In 2008, with Chrysler and GM running out of
money, top executives and the head of the United Auto Workers union flew to Washington to seek federal
bailouts for GM and Chrysler. They eventually received substantial financing.
GM CEO Mary Barra was on Capitol Hill within three months of taking the helm in 2014, apologizing and
explaining why it took the auto maker so long to recall millions of small cars with defective ignition switches.
Auto executives, standing on firmer financial footing these days, hope there might be an upside to Donald
Trump's close attention -- if they can use the wrangling over trade as an opportunity to push their own agendas.
Auto makers remain unprepared to meet the Obama administration's stringent fuel-economy targets, standards
Mr. Trump's nominee to head the Environmental Protection Agency has said he would review. Auto executives
also have said they share Mr. Trump's concerns about other countries suppressing the value of their currencies.
Auto executives as far away from Detroit as Munich and Seoul are employing similar tactics to highlight billions of
dollars in existing U.S. investment plans. The entire industry is globally integrated, in production, sales and supply
chains, which the new administration could disrupt, and the U.S. market is of vital importance to most car makers.
Ms. Barra, a 55-year-old engineer who became the highest-ranking woman in the history of the U.S. car business,
read a tweet by Mr. Trump on Jan. 3 criticizing the No. 1 U.S. auto maker for importing the Chevrolet Cruze from
Mexico.
The early-morning missive came as GM was returning to work from the holiday break. Ms. Barra was readying a
barrage of new product announcements for the North American International Auto Show the following week and
preparing presentations for investors that included news of new share buybacks, plans for self-driving cars and an
outlook for improved earnings.
She called Mr. Trump and told him the company was readying investment announcements that would include
new job commitments. About a week later, during his press conference, Mr. Trump foreshadowed GM's
announcement by saying he expected more auto industry news after Ford committed $700 million to upgrade a
Detroit-area plant and Fiat Chrysler committed $2 billion for factories in Ohio and Michigan.
Ms. Barra's phone call to Mr. Trump was part of a strategy put in place weeks before.
"There had been a substantial dialogue among the management team and between the management team and
our board as to the landscape and how it might evolve and change," General Motors General Counsel Craig
Glidden said in an interview, regarding Mr. Trump's campaign messages. "Certainly with the result of the election,
those discussions intensified."
At GM's December board meeting, there was no formal discussion about Mr. Trump, said one person with familiar
with the matter. Some directors chatted among themselves about whether any had connections among Mr.
Trump's cabinet selections.
"What course does a corporation have?"this person said. "If you take him on [publicly], it affects your stock price."
Ms. Barra sought advice from certain board members about whether she should accept an invitation to serve on
Mr. Trump's 20-member advisory panel on business, this person said. Board members encouraged her to accept
-- she later did -- figuring more face time with the administration could allow her to help interject the industry's
view on trade and other issues, the person said.
"If she's an ambassador, it's because she's influential and persuasive, not because she's necessarily asking for
the role," said Mr. Glidden, who played an important role managing GM's interactions with the transition team.
Ms. Barra and her team began mobilizing to "package" some U.S. investment plans that would highlight to Mr.
Trump the auto maker's commitment to U.S. jobs, another person familiar with the plan said. Last week, the
company announced nearly 1,000 new or retained factory jobs and $1 billion in fresh U.S. spending, becoming
the latest auto maker to repackage preplanned investment news in a way that suits Mr. Trump's agenda.

Ms. Barra's discussion with Mr. Trump wasn't just about trade, focusing also on "ideas of regulatory relief," Mr.
Glidden said. The discussions touched on various topics, including tax policy.
GM has committed to doubling its Mexico production capacity through 2018. GM directors, who next meet in
February, may discuss future Mexico expansion and weigh Mr. Trump's views as "one more variable" before
acting, said a person familiar with the matter. Board members also will ask executives to describe other possible
Trump actions "where there will be negative publicity" for GM, this person said.
Mr. Trump's interactions with auto-industry chiefs extend back more than a decade to the days when he took the
stage at the New York Auto Show as a spokesman for GM's luxury cars. As a candidate, Mr. Trump didn't criticize
GM's Mexico investment plans, which are more expansive than its smaller Detroit rivals.
He focused instead on Ford. That spotlight prompted Mr. Ford, Ford's chairman, to visit Trump Tower last
summer.
"I wanted to tell him we are everything he should be celebrating about what's right in America," said Mr. Ford. Mr.
Trump was engaged, listened intently and asked a lot of questions as the two discussed trade, the North
American Free Trade Agreement, taxes and foreign exchange.
"I came away pleased," Mr. Ford said.
The good vibes faded in September when Mr. Trump was campaigning in Flint, Mich., the same day Mr. Fields,
Ford's CEO, told investors it would move all its small-car production to San Luis Potosi, Mexico, to improve profit
margins, and would retain jobs in the U.S.
Mr. Trump told a crowd that Ford's plan was "horrible" and said, "we shouldn't allow it to happen."
That frustrated some Ford executives, who had stressed the move wouldn't eliminate any U.S. jobs because the
affected factory would get new models.
"We felt we had a really good plan," Ford's North America chief Joe Hinrichs said. "We thought the whole
equation worked well, but it got lost in the Twitter world."
In the autumn, with small-car demand wilting and political pressure over a $1.6 billion factory in Mexico mounting,
Ford began considering a change of course. Although the election outlook was murky, the auto maker knew it had
a solid business case to rejigger an outsourcing plan that had become a banner theme in the Republican
candidate's campaign.
Consulting the UAW, Ford executives began studying alternatives.
"I was really glad they were taking another look at it," Jimmy Settles, the union's top Ford bargainer, said in an
interview. Mr. Settles said the company had ample space at existing factories to build new cars, including a Ford
Focus compact that was struggling, and it would be more prudent to retool an existing plant.
In December, Ford directors were briefed by executives on plans to scrap the Mexico factory, and management
approved a new strategy to reinvest in Ford's existing factories, including the upgrade of the Detroit-area plant.
Mr. Ford would talk with Mr. Trump several times after the election, including a mid-November call to tell the
president-elect that Ford wouldn't be shipping production of small Lincoln SUVs to Mexico. That prompted Mr.
Trump to take some credit for the move in a tweet.
Mr. Ford again called on Jan. 3 to say the Dearborn, Mich., auto maker ditched the Mexico factory.
"Look, he's a businessman," Mr. Ford said of Mr. Trump. "We're not going to make dumb decisions. We can't. He
wouldn't expect us to, frankly. So it was the right business decision for us. And obviously it was something he was
happy with, and, heck, I'm happy with."
A few days later, Toyota Motor Co. Chairman Akio Toyoda, also had also been challenged by Mr. Trump,
announced his company would spend $10 billion on its U.S. factories over the next five years -- similar to its
previous five of spending -- on long-planned renovations.
Mr. Toyoda reached out to Vice President Mike Pence in Washington the day after the executive's appearance in
Detroit. Toyota is a big employer in Mr. Pence's home state of Indiana.

---
Chester Dawson and Sean Mclain contributed to this article.
Document J000000020170124ed1o0001w

Ford Invests to Promote Online Auto Loans
Technology
Ford Invests to Promote Online Auto Loans
By Peter Rudegeair
395 words
24 January 2017
J
B4
English
The lending arm of Ford Motor Co. has tapped a San Francisco startup to make it easier for its customers to buy
and finance a car without going into a showroom.
Ford Motor Credit Co. said Monday that it would use software developed by AutoFi Inc. to let car buyers shop for
a Ford or Lincoln car and secure a loan online through its dealers' websites.
As part of the new deal, Ford Motor Credit also announced an equity investment in AutoFi. It didn't disclose the
amount.
AutoFi doesn't make any credit decisions or loans itself. The company operates a marketplace where dealers can
select which banks, credit unions or other lenders can pitch loans to car buyers. Customers can choose among
competing offers. AutoFi gets paid a fee by both the dealer and the lender if its service is used in a purchase.
"Our approach from the beginning was not to be, 'We're a Silicon Valley disrupter that's come to take out the
manufacturers and the dealers,'" said AutoFi Chief Executive Kevin Singermanin an interview.
While this new service promises to help streamline the buying process, laws in many states require customers to
visit a showroom to complete the paperwork on a new-car purchase, which often must be signed in person.
The auto-loan market expanded rapidly after the financial crisis, surpassing $1 trillion in outstanding balances for
the first time in 2015, according to the Federal Reserve Bank of New York. During the third quarter, lenders
extended $150 billion in auto loans in the U.S., tying a record, according to the Federal Reserve Bank of New
York.
Other fintech companies are also eyeing the auto-finance market.
In August, car-buying firm TrueCar Inc. announced a deal with J.P. Morgan Chase & Co. to simplify the process
of finding a vehicle and getting anautoloan online.
In October, online lender LendingClub Corp. announced it would start refinancing outstanding auto loans for
borrowers.
Mr. Singerman co-founded AutoFi in 2015 after a stint as a corporate-development executive at LendingClub.
"There was a lot of innovation that was being brought for most other consumer finance products, but auto was
really lacking," he said.
---
Christina Rogers contributed to this article.
Document J000000020170124ed1o0000v

Autos: Gas Prices Take Backseat for Auto Makers --- Car companies launch more profit-driving SUVs, pickups even as pump costs rise
Autos: Gas Prices Take Backseat for Auto Makers --- Car companies launch more profit-driving SUVs,
pickups even as pump costs rise
By Chester Dawson
651 words
11 January 2017
J
B8
English
Auto makers, betting that rising gasoline prices won't spoil America's love affair with pickups and SUVs, are
increasing their exposure to a light-truck segment that let the industry down a decade ago.
Executives say it's different this time. Today's sport utilities and pickup trucks are lighter and carry smaller
engines, helping achieve better fuel economy than the gas guzzlers that once jammed American dealer lots.
"There's some major differences," Ford Motor Co. Chief Executive Mark Fields said in a recent interview, referring
to the current vehicle model mix. "We're much better prepared as a company and in our product lineup to handle
that."
Analysts expect pump prices to potentially rise to near $3 a gallon in 2017, a trend that could reduce spending
power for American buyers who increasingly opted for heavier vehicles in recent years. Key vehicles being
launched at the Detroit auto show this week, including an updated version of General Motors Co.'s Chevrolet
Traverse SUV, are responsible for a disproportionate portion of auto makers' profits.
About 60% of the 17.5 million light-vehicles sold in 2016 were considered light trucks, according to Autodata Corp.
Pickups and SUVs make up more than half of Ford's pretax operating profit in North America and two-thirds of
GM's pretax operating profit in the region, according to a Citigroup Inc. research note in June.
Growing reliance on bigger vehicles mirrors a trend that stung domestic auto makers a decade ago. Ignoring
warnings that gasoline prices were creeping up, car companies were caught flat-footed when prices eclipsed $4 a
gallon, triggering a collapse in truck demand that drained cash reserves.
Gasoline prices averaged $2.14 a gallon last year, the lowest level since 2004, according to the U.S. Energy
Information Administration. The drop in gasoline prices over the past two years coincided with slump in crude-oil
prices after Saudi Arabia said in late 2014 that it would no longer curb output.
But in November the Saudis and other members of the Organization of Petroleum Exporting Countries reached a
deal to cut production, stabilizing crude prices above $50 a barrel. Since then, gasoline prices have risen steadily
to an average of $2.38 a gallon in the U.S.
"Prices this year are going to be considerably higher than in 2016," said Tom Kloza, global head of energy
analysis at OPIS, a petroleum pricing consultancy. "They're going to get to the point that people start talking
about them again," he said, estimating the average U.S. price of gasoline will peak this year above $2.80 a gallon.
"If we see a spike in prices, there'll be an immediate drawback in demand" for light trucks, said Ivan Drury, a
Santa Monica, Calif.-based senior analyst at Edmunds.com.
Auto makers aren't buying it.
Ford on Monday said it will revive the Bronco SUV and Ranger small pickup trucks, a nod to a broader industry
expectation that the U.S. market has undergone a structural shift. While some auto makers are investing heavily
to revamp popular sedans -- including Toyota Motor Corp.'s iconic Camry -- most are scrambling to add light-truck
production capacity while paring back passenger-car production.

"It appears to me that it's a permanent trend," Fiat Chrysler Automobiles NV Chief Executive Sergio Marchionne
said Monday. The company has killed off its Chrysler and Dodge brand small cars and will sell a lineup almost
entirely of SUVs and trucks.
"People have abandoned the sedan as being a traditional mode of transportation," Mr. Marchionne said. "If you
can afford something, you much prefer a SUV."
---
Adrienne Roberts and Mike Colias contributed to this article.
Document J000000020170111ed1b00014
U.S. Car Makers' Unlikely Patriots
Heard on the Street

U.S. Car Makers' Unlikely Patriots
By Stephen Wilmot
383 words
11 January 2017
J
B14
English
[Financial Analysis and Commentary]
Which are the most patriotic U.S. car makers? By Donald Trump's apparent measure, Tesla Motors, BMW and,
yes, Ford Motor are the improbable medalists.
The president-elect's tweets damning auto makers that build factories in Mexico have sent a chill through Detroit.
Having focused his ire mainly on Ford last year -- and taken credit for a reversal of its plan to build a new plant
south of the border -- Mr. Trump has this year broadened his attack to include General Motors and Toyota.
His target seems clear enough: companies that relocate manufacturing, and thus jobs, away from the U.S. But
the American companies he has picked actually make most of their U.S.-sold cars in the U.S.
Ford makes the equivalent of 95% of the cars it sells in the U.S. locally, according to WardsAuto data for the first
11 months of 2016. For GM, the figure is 83%. The company Mr. Trump should really be picking on, according to
this measure, is Fiat Chrysler: The number of cars it makes in the U.S. works out at just 69% of its U.S. sales.
Meanwhile, the company with the most extensive U.S. manufacturing base relative to sales is electric-vehicle
specialist Tesla, which makes all its cars in the U.S. and exports almost half of them. While Tesla makes a
fraction of the vehicles of the big auto makers, it could be hurt if the Trump administration rolls back the
environmental rules and subsidies that underpin the electric-car industry.
German luxury manufacturers also figure highly in a ranking of U.S. manufacturers. BMW is a net exporter,
thanks to its huge base in South Carolina, while the number of cars Mercedes owner Daimler makes in the U.S.
amounts to 86% of its U.S. sales. They may be foreign-owned, but like Tesla, they face less pressure to shift
production to cheaper countries because they charge premium prices and make fatter margins.
Ford is the odd one out: a mass-market brand with predominantly local production. Little wonder it wanted to build
that factory in Mexico.
Document J000000020170111ed1b0001l

CEO: Public-transit solutions can be profitable for ford ; Says ride-sharing plans could include autonomous vehicles
MONEY
CEO: Public-transit solutions can be profitable for ford ; Says ride-sharing plans could include
autonomous vehicles
Nathan Bomey
849 words
10 January 2017
USA Today
USAT
FIRST
B.3
English
Ford is poised to reshape its business model to capitalize as cities redesign public transportation and urban
development in the age of ride-hailing and self-driving cars, CEO Mark Fields said in an interview.
It's a far cry from simply making and selling cars to individual customers and corporate fleets, but Fields told USA
TODAY in an interview at the Detroit auto show that Ford projects 20% profit margins from these so-called
"mobility services," which is about double typical North American profit margins for automakers in good times.
Fields said Ford plans to help cities design public-transit solutions and said Ford autonomous vehicles could be
part of city- government ride-sharing programs. Ford plans to release a self- driving car without a steering wheel
that's capable of operating in certain cities in 2021.
Some experts believe that in the future, many consumers will use their smartphones to summon self-driving cars
instead of owning their own vehicles, a prospect that poses risks and opportunities for automakers. The risk is
that automakers will sell far fewer cars, but the opportunity is that they can share in the new way in which its
vehicles are used.
"New business models on mobility services can offer up a lot of opportunity for reoccurring revenue on, let's say,
the usage of our products, as well as new opportunities for us working with cities," Fields said. "So we think it
could add a whole new element of growth to our business going forward."
Ford announced Monday at the North American International Auto Show that the company's Chariot van
ride-sharing service will expand from two cities to eight after it acquired the service in September.
Other moves are further out.
"I suppose if you're looking far enough out, we'll have flying autonomous vehicles," Ford Executive Chairman Bill
Ford Jr. told a group of employees Sunday in an event attended by a USA TODAY reporter. "Why not? We
already have drones. We will have the autonomous capability. So if you're looking long term, I think that's very
much a possibility."
In any case, the advent of autonomous vehicles will disrupt the business model for transportation giants such as
Ford.
Fields spoke to USA TODAY about how the automaker is adapting. Here are excerpts, edited for clarity and
space:
Q: Could we see autonomous vehicles as a public-transit solution?
A: Particularly in dense urban areas, there's going to be a higher penetration or growth of autonomous vehicles.
Let's say it's in a ride-sharing or ride-hailing service.
Our view is that cities will want to coordinate all these different types of transportation options. We can be a part
of helping them architect that, in addition to bringing, let's say, a dynamic shuttle through Chariot, or bringing our
autonomous vehicles or our electric vehicles.
Q: Do you have any goals in terms of benchmarks, years by which you want to have X percent of your revenue
on services vs. sales of units?
A: We haven't. We want to grow it. We've said that in these emerging opportunities around mobility services we
think there's a good opportunity to make healthy margins of 20%-plus.
Q: Your dealership model in the U.S. today -- is it restrictive to this kind of transformation?
A: No, I actually think it's a huge advantage for us. There will be a spectrum going forward where people will want
to shop, buy, own and drive vehicles the way they have for many, many years. And clearly our dealers are playing
an important role in that.
When you think about mobility services, autonomous vehicles, for example, up time is going to be really
important. We have 10,000 distribution and service points around the world. That is a huge advantage for us that
our dealers can play a very important role in.
Q: There's a debate on how autonomous vehicles and ride-sharing will reshape cities. Some people think it may
cause people to move closer to cities, and others think maybe people will move farther out. Do you have a
perspective on that?
A: I think it's still too early to tell. What we do know is it could change the landscape regardless. One of the
reasons that we're engaging cities is they're thinking about their infrastructure investments going forward. The
transportation system that served us the last hundred years is probably not going to serve us just as well the next
hundred years.
Q: Do you view Uber and Lyft and other ride-hailing companies as competitors, partners or some combination of
both?
A: All of the above. I think our approach is different from some of these other companies. We want to talk with a
city first, understand what their issue is and partner with them to solve those problems.
photo Tommy Lau

Document USAT000020170110ed1a00006

Auto Makers in Hot Seat As Political Pressure Rises
Auto Makers in Hot Seat As Political Pressure Rises

By Mike Colias, John D. Stoll and Chester Dawson
977 words
9 January 2017
J
A1
English
DETROIT -- Fiat Chrysler Automobiles NV said Sunday it will invest $1 billion in two existing plants, creating what
it says will be 2,000 new jobs.
The decision ahead of Motown's annual car show comes as auto makers have faced heat from the incoming
administration of President-elect Donald Trump to manufacture more vehicles in the U.S.
Some of the sector's most powerful scions, including Ford Motor Co. Chairman Bill Ford and Toyota Motor Co.
President Akio Toyoda, have in the week leading up to the auto show signaled they support seeing more Made in
the U.S.A. labels in America's driveways.
"We continue to reinforce the U.S. as a global manufacturing hub," Fiat Chrysler Chief Executive Sergio
Marchionne said. Chrysler's Jeep dealerships recently started selling a small SUV made in Italy and the company
is moving certain other products to Mexico. Fiat Chrysler, which is forgoing new product announcements at the
show, said it is expanding its pickup and SUV lineup at its existing Ohio and Michigan plants.
U.S. buyers for decades placed brands into two categories -- American or foreign. Those distinctions became
irrelevant in the past decade as powerhouses like Toyota added production in the U.S. and Detroit's big three cut
American workforces and sank billions of dollars into factories overseas.
About half the parts on a typical "American" car come from foreign sources, a sign that buyers now rank safety,
quality or design higher than the origin of its content.
Until last week, Mr. Trump's autos criticism centered on a $1.6 billion factory Ford was building for small cars in
central Mexico. Mr. Ford called Mr. Trump on Tuesday to tell him the plant was canceled, future small-car
production would be done in an existing Mexico factory and $700 million will be invested to create 700 jobs in
Michigan, the company said.
Hours later, Mr. Trump received another phone call from Mary Barra. General Motors Co.'s chief executive, one of
20 business advisers to Mr. Trump on economic issues and jobs growth, had seen her company called out in an
early-morning tweet.
The president-elect said GM's Chevrolet imports from Mexico should be charged a "big border tax." Ms. Barra
called Mr. Trump and engaged in a "very positive and cordial" lengthy conversation, according to two people
familiar with the call.
The 55-year-old CEO is no stranger to political conflict, having steered GM through a safety-recall crisis shortly
after taking the helm in 2014, and the discussion "went very well," one of the people said.
On Sunday, Ms. Barra told reporters in Detroit that GM won't move small-car production to the U.S. from Mexico
in the wake of Mr. Trump's criticism of the auto maker's imports. Ms. Barra said manufacturing decisions and
plant investments are made far in advance of production and can't be easily reversed. "This is a long-lead
business with highly capital-intensive investments -- decisions that were made two, three and four years ago," Ms.
Barra said.
Toyota's $1 billion plan to import small cars to U.S. dealerships later in the decade was also chastised last week
by way of Mr. Trump's Twitter account hours after Mr. Toyoda told reporters in Tokyo the company is aligned with
the incoming administration. The Japanese executive will appear at Monday at the auto show to reveal important
products.
Detroit's auto show has been in the political spotlight before. In 2009, with domestic car companies running out of
money and in need of additional funds, GM executives used the event to lobby for government help. Playing off a
commitment the company made to launch plug-in hybrids, employees walked the floor of the city's Cobo Hall
carrying signs saying "Here To Stay" and "Charged Up" in an attempt to get the attention of lawmakers just days
before Barack Obama's inauguration.
One of Mr. Trump's biggest concerns -- Mexican car production -- thrived during the Obama administration. The
Ann Arbor, Mich.-based Center for Automotive Research estimates Mexican light-vehicle assembly capacity is
projected to double in size between 2010 and 2020.
In 2011, following its bailout of two Detroit car companies, the White House declared a "quiet resurgence" was
under way in American manufacturing, led by an auto industry poised to invest.
In the six years that have followed, 11 new assembly plants have been built or announced in North America, with
nine of them going south of the U.S. border, according to CAR, including the one Ford shelved.
Ms. Barra, as an adviser to Mr. Trump, could emerge as the best-placed defender of a broad move to find
lower-cost manufacturing resources. Companies like GM are investing heavily to stave off Silicon Valley tech
companies in the race to build autonomous vehicles that are safer than those driven by humans, and to meet
stringent fuel-economy standards set by the Obama administration.
GM is pushing low-cost sourcing more vigorously than any of its rivals. The Detroit auto giant imported an
estimated 33,000 Buick sport-utility vehicles from China this year, becoming the first major auto maker to tap a
factory there to fill U.S. showrooms.
Unlike Ford, which relies on Mexico for low-margin passenger cars like the Fiesta compact or Fusion sedan, GM's
plants in Ramos Arizpe, San Luis Potosi and Silao are profit machines. More than 40% of the company's full-size
pickups come from Mexico, along with 100,000 of the popular Chevrolet Trax small crossover wagons, according
to researcher WardsAuto.com.
---
Michael Bender contributed to this article.
Document J000000020170109ed190002m

Auto Makers Equip Cars With AI Software
Technology
Auto Makers Equip Cars With AI Software
By Tim Higgins
567 words
6 January 2017
J
B4
English
First there was connecting the car to the smartphone. Now auto makers are rushing to make the car talk back.
The car-making alliance between Renault SA and Nissan Motor Co. on Thursday revealed details about how
voice-assistant technology from Microsoft Corp. will eventually help drivers with predictive tasks such as
recommending routes to appointments stored in a calendar or suggesting a time for the vehicle to be taken in for
maintenance.
The announcement at CES 2017, a technology expo in Las Vegas, followed Ford Motor Co.'s disclosure that it is
bringing Amazon.com Inc.'s Alexa voice-command software into its vehicles. Drivers of certain cars who have
Alexa-equipped Amazon devices in at home later this month can tap into some car functions from home, such as
starting the engine and unlocking car doors.
Then this summer, Ford vehicles equipped with an infotainment system called Sync 3 will be able to work with an
Alexa app, allowing drivers to perform tasks such as searching for addresses or adding a product to an Amazon
shopping list.
The companies join other auto makers, including BMW AG and Hyundai Motor Co., in rushing to bring virtual
assistants into the car.
Many of these auto makers are already working on enabling computers to drive cars with limited or no human
interaction, aiming to put autonomous vehicles on the road by 2020.
Amazon's unexpected success selling the Echo speaker, which uses Alexa to answer questions, has opened up
an arms race between tech giants and consumer-product makers to put voice-powered, artificial intelligence
software at the center of people's lives. CES this year is full of home appliances, such as lamps and refrigerators,
that incorporate voice assistants.
People are becoming accustomed to interacting with their devices by voice at home, so it makes sense to
incorporate into cars, said Don Butler, Ford executive director of connected vehicle and services.
"We want to actively participate and help shape what that vehicle interaction is like rather than sitting back and
letting it, in essence, happen to us," he said.
Nissan's relationship with Microsoft, which spans beyond the tech company's Cortana voice-powered software to
a range of services, is part of Chief Executive Officer Carlos Ghosn's strategy to prepare for the introduction of
more than 10 autonomous vehicles by 2020.
The relationship shows how auto makers are turning to tech players with skills they don't have in-house, said Ogi
Redzic, Renault-Nissan senior vice president of connected vehicles and mobility services.
Auto makers see great potential beyond simply having a device that can open the garage door.
Toyota Motor Corp. earlier this week in Las Vegas revealed a vision of a future car with a voice-activated
interface called Yui that appears in various places inside the vehicle and uses lights, sounds and touch to
communicate.

"We want it to basically form a bond with you, it becomes a partner," said Ian Cartabiano, studio chief designer at
Toyota's Calty Design Research.
Nvidia Corp., the chip maker that has been developing an AI car-computing system, announced on Wednesday
new abilities to create a so-called co-pilot for self-driving cars that can help the vehicles operate by pointing out
approaching hazards.
Document J000000020170106ed1600011

Ford, a Target of Trump, Cancels a Mexico Plant
National Desk; SECTA

Ford, a Target of Trump, Cancels a Mexico Plant
By BILL VLASIC and NEAL E. BOUDETTE; Bill Vlasic reported from Detroit and Neal E. Boudette from Ann
Arbor, Mich.
1,314 words
4 January 2017
The New York Times
NYTF
13
English
DETROIT -- Donald J. Trump has promised to change the way American automakers do business. Less than
three weeks before his inauguration as president, he has already knocked the companies on their heels.
In a stunning reversal, Ford Motor, the nation's second-largest automaker, said on Tuesday that it would scrap
plans to build a small-car assembly plant in Mexico that Mr. Trump has repeatedly criticized.
Just a few hours earlier, Mr. Trump threatened to impose tariffs on cars made in Mexico by General Motors, the
nation's largest automaker. His message forced the company to defend itself.
Both developments indicate how Mr. Trump is having an enormous impact on how American car companies run
their operations, even before he takes office. They also illustrate that one of Mr. Trump's particular points of
criticism, manufacturing in Mexico, has become particularly sensitive.
But the moves raise questions about how competitive the country's auto industry can be if its manufacturing
options shrink in Mexico, and what the implications will be for consumers. For now, at least, some executives are
praising Mr. Trump's economic plans.
''We are encouraged by the pro-growth plans that President-elect Trump and the new Congress indicate they will
pursue,'' Mark Fields, Ford's chief executive, said at an event on Tuesday.
The decision by Ford to drop plans for a new plant in Mexico -- what would have been a $1.6 billion investment --
came at the same time the company announced it would add 700 jobs to build electric and hybrid vehicles at a
plant in Flat Rock, Mich.
The new Mexican factory was to build Ford Focus sedans currently manufactured at another Michigan plant near
Detroit. Now the company will build those cars at an existing plant in Mexico.
Ford officials said that the revised plans were tied to market conditions that have depressed small-car sales, and
that they did not consult with the incoming Trump administration before making the decision.
They did, though, tell Mr. Trump about the change just before the announcement. And on Tuesday, Mr. Fields
made clear that Mr. Trump's policies were playing a role in the company's thinking. He added in an interview that
the president-elect's emphasis on tax changes and cutting regulations should have an overall positive effect on
automakers such as Ford.
''We have a president-elect who has said very clearly that one of his first priorities is to grow the economy,'' he
said. ''That should be music to our ears.''
Ford has been a target of Mr. Trump's criticism since last spring, when he singled the company out during his
campaign for planning to create jobs in Mexico instead of pushing employment in the United States. After the
election, Ford dropped plans to move production of a Lincoln S.U.V. to Mexico from Kentucky. That move
followed discussions between Mr. Trump and William C. Ford Jr., the company's chairman.
One industry analyst, Ron Harbour of the consulting firm Oliver Wyman, said Ford was under intense pressure to
alter its Mexican plans -- or risk a constant drumbeat of criticism from Mr. Trump.
''It was an embarrassment for them, and they said, 'Let's turn this thing around,''' Mr. Harbour said.
Now Mr. Trump has turned his attention to G.M. In a Twitter post early Tuesday, he attacked the company for
making a hatchback version of a Chevrolet in Mexico for sale in the American market.
''General Motors is sending Mexican made model Chevy Cruze to U.S. car dealers tax-free across the border,''
Mr. Trump wrote. ''Make in U.S.A. or pay big border tax!''
A central tenet of Mr. Trump's economic platform has been to renegotiate the North American Free Trade
Agreement, which allows for the free flow of manufactured goods between the United States, Canada and
Mexico. Instead, he favors tariffs of up to 35 percent on products made in Mexico and sold in America.
Industry analysts have questioned whether automakers like G.M. and Ford can profitably build smaller vehicles in
the United States instead of in Mexico, where wages rarely cross $10 an hour, compared with the $29 an hour
earned by a majority of unionized American workers.
For consumers, those higher wages could add up to higher sticker prices. And that could potentially reduce sales.
But Mr. Trump is hardly backing off on his vow to scrap Nafta, and has found an unlikely ally in the powerful
United Automobile Workers union, which represents hourly employees at G.M., Ford and Fiat Chrysler in the
United States.
While the U.A.W. leadership supported Mr. Trump's rival, Hillary Clinton, in the presidential election, the union has
consistently attacked Nafta for encouraging car companies to invest in Mexico.
''The U.A.W. has long believed that companies that sell in our country should build their products in our country,''
the union's president, Dennis Williams, said on Tuesday.
The hatchback made by G.M. in Mexico is a version of its Cruze compact car produced primarily at a factory in
Lordstown, Ohio.
Sales of the Cruze, like many other passenger cars, have fallen in recent months because of low gas prices and
shifting consumer demand toward more spacious sport utility vehicles. The Lordstown factory is among five
American plants that G.M. will temporarily idle this month to reduce its growing inventories of slow-selling cars.
G.M. officials declined to comment on Mr. Trump's Twitter attack, other than to say in a statement that only a
''small number'' of Cruze hatchbacks were built in Mexico for the American market.
But G.M. has a large exposure to any potential changes looming on Nafta, having committed up to $5 billion in
long-term investment in Mexico. Foreign car companies like Volkswagen and Toyota are also adding jobs and
new products at their Mexican facilities.
With Nafta under fire from the incoming administration, Ford, in particular, has tried to adapt.
In a recent interview, the company's chief financial officer, Robert L. Shanks, said the automaker was expecting
changes in trade deals, and increasing its focus on expanding its manufacturing in the United States. ''The bigger
principle is we want to grow the U.S. economy,'' he said.
On Tuesday, the company packaged a series of announcements on new electrified vehicles with a promise to
invest $700 million in its Flat Rock assembly plants.
The addition of 700 jobs at the plant will help it build a new fully electric S.U.V. to debut in 2020, as well as a new
autonomous vehicle that has no steering wheel and operates entirely by computer.
Ford's vice president of global purchasing, Hau Thai-Tang, said the company chose the Flat Rock facility ''to
really show we are making a commitment to the United States and to technology.''
Mr. Fields, however, was more circumspect on why the company had dropped its plans for the new Mexican
factory. ''We didn't need it anymore,'' he said. ''We just don't need the capacity anymore given the demand for
small cars.''
Still, the news about the Mexican plant and the new jobs in Michigan were conveyed directly to Mr. Trump and
Vice President-elect Mike Pence before they were publicly announced.

''We called the president-elect and the vice president-elect this morning and gave them the news,'' Mr. Fields said
Tuesday. ''They were very pleased, obviously, that we were making these investments in the U.S.''
Mark Fields, Ford's chief executive, announced plans Tuesday to expand a plant for electric and hybrid vehicles
in Flat Rock, Mich. (PHOTOGRAPH BY REBECCA COOK/REUTERS)
Document NYTF000020170104ed140003g

Old-Line Firms Chase Startups
Old-Line Firms Chase Startups

By Eliot Brown
848 words
31 December 2016
J
B1
English
In late 2015, a commuter-shuttle startup caught the attention of Ford Motor Co. executive John Casesa, who runs
global strategy for the auto maker. The startup, called Chariot, was growing fast and had an interesting
crowdsourced reservation model, a staffer told him, suggesting a meeting.
One year and a $65 million deal later, the San Francisco van service is owned by the Detroit giant -- part of an
acquisition-fueled push into new areas as an uncertain and perhaps driverless future looms.
"We are in an era in our industry where M&A will be a frequently used instrument," Mr. Casesa said.
For much of the past half-century, U.S. corporations in industries from manufacturing to retail generally eschewed
Silicon Valley startups, instead choosing to build their own new products or buy established companies.
But a combination of factors -- fear of seeing business disrupted, struggles to find new growth, changes that
require new skills -- are leading more of these companies to hunt for tech deals.
In recent months, a burst of old-line companies have swallowed tech upstarts, including Wal-Mart Stores Inc.'s
$3.3 billion purchase of web-discount retailer Jet.com Inc., General Motors Co.'s more than $1 billion acquisition
of self-driving tech company Cruise Automation and Unilever PLC's $1 billion purchase of online razor seller
Dollar Shave Club.
Nontech companies spent nearly $10 billion buying venture-backed U.S. startups this year, nearly double the
amount last year and the highest total in at least five years, according to PitchBook.
Venture-capital investors and analysts expect a flurry of deals in 2017, particularly given that funding is harder to
come by in the private and public markets.
Good software is "becoming the oxygen" for established companies, said Barry Jaruzelski, a principal at
PricewaterhouseCoopers LLP who focuses on research and development and technology. "People are saying, 'I
need to acquire.' "
The result is that Silicon Valley conferences, networking events and office buildings are gradually being infiltrated
by the old guard of retail, manufacturing, insurance and other traditional sectors.
New venture-capital arms of large corporations seem to sprout up every few months, enabling their executives to
mingle and hunt for partnerships and acquisitions. Entrants this year include Campbell Soup Co., Kellogg Co.,
JetBlue Airways Corp. and Airbus Group SE, the last two located in Silicon Valley.
Rich Wong, a partner at Accel Partners, an investor in Jet.com, said that until recently potential buyers for
startups were generally confined to giants in the tech space, like Oracle Corp. and Microsoft Corp. -- so much so
that traditional companies in a startup's sector didn't come up as candidates.
Accel Partners recently counseled the founders of its invested startups to become more familiar with these older
companies, an apparent gesture to the disdain startup founders often express about their corporate counterparts.
But these generally cautious corporate buyers face a dilemma: Startups typically carry high valuations that are
largely a product of excitement around their growth potential.

That makes them extremely expensive based on traditional metrics like revenue -- and therefore inherently risky
bets that can be tough for shareholders to stomach.
Wal-Mart has a market capitalization about 65 times that of what it paid for Jet.com, and it has roughly $480
billion in revenue compared with what it said was $1 billion in annualized revenue for Jet.com.
But Wal-Mart is facing ever-more competition from Amazon.com and other retailers, and executives at the
company have said Jet.com will allow them to expand their e-commerce at a much faster rate.
For these older companies buying startups, "generally speaking, you are overpaying for assets right now," said
Jason Gere, a consumer-products analyst at KeyBanc Capital Markets. The deals often are a bet on the future as
they try to connect with a younger generation, he said. "They're hoping that what they're doing is creating another
avenue for growth."
Another option is to write smaller checks, making earlier bets on young companies like Ford did with Chariot in
September.
Scotts Miracle-Gro Co., the 148-year-old lawn-products company based outside Columbus, Ohio, wanted more
tech-focused products and gadgets to help with lawn care, but quickly realized it would have to look outside its
ranks for help, said Peter Supron, the company's chief of staff.
"To the best of our knowledge, we don't have an electrical engineer doing electrical engineering in the company,"
he said.
After charting out the lawn-care startup landscape and many flights to Southern California -- where many are
located -- Scotts bought two startups this month.
One, called Blossom, helps make a digitally connected sprinkler system, and the other, PlantLink, makes sensors
that tell gardeners when to water. Both are small acquisitions -- under $10 million, Mr. Supron said -- but they
saved Scotts the headache of building products on its own.
"These startups can get there faster and cheaper than us," he said.
Document J000000020161231eccv0001p

Business News: Ford Says Buy and Get a Tax Break --- Dealer group urges small businesses to purchase vehicles before end of year
Business News: Ford Says Buy and Get a Tax Break --- Dealer group urges small businesses to purchase
vehicles before end of year
By John D. Stoll
424 words
29 December 2016
J
B6
English
Buy a truck and write it off.
That's the message Ford Motor Co. is sending to small-business owners in an effort to bolster demand for its
most profitable products in the final days of 2016.
The auto maker's dealer group emailed an advertisement Tuesday to prospective buyers urging them to purchase
a work truck, large sport-utility vehicle or van before year-end to take advantage of potentially substantial tax
breaks. Citing the Internal Revenue Service's Section 179 deduction, which was recently retooled and made
permanent, Ford suggests customers "could get a big tax break for your business."
The F-series pickup, large Expedition SUV and Transit work vans are highlighted in the email, which was
reviewed by The Wall Street Journal. Ford plans to slow production during the first quarter, including dialing back
output of certain trucks and vans, in a move aimed at curtailing inventory levels.
Ford's U.S. market share has held steady at 14.9% in 2016, and it recently put a redesigned version of its
F-series Super Duty trucks on sale to take advantage of surging demand for large pickups amid low gasoline
prices and healthy economic activity.
The Dearborn, Mich., company relies on big trucks and vans for a substantial portion of its profit. The company is
working to fund several initiatives, including a $4.5 billion commitment to electrified vehicles, investments in new
mobility ventures and autonomous vehicles, and a push to add freshened trucks and SUVs to its U.S. lineup.
Auto makers typically pour on sales incentives and ramp up advertising to ensure strong December sales.
General Motors Co., for instance, is staging a "Red Tag Sales Event" that offers a $9,600 discount on certain
versions of its Silverado pickups.
Barclays auto analyst Brian Johnson sent a note to investors Wednesday projecting a relatively strong December
performance for U.S. light-vehicle sales, but he added that the industry faces a plateau after seven years of
growth.
Ford's push aims to lure buyers by combining existing incentives with tax breaks being offered on vehicles put in
service for business by Dec. 31. For those who qualify, the entire cost of a Transit work van can be deducted or
as much as $25,000 can be deducted from the cost of Expedition SUV purchases.
Document J000000020161229ecct00011

Business News: Data Hint at Wider VW Woes --- EU is assessing report that suggests cheating on emissions tests extends to more cars
Business News: Data Hint at Wider VW Woes --- EU is assessing report that suggests cheating on
emissions tests extends to more cars
By William Boston
549 words
15 December 2016
J
B3
English
BERLIN -- Volkswagen AG's emissions-cheating scandal could involve more vehicles than previously
acknowledged, and some new models built to meet the most stringent European emissions standards may still
cheat, according to a European Union research body.
A report by the European Commission's Joint Research Center, assessing tests conducted in August on several
diesel-powered vehicles, also cites elevated emissions on models from U.S.-based Ford Motor Co. and Citroen
maker Groupe PSA of France.
The report, which was reviewed by The Wall Street Journal, concludes that a luxury compact car built by
Volkswagen's Audi unit produced higher emissions of nitrogen oxide, or NOx, outside of routine test conditions.
Experts say that could indicate use of a "defeat device."
The new findings suggest Volkswagen and its subsidiaries may have installed such devices on more engines
than previously acknowledged and some new models may still be built to dupe emissions tests. Volkswagen
admitted last year to rigging nearly 11 million vehicles world-wide to cheat on emissions tests.
An Audi spokesman said the company couldn't comment on the new findings because "we have no information
about the study." He said the vehicle in question -- the Audi A3 -- "performed well" on other independent tests,
referring to those by the German motor-vehicle authority KBA.
The EU research center also included data indicating a Citroen C4 Cactus BlueHDi diesel and Ford Fiesta GDI
diesel exceeded legal limits for NOx.
A Ford spokesman said: "Ford does not have what are commonly known as 'illegal defeat devices' in our
vehicles, and our advanced diesel engines meet all applicable emissions requirements."
Citroen didn't immediately return requests for comment.
A spokeswoman for EU Industry Commissioner Elzbieta Bienkowska said the research center's report was "still
under internal assessment." She added that the European Commission, the bloc's executive arm, would alert
national regulators if "the test results raise some suspicion of wrongdoings."
The EU research center's test results contradict findings by the German government, which passed the Audi
model in its official report in April. Germany has yet to comply with an EU demand to provide all data from the
KBA tests.
The EU research center's findings were first reported by Germany's Sueddeutsche Zeitung newspaper.
The center's tests found that Audi's current A3 2.0 liter diesel, equipped with the EA 288 TDI engine, produced
higher NOx emissions under some conditions.
European emissions regulations bar passenger cars from producing more than 80 milligrams of NOx per
kilometer. In the center's tests, the Audi A3 was below that limit during a normal "cold start," as is routine in such
tests. When the technicians restarted the car after first warming up the engine, NOx values rose to 163
milligram/kilometer, or twice the legal limit.

"If a vehicle has significantly higher values during a warm test in the European test cycle than in a cold test, then
there is strong reason to suspect that there is a defeat device, because you can't explain this technically," said
Axel Friedrich, a former German environmental official.
Document J000000020161215eccf0002e

Business News: Ford Is Set To Raise $2.8 Billion
Business News: Ford Is Set To Raise $2.8 Billion

By Christina Rogers
257 words
6 December 2016
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Ford Motor Co. will raise $2.8 billion in new long-term financing for its automotive business, tapping debt markets
for the first time in nearly four years to fund investment in new technologies.
The auto maker disclosed the debt issuance in a regulatory filing Monday and said it would take advantage of
favorable market conditions to raise money for "general corporate purposes."
The move comes after several years of banking profit on increasing sales of trucks and sport utilities. The
company has signaled it expects increased pressure as the U.S. light-vehicle market plateaus, regulatory costs
increase and the race to make cars more autonomous heats up.
Once awash in debt, Ford paid down its obligations in the years following the financial crisis to revitalize its
balance sheet. General Motors Co. and Chrysler, now part of Fiat Chrysler Automobiles NV, filed for bankruptcy
in 2009 to erase billions of dollars in debt. All three companies have taken on new debt in recent years even as
profits soar.
GM, earlier this year, issued $2 billion in new debt to shore up its pension plan for U.S. hourly workers.
The last time Ford issued new automotive debt was in January 2013, when it raised $2 billion in 30-year notes at
4.75%. Ford had $24.3 billion in automotive cash and $13.1 billion in debt at the end of the third quarter 2016.
Document J000000020161206ecc60001g

Sold! Cars flew off the lots in November ; Auto industry has fingers crossed it can break sales record
MONEY
Sold! Cars flew off the lots in November ; Auto industry has fingers crossed it can break sales record
Nathan Bomey; Brent Snavely
Nathan Bomey, and Brent Snavely, USA TODAY and Detroit Free Press
515 words
2 December 2016
USA Today
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Buoyed by renewed economic confidence following the presidential election, Americans snapped up new vehicles
at a rapid pace in November, giving the U.S. auto industry a chance of breaking its all- time record for full-year
sales.
With stocks hitting record highs following Donald Trump's victory, easy credit, strong employment and a solid
housing market, vehicle shoppers had little reason to hesitate in the showroom.
General Motors and Ford Motor outperformed expectations, inspiring investors who have otherwise had a
relatively ho-hum attitude toward their shares in recent years.
Foreign automakers also produced solid gains for the month, with German automaker Volkswagen Group's
flagship brand even breaking a monthly sales losing streak that started with its emissions scandal in fall 2015.
"After one of the most contentious elections in the U.S., certainly in my lifetime, the question was what effect may
that have on consumer confidence?" said Bob Carter, senior vice president of automotive operations for Toyota in
the U.S.
"Well, from my perspective, when you look at the strength of November -- particularly what took place for us, and I
assume the entire industry over the Thanksgiving holiday -- consumer confidence is just fine."
With one month to go, the industry has a decent chance to match or exceed its 2015 full-year record of 17.47
million vehicles sold.
In November, U.S. auto sales rose 3.7% compared with a year ago, according to Autodata. On an annualized
basis, that equaled a rate of 17.87 million units. November sales growth projections had ranged from 2.7% at
Edmunds.com to 4.2% at Kelley Blue Book.
Another contributing factor to the solid month was the Thanksgiving weekend, which is having an increasing
effect on the month's output.
"Black Friday has become one of the cornerstone selling events in automotive now," Ford U.S. sales chief Mark
LaNeve said.
Discounts as a share of vehicle price rose 13% over a year earlier, according to TrueCar. Incentives now average
$3,475 per vehicle industrywide. That will cut into profits as automakers jockey for market share. But on the
whole, November was still quite lucrative for the industry.
GM's overall sales rose 10.2%. That included an 8% gain in retail units, which are more profitable than sales to
fleet customers. The automaker's four U.S. brands recorded increases, with Chevrolet up 8.1%, GMC up 14.1%,
Cadillac up 14.5% and Buick up 16.1%.
Ford Motor had a similarly strong month, with sales increasing 5.1%. That included a 10% increase in retail sales,
bolstering the bottom line. The luxury Lincoln brand continued its hot streak, rising 19.1%. Ford shares rose 3.9%
to close at $12.43.

On the domestic front, the laggard was Fiat Chrysler. The company's sales fell 14.3%.
Contributing: Greg Gardner, Detroit Free Press
Document USAT000020161205ecc20003r

Redesigned Ford Fiesta stays true to its roots
MONEY
Redesigned Ford Fiesta stays true to its roots
Brent Snavely
Brent Snavely, @BrentSnavely, Detroit Free Press
529 words
2 December 2016
USA Today
USAT
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Ford is giving its popular small Fiesta its biggest overhaul in six years.
The Dearborn, Mich., automaker revealed the redesigned Ford Fiesta before 4,000 employees, dealers and
members of the media Tuesday in Cologne, Germany.
The new Fiesta has a wider and lower stance compared to the current version and a face that reflects some of
the same styling cues of the larger Ford Focus, including a black grille, a black lower lip and slanted headlights.
Ford said it updated and modernized the design of the Fiesta while also staying true to the small car's roots.
The Fiesta, now in its eighth generation in Europe, is among Ford's most popular cars globally. Ford has sold
nearly 18 million Fiestas since it was launched in 1976.
The Fiesta that is sold in Europe will be built at Ford's plant in Cologne and is part of an agreement signed in
2015 between Ford and the German Works Council, which involves more flexible work rules.
"We agreed to build the world's most successful small car, and we've done it," said Jim Farley, executive vice
president and president, Ford of Europe.
The new version of the Fiesta will go on sale in Europe next summer. Ford declined to say when it will show the
Fiesta in the U.S. or when it would go on sale here.
In Europe, Ford will offer the new Fiesta in four trim levels: Titanium, the performance-inspired Fiesta ST-Line, the
upscale Fiesta Vignale and the Fiesta Active crossover.
Prices were not revealed.
Inside, the new Fiesta has more space, an 8-inch floating high- definition touch-screen, Ford's SYNC 3
communications and entertainment system and Ford's first custom-designed B&O PLAY sound system. The B&O
sound system was developed in a partnership with Harman that was announced in September.
"We believe this is the most technically advanced small car anywhere in the world," Farley said.
The Fiesta will be powered by a redesigned 1.0-liter EcoBoost engine that Ford said will be the industry's first
3-cylinder engine to feature cylinder deactivation. The technology can disengage or re- engage the cylinder in 14
milliseconds, which helps to improve fuel efficiency and reduce CO2 emissions.
When Ford reintroduced the Fiesta in the U.S. in 2010 it was aimed at Millennials. It was marketed for months
before its introduction through a campaign called Fiesta Movement.
The automaker loaned 100 Fiestas to young potential customers across the country for six months and had them
document their adventures on social media.
Today, the Fiesta has established itself in the U.S. as one of the industry's most popular subcompacts even as
sales of all small cars have declined in the face of lower gas prices.
Through October, Ford has sold 42,188 Fiestas in the U.S., a 26% decline compared with the same period last
year.
The Fiesta competes against cars such as the Hyundai Accent, Honda Fit, Chevrolet Sonic, Chevrolet Spark and
Toyota Yaris.
photo Ford
Document USAT000020161205ecc20003g

Management -- Boss Talk: Ford Motor Is Rethinking Car of Future --- A pioneer of the open office heads unit exploring ride hailing, car sharing and self-driving vehicles
Management -- Boss Talk: Ford Motor Is Rethinking Car of Future --- A pioneer of the open office heads
unit exploring ride hailing, car sharing and self-driving vehicles
By Christina Rogers
809 words
30 November 2016
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Ford Motor Co. is looking to reimagine the way people get from point A to point B. It has turned to an unusual pick
to lead the charge: Jim Hackett, former chief executive of office-furniture maker Steelcase Inc.
Mr. Hackett chairs Ford Smart Mobility LLC, a subsidiary formed in March to explore new ventures in ride hailing,
car sharing and self-driving vehicles. One of several auto-industry outsiders recruited by Ford CEO Mark Fields,
Mr. Hackett is expected to help rethink the ways Ford's cars connect with the outside world as well as the
company's role in the future of transportation. Also on his list: figuring out how to make money at it, too.
Ford moves into transportation-related services at a time of changing attitudes toward car ownership and the rise
of emerging Silicon Valley rivals like Uber Technologies Inc. and Alphabet Inc.'s Google.
Over 30 years at Steelcase, Mr. Hackett, age 61, reshaped the company's workplace offerings, dispensing with
cubicles and embracing open offices. Later, as interim athletic director for the University of Michigan, Mr. Hackett
famously recruited NFL coach Jim Harbaugh to lead Michigan's football program.
Mr. Hackett recently spoke about his new job, and why Ford is looking beyond the car.
Edited excerpts:
WSJ: You were sitting on Ford's board when they recruited you for this role. What was the mission?
Mr. Hackett: Mark [Fields, Ford's CEO,] said 'your remit is to come in and help us understand what kind of
business models are going to be required in this new space of mobility.' It was a broad mandate.
I asked them if we could construct [the role] in a way that there was a CEO running things -- I wasn't looking to be
a CEO again -- and an executive chairman. By making me executive chairman, they allowed me to put as much
or more time into the thought part of things as in the running part, and that was appealing to me.
WSJ: Ford anticipates its mobility ventures will eventually return profit margins of 20% or more -- far higher than
in the auto business. Why is that?
Mr. Hackett: What reduces margins in our industry and puts pressure on our P/E are the extreme amounts of
capital required to produce each dollar of profit. In this case, it doesn't take that. It takes operating expense. You
need software engineers and you need designers. But it's not nearly as expensive as the capital it takes to
produce a car.
WSJ: What did Ford see in the acquisition of Chariot, the van-shuttle service?
Mr. Hackett: You couldn't help but be smitten by the entrepreneur who started it. [Ali Vahabzadeh] did some
things that were quite impressive, using crowdsourcing as a mechanism for determining where the vehicle goes.
The algorithm sorts the requests it gets and plans the routes. It gives you the walking distance to pick it up and
people love that. There is a lot of data potential in this business.
WSJ: How will the rise of car-sharing and ride-sharing services change the notion of car ownership?
Mr. Hackett: [Ownership] will be more tied to jobs to be done that day: Are you commuting? Are you on vacation?
Are you in a rush somewhere? Are you worried about drinking and driving?
WSJ: You've also partnered with a bike-sharing firm. What's the connection to selling cars?
Mr. Hackett: They fit into an emerging transportation system where people own vehicles but also share assets. So
Chariot and Motivate bike-share are the sharing plays we've made. More important, it is about the data, which for
us is really important to the mystery of what the transportation system is exhaling every day.
WSJ: What are the top three items on your to-do-list for 2017?
Mr. Hackett: No. 1 is to build the where-to-play, how-to-win strategy around the world. Two, building out the rest
of the team to pull this off. Three, I've been given a license for creative ideas and I need some early wins.
WSJ: Michigan football fans worship you for hiring Jim Harbaugh. If you could do something equally noteworthy
for Ford, what might that be?
Mr. Hackett: I couldn't be happier with the success they're enjoying. If I could leave an impact [at Ford], it's that
this brand and its people come out of the mobility challenge more competitive. The next thing that hits [our
industry] may not be a financial crisis but a crisis of purpose.
Document J000000020161130ecbu0000k

Ford's Tango With Trump
REVIEW & OUTLOOK (Editorial)

Ford's Tango With Trump
744 words
21 November 2016
J
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Ford Motor Co. announced late last week that it won't shift production of its Lincoln MKC to Mexico from
Louisville, Kentucky, as planned. This is good news if Ford believes that Donald Trump will make the U.S. more
competitive but a bad precedent if it is bending to the President-elect's political wishes.
The U.S. auto maker had intended to move production of its MKC, a luxury crossover SUV, to Mexico to increase
output of the higher-volume Escape at its Louisville plant, which is operating at full capacity. While this
cross-border migration would not have jeopardized American jobs (which are protected by the United Auto
Workers labor agreement), keeping the MKC in Kentucky could lead to more domestic investment.
In a statement, Ford said that "we are encouraged that President-elect Trump and the new Congress will pursue
policies that will improve U.S. competitiveness." CFO Bob Shanks noted on a conference call that Mr. Trump's
promises to cut taxes and increase public-works spending could "provide an environment where it makes
economic sense to build back up manufacturing jobs here."
This seems to have displeased many progressives who have spent the last eight years denying that the Obama
Administration's tax and regulatory policies have depressed investment. Ford's decision is also a counterpoint to
Mr. Trump's claim that the U.S. needs to renegotiate trade deals and impose protective tariffs to bring back
manufacturing jobs.
Make the U.S. more competitive and more businesses will come -- or stay. According to the Tax Foundation, the
U.S. marginal effective tax rate on capital investment (35.3%) is the highest in the industrial world and twice as
high as in Mexico (17.4%) and Canada (18.6%). The effective rate for U.S. manufacturers is much higher than
for, say, real estate.
Mr. Trump has proposed cutting the corporate tax rate to 15% from 35% and allowing U.S. companies to
repatriate income already earned abroad at a 10% rate. His plan would also allow manufacturers to fully expense
their capital investment. While the details have to be negotiated with Congress, corporate tax reform has broad
support among Republicans as well as some Democrats including Senate Minority Leader Chuck Schumer, who
has indicated a willingness to cut a deal in return for more domestic spending.
According to the Washington Post, Ford officials also said privately that they believe Mr. Trump would ease
fuel-economy standards imposed by President Obama in 2012. This would be more good economic news.
The onerous mileage rules, which require an average fleet efficiency of nearly 50 miles per gallon by 2025, are up
for review next year. Ford has been shifting production of its low-margin small cars that are needed to comply
with fuel-economy rules to Mexico where labor costs are lower. Scaling back the regulations would improve
Ford's profit margins and allow it to invest more in making more profitable trucks and SUVs in the U.S.
Replacing the Affordable Care Act would also be a boon. Ford's health-care costs have been rising fast in part
due to ObamaCare's benefit mandates. The United Auto Workers last year estimatd that health-care costs per
union worker will increase 63% by 2019. The law's 40% tax on expensive "Cadillac" plans will also take effect in
2018. Escalating health-care costs impinge on business investment and make American workers less
competitive.
A major caveat here is that Ford has been the most protectionist U.S. car company and vigorously opposes the
Trans-Pacific Partnership, which would reduce the 25% tariff on Japanese trucks. Ford has also been hurt by the

stronger U.S. dollar and urged sanctions on Japan for manipulating its currency, though the yen was overvalued
for many years.
During his campaign, Mr. Trump accused Japan of "monetary manipulation" and suggested he might impose
tariffs on imports. The U.S. doesn't need politicians dictating where companies can invest, and it would be bad
news if Ford's announcement is one half of an implicit bargain in return for an expectation that Mr. Trump will
increase tariffs on imported cars.
Ford's MKC reversal shows how pursuing pro-growth policies will encourage business investment, but only if it
doesn't herald a new era of politicized investment.
Document J000000020161121ecbl0000f

In Overture, Ford Rethinks Car Plan
In Overture, Ford Rethinks Car Plan

By Christina Rogers and John D. Stoll
879 words
19 November 2016
J
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One of the U.S. auto industry's best-known figures extended an olive branch to President-elect Donald Trump,
saying the car maker won't move certain production to Mexico -- the latest business leader to thaw tension
stemming from concerns about the incoming administration's stance on trade.
Bill Ford, the great-grandson of Henry Ford and chairman of Ford Motor Co., called Mr. Trump on Thursday to tell
him the company was reversing course on a plan to eventually relocate Lincoln sport-utility production from
Kentucky to a factory south of the U.S. border, the company confirmed.
The largely symbolic change of plans signals Ford's willingness to work with Mr. Trump on making U.S.
manufacturing more attractive to multinational companies, even as the auto maker sticks with its $1.6 billion
construction of a new small-car plant in Mexico.
Mr. Trump overplayed Ford's decision in a tweet about the conversation he posted to his Twitter account
Thursday night, suggesting Ford would no longer relocate a Lincoln plant from Louisville to Mexico. The
Dearborn, Mich., company only wanted to move one model to Mexico in this case, and it never intended to close
the Kentucky plant or cut jobs, according to company and union officials.
Officials working on Mr. Trump's transition team didn't respond to requests for comment.
Mr. Ford's outreach reflects a broader move by business leaders to mend fences with the president-elect after a
brutal campaign. Following the election, Ford Chief Executive Mark Fields sent a congratulatory letter to Mr.
Trump, despite the New York businessman's repeated criticisms of the auto maker's plan to relocate Ford Focus
production from Michigan to Mexico.
Other companies made similar pushes. International Business Machines Corp. CEO Ginni Rometty published an
open letter to Mr. Trump this week offering support for his policies, even after the president-elect criticized IBM
and other companies for moving U.S. jobs overseas. Caterpillar Inc., a maker of construction and mining
equipment, applauded Mr. Trump's pledge to boost infrastructure spending.
Some of the outreach has come with a downside. Sneaker maker New Balance Athletic Inc. publicly backed the
president-elect's antitrade stance, welcoming Mr. Trump's election as a reprieve from the policies of President
Barack Obama. That support, however, incited a social media backlash.
Mr. Trump's complaints concerning Ford reflect broader criticism of the North American Free Trade Agreement,
which some blame as the culprit for job loss in manufacturing sectors like automobiles. Mr. Trump has proposed a
35% tariff on autos and other products imported from low-cost countries such as Mexico.
Mr. Fields said earlier this week the tariffs would hurt his industry and the economy, but said he and the
president-elect share the same objective of boosting the U.S. economy.
The tariff "would be harmful, I think, to the entire industry and the economy and therefore we want to engage in a
very productive set of discussions," he said. He noted Nafta has increased the interwoven connections shared by
auto industries in the U.S., Canada and Mexico.
Many in the auto industry say untangling the trade pact would be costly and complicated because of the
multilayered connections between U.S. and foreign suppliers and assembly points. The tens of thousands of parts
that make up any vehicle often come from multiple producers in different countries and travel back and forth
across borders several times.
More than half the parts in the Ford Focus, for instance, are made outside the U.S. and Canada, including 20% in
Mexico. Ford also ships in some of the car's engines from Spain and transmissions from Germany.
Worries over Mr. Trump's Nafta stance are shared outside the auto industry. Martin Richenhagen, CEO of
farm-equipment maker Agco Corp., said he is concerned about Mr. Trump's repeated support for trade
protectionism.
"That would be a nightmare if we make life difficult for imports and exports," Mr. Richenhagen said.
In making the Lincoln decision, Ford said it was "encouraged that President-elect Trump and the new Congress
will pursue policies that will improve U.S. competitiveness and make it possible to keep production of this vehicle
here in the United States."
Ford's change of plans is similar to arrangements it has been making with the United Auto Workers for decades
as the union lost members amid perpetual restructuring efforts by Detroit's Big Three.
The auto maker had planned to move the Lincoln MKC, a small sport-utility sold in low volumes that shares
components with the popular Ford Escape.
The factory wasn't in danger of closing or shedding jobs. Rather, Ford was moving MKC production to make room
for building more Escape crossovers, the company's second-best selling model.
Still, keeping the Lincoln output in Kentucky means Ford will make future investments in tooling or other factory
enhancements needed to make the MKC in the U.S. And it offers reassurance for its hourly workers, about
one-third of whom are estimated to have voted for Mr. Trump, according to preliminary UAW figures.
Document J000000020161119ecbj00038

Was Ford move driven by tax or trade policy?
A-Section
Was Ford move driven by tax or trade policy?
1,003 words
19 November 2016
The Washington Post
WP
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English
During a conference call with analysts Thursday morning, Ford Chief Financial Officer Bob Shanks was asked
how President-elect Donald Trump's trade policies might affect the automaker's decisions on investing in Mexico
or in the United States.
Shanks said he couldn't speculate on trade. He pivoted, instead, to Trump's plans to cut taxes and spend more
on infrastructure, saying they could "build a stronger, more vibrant, growing economy and provide an environment
where it makes economic sense to build back up manufacturing jobs here."
Less than 11 hours later, Trump was bragging on Twitter that he had helped stop Ford from moving an entire
factory from Kentucky to Mexico.
"Just got a call from my friend Bill Ford, Chairman of Ford, who advised me that he will be keeping the Lincoln
plant in Kentucky - no Mexico," he tweeted. "I worked hard with Bill Ford to keep the Lincoln plant in Kentucky. I
owed it to the great State of Kentucky for their confidence in me!"
The tweets were exaggerated: Ford's contract with the United Auto Workers prevents it from shutting down the
factory in question, the Louisville Assembly Plant, or from laying off workers there without further talks with the
union. The company clarified that it had merely decided not to move production of a single vehicle, the Lincoln
MKC, out of Kentucky.
At the same time, the company said Friday that the coming Trump presidency did give it an incentive to keep
Lincoln MKC in Kentucky. "We are encouraged the economic policies he will pursue will help improve U.S.
competitiveness," Ford spokeswoman Christin Baker said, "and make it possible to keep production of this
vehicle here in the U.S."
The events stirred a flurry of confusion on social media that lasted through Friday, and they underscored two
fast-emerging realities for American business in the coming Trump era. It appears that large companies such as
Ford could, at least to some degree, be set to invest more domestically if Trump and Congress cut their taxes. It
also appears that Trump will seize opportunities to claim credit for those investments and to cast them as victories
even if they result in no new U.S. jobs.
In the case of Ford in Louisville, "no one really thought that plant would close," said Bernard Swiecki, a senior
automotive analyst at the Center for Automotive Research in Michigan who tracks North American automakers'
investment decisions closely. "These moves are not at all akin to saving the plant. That was never under
consideration by anyone."
What was known publicly before Thursday's developments was that Ford had announced plans to move
production of the Lincoln MKC out of Louisville. Its contract with the UAW called for it to make up that lost
production - and ensure no jobs would be lost in Louisville - by producing more Ford Escapes, the other vehicle
assembled in the plant. The Escape is the far more popular model: Ford had sold 258,000 of them this year
through October, compared with fewer than 21,000 MKCs.
The contract does not say where the MKC production would go. Ford officials said late Thursday that they had
intended to move it to Mexico. Union officials said Friday that the company had never indicated that to them.
News reports last year suggested a plant in Chicago might pick up the MKC production.

Ford did announce plans to move a different line of production - small cars, including the Ford Focus - from
Michigan to Mexico. It said it would ramp up other production in Michigan to ensure no workers lost their jobs.
Trump criticized that decision repeatedly on the campaign trail, but Ford reaffirmed this week that it is going
forward with it.
So why did Ford cancel a relatively modest, previously unannounced plan to move Lincoln production to Mexico,
while maintaining its larger-scale plan to move small-car production there?
Ford officials suggested privately Friday that their decision to keep Lincoln production in Louisville was influenced
in part by the likelihood that Trump will sign a large cut in corporate income tax rates and move to scale back
fuel-economy standards issued under President Obama, which automakers have called onerous. Those policies
would affect the financial calculus the company uses when deciding which cars to produce and where to produce
them.
Swiecki suggested another factor: Ford's softening sales growth. The company is on track to sell fewer vehicles
this year than it did in 2015, which could mean there was no need to move the MKC production to enable the
plant to churn out more Escapes.
A joint letter to Louisville plant workers from UAW and Ford officials on Friday seemed to hint at that. "The
company's plan has been to balance out the current model of the Lincoln MKC to allow for additional capacity for
the Escape," it read. "The company has since reevaluated that plan based on changing business conditions."
Some automotive writers suggested that with the move, Ford officials were offering Trump concessions in hopes
of dissuading him from following through with a campaign threat to levy tariffs of up to 45 percent on imports from
countries such as Mexico and China. In his call with analysts, Shanks, the company CFO, suggested the
company does not know how seriously to take those threats.
"I don't want to speculate" on the effects of Trump's trade policies, Shanks said. "I just don't know, we don't know,
none of us know."
"So," he continued, "I just keep coming back to the fact that it's clear that at least from the campaign positions that
Mr. Trump took that they are focused on growth, they are focused on bringing manufacturing jobs back to the
U.S., they are focused on building a stronger, more competitive infrastructure, which I think that's great for the
country, as well."
jim.tankersley@washpost.com
WP20161119trumpford1119
Document WP00000020161119ecbj0001m

World News: Ford to Keep Lincoln Line in Kentucky
World News: Ford to Keep Lincoln Line in Kentucky

By Christina Rogers
141 words
18 November 2016
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Ford Motor Co. Chairman Bill Ford called Donald Trump to tell the president-elect the auto maker won't move its
production of Lincolns out of Kentucky.
Mr. Trump, in a tweet posted to his Twitter account late Thursday, said Mr. Ford "advised me that he will be
keeping the Lincoln plant in Kentucky -- no Mexico."
The auto maker confirmed production of the Lincoln MKC crossover will remain at its assembly plant in Louisville,
Ky. Ford had planned to move output to another plant, a plan it communicated to the United Auto Workers in
2015, although it didn't specify where.
In his campaign, Mr. Trump took aim at Ford's plans to move small-car production from Michigan to Mexico.
Document J000000020161118ecbi0002m

Trump car tariff bad for economy, Ford CEO warns ; Fields says 35% tax on cars, trucks imported from Mexico would have 'huge impact' on U.S.
MONEY
Trump car tariff bad for economy, Ford CEO warns ; Fields says 35% tax on cars, trucks imported from
Mexico would have 'huge impact' on U.S.
Brent Snavely
458 words
16 November 2016
USA Today
USAT
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Ford Motors CEO Mark Fields said Tuesday that a 35% tariff on cars and trucks imported from Mexico -- an idea
promoted by President-elect Donald Trump -- would have a "huge impact" on the entire U.S. economy.
Fields, who delivered the keynote speech at the Los Angeles Auto Show on Tuesday, spoke about Trump in
public for the first time since the businessman was elected to become the next president.
On the campaign trail, Trump frequently criticized Ford for deciding to move the production of small cars from the
U.S. to Mexico, leading to a feud between the candidate and the automaker. Trump has promised to bring back
manufacturing jobs to the U.S. and has talked about imposing a 35% tariff on cars made in Mexico.
"A tariff like that would be imposed on the entire auto sector, and that could have a huge impact on the U.S.
economy," Fields said.
In September, Fields appeared on CNN to say no jobs would be lost in the U.S. as it moves production of the
Ford Focus and C-Max hybrids to Mexico.
Experts also say a punitive tariff imposed on a single country would violate the rules of the World Trade
Organization, a global body of 164 countries the U.S. joined in 1995.
Fields said Ford sent Trump a congratulatory letter after he was elected.
"We have had conversations with the transition team. I've sent a congratulatory letter to the president elect, and
we look forward to working with a new administration and the entire newly elected Congress," Fields said.
Still, Fields emphasized that Ford is a global company and believes in free trade. Trump, in contrast, has said he
will try to renegotiate NAFTA or pull the U.S. out of the three-nation trade agreement. Trump also opposes the
Trans-Pacific Partnership, a 12- nation trade agreement the U.S. signed earlier this year but which has not been
approved by Congress.
Ford was against the Trans-Pacific Partnership because the automaker said it lacked adequate currency
manipulation rules. Fields suggested Tuesday that that is one area the automaker and Trump could work
together.
"I continue to be convinced that the right polices will prevail because we all share the same objective, which is a
healthy and vibrant U.S. economy," Fields said.
Monday, Ford revealed a new EcoSport subcompact SUV that it has sold around the world since 2003 but never
in the U.S.
Ford plans to import the EcoSport into the U.S. from Chennai, India.
photo Bryan Thomas

Document USAT000020161116ecbg00012

Business News: Ford CEO Wary of Trump Tariffs --- But Mark Fields says company believes it can work with the new administration
Business News: Ford CEO Wary of Trump Tariffs --- But Mark Fields says company believes it can work
with the new administration
By Tim Higgins
419 words
16 November 2016
J
B3
English
LOS ANGELES -- Ford Motor Co. Chief Executive Mark Fields issued a warning about President-elect Donald
Trump's proposed trade policies, saying high tariffs on automobiles and other products coming into the U.S.
would be a blow to the auto industry and broader U.S. economy.
Mr. Fields, speaking with reporters on the sidelines of the Los Angeles Auto Show on Tuesday, said Ford has
talked to Mr. Trump's transition team and believes the company can work with the new administration. During a
separate interview, he said, "We all share the same objective; we want a vibrant and healthy U.S. economy."
The two sides, however, appear to be at odds on how to achieve that goal.
Ford's plan to move a substantial portion of its passenger-car production to Mexico from a factory in Michigan was
heavily criticized by Mr. Trump on the campaign trail.
Like many of its rivals, Ford is building more-profitable light trucks in the U.S. while investing in new capacity in
Mexico to produce lower-margin small cars.
Ford is also looking to better use the rest of its global footprint. On Monday, the company unveiled a small sport
utility called the EcoSport. It fills a gap in the company's U.S. market, but the company will import the vehicles
from India.
While Ford has argued that no jobs will be lost because of the Mexico move and that lower costs there would
boost profitability, Mr. Trump has proposed a 35% tariff as a penalty for such a move.
Mr. Fields said that the tariff "would be harmful, I think, to the entire industry and the economy and therefore we
want to engage in a very productive set of discussions."
He noted the North American Free Trade Agreement has increased the interwoven connections shared by auto
industries in the U.S., Canada and Mexico.
Mr. Trump has said he would renegotiate Nafta, which came into force in the 1990s and has been blamed by
some for substantial U.S. job loss.
"The facts are when we look at something like Nafta, production and supply chains are deeply integrated across
the three countries," Mr. Fields said. "A lot of that integration supports U.S. jobs and we want to make sure we're
looking at those facts."
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Lincoln has good month, but it's not enough to boost Ford ; Carmaker's sales fall 11.9% in October from year-ago period
MONEY
Lincoln has good month, but it's not enough to boost Ford ; Carmaker's sales fall 11.9% in October from
year-ago period
Nathan Bomey
376 words
3 November 2016
USA Today
USAT
FIRST
B.6
English
Ford Motor's U.S. sales saw a double-digit slump in October even as the fortunes of the Lincoln luxury brand
perked up.
The automaker based in Dearborn, Mich., saw sales slide 11.9% in October compared to the same month last
year, according to Autodata.
The automaker sold 187,692 vehicles for the month. The Lincoln brand recorded 6.9% growth to 9,069 new cars
and trucks, and the namesake Ford brand fell 12.7% to 178,623 vehicles, compared to a year earlier.
Analysts at Edmunds.com had predicted declines of 10.9%, and Kelley Blue Book forecast Ford would fall 10.8%.
The overall industry was down about 4.4% for the month, according to Autodata, though that figure will be revised
lower after Ford's report.
Ford stock fell 1.8% Wednesday to close at $11.40.
The company's October performance suffered in part because it sold a disproportionately high percentage of units
to corporate fleets and rental-car agencies early 2016.
Those sales generate big sales numbers, but because buying in bulk results in substantial discounts, not as much
profit as hawking cars to individual customers. Fleet sales fell 24% to 45,668 for the month, according to Ford.
But retail fell too, dropping 7%, even as the company spent an additional $180 per vehicle on incentives than it
did a year ago.
The company's cars endured steep declines as consumers embrace bigger vehicles amid low gasoline prices.
Car sales plummeted 27.5% for the month to 44,925, the company said.
The F-series pickup, the most popular vehicle in the U.S., posted a 0.1% gain to 65,542 vehicles, fueled partly by
redesigned Super Duty trucks.
Ford did not report October sales Tuesday, when the rest of the industry issued sales reports. A fire at an
electrical substation cut off power at its headquarters Monday, preventing dealers from reporting final-day sales
figures on time.
Ford said it did not lose any data because backup power worked as expected.
photo Ford
Document USAT000020161103ecb300013

Business News: Ford Turns to Discounts To Lift Sagging Car Sales
Business News: Ford Turns to Discounts To Lift Sagging Car Sales

By Adrienne Roberts
278 words
3 November 2016
J
B2
English
Ford Motor Co., looking to bounce back from a 12% sales decline in October, launched a Black Friday clearance
sale.
The Dearborn, Mich., auto maker is offering $1,000 "Black Friday Cash" rebates on 2016 and 2017 model-year
vehicles.
Ford's deal-making follows weaker third-quarter earnings and pressure on margins in North America. After years
of out-earning crosstown rival General Motors Co. on an operating-profit basis, it likely will trail GM for 2016.
Data provider Autodata Corp. separately reported industrywide light-vehicle sales in October fell 5.8% compared
with a year earlier. Ford and Fiat Chrysler Automobiles NV suffered among the biggest declines in the month.
Ford sold 187,692 light vehicles in October, compared with 213,105 in the month a year ago. Ford delayed its
report until Wednesday because of a fire at its headquarters that prevented dealers from reporting final-day sales.
Overall, the industry was healthy in October, with Autodata estimating an 18-million seasonally-adjusted annual
rate of sales. Although October represented the highest SAAR for any month in 2016, it wasn't enough to keep
year-to-date falling slightly below the record pace set in 2015.
Several auto makers are spending more on discounts and rebates. J.D. Power said companies spent an average
of $3,723 a car sold on incentives in October, up $400 compared with a year earlier, representing the
third-highest level in tracking history.
That represents about a 10% discount from the sticker price, J.D. Power estimated.
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Ford to kill Flex crossover, union says ; Vehicle's design was polarizing, and it never became a big seller
MONEY
Ford to kill Flex crossover, union says ; Vehicle's design was polarizing, and it never became a big seller
Brent Snavely; Nathan Bomey; USA TODAY
243 words
2 November 2016
USA Today
USAT
FIRST
B.6
English
Not quite a station wagon, not quite a SUV, the boxy Ford Flex appears to be headed out. Ford Motor plans to
discontinue the Flex full-size crossover in 2020, Canadian union officials said Tuesday.
Canadian auto workers union Unifor revealed the plans upon reaching a tentative labor contract with the
company, averting a strike after last-minute negotiations. Ford spokesperson Kerri Stoakley declined to confirm
the discontinuation of the seven- passenger Flex, citing the company's policy of not discussing future product
plans. But Unifor officials said the Flex's demise would correspond with increased investment in the automaker's
Oakville, Ontario, plant, where the Flex is built along with the Ford Edge, Lincoln MKX and Lincoln MKT. The
company is expected to upgrade the Edge and MKX, solidifying their place in the lineup.
It was not immediately clear whether the MKT, which shares vehicle architecture with the Flex, would also be
discontinued.
Sales of the Ford Flex were up 13.1% through the first nine months of the year in the U.S. to 17,034 units. But at
that level, the vehicle is barely a blip in Ford's U.S. portfolio.
The vehicle has historically earned high customer-satisfaction scores, but its unconventional design was
polarizing and it never became a big seller.
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Business News: Ford, Union Face Deadline In Canadian Labor Talks
Business News: Ford, Union Face Deadline In Canadian Labor Talks

By Mike Colias
387 words
1 November 2016
J
B2
English
Ford Motor Co., following the pattern set by Detroit's other two auto makers in recent weeks, faced a midnight
contract deadline with union workers in Canada where it assembles nearly 10% of its North American output.
Unifor, Canada's largest private-sector union, has said about 6,700 workers at three Ford plants would walk off
the job if the two sides don't reach a tentative agreement by the 11:59 p.m. ET deadline set for Monday night.
Ford builds popular crossover sport-utilities in Canada.
The union said Ford negotiators have balked at the contract terms that were agreed to in the new four-year
contracts signed in recent weeks with General Motors Co. and Fiat Chrysler Automobiles NV. Those deals
included 2% raises during the next four years for traditional workers and annual pay increases for new hires after
the first year, rather than a three-year wait for a bump.
Like Ford, GM and Fiat Chrysler held talks up until the deadline, or briefly extended them past midnight.
"While Ford might want to balk at our priorities and the pattern agreement set with GM, we will not go backwards
and accept rollbacks or concessions," Unifor National President Jerry Dias said in a statement. He wants Ford to
use the GM deal as a template, as FCA did in its contract ratified by workers last month.
A Ford spokesman said the company "will work collaboratively with Unifor to negotiate a globally competitive
collective agreement."
A walkout at Ford's factories eventually could whittle supplies of several crossovers at a time when consumers
are flocking to the SUV body style. Ford's vehicle-assembly plant in Oakville, Ontario, produces the Ford Edge
and Flex and the Lincoln MKX and MKT.
Production at two engine plants in Windsor, Ontario, also would be affected. Those factories produce large truck
engines that go into some F-150 pickup-truck models and the Mustang sports car.
Since talks with Detroit's Big Three began in earnest last month, Mr. Dias has said future investment in Canada's
auto sector was the union's priority. Canada has seen an outward migration of auto production since the
recession.
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BlackBerry Teams Up With Ford
Technology
BlackBerry Teams Up With Ford
By John D. Stoll
447 words
1 November 2016
J
B4
English
BlackBerry Ltd. is now a "Tier One" supplier for Ford Motor Co., a designation that cuts out the use of a
middleman in supplying products or services to the auto maker.
The move, announced on Monday, represents an "inflection point" taking place in the global car business, said
John Wall, head of BlackBerry's QNX Software Systems. BlackBerry, a once-dominant smartphone maker, has
increased its focus on software development after losing significant market share to Apple Inc., Samsung
Electronics Co. and others in the global handset wars.
Being recognized as a Tier One supplier, rather than having to go through other suppliers to sell to companies, is
important for BlackBerry's future in the automotive industry. The Canadian company is developing software for
several challenges facing car companies, including helping to coordinate functions for autonomous vehicles.
Ford, which is being left behind on self-driving car testing or electric cars by some technology companies and
startups, including Tesla Motors, aims to have a fleet of autonomous test-vehicles in the next decade. BlackBerry
aims to offer products that would enable so-called connected cars but faces a barrage of competition both from
the traditional auto-supply base and tech firms.
BlackBerry's QNX Software is already in tens of millions of cars, spanning Volkswagen AG to General Motors Co.
Its relationship with Ford dates back several years and relates to software needed as an operating system in the
auto maker's SYNC infotainment service.
In an interview, Mr. Wall said BlackBerry typically deals with auto makers early in vehicle development, but then
works through an auto supplier that is providing a component to the auto maker with BlackBerry's product
embedded in it.
The transition comes as auto makers continually add lines of software code to their vehicles and scramble to
boost the security and capability of systems ranging from mapping to vehicle-to-vehicle communication.
Apple, Samsung, Google parent Alphabet Inc. and other tech companies are looking to sign supply agreements
with car makers or are developing their own systems for autonomous vehicles and other services.
At the same time, Apple's iOS mobile operating system and Google's Android are becoming more ubiquitous in
light vehicles due to new systems being installed by auto makers that allow occupants to plug in their
smartphones so that the device's operating system can take over.
Mr. Wall said working as a Tier One supplier likely would lead to more BlackBerry QNX deployment in cars. He
didn't comment on how the arrangement would affect BlackBerry's pricing power.
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Ford's third-quarter profit, revenue slide
MONEY
Ford's third-quarter profit, revenue slide
193 words
28 October 2016
USA Today
USAT
FIRST
B.1
English
Ford Motor's third-quarter profit fell 55% from a year ago to $1 billion, reflecting lower sales in the U.S. in the last
two months, but the results exceeded Wall Street estimates. On a per-share basis, Ford earned 26 cents. Wall
Street analysts forecast an average of 20 cents.
Samsung still in dark on Galaxy Note 7 WOES
Samsung Electronics is still trying to figure out why its Galaxy Note 7 smartphones were overheating, the
company said Thursday, as shareholders appointed Lee Jae-yong, 48, the grandson of the company's founder, to
its board. Investors will be keen to hear how Lee plans to win back consumers' trust.
Gannett swings to Q3 loss as revenue grows
Gannett, which owns USA TODAY and more than 100 local news properties, said Thursday rising operating
expenses led to a Q3 loss, but digital ad sales and acquisitions pushed revenue higher. Earnings per share, on
an adjusted basis, totaled 6 cents, compared with a 21-cent forecast. Total operating revenue jumped 10% to
$772.3 million because of acquisitions and its investment in digital news.
Document USAT000020161028ecas0008r

Business News: Ford Profit Falls on Recalls
Business News: Ford Profit Falls on Recalls

By Christina Rogers
596 words
28 October 2016
J
B3
English
Ford Motor Co.'s third-quarter earnings fell 56%, hurt by hefty recall expenses, weaker U.S. shipments and
product-launch costs in its core North American operation.
The No. 2 U.S. auto maker on Thursday reported nearly $1 billion in profit for the period ended Sept. 30, down
from $2.2 billion a year earlier. The prior-year's performance benefited from the high prices Ford was
commanding for the then-newly redesigned F-150 pickup truck.
The Dearborn, Mich., auto maker said operating profit was 26 cents a share, topping analysts' expectations for 20
cents a share as recall expenses and marketing costs were lower than investors' anticipated. Still, results were hit
by $600 million in costs tied to faulty door latches.
Revenue declined 6% to $35.9 billion as weaker sales in the U.S. contributed to a global shipment drop. The
company said it had $2 billion in cash outflows in the third quarter, and expects to return to positive cash flow in
the fourth quarter.
While Ford remains profitable, third-quarter sales jitters underscore concerns about Detroit's ability to continue
increasing margins or sales amid a U.S. market lull. While results at smaller U.S. auto makers Fiat Chrysler
Automobiles NV and Tesla Motors Inc. recently showed their potential for future earnings or revenue growth,
General Motors Co. and Ford posted deteriorating North American margins during the quarter even as U.S.
demand for trucks and SUVs surged.
Ford affirmed 2016 guidance of $10.2 billion adjusted pretax profit and reiterated that its full-year North American
margins will be below that of 2015. The auto maker plans to further trim production in the fourth quarter to reflect
softer U.S. volumes.
"What's happening in the company is really what's happening in North America," said Ford finance chief Bob
Shanks.
North American margins exceeded 12% of sales in the third quarter of 2015, but fell to 5.8% in the most recent
quarter, or 8.4% excluding recall costs.
Coming off 2015's record pretax profit, Chief Executive Officer Mark Fields is combating weak conditions in South
America and a weaker outlook in the U.K. resulting from the country's vote in June to exit from the European
Union.
Rising sales and profitability in China and an uptick in European profits helped counter the quarter's 57% drop in
North American profit, which accounts for more than 90% of Ford's earnings. Its operating income in North
America last quarter was $1.3 billion, compared with $2.9 billion in the same period last year.
The auto maker has issued a weaker outlook in the U.S. for its second half and said it expects industry sales to
continue falling through 2017, putting pressure on executives to lift earnings in overseas operations.
In Europe, Ford posted an operating profit of $138 million compared with a year-earlier $9 million, sidestepping
currency declines and softer sales in the U.K. tied to the Brexit impact.
Ford took steps to counter industry weakness in the U.K, including raising new-car prices 2.5% in September and
reducing dealer stock. The company expects a Brexit hit to earnings of $140 million in the second half of 2016
and another $600 million in 2017.
In Asia Pacific, Ford recorded a $131 million operating profit, up from $22 million a year ago, as its sales in China
surged during the quarter.
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Detroit Keeps Pedal to Metal With Pickups
Detroit Keeps Pedal to Metal With Pickups

By Mike Colias
765 words
27 October 2016
J
B1
English
Detroit's truck wars are heating up with auto makers pledging billions of dollars for pickup truck and sport-utility
vehicle production over the next three years despite fears that the U.S. auto market is peaking.
General Motors Co., Ford Motor Co. and Fiat Chrysler Automobiles NV plan to invest heavily to boost output of
existing models and make room for new ones. While Ford said this month it is trimming some pickup production, it
still plans to add new SUVs to its lineup and reintroduce a midsize pickup by 2019.
The auto industry's annual full-size pickup capacity is expected to grow 5%, or by 206,000 vehicles, by 2019,
according to WardsAuto.com. Large SUV capacity could increase about 16%, Barclays says.
Detroit auto makers have been reluctant to add capacity following years of costly plant closings, and analysts are
concerned the market will cool by the time the new output hits dealer lots. Popular when fuel is cheap and the
economy is good, heavier vehicles suffer when gasoline prices spike or the housing and jobs markets soften.
Being overly cautious, however, can limit profits. Pickups and large SUVs deliver much of the profit at domestic
auto makers. Citigroup estimates the vehicles contribute as much as 67% of North American operating profits at
Ford and GM, equivalent to nearly $9 billion in the first half of 2016. Full-size pickups and large SUVs accounted
for about 16% of total U.S. vehicle sales during the first nine months of 2016, according to data provider
Autodata.
GM last month agreed to boost pickup production in Canada as part of a labor deal, people familiar with its plans
said. Ford will begin building a new version of the Bronco SUV and Ranger pickup in Michigan starting in 2018,
replacing the Focus small car it is moving to Mexico. And Chrysler is phasing out small- and medium-size sedans
to make room for more pickup trucks and new versions of its popular Jeep SUV.
There are already signs light-truck production is outstripping demand. In addition to Ford's production trims, Fiat
Chrysler's Ram pickup division in September began a two-month promotion it called the "strongest truck program
EVER." The discounts were as much as an $11,600 price cut on certain models.
One customer at Rentschler Chrysler Jeep Dodge near Allentown, Pa., this month landed a $56,000 Ram for
$41,000, taking advantage of various promotions. Those deals "really drive our Ram traffic," dealer Greg
Rentschler said.
GM responded this month with an $11,000 discount on a popular version of the Chevrolet Silverado. "When you
start taking 11 grand off a truck, I can't sell a used one for what I'm selling some of the new ones," said Steve
Rayman, owner of a large Chevrolet dealership in Marietta, Ga.
Ford recently said it would idle a Kansas City, Mo., F-150 plant to better match production with supply. Its
F-series pickup sales for the first three quarters were up 6% from a year earlier.
Detroit has a lock on the U.S. markets for full-size pickups and large SUVs with 94% and 62% market share,
respectively, despite efforts by Toyota Motor Corp., Nissan Motor Co. and others to gain in these lucrative
segments. The average price for full-size pickups has climbed 33% since 2010 to about $46,700 this year,
according to data provider Kelley Blue Book, nearly triple the growth rate for the entire market.
Inventories, however, are rising after six years of steady sales gains. The U.S. supply of large pickups in
September was 11% higher than a year earlier, estimates researcher WardsAuto.com. In part, Toyota and Nissan
have relatively new versions of their trucks and are beefing up supply in a bid to take market share.
Barclays auto analyst Brian Johnson said filling dealer lots with more Rams, Chevy Tahoes or Ford F-150s could
"upset the oligopolistic pricing power" enjoyed by the Detroit Three if demand doesn't rise with the greater supply.
Full-size truck demand also may be threatened by the success of smaller trucks like GM's Chevrolet Colorado, a
brisk seller since its introduction two years ago. Ford and Fiat Chrysler are developing midsize trucks for
near-term introduction.
"We could sell more if we had more," GM North America President Alan Batey said. "I'd be happy to have 10 to
15 more days' supply."

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Detroit's Big 3 automakers ARE sending mixed signals ; GM has ramped up production, but Ford is warning of cuts
MONEY
Detroit's Big 3 automakers ARE sending mixed signals ; GM has ramped up production, but Ford is
warning of cuts
Brent Snavely
561 words
25 October 2016
USA Today
USAT
FIRST
B.5
English
After a long boom since the recession, the auto industry is sending mixed signals.
Earnings reports this week should shed more light on its future, with some automakers appearing to be healthy
and others slowing down.
For instance, Ford Motor is idling four assembly plants for two weeks in Louisville and taking one week off at each
of two plants in Mexico and a week off in Kansas City, Mo., where workers produce the F-150, the highly
profitable Clydesdale of Ford's lineup. Yet at the same time, General Motors is running so much overtime at its
Flint Truck plant, where the Chevrolet Silverado and GMC Sierra 1500s are assembled, it has been hiring
temporary workers to give the regular crew a two-day weekend occasionally.
"They've told us we're scheduled for 13 Saturdays between January and Easter of next year," said Tim Shoup,
who works in paint repair at Flint Truck.
Tuesday, General Motors and Fiat Chrysler report third-quarter earnings. Ford follows Thursday. The numbers
will provide important clues as to whether the U.S. market is softening or merely settling into a healthy plateau.
But there are compelling reasons to believe automakers and suppliers can easily manage any potential down
cycle much better than they have in the past.
Among them:
The broader economy is growing slowly but steadily.
Nearly 200,000 jobs have been created each month in the U.S. since early 2010, according to the Center for the
Budget and Policy Priorities. The government releases the October jobs report on Nov. 4.
A year ago, the industry posted its best months in September, October and November. So, on a year-over-year
basis expect some declines in the near future.
The average vehicle on our roads is still more than 11 years old, meaning many will be replaced soon.
The Federal Reserve, even if it hikes rates by a quarter point by year's end, is committed to keeping the cost of
borrowing affordable for the foreseeable future.
Ford has warned that July-through-September profits will be the lowest of any quarter this year and down from
the $1.9 billion it earned between July and September 2015.
"We're calling out the risk of lower prices and higher incentives," CEO Mark Fields told investors and analysts last
month. "We're going to stay very disciplined in matching to demand. Production will be cut."
In July, GM raised the range of its earnings-per-share guidance by 25 cents. Analysts expect GM will come close
to the profit it made in the third quarter of 2015 (average estimate of $1.44 per share vs. actual $1.50 per share in
the third quarter of 2015).

Fiat Chrysler actually lost $330 million in last year's third quarter because of an $842 million charge for future
recalls.
It likely will report a profit Tuesday.
Fiat Chrysler is ending production of the Dodge Dart and Chrysler 200 in response to consumers' drift away from
compact and midsize sedans toward crossovers and SUVs. But there is no planned idling of any North American
plants, according to spokeswoman Jodi Tinson.
photo 2005 photo by CARLOS OSORIO, AP

Document USAT000020161025ecap0000l

Ford Chief Sets Auto Maker on a Dual Track --- Mark Fields recasts firm as transportation- services provider as well as manufacturer
Ford Chief Sets Auto Maker on a Dual Track --- Mark Fields recasts firm as transportation- services
provider as well as manufacturer
By Christina Rogers
852 words
18 October 2016
J
B1
English
For the better part of a decade, "One Ford" served as the battle cry of the No. 2 U.S. auto maker.
The slogan, coined by former Chief Executive Alan Mulally, was shorthand for the painful downsizing and
management overhauls that helped Ford Motor Co. avoid bankruptcy and return to big profits.
Now, as the auto industry braces for the rise of electric and self-driving vehicles, Mr. Mulally's successor,
MarkFields, is pivoting toward Two Fords, recasting the company as an auto maker and a transportation-services
provider.
Mr. Fields kicked off an investor meeting last month by saying One Ford was "foundational," but that the company
had to "evolve." In recent months, it has launched a series of investments and partnerships in areas like
self-driving automobiles, electrified vehicles and ride sharing.
Those efforts have done little to raise the company's stock, which has fallen by roughly 30% since Mr. Fields took
over in mid-2014, despite record earnings last year. Investors appear more focused on plateauing U.S. auto sales
and the company's weakening near-term profit outlook. Some market watchers also say it isn't clear how the new
initiatives will mesh strategically.
"They have a lot of the right initiatives; they're doing something in every box," said Barclays auto analyst Brian
Johnson. "The difference from the Mulally days is there isn't a single message that is more than just
public-relations, tying it all together."
Under Mr. Mulally, the message was clear, industry insiders say: Ford was to unite around a common goal,
returning to the basics of auto making. He sought to compel senior executives to abandon years of infighting and
fiefdom-building and pull together to develop more appealing and fuel-efficient products.
Mr. Fields, by contrast, has broadened the company's mission, aiming to better position the company to take on
new Silicon Valley rivals, such as Tesla Motors Inc. and Alphabet Inc.'s Google, looking to redefine the car
business.
Ford recently bought a stake in a laser-sensor maker, has teamed up with a bike-sharing firm, and has purchased
a van-shuttle service. The new ventures are part of a unit called Ford Smart Mobility LLC.
The company plans to invest $4.5 billion through 2020 in electrified vehicles, and expects profits to drop through
2017 partly because of investments and acquisitions related to its new transportation services.
"We've been quite explicit about where we want to place our bets," said Ford Chief Financial Officer Bob Shanks,
in an interview, adding that analysts' feedback has been generally positive on the plans.
Still, concerns that auto-industry profits have peaked are hurting auto stocks across the sector, not just at Ford,
Mr. Shanks added.
Mr. Shanks said the new ventures -- which Ford views as an "extension" of One Ford, building on the core auto
business -- could eventually deliver margins of 20% or more, but the payoff won't occur until the next decade.
"If I were an investor, I would be equally concerned if someone with our size and capability wasn't doing
something," Mr. Shanks said.
Frank Giamboy, a Wilmington, Del., financial adviser who has held Ford stock for 15 years, said he remains
bullish on the company and recommends Ford to clients -- in part for the nearly 5% dividend yield -- but is
frustrated the stock isn't performing better.
"Somewhere along the line, we've got to see results," he said.
Tasha Keeney, an analyst for ARK Investment Management's Industrial Innovation Fund, said there are better
options than Ford for investors who want to bet on the future of the car business.
Ms. Keeney's fund has positions in Tesla, which plans to roll out a $35,000, long-range electric car next year, and
Volkswagen AG, which is plowing money into electric vehicles in the wake of its emissions-cheating scandal.
Alphabet, whose Google unit has more than 2 million miles of autonomous-vehicle testing under its belt, is
another of the fund's investments.
Ms. Keeney said she tracks Ford closely, but her firm doesn't hold its stock. She pointed to its lack of a
long-range electric car that could compete head-on with Tesla.
And, with many of Ford's rivals phasing in automated-driving advances in next few years, she said Mr. Fields's
goal of having a fully autonomous car by 2021 is "a bit late."
Mr. Fields has said the company isn't in a race to make announcements and wants to move straight to offering a
fully driverless car, because it believes that is a safer route.
Positioning Ford for the future isn't the first big challenge Mr. Fields has faced. Earlier in his career he engineered
a comeback of Ford's European operation.
In 2005, he overhauled the company's hemorrhaging North American business through deep job cuts and plant
closures.
Document J000000020161018ecai0002d

Business News: Ford Stumbles With New Truck
Business News: Ford Stumbles With New Truck

By Christina Rogers
480 words
14 October 2016
J
B3
English
Ford Motor Co.'s shipments of its newest heavy pickups known as the F-Series Super Duty were hurt in late
summer because of unspecified "parts issues," a union official said, signaling a potential drag on the auto makers'
third-quarter earnings.
Rodney Janes, the United Auto Workers union chairman at Ford's Louisville, Ky., truck factory, said while the
issues are being ironed out, it would be "impossible to build all the lost units" from this past quarter. The shortfall
could mean overtime work for assemblers as the company races to meet demand for the redesigned truck,
among the industry's most profitable products.
In an interview on Thursday, Mr. Janes said the production efforts now are "fabulous" and are ahead of plan.
"There's always a possibility of parts issues," he said. "When launching a new truck, you don't come out of the
gate going 1,000 miles per hour. If there is a problem, you stop right there."
Ford spokeswoman Kelli Felker declined to comment on the component problem, but said "we continue ramping
up production on the all-new Super Duty. We are working closely with our suppliers to meet customer demand for
the truck, which has been outstanding."
Company executives earlier this year said Ford was counting on the rollout of the Super Duty truck to lift earnings
in the back half of the year, but in July warned higher costs associated with the launch could hurt its prospects of
meeting 2016 guidance.
In a note to union members, the UAW's Mr. Janes said parts issues have led to shortened workweeks and
canceled weekends of planned overtime at the plant. The UAW and the company haven't disclosed what parts
were involved in the production delays.
"The launch has created situations that are way out of the norm for [the Kentucky truck plant]," the official wrote in
the union newsletter, noting that because of the downtime many employees will be working "excessive overtime"
for up to a year from the launch date.
Ford made waves when it re-engineered its F-Series trucks with fuel-efficient aluminum body panels instead of
steel. It introduced a redesigned version of the lighter-duty F-150 in late 2014 and then moved to its heavier
Super Duty version last month.
The Super Duty is priced starting at $32,500 and rising to nearly $80,000. The truck has been a strong contributor
to Ford's earnings in recent years because tooling costs of the older model were written off long ago.
Auto makers book revenue on wholesale shipments, not sales on dealer lots. Major hiccups in production
schedules can have an impact on quarterly profits.
Ford is expected to report results for its third quarter on Oct. 27.
Document J000000020161014ecae0000z

Business News: Auto Makers Shift Output to SUVs
Business News: Auto Makers Shift Output to SUVs

By Mike Colias
356 words
12 October 2016
J
B3
English
U.S. auto makers, responding to weaker demand for sedans and other passenger cars amid low gasoline prices,
are rebalancing production at U.S. factories in favor of building more sport-utility vehicles and trucks.
General Motors Co.said it plans to add 650 hourly workers in Tennessee at a plant making the GMC Acadia and
the Cadillac XT5, two midsize SUVs. The job additions come a day after Ford Motor Co. idled a Mustang factory
outside Detroit for a week to prevent inventories stacking up on dealer lots. Mustang sales fell 32% in September,
helping drag Ford's overall U.S. volumes down for the month.
Auto-parts supplier Faurecia SA also said on Tuesday that it will permanently close two suburban Detroit plants
that make seats and other components for the Chrysler 200 sedan, which Fiat Chrysler Automobiles NV recently
decided to phase out because of poor sales.
The French company will dismiss 348 people at those factories and two others that make car parts.
The moves come as sales of light trucks, including SUVs and pickups, now represent about 60% of total vehicle
sales in the U.S. market. Motivated by continuing low gasoline prices, buyers are opting for heavier vehicles that
offer more functionality and typically deliver richer margins for auto makers.
U.S. auto sales inched up 0.5% during the first three quarters, and analysts are questioning whether 2016's total
will surpass last year's record sales of 17.5 million light vehicles.
Passenger cars are taking the hit, down 8.2% compared with the first nine months of 2015, says Autodata Corp.
SUVs, meanwhile, rose 7.1%, pickups were up 5.8% and vans increased 17%.
Bloated car inventories can be addressed by production cuts, but may require heftier incentives. Data provider
J.D. Power estimates spending on discounts and rebates hit a record in September as car makers worked to
grease demand and clear dealer lots to make room for newer models.
---
Christina Rogers contributed to this article.
Document J000000020161012ecac00021

Feds probe 'complete loss of brakes' in Ford F-150s
MONEY
Feds probe 'complete loss of brakes' in Ford F-150s
Nathan Bomey
341 words
5 October 2016
USA Today
USAT
FIRST
B.4
English
Federal auto-safety regulators have launched an investigation into the safety of brakes on certain versions of the
Ford F-150 pickup, the top-selling vehicle in the U.S.
The National Highway Traffic Safety Administration is probing what vehicle owners have described as "sudden
and complete loss" of braking in 2015 and 2016 model-year F-150s equipped with the 3.5 liter V-6 engine,
according to documents posted to NHTSA's site. The agency said it had received 10 reports of brake trouble on
2015 vehicles and 15 reports on 2016 vehicles. The investigation covers about 282,000 pickups.
The nature of the complaints is similar, though there are a few differences. In the 2015 pickups, "complaints
allege symptoms of brake pedal going to the floor with sudden and complete loss of brake effectiveness, brake
warning lamp illumination, and/or low or empty brake fluid level," according to NHTSA.
In the 2016 trucks, "complaints allege a sudden and complete loss of brakes without the brake warning lamp
illumination and low brake fluid level," the agency noted.
NHTSA said it opened an investigation "to assess the scope, frequency and safety-related consequences of the
alleged defect in the subject vehicles."
In May, Ford issued a recall to fix the loss of braking on 2013 and 2014 model-year F-150 pickups with 3.5-liter
engines built over 12 months starting in August, 2013 -- a defect stemming from what Ford said was a loss of
brake fluid, from the brake master cylinder reservoir into the brake booster.
Complaints about the 2015 model-year pickups "are consistent with the symptoms associated with" that recall,
according to NHTSA. But the 2016 vehicle complaints are different, and Ford dealers have allegedly "diagnosed
the problem as a failure of the master cylinder," according to NHTSA.
"We will cooperate with NHTSA on these investigations, as we always do," Ford spokeswoman Elizabeth
Weigandt said in a statement.
Document USAT000020161005eca50003c

Car Dealers Dangle Offers as Sales Slow --- Traffic cools after six years of steady growth; spending increases on rebates and discounts
Car Dealers Dangle Offers as Sales Slow --- Traffic cools after six years of steady growth; spending
increases on rebates and discounts
By Anne Steele and John D. Stoll
581 words
4 October 2016
J
B1
English
Auto sales sputtered in the U.S. last month despite generous Labor Day deals, with most of the market's biggest
sellers reporting declines from the prior September.
While the pace of sales remains historically strong, dealership traffic is cooling after more than six years of steady
growth. General Motors Co., Ford Motor Co., Fiat Chrysler Automobiles NV and Honda Motor Co. posted
declines. Toyota Motor Corp. and Nissan Motor Co. notched gains.
Retail demand has eased from a robust clip set in the final six months of 2015. To keep North American factories
running at full steam and on pace for a record, auto makers have cranked up spending on rebates and discounts
and relied more heavily on fleet customers, including rental-car companies, government agencies and
commercial clients.
Industry competitors spent nearly $400 more on incentives per vehicle on average in September compared with a
year earlier, and incentives of $3,888 per-unit sold on average topped the prior incentive-spending record for a
single month set in December 2008, according to J.D. Power.
In an interview, Nissan's U.S. sales chief, Judy Wheeler, said there is room to run on the truck side of the
business as vehicles from big pickups to small crossovers remain hot.
In a conference call, Ford U.S. sales chief Mark LaNeve noted "very aggressive" activity around Labor Day
throughout the industry. The average vehicle was marked down more than 10% during the month, TrueCar Inc.
estimates, which reflects ample inventory sitting on dealer lots.
Bill Fay, the chief of the Toyota brand in the U.S., said Monday that some of the incentive spending comes as car
companies slash prices on 2016 model-year vehicles to make room for 2017 models. He expects the industry
volume to flirt with a record as customers appear to be interested in making a deal.
"I would hope for a strong fourth quarter where there are a lot of reasons for people to buy," he said. GM, for
instance, is offering to finance Chevrolets for 72 months with a 0% interest rate through Oct. 10.
Ford's Mr. LaNeve said retail sales, which strip out fleet deliveries and reflect activity among individual
consumers, fell 1% compared with the same period a year earlier. He added that September 2015 was among
the best performances in the industry's history, making it tough to top.
Including fleet sales, September volume slipped below 1.5 million for the first time since February, declining 0.5%
compared with the prior year, according to Autodata Corp. The firm said the rate for seasonally adjusted annual
sales was 17.76 million, among the highest for 2016 but far behind the 18 million notched in September 2015.
GM's sales slipped 0.6% to 249,795 vehicles amid a continued reduction in fleet sales and falling pickup sales.
Ford skidded 8.1% to 203,444 vehicles.
Fiat Chrysler edged down 0.9% to 192,883 vehicles as the Jeep brand posted a 3% decline. Toyota's overall
sales rose 1.5% to 197,260 vehicles amid solid truck sales, a trend that Nissan rode to a 4.9% increase to
127,797 vehicles. Honda reported a 0.1% decline to 133,655 vehicles sold.

Document J000000020161004eca40003o

Election 2016: Ford Motor, Trump Tussle Over Trade
Election 2016: Ford Motor, Trump Tussle Over Trade

By John D. Stoll, Christina Rogers and Dudley Althaus
708 words
28 September 2016
J
A4
English
Six years ago, with the U.S. auto industry digging out from a crisis that drove two Detroit car makers into
bankruptcy, Ford Motor Co.'s conversion of a Michigan sport-utility vehicle plant to make compact cars was seen
as the Motor City's commitment to reinvention.
But faced with rising demand for light trucks and deepening losses on small-car production, Ford is spending
several billion dollars to reverse that strategy and move the small-car production to Mexico. Some paint Ford's
decision as the latest blow to American manufacturing.
Republican presidential nominee Donald Trump ripped into Ford's plan during Monday's debate with Democratic
rival Hillary Clinton. Mr. Trump's criticism is part of his continuing attack on the North American Free Trade
Agreement, or Nafta, and came after earlier comments by the United Auto Workers union supporting his
sentiments.
Mr. Trump also has taken aim at the overseas manufacturing plans of Carrier Corp., Whirlpool Corp. and the
makers of Oreo cookies and Sentry Safe.
As Mr. Trump debated Mrs. Clinton, Ford employees began pushing back in what appeared to be a
well-orchestrated and carefully planned social-media response.
The workers began posting statistics on Facebook and Twitter stating that Ford had created 28,000 new jobs in
the U.S. since 2011, part of $12 billion worth of investments. Employees also pointed out that the trucks taking
the compact Focus model's place on the Michigan assembly line are more profitable for Ford.
"As a union worker and a stockholder, I can't argue with the business case for moving [the Focus] to Mexico,"
said Matthew Schulte, a 43-year-old Ford factory worker in Dearborn, in an interview. He said Nafta influenced
Ford's decision, but added that he will get bigger profit-sharing checks if the company's margins increase.
Criticism of Ford reflects wider concern about a U.S. manufacturing base in which car factories have long been
the backbone. Ford, General Motors Co. and several other major auto makers have committed more than $26
billion to investment in Mexico since 2013, sparking a factory-building spree there at a time when new U.S.
vehicle plants are rare and some Rust Belt car facilities have closed.
While Ford has added U.S. jobs, its roughly 53,000 American hourly-worker head count is 40% lower than a
decade ago. Meantime, Ford employs 8,400 hourly workers in Mexico.
In addition to planning a new Focus plant in San Luis Potosi, Ford is investing $2.5 billion to expand its engine
plant in Chihuahua and build a transmission factory in Guanajuato.
Since Nafta came into force in 1994, U.S. foreign direct investment in Mexico's transportation-equipment sector
ballooned from around $2 billion annually to $8 billion in recent years.
Meanwhile, the U.S. moved from a slim trade surplus with Mexico to a deficit worth about 0.3% of U.S. gross
domestic product.
Mr. Trump has said Nafta led to a "tremendous" exodus of jobs, but economists say the net loss after accounting
for the U.S. jobs supported by the economic relationship with Mexico is only a fraction of the labor force.

Detroit auto makers have been key topics in presidential elections dating to at least 2008, when GM and Chrysler
were seeking government bailouts. In 2012, the Obama administration highlighted car maker restructurings as
successes.
As U.S. cars sell at a record pace, Mexico's share of North American production is growing. Its plants produced a
record 3.4 million light vehicles last year and exported more than 80% of them, mostly to the U.S. and Canada.
Mexican light-vehicle output represented 10% of North American production in 2005, according to LMC
Automotive. By 2015, Mexico's share grew to 19.4%. Meanwhile, the percentage of vehicles made in the U.S.
over that period fell to 68% from 73%.
---
Ian Talley contributed to this article.
(See related letter: "Letters to the Editor: Some Automakers Leave The U.S., Others Move In" -- WSJ October 8,
2016)
Document J000000020160928ec9s0008o

Ford, UAW strike back on Twitter ; During debate, both rebuff Trump's remarks that automaker is pushing jobs out of the U.S.
MONEY
Ford, UAW strike back on Twitter ; During debate, both rebuff Trump's remarks that automaker is pushing
jobs out of the U.S.
Chris Woodyard
Chris Woodyard, @ChrisWoodyard, USA TODAY
482 words
28 September 2016
USA Today
USAT
FINAL
B.5
English
Democratic nominee Hillary Clinton may be largely viewed as the winner of Monday night's presidential debate.
But Ford Motor and the United Auto Workers union didn't do so bad either, marketing experts say.
The automaker and the union responded in real-time during the debate on Twitter with rebuttals of assertions
made by Republican presidential candidate Donald Trump about jobs going to Mexico.
It was a risky move. If Trump resented being corrected, he could amp up attacks on the automaker and its largest
union.
Near the start of Monday night's debate, Trump singled out Ford for its decision to move small-car production to
Mexico, saying it would cost jobs in Michigan and other heartland states.
"Our jobs are fleeing the country. They are going to Mexico," Trump said during his first answer during the
presidential debate on Monday. "So, Ford is leaving -- thousands of jobs. Leaving Michigan, leaving Ohio. They
are all leaving."
But Ford soon hit back with a tweet that didn't mention Trump or the debate.
"Ford has more hourly employees and produces more vehicles in the U.S. than any other automaker," it tweeted,
with a graphic that showed 28,000 U.S. jobs produced in America in the past five years. In a show of unity, the
UAW did the heavy lifting, tweeting a "fact check" that said: "Ford is not moving jobs out of Michigan. Our
agreement secures future product commitments for affected plants."
Trump has singled out Ford on the campaign trail, at one point provoking a defense from CEO Mark Fields. But
using Twitter gave the company a chance to respond in real time.
"Ford is very savvy with social media in using it to communicate," says Ian Beavis, a veteran auto marketing
executive who is now chief strategy officer for automotive consultancy AMCI Global. "They have nothing to hide."
The key, he said, was to correct the facts without getting into disputes. "You can get into Twitterstorms all the
time, and they avoided them by stating the facts," Beavis says.
By mentioning Ford as the poster child for jobs fleeing the U.S., Trump believes he has a potent argument against
Democratic nominee Hillary Clinton.
It's not the first time automakers have figured into politics. Both Tesla Motors and Fisker Automotive, makers of
sleek plug-in cars, were blasted in 2012 by GOP nominee Mitt Romney for having taken federal loans and having
a big probability for failure. Fisker went out of business, but Tesla survived and has become a leading force in
high-tech electric cars. Unlike Ford, neither company launched spirited defenses at the time.
Contributing: Brent Snavely, Detroit Free Press
photo Spencer Platt, Getty Images

Document USAT000020160928ec9s00003

Ford Says Tech-Bet Payoff to Take Time --- Profit to fall through 2017 on higher costs
Ford Says Tech-Bet Payoff to Take Time --- Profit to fall through 2017 on higher costs
By Christina Rogers
497 words
15 September 2016
J
B1
English
Ford Motor Co. made its latest plea for investors to view the auto maker more like a Silicon Valley company,
promising lofty returns on future ventures while warning near-term profit will be pinched by deep investment.
The Dearborn, Mich., car maker told investors that its new business services unit eventually will deliver 20%
margins, two-and-a-half-times its core auto-making operation. It updated its plans for venturing into robo-taxis,
electric cars and other transportation services like bike-sharing and shuttle vans.
"We've always thought about the 'thing' and how many 'things' were sold," Chief Executive Mark Fields told
investors gathered on Wednesday at its headquarters. "Now, we're opening up the aperture of the lens."
Ford's share price has declined under Mr. Fields, who took over in 2014 after former chief Alan Mulally spent
nearly a decade unwinding earlier initiatives and getting Ford back to auto-making basics. The new chief's
strategy has shifted to winning a technology race with rivals including General Motors Co. and Toyota Motor Corp.
The new strategy will be costly and risky. Capital spending will rise to 5.6% of revenue in the next two years, from
4.9% in 2016, as Ford steps up investment and acquisitions related to the new businesses. The No. 2 U.S. car
maker also said profit will shrink in 2017 due to investments, then rebound in 2018 amid an expansion of its car
and truck lineup and $3 billion in annual cost cuts achieved during a three-year span beginning this year.
It had warned in recent months that this year's financial results will be hurt by a safety recall, costs related to
Brexit and a slowdown in the U.S. auto market.
Mr. Fields also is scrambling to catch up with Uber Technologies Inc., Alphabet Inc.'s Google, Tesla Motors Inc.
and other nontraditional car companies ahead of Ford in electric-vehicle development, autonomous-vehicle
testing and services allowing customers to share rides or cars.
The 113-year-old company this year has unveiled a flurry of partnerships and investments, reminiscent of the
company's frenzy 15 years ago during the dot-com bubble to develop new ventures and acquire luxury brands.
Those initiatives drained Ford's coffers and few panned out.
Mr. Fields sought to reassure wary investors Wednesday the company is in a strong position to weather a
downturn and primed for growth. "We've given you clear evidence that Ford is a solid investment with an
attractive upside," Mr. Fields said.
The stock was off nearly 2% at $12.14 at 4 pm. in trading on Wednesday.
Ford didn't put a timetable on its lofty 20% margin target for new initiatives, which compares with a forecast of an
8% margin in its auto business.
Document J000000020160915ec9f0005t

Not fast, furious: Ford's self-driving car ; What's it like to take a ride in one of these? We checked it out
MONEY
Not fast, furious: Ford's self-driving car ; What's it like to take a ride in one of these? We checked it out
Greg Gardner
521 words
13 September 2016
USA Today
USAT
FIRST
B.2
English
After a 10-minute ride in the backseat of a self-driving Ford Fusion hybrid on a loop around the company's
research campus, I felt safer than if I had driven myself.
It reminded me a little of my first successful driver's test at age 16. Stop a little longer. Wait until the pedestrian
completely crosses the intersection. Remember, the instructor could take something valuable away.
This was the opposite of my ride with NASCAR legend Bill Elliott at Road Atlanta back in the 1990s.
"We follow the speed limit (in this case 25 mph). We drive by the letter of the law," said Schuyler Cohn, one of two
Ford autonomous vehicle engineers who served as my fellow passengers. "We're going to stop for pedestrians at
crosswalks, maybe a little longer than most people would."
Today, Ford has 10 of these vehicles and 20 more are in production, said Randy Visintainer, Ford director of
autonomous vehicles. By 2018 Ford employees will be able to use them to get to Ford's sprawling campus.
If you're seeking a Fast and Furious experience, this technology isn't for you.
But Ford has sufficiently refined its small fleet of self- driving Fusion hybrids to allow an international media group
to test it on a specific route.
The automaker has pledged to deliver a fully autonomous vehicle - - no steering wheel, or gas or brake pedal -- to
a ride-sharing service by 2021.
As Ford and other automakers admit, this technology is aimed at a very different pool of customers than those
who have bought five generations of Mustangs or placed the earliest order for the GT ultra sportscar.
"Why are we doing this? Consumer attitudes and their priorities regarding vehicles and transportation are
changing," Ford CEO Mark Fields said.
"The world has moved from owning vehicles to owning and sharing them. This is driving us to reconsider our
entire business model."
The self-driving Fusions still have steering wheels and gas and brake pedals. Ford engineer Jakob Hoellerbauer
sat behind the wheel and could have taken control if needed.
Still it's easy to spot them from the outside. They all carry a contraption that looks a little like a bike carrier on the
roof. Within that device are mounted four rapidly rotating cylinders about the size of a 20-ounce aluminum
soft-drink can. Those are the Lidar modules that emit light beams at a staggering speed to capture every detail of
the environment within about 100 meters of the vehicle.
That landscape has already been mapped in three dimensions down to a 1-centimeter definition of each stop
sign, parked car or curb.
Velodyne, the Lidar supplier in which Ford has invested $150 million, is close to releasing the next generation that
will make those rotating cylinders smaller and easier to package.

Complementing those spinning cylinders are tiny cameras mounted on bumpers and side mirrors as well as short
and long-range radar.
Document USAT000020160913ec9d0000v

Business News: Ford Unveils Deal to Acquire Bus Service
Business News: Ford Unveils Deal to Acquire Bus Service

By Tim Higgins
342 words
10 September 2016
J
B3
English
Ford Motor Co. disclosed a deal to acquire a private bus service in San Francisco as it races to broaden its
business beyond building and selling cars and trucks.
The nation's No. 2 auto maker is acquiring two-year-old Chariot, which uses 100 Ford Transit vans to shuttle
riders along 28 routes around the San Francisco Bay Area and charges on average $4 per ride. Chariot develops
routes and stops from users' home and work addresses, the company says.
The companies declined to disclose the acquisition price.
"This is an ideal marriage of our core business and our emerging mobility businesses," Ford Chief Executive
Officer Mark Fields said at an event near San Francisco City Hall.
The deal is part of Ford's strategy to position the auto maker to deliver transportation solutions rather than simply
vehicles, as big cities around the world struggle with traffic congestion and traditional car makers face new threats
from technology companies developing self-driving cars and ride-hailing services.
As part of that effort, Ford created its Ford Smart Mobility subsidiary in March to explore emerging areas and in
August disclosed plans to release within the next five years a fully autonomous vehicle -- one without steering
wheels or pedals. The company expects the first uses for its vehicles would be among ride-sharing fleets and
commercial fleet operators. The Dearborn, Mich.-based Ford has said it plans to double its staff in its Silicon
Valley office by the end of next year.
Chariot will expand to at least five additional metro areas within the next 18 months, Ford said. The service has
grown as San Francisco commuters used the service as an alternative to the city's crowded public buses at peak
hours.
Chariot differentiated itself from companies such as Uber by providing trained employees whom riders saw every
day rather than contractors, said Stephanie Palmeri, partner at SoftTech VC, an investor in Chariot.
Document J000000020160910ec9a00033

Ford Expands a Costly Recall of Door Latches
Business/Financial Desk; SECTB

Ford Expands a Costly Recall of Door Latches
By THE ASSOCIATED PRESS
312 words
9 September 2016
The New York Times
NYTF
2
English
Ford will spend $640 million to replace door latches on nearly 2.4 million cars, trucks and vans because the doors
can pop open while the vehicles are moving.
On Thursday, the company announced it would add 1.5 million vehicles to the growing door-latch recall, which
has become so costly that Ford had to cut its estimated full-year pretax profit to $10.2 billion from at least $10.8
billion.
Customers have been complaining about the problem, which has affected much of Ford's North American model
lineup, since 2014. At least three million vehicles have been recalled after a National Highway Traffic Safety
Administration investigation found 1,200 customer complaints about doors failing to latch.
Thursday's announcement came under pressure from the highway safety agency, which deemed an Aug. 4 recall
of about 830,000 vehicles inadequate.
Ford said in a regulatory filing that the $640 million would cover the cost of both the Thursday recall and the one
announced Aug. 4.
The latest recall includes the 2012-15 Ford Focus, the 2013-15 Ford Escape and C-Max, the 2015 Ford Mustang
and Lincoln MKC and the 2014-16 Ford Transit Connect small van.
Ford says a spring tab in the door latches can break, and the doors either won't close or could pop open. Dealers
will replace the latches without charge. The company said it knows of one crash and three injuries that may be
related to the problem.
The Aug. 4 recall was limited to Mexico and 16 states with high temperatures and sunlight exposure because,
Ford said, the rate of reports of failure was higher.
Customers can check whether their vehicle is included on ford.com by clicking on safety recalls and entering their
vehicle identification number.
Document NYTF000020160909ec990005g

Business News: Ford Cuts Guidance On Recall Charges
Business News: Ford Cuts Guidance On Recall Charges

By Christina Rogers and Anne Steele
255 words
9 September 2016
J
B2
English
Ford Motor Co.'s outlook hit another speed bump Thursday, with the company saying hefty charges for an
expanded safety recall would reduce this year's operating profit guidance by 6%.
The Dearborn, Mich., auto maker in July flagged Brexit headwinds and an expected slowdown in its core U.S.
market as reasons for concern about 2016's second half. Although benefiting from strong U.S. sales for pickups
and sport utilities, recovery in Europe and momentum in Asia, Ford has been less bullish than rival General
Motors Co. on near-term prospects for the industry.
Ford cut its profit outlook after saying it would take a $640 million charge in the third quarter to double its recall of
vehicles with faulty door latches. The No. 2 U.S. auto maker said it now expects adjusted pretax profit of about
$10.2 billion, according to a regulatory filing, down from its previous guidance of at least $10.8 billion.
The company said Thursday it would recall an additional 1.5 million vehicles at the request of the National
Highway Traffic Safety Administration, bringing the total to 2.4 million vehicles. Ford said there had been one
reported accident and three reported injuries that may be related.
The recall would fix a spring in the side-door latch that could fracture and prevent the door from closing properly,
causing it to open while driving.
Document J000000020160909ec9900032

U.S. auto sales catch a chill in steamy August ; May have reached 'plateau' as sales sink 4.2% industrywide
MONEY
U.S. auto sales catch a chill in steamy August ; May have reached 'plateau' as sales sink 4.2% industry-
wide
Nathan Bomey
444 words
2 September 2016
USA Today
USAT
FINAL
B.3
English
U.S. auto sales cooled off in August amid signs that the industry may not break last year's all-time record despite
a strong first half of the year.
Plummeting car sales offset surging sales of crossovers, sport- utility vehicles and pickup trucks -- a paradigm
that's just fine for the industry because it generally equates to higher profits.
Industry vehicle sales fell 4.2% in August, compared with a year earlier, for an annualized rate of 16.98 million
vehicles, according to Autodata. Analysts at Edmunds.com and Kelley Blue Book had projected an overall auto
industry sales decline of 2.5% and 2.1%, respectively.
The auto industry has been hovering near 2015's record pace of 17.5 million vehicles, fueled by strong
employment, low gasoline prices and a solid housing market. AutoTrader.com analyst Michelle Krebs said it
"looks less likely that we will hit that record," barring a surge in discounts.
"We think sales have reached a plateau, and at that plateau we'll see some month-to-month volatility," Ford
senior economist Bryan Bezold said.
U.S. automakers posted an uneven performance. General Motors' U.S. sales fell 5.2%, and Ford Motor's sales
declined 8.8%, while Fiat Chrysler recorded a 2.4% sales increase.
GM's sales totaled 256,429, with its flagship Chevrolet brand slipping 3.9% to 175,965 units. Ford's luxury Lincoln
brand was a bright spot for the automaker, posting a 7% increase to 9,243 vehicles sold. But Lincoln makes up a
fraction of Ford's overall sales, which totaled 213,411 for the month.
For Fiat Chrysler, which sold 196,756 vehicles overall, Jeep continued to lead the way. The SUV brand posted an
11.9% increase to 86,468, nearly double the company's next best-selling brand.
The three major Japanese automakers recorded sales declines in August, including steep drops in car sales as
consumers abandoned the segment. Toyota, Nissan and Honda sales fell 5%, 6.5% and 3.8%, respectively. Car
sales plunged 12.5% at Toyota, 11% at Honda and 24.6% at Nissan.
Japanese automaker Subaru continued to outperform the industry, recording a sales increase of 14.7% to 60,418
vehicles.
Despite encountering a plateau, profitability remains strong for the industry. With gas prices at a national average
of $2.22 per gallon on Thursday morning, according to GasBuddy.com, highly profitable pickup trucks, crossovers
and SUVs are flying off lots.
Document USAT000020160902ec920000z

Information Age: Humans: Unsafe at Any Speed
Information Age: Humans: Unsafe at Any Speed

By L. Gordon Crovitz
836 words
22 August 2016
J
A11
English
"If someone had told you 10 years ago -- even five years ago -- that a major American car company would
announce the mass production of a vehicle with no steering wheel, you would have said they were crazy." With
these words, Ford CEO Mark Fields hopes to wave regulators out of the way of fully self-driving cars.
Ford announced last week its fully autonomous cars will be on the road by 2021. This makes Ford the first
traditional auto maker to join Google in focusing on cars that can't be driven by humans. The combined influence
of Google plus Ford might just be enough to outpace regulators, whose instinct is to ban anything they don't fully
understand.
The prospect of mass-producing cars without steering wheels or pedals means U.S. regulators will either allow
these innovations on American roads or cede to Europe and Asia the testing grounds for self-driving
technologies. By investing in autonomous vehicles, Ford and Google are presuming regulators will have to allow
the new technologies, which are developing faster even than optimists imagined when Google started working on
self-driving cars in 2009.
"The appropriate first-mover unit of innovation is not the car, or even the car company," writes innovation
consultant Chunka Mui in Strategy+Business. "It is the nation." Singapore's government has invited developers of
self-driving cars to relocate to the island nation to avoid what he called "the tangled web of competition, policy
fights, regulatory hurdles and entrenched interests governing the pace of driverless-car development and
deployment in the U.S."
Google has armed itself for its regulatory battles by hiring four former top regulators from the National Highway
Traffic Safety Administration, including a former head. Reuters reported that when Google was disappointed by
draft legislation in California that would require self-driving cars to have backup steering wheels and pedals, it
headed to Texas. There, "Google executives made no bones about wanting regulations more accommodating
than California's." Austin approved the cars in exchange for assurances on safety and liability.
When Ralph Nader called cars "unsafe at any speed," he turns out to have been right -- but for the wrong reason.
He blamed manufacturers, but the chief reason cars are unsafe is their drivers. Six million accidents a year in the
U.S. result in 35,000 deaths and two million injuries. More than 90% are caused by human error. Google and
Ford argue autonomous cars are safer than partially self-driving cars that rely on drivers taking over occasionally.
Autonomous vehicles would also give new mobility options to people who can't drive because of age or disability.
The industry is looking for ways to get people comfortable with the idea. Uber announced last week that randomly
selected passengers in Pittsburgh will get free rides in exchange for agreeing to be driven by a self-driving car. An
engineer will still sit at the wheel, with a co-pilot to monitor the performance of the software. CEO Travis Kalanick
sees a day when, without the expense of a driver, "the cost of taking an Uber anywhere becomes cheaper than
owning a vehicle."
The Obama administration is long overdue on its pledge to issue new regulations allowing innovation. Car
companies hope regulators will let innovation proceed to see how well technology can develop safe self-driving
cars, instead of banning technologies before their potential is known.
Google and Ford need "permissionless innovation," a concept popularized by George Mason University's Adam
Thierer, which means allowing new technologies and business models to develop by default, with regulations
following as needed. This approach explains the success of the internet, where websites and services were

launched without having to ask bureaucrats for permission until the Obama administration imposed regulations on
prices and practices.
Transportation Secretary Anthony Foxx instead recently confirmed the worst instinct of regulators by signaling an
end to open innovation for self-driving cars. "I've been encouraging our team to think about . . . the extent to
which we should encourage pre-market-approval steps," he said at an industry conference in San Francisco last
month. "That would require industry and the department to be more in sync and more rigorous on the front end of
development and testing."
Mr. Foxx's regulatory approach follows the traditional "precautionary principle" under which bureaucrats prohibit
new innovations until their developers can prove them safe. It stifles experimentation by curtailing innovations too
soon.
Any "pre-market-approval steps" of the kind the Obama administration now threatens would give bureaucrats the
power to pick which technologies can develop and which are banned. If that happens, the winner in the race to
the next revolution in transportation is likelier to be Singapore than Detroit or Silicon Valley.
(See related letter: "Letters to the Editor: The Corvair Was Alleged To Be 'Unsafe at Any Speed'" -- WSJ
September 14, 2016)
Document J000000020160822ec8m00006

Uber Plans Self-Drive Taxis
Uber Plans Self-Drive Taxis

By Greg Bensinger and Jack Nicas
786 words
19 August 2016
J
B1
English
Uber Technologies Inc. will begin using self-driving taxis to ferry customers around Pittsburgh as soon as this
month, a first for the industry in a race among automobile and technology companies to make driverless cars
commercially available.
Uber's service, using specially-equipped Volvo XC90 sport-utility vehicles and Ford Focus, would appear to be
the first time that commuters could hail a ride in a driverless car. But while the effort signals a breakthrough in
commercialization of the technology, it won't be a brave new world of robot cars: Two Uber employees will be
sitting in the front seat of each vehicle.
One Uber employee will be in the driver's seat with hands on the steering wheel as an emergency backup,
another observing from the passenger seat, the company said. Uber will only make a few cars available to start --
with the eventual goal of having 100 in Pittsburgh and possibly elsewhere in the coming months -- and they will
only go limited distances within the city.
The test, which could begin in as soon as two weeks, is limited. The autonomous vehicles may be assigned at
random based on customers' preference, the start location and the length of the trip.
Uber Chief Executive Travis Kalanick said the technology is necessary to lower the cost of ride hailing and car
ownership, even if it means the future loss of jobs among Uber's 1.5 million active drivers world-wide.
"The technology is going to happen because the promise is so real," Mr. Kalanick said in an interview. "It's
existential. We have to have all the best minds working on this."
As part of that effort, Uber said it acquired Ottomotto LLC, a startup that is working on self-driving tractor trailers.
Anthony Levandowski, Ottomotto's chief executive and a co-founder of Google's driverless car project, will
become the head of Uber's automated-vehicle efforts. Terms of the deal weren't disclosed.
The announcements are an attempt by Uber to claim pole position in a contest to implement technologies some
observers think are years away from safe, widespread use.
General Motors Co., which has invested $500 million in Lyft Inc., Uber's chief rival, plans to test driverless
Chevrolet Bolt taxis with its partner next year. Ford Motor Co. this week set a goal of producing fully self-driving
fleet vehicles with no steering wheel or pedals within the next five years.
Volvo Car Corp., owned by China's Zhejiang Geely Holding Group Co., has been aggressively developing and
advocating for automated car. Uber said it struck a $300 million deal with the Swedish auto maker to co-develop
additional autonomous-driving SUVs.
Uber doesn't plan to make autonomous vehicles. Instead, it aims to build the software powering self-driving cars
and forge partnerships with auto makers. For the Pittsburgh trial and elsewhere, Uber will buy cars and provide
the self-driving technology.
Separately, a federal judge on Thursday rejected a proposed $100 million settlement between Uber and drivers in
two states, reopening the debate over the car-hailing company's freelance labor model.
Alphabet Inc.'s Google founded its driverless-car team seven years ago and its vehicles have amassed more than
1.8 million miles in automated driving, yet it hasn't said when it will bring the technology to market -- or even test it
with consumers.
"The difference is Uber is in the business today of transporting people and trying to do it as cheaply and efficiently
as possible, and this is technology that is existentially important to them," said Karl Iagnemma, chief executive of
Cambridge, Mass-based nuTonomy, which is testing self-driving taxis in Singapore.
Uber also aims to be a full-fledged logistics firm, not simply a ride-hailing service. Uber drivers deliver packages
and food in several cities, but Mr. Kalanick has said driverless vehicles "should be used to move all the things."
Ottomotto's Mr. Levandowski said it isn't clear when his company's self-driving truck technology would be
deployed. Uber issued stock to Ottomotto, which goes by Otto, that could be worth up to 1% of the company if
goals are met, according to a person familiar with matter, implying a value of around $680 million based on Uber's
most recent $68 billion valuation.
Proponents of driverless vehicle technology promise a suite of benefits from reducing deaths and congestion to
environmental conservation. But much of that depends on software that isn't yet battle tested and the willingness
of regulators.
---
John D. Stoll contributed to this article.

Document J000000020160819ec8j0002y

Ford Motor Plans Ride-Hailing Service With Fleet of Driverless Cars by 2021

Ford Motor Plans Ride-Hailing Service With Fleet of Driverless Cars by 2021
By NEAL E. BOUDETTE
881 words
17 August 2016
The New York Times
NYTF
2
English
In the race to develop driverless cars, several automakers and technology companies are already testing vehicles
that pilot themselves on public roads. And others have outlined plans to expand their development fleets over the
next few years.
But few have gone so far as to give a definitive date for the commercial debut of these cars of the future.
Now Ford Motor has done just that.
At a news conference on Tuesday at the company's research center in Palo Alto, Calif., Mark Fields, Ford's chief
executive, said the company planned to mass produce driverless cars and have them in commercial operation in
a ride-hailing service by 2021.
Beyond that, Mr. Fields's announcement was short on specifics. But he said that the vehicles Ford envisioned
would be radically different from those that populate American roads now.
''That means there's going to be no steering wheel. There's going to be no gas pedal. There's going to be no
brake pedal,'' he said. ''If someone had told you 10 years ago, or even five years ago, that the C.E.O. of a major
automaker American car company is going to be announcing the mass production of fully autonomous vehicles,
they would have been called crazy or nuts or both.''
The company also said on Tuesday that as part of the effort, it planned to expand its Palo Alto center, doubling
the number of employees who work there over the next year, from the current 130.
Ford also said it had acquired an Israeli start-up, Saips, that specializes in computer vision, a crucial technology
for self-driving cars. And the automaker announced investments in three other companies involved in major
technologies for driverless vehicles.
For several years, automakers have understood that their industry is being reshaped by the use of advanced
computer chips, software and sensors to develop cars designed to drive themselves. The tech companies Google
and Apple have emerged as potential future competitors to automakers, while Tesla Motors has already proved a
competitive threat to luxury brands like BMW and Mercedes-Benz with driver-assistance and collision-avoidance
technologies.
More recently, ride-sharing service providers like Uber have raised the competitive concerns of the conventional
auto industry. The ride-hailing services aim to operate fleets of driverless cars that, in the future, might provide
ready transportation to anyone, making it easier for people to get around without owning a car or even having a
driver's license.
A Barclays analyst, Brian Johnson, recently predicted that once autonomous vehicles are in widespread use, auto
sales could fall as much as 40 percent as people rely on such services for transportation and choose not to own
cars.
Mr. Fields said on Tuesday that the combination of driverless cars and ride-sharing services represented a
''seismic shift'' for the auto industry that would be greater than the advent of the moving production line was
roughly a century ago.

''The world is changing, and it's changing rapidly,'' he said, adding that Ford now sees itself as not just a carmaker
but a ''mobility company.''
BMW and Mercedes-Benz are among the carmakers that have seized upon the concept of ''transportation as a
service,'' as it is called, by starting ride-sharing services of their own. General Motors has teamed up with, and
bought a stake in, Lyft, the main rival of Uber.
GM and Lyft plan to have driverless vehicles operating in tests within a year. Initially, at least, those tests will be
conducted with a driver in the car to take control from the self-driving technology, if necessary.
Even some auto suppliers are focusing on ride-hailing services and driverless cars. This month, the components
maker Delphi announced that it was working with the government of Singapore to develop a ride service to shuttle
people to and from mass transit stations in the country's business district.
Even though Ford has committed itself to a date for a commercial introduction of its driverless cars, several
questions remain about how it will move forward, said Michelle Krebs, an analyst with AutoTrader.
For example, Ford does not have a ride-sharing partner as G.M. does in Lyft, Ms. Krebs said.
In a research note on Tuesday, Mr. Johnson noted that it remained unclear how auto companies would make
money from ride-sharing services.
''These are a lot of promises, but we don't yet know how they are going to evolve,'' Ms. Krebs said. ''There are still
missing pieces.''
One of the investments Ford announced on Tuesday was a $75 million stake in Velodyne, which makes sensors
that use lidar, a kind of radar based on laser beams. The Chinese internet company Baidu said it was making a
comparable investment in Velodyne.
Ford also said it had made investments in Nirenberg Neuroscience, which is also developing machine vision
technology, and Civil Maps, a start-up that is developing 3D digital maps for use by automated vehicles. Ford did
not disclose the amount it invested in Nirenberg or Civil Maps.
This is a more complete version of the story than the one that appeared in print.
Document NYTF000020160818ec8h0000l

Ford promises driverless cars by 2021
MONEY
Ford promises driverless cars by 2021
Marco della Cava
Marco della Cava, @marcodellacava, USA TODAY
540 words
17 August 2016
USA Today
USAT
FIRST
B.2
English
Ford Motor Co. said Tuesday it plans to deploy a fully autonomous and driverless ride-hailing car by 2021.
CEO Mark Fields set the target at Ford's Research and Innovation facility here, which will double its staff to 300
and grow its footprint by 150,000 square feet by year's end to respond to the challenge.
"This is one example of how we're thinking about expanding our business into mobility more broadly," Fields told
USA TODAY. "Taking the driver out of the equation improves the economics for us as well as consumers."
Currently, Ford is testing around a dozen self-driving Ford Fusion Hybrids on California, Michigan and Arizona
roads. Its goal is to introduce cars with no steering wheels or pedals.
Google leads the way in this arena with a seven-year self- driving program whose vehicles have logged more
than 1.5 million miles in four states.
Other automakers are also targeting a similar delivery date, with BMW and Volvo separately announcing last
month that they would have a self-driving car by 2021. Some 33 companies are developing autonomous car tech,
from Audi to Volkswagen, according to CB Insights.
Notably, Ford is echoing Google with autonomous vehicles that humans simply can't drive -- they have no
steering wheels. Ford's future vehicles would act as short-distance, low-speed shuttles in dense urban areas.
That's the kind of environment where the major ride-hailing companies -- Uber and Lyft -- have flourished. Uber,
in fact, has already set up its own division to develop a self-driving car. When asked whether Ford planned to
develop its own ride-hailing service or sell its cars to an existing service, Fields said, "all options are on the table."
Ford plans to have 30 Fusions testing its autonomous car tech by the end of this year and nearly 100 in 2017.
"We're aiming for Level 4 automation with this vehicle," said Ford CTO Raj Nair, referring to the Society of
Automotive Engineers standard, where Level 1 is a human-guided vehicle and 5 requires no human input
regardless of the environment.
Nair said Level 4 offers full autonomy "but in a geo-fenced area that is very heavily 3D mapped," in other words a
typical city center.
Ford has been on an investment and partnership tear of late after the first half of 2016 saw rivals such as General
Motors, Volkswagen and Fiat Chrysler ink deals with Cruise Automation, Gett and Google respectively in an effort
to lead the autonomous car charge.
Earlier Tuesday, Ford announced it was co-leading a $150 million investment with Chinese search giant Baidu in
Velodyne Lidar, which makes a critical laser radar component for self-driving vehicles.
Last month, Ford participated in a $6.6 million seed round for 3D mapping company, Civil Maps.

Ford also announced it had purchased Israeli-based computer vision and machine learning company SAIPS (data
crunching power that can help a self-driving car navigate new surroundings) and inked a licensing agreement with
Nirenberg Neuroscience (a machine vision company whose technology helps cars decode their environment).
photo Ford Motor Company

Document USAT000020160817ec8h0001a

Ford Sets Plans For Cars Without Steering Wheels
Ford Sets Plans For Cars Without Steering Wheels

By Christina Rogers
900 words
17 August 2016
J
B1
English
Ford Motor Co. plans to release a fully driverless car without a steering wheel or pedals in the next five years, the
latest salvo in a technological arms race engulfing the global auto industry.
The Dearborn, Mich., auto maker on Tuesday said it would initially target ride-sharing fleets and package-delivery
services with the unnamed model, underscoring the still-incremental approach many car companies are taking
before offering vehicles to consumers that don't require humans behind the wheel.
Ford expects the first of its driverless cars to be used by commercial-fleet operators looking to cut the costs of
employing human drivers, company executives said. The vehicles largely will be confined to cities with
pre-mapped zones designed for autonomous vehicles.
"When you look at the economics of that business, the most expensive piece is the driver," Chief Executive
Officer Mark Fields said.
Separately, Ford said it acquired a 12-employee Israeli machine learning firm, SAIPS, and invested $75 million in
Morgan Hill, Calif.-based laser sensor maker Velodyne Inc. Both are aimed at boosting Ford's
autonomous-vehicle know-how, with the latter working on sensors to help autonomous cars successfully
recognize objects and navigate traffic. Chinese web-service provider Baidu Inc. invested in Velodyne alongside
Ford.
The nation's No. 2 car maker also plans to double the staff at its Silicon Valley office to 260 by the end of 2017,
hiring researchers and business-development staff in an effort to expand into new transportation services.
Ford's forays mark the latest attempt to keep up as traditional car companies and Silicon Valley upstarts race to
deliver automated-driving technologies. But those endeavors have come under increased scrutiny after the May
fatal crash of a Tesla Motors Inc. car driving itself. Questions also remain over regulations and legal liabilities
arising from the advancements.
General Motors Co. punched the accelerator earlier this year, taking a $500 million stake in ride-hailing startup
Lyft Inc., with which it plans to soon start testing a fleet of driverless Chevrolet Bolt taxis. The Detroit car maker
also has said it expects next year to roll out its Super Cruise feature that allows for hands-free driving on the
highway. It this year acquired the Silicon Valley autonomous-driving startup Cruise Automation Inc. to aid
development efforts.
Other global giants including Toyota Motor Corp., Nissan Motor Co. and Volkswagen AG have committed to
putting self-driving cars on the road. Nissan pledged it would roll out 10 new models within the next five years with
a range of self-driving features aimed at the mass market, including a fully autonomous car. Tesla, which
released its driver-assist Autopilot system last year, says it will be the first to put a fully driverless car on the road,
although it hasn't set a specific date.
Google parent Alphabet Inc. recently said it was pairing with Fiat Chrysler Automobiles NV to jointly test
self-driving technology in Chrysler minivans.
Ford's driverless car won't be made available for sale to individual customers until later in the next decade, Mr.
Fields said in an interview.
"We've done a lot of work reducing the cost on the technical components, but at the outset, it is still going to be a
relatively expensive vehicle," he added.
Ford declined to say whether it plans to operate its own robo-taxi fleet or sell its forthcoming driverless car to
independent ride-hailing services such as Uber Technologies Inc.
Like other major auto makers, Ford is allocating significant resources to developing self-driving cars, viewing the
technology as a way to reach consumers who live in large, congested cities and don't own a vehicle. Earlier this
year, the company established a separate division, Ford Smart Mobility LLC, to explore new business models that
will cater to that growing market.
But Mr. Fields said Ford isn't interested in being the first auto maker to put a fully autonomous car on the market,
noting "we're not in a race to make announcements."
Many car companies, including Ford, are installing driver-assistance features such as automatic emergency
brakes and adaptive cruise control in vehicles. But Ford remains keenly focused on fully driverless cars, with
product chief Raj Nair expressing concerns over semiautonomous features and whether drivers can take over
quickly enough when driverless systems are disabled.
"We're not going to play in this middle-of-the-road approach," Mr. Nair said.
Other hurdles also remain. Regulators are still trying to sort out what rules and guidelines need to be in place
before driverless cars start hitting roadways in large numbers.
"The regulators are being very forward leaning on this," Ford's Mr. Fields said. "Our desire is to get a 50-state
national framework" on operational standards for driverless cars, he added. U.S. auto-safety regulator National
Highway Traffic Safety Administration plans this summer to release guidelines for local rules on driverless cars.
Ford and Baidu's investment in Velodyne also is aimed at helping the tech firm lower the costs of its sensors to
between $300 and $500 a unit, inexpensive enough for mass adoption. The first Velodyne laser device cost
$75,000 and was large and obtrusive, sitting on the roof of the car.
Document J000000020160817ec8h00049

Auto Boom in Mexico Drives Up Labor Costs --- Competition for workers is expensive, denting the country's advantage
Auto Boom in Mexico Drives Up Labor Costs --- Competition for workers is expensive, denting the
country's advantage
By Christina Rogers and Dudley Althaus
1,669 words
15 August 2016
J
A1
English
CIUDAD JUAREZ, Mexico -- When car companies began flocking to this border town more than two decades
ago, the big lure was labor, which was plentiful and inexpensive.
Today, with an auto-production boom in high gear, those advantages are being chipped away.
Toyota Motor Corp., BMW AG, Ford Motor Co. and several other auto makers have committed to spend a
combined $15.8 billion to build new assembly plants or expand existing factories. That is on top of the more than
a dozen plants already in operation and billions more being spent by auto-parts suppliers to keep pace.
The competition for employees -- both finding and retaining them -- is nudging up labor costs. Retention and
retraining programs are becoming the norm as are bonuses for employees who agree to stay in place, especially
those with valued skills. Some factories are luring recruits with perks such as a new cowboy boots. Vacancies are
becoming the norm.
"We have a huge supply gap in Mexico that needs to be resolved," says Stephan Keese, a Chicago-based
partner at consulting firm Roland Berger, which works with manufacturers in Mexico. "We've only seen the tip of
the iceberg of this shortage. Labor rates going up will be unavoidable."
The pressure isn't yet so severe that it is undermining the rationale for moving production to Mexico. But it is an
unexpected sticker shock -- labor is one of the few costs manufacturers can control -- and threatens both
profitability and production quality.
At some plants, wages have risen by double-digit percentages in recent years. In Juarez's export-focused
factories, called maquiladoras, employee turnover hit an average rate of 10% in June, according to Amac-Index
Juarez, a manufacturers association, a level not seen since the first wave of foreign-owned companies moved to
Mexico under the North American Free Trade Agreement.
Leonardo Galicia, a 21-year-old factory worker for Strattec Security Corp., a Milwaukee-based auto supplier,
leads a 26-person team in Juarez assembling ignition switches. When people leave, they don't give notice -- they
are just no-shows.
"It's a headache," said Mr. Galicia. "The line doesn't stop but it does slow down. My biggest concern is I'll have to
train someone who is new."
Protests over wages have rumbled through the summer here. Laborers at several of the city's largest
manufacturing plants, including those making parts for the auto industry, have staged demonstrations, rallying for
higher pay and better working conditions.
The going rate ranges from under $1 an hour at some parts factories to nearly $3 an hour at the large assembly
facilities. That is well above Mexico's minimum wage of 73 pesos, or $4 a day. Still, it is too low to attract the
quantity and quality of workers needed to fill the surging number of openings, recruiters and manufacturing
consultants say.
Often, Mexicans can earn more money in the informal sector that employs half of the country's workforce, such as
selling newspapers at traffic intersections or food on the street.

Some large auto makers generally play down the problem. Executives at Volkswagen AG, Nissan Motor Co. and
Honda Motor Co. say turnover is manageable, salaries are competitive and recruiting difficulties are temporary.
"There are enough people willing and eager to work," said Thomas Karig, vice president of corporate affairs for
Volkswagen in Mexico.
One of the country's largest car manufacturers, Volkswagen will begin production this year of its luxury Audi brand
in San Jose Chiapa, a rural town an hour's drive from the company's main plant in the city of Puebla. Audi said
230,000 people have applied for the project's 4,200 jobs, although whether they have the appropriate skills is
hard to gauge.
The scramble for workers is most pronounced in Mexico's industrial strongholds -- cities such as Juarez in the
north of Mexico -- and in the central, heartland states of Guanajuato, Aguascalientes and San Luis Potosi. In
Guanajuato, manufacturers including Honda and Mazda Motor Corp are busing workers from as many as two
hours way, labor recruiters say.
In Juarez, home to nearly 300 factories, large banners around the city advertise openings, new shift work and
benefits. To avoid bumping pay, employers are increasingly offering perks such as English classes, use of soccer
fields and $200 referral bonuses, or about a month's pay, for those who recommend new hires. Local officials
estimate the city's manufacturing sector has nearly 15,000 unfilled jobs.
Isai Galindo, 25, works for a plant that manufactures swimming-pool parts. Recently, he turned up at a roadside
recruitment tent for a factory that stitches leather trim for automobiles. He listened to the pitch: The company
would pay him more than Mexico's minimum wage, offer flexible hours, overtime and money toward basic
education for him and his family.
Mr. Galindo didn't seem impressed. "I'll have to think about it and check other options," he said, before walking
away.
Alejandro Sauter-Bindel, a plant manager at Continental AG's auto parts plant in Guadalajara, said companies
need to be careful not to price themselves out of the market, which could prompt the industry to move further
south in search of even lower-cost areas.
"What is important is the [labor] market doesn't get overheated," he said.
In an effort to fill the labor vacuum, Mexico's state and federal governments have rushed to churn out more
engineers from public universities, expand enrollment at technical schools and create special training programs
tailored to factory needs. One $37 million state-funded facility stands on the grounds of Audi's plant near Puebla,
and was built as an incentive to win the company's business in 2014.
"We obviously have to redouble our efforts to develop human capital," said Ildefonso Guajardo, Mexico's
secretary of the economy, in a recent interview. "In the long run, cheap labor isn't a sustainable advantage."
Auto-industry investment in the country accelerated in the 1990s after the signing of Nafta. In the lead were
Detroit car makers and parts suppliers looking to avoid high labor costs at their unionized plants in the U.S.
After rebounding from the financial crisis, the U.S. car business has put a disproportionate amount of new North
American production capacity in Mexico in an attempt to keep up with record sales volumes. Annual light-vehicle
production will climb to 5.1 million by 2020, a 50% increase from last year's record 3.4 million, according to
forecasting firm LMC Automotive.
Demand for workers has risen so sharply that a popular solution is for car makers to poach from neighboring
suppliers.
"People were working for two or three months and then leaving," said Sergio Hurtado, a 21-year-old worker at
Michigan-based Lear Corp.'s auto parts plant in Juarez. "They would go to other factories for better pay."
Lear, which makes auto seats and electrical systems, recently boosted wages at his plant in response, bumping
his pay 37% to about $46 a week and adding overtime bonuses and paid days off on birthdays, Mr. Hurtado said.
The company declined to comment.
Ricardo Garcia, operations manager for DIGA, SA de C.V., a supplier of foam parts to automobiles, has seen
turnover as high as 10% a month at its plant in Monterrey. The main culprit, said Mr. Garcia, is Kia Motor Corp.,
which recently opened a new assembly plant.
Mr. Garcia said one of his engineers recently told him he was leaving for Kia. He offered him a 30% increase in
pay, but that wasn't enough.
Victor Aleman, a spokesman for Kia, which in May began production of its Forte compact car at a new factory
outside Monterrey, said the company is paying employees an average of $7,200 a year, with engineers earning at
least three times that.
BMW opened a vocational center in September to educate factory machinists, electricians and other skilled
tradespeople. Lourdes Quijas, BMW human-resources director in San Luis Potosi, Mexico, where the company is
spending $1 billion to build its first Mexican plant, said she is confident the company can fill its slots -- eventually.
"We have a lot of challenges finding workers, more so in the last six years with all these other companies --
Honda, Kia -- investing in Mexico," she said.
Ford is scheduled to open a new $1.6 billion small-car assembly factory in San Luis Potosi in 2018 and hire 2,800
workers. People familiar with the matter say Ford will produce its Focus there, which is currently built in Michigan.
A contract reviewed by The Wall Street Journal puts factory wages at the facility at about $1.15 to $2.30 per hour,
on par with what other auto-assembly plants currently pay in the region. The move to Mexico will yield cost
savings of about $1,300 per vehicle, or about $300 million a year, according to manufacturing experts familiar
with the Detroit car maker's finances.
Ford spokesman Mike Moran said the car maker expects to improve profitability but declined to discuss specific
figures. The spokesman also pointed to other worker benefits in the contract, such as life insurance, matching
funds for worker-savings accounts and year-end bonuses equivalent to 20 days' pay.
Meanwhile, the hunt for new hires continues. In Apaseo El Grande, a once-sleepy farm town near Celaya, and
now the future home of a Toyota factory, a recruiter ran her finger down a list of 400 vacancies. Most of them
were for jobs at an industrial park housing Honda's component suppliers.
"We didn't expect to have this type of industry," said Elizabeth Cardenas, a municipal job-bank director. "Before,
everyone here worked in agriculture or migrated to the United States."

Document J000000020160815ec8f0001z

Ford recall to fix doors that could swing open
MONEY
225 words
5 August 2016
USA Today
USAT
FINAL
B.1
English
Defective side-door latches in several Ford models made in North America triggered a recall of 828,053 vehicles.
The Dearborn, Mich.- based automaker said Thursday it had issued the recall after discovering one injury and
one crash that could be linked to the issue. The recall affects the 2013 to 2015 C-MAX, the 2013 to 2015 Escape,
the 2012 to 2015 Focus, the 2015 Lincoln MKC, the 2015 Mustang and the 2014 to 2016 Transit Connect.
Viacom 3q income falls BUT BEATS estimates
Viacom said Thursday its fiscal third-quarter net income sank 27% following a decline in its cable networks' ad
sales and affiliate revenue. Net income totaled $432 million vs. $591 million a year ago. But earnings per share,
after excluding some items, were $1.05, topping the $1.02 estimated by analysts.
Pumpkin Spice Cheerios are coming soon
General Mills is hopping on the fall-flavor train with pumpkin- spice cheerios. The Cheerios, made with pumpkin
puree, will be on shelves in the next few weeks and available through December, according to General Mills. On
social media, reaction was mixed, with some rejoicing in the news of another pumpkin spice flavor and others
noting that it's too soon for fall flavors.
Document USAT000020160805ec850005m

Car Makers' Sales Wheeze After Long Run of Growth
Car Makers' Sales Wheeze After Long Run of Growth

By John D. Stoll and Christina Rogers
816 words
3 August 2016
J
B1
English
Sales for the top three auto makers selling in the U.S. slipped in July as the strong growth rate that defined the
past six years slows to a crawl -- another indication the industry is entering its first sustained plateau since the
decade leading to the financial crisis.
Declines at General Motors Co., Ford Motor Co. and Toyota Motor Corp. overshadow increases by smaller
competitors, including Nissan Motor Co. and Honda Motor Co. The run of sales gains in the U.S. since 2009 has
allowed most auto makers to limit reliance on discounts and keep inventories lean, padding profits generated by
increased demand for trucks and sport-utility vehicles.
Analysts say sales incentives and fleet sales need to play a bigger role in the market to keep the current pace
afloat, particularly after a disappointing June. Overall sales increased modestly in July, rising 0.7% to 1.52 million,
according to research firm Autodata Corp., translating to a seasonally adjusted annualized selling pace of 17.9
million.
While higher than the prior July, the adjusted sales pace has leveled off compared with the sizable year-over-year
increases from 2015's final six months, which drove the U.S. light-vehicle market last year to its first record in a
decade and a half.
The auto industry's recovery has been a bright spot for the U.S. economy, with high factory utilization spurring
new jobs, investment in American facilities and wage growth for Detroit's auto workers. Car buyers spent $49
billion on light vehicles in July, according to TrueCar Inc., up 1% amid longer loan terms and a boom in
subsidized auto leases -- trends that keep monthly payments on par with a decade ago even as sticker prices go
up.
Overall retail sales are a trouble spot as purchases made by individual customers in showrooms have stalled this
year, down slightly for the first seven months, according to J.D. Power. Auto makers are betting sales to
government agencies, rental-car firms and commercial fleets will continue to grow.
At an industry conference in Northern Michigan Tuesday, GM Chief Economist Mustafa Mohatarem said he is
maintaining his view that 2016 will set another record, meaning sales will land north of 17.5 million for the year.
Although overall retail demand is soft, he says fleet sales are still tracking below historic trends and could run
higher if state or municipal budgets loosen up.
Michael Robinet, an IHS Automotive auto analyst, predicted continued sales momentum in 2017, but his forecast
comes with a catch. He said sales gains will need to be fueled by robust sales incentives and cheap credit. If
those factors collapse, demand will hit a rut.
July's results follow the sober view Ford executives gave last week when reporting second-quarter earnings, a
tone that led to a 13% decline in the company's stock price since the report came out last Thursday.
Ford's U.S. sales fell 3% in July compared with the same period a year earlier, including an unexpected 1%
decline in pickup truck sales. A 6% increase in fleet sales wasn't enough to offset a 6% drop in retail volume.
"It's a more competitive market than we've seen in the last five or six years when we had a lot of organic growth
on the retail level," Ford's U.S. sales chief, Mark LaNeve, said during a conference call. "It is an indication of a
plateauing market that the major players are going to try to protect market share."

Jeff Schuster, an analyst with LMC Automotive analyst, said "there are some warning signs out there," calling for
another slowdown in August. He urged industry executives and others gathered at a jammed-packed Center for
Automotive Research conference in Traverse City, Mich., to look on the bright side.
"This isn't doomsday," Mr. Schuster said.
Light-vehicle sales have increased modestly over 2015's first seven months, supporting Mr. Mohatarem's view
that the U.S. market will squeak out a record. But growth is entirely supported by sales to fleet customers,
including rental-car companies, commercial clients and government agencies.
Sales at GM, which is far more reliant on retail sales than some of its rivals, are down 4% through the first seven
months of 2016 after a 2% decline in July. Fiat Chrysler Automobiles NV's slight 0.3% gain in July was driven by a
22% jump in fleet sales last month.
Nissan said its July sales rose 1.2% to 132,475 vehicles, while Honda logged a 4.4% increase to 152,799
vehicles sold in the month. Toyota said its sales fell 1.4% to 214,233.
---
Anne Steele contributed to this article.
Document J000000020160803ec830002t

Business News: Ford Profit Declines 9%, Says Industry Risks Grow
Business News: Ford Profit Declines 9%, Says Industry Risks Grow
By Christina Rogers
585 words
29 July 2016
J
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English
Ford Motor Co. raised a caution flag for the American auto industry, projecting weaker U.S. sales for rest of the
year and echoing wider concerns about Brexit's potential impact on its bottom line.
Auto makers have profited from the continuation of low gasoline prices that have spurred demand of light trucks,
the highest-margin vehicles on dealer lots. The Dearborn, Mich., auto maker's stable of pickups and sport-utility
vehicles is among the freshest available.
Ford, however, was unable to keep up in the second quarter with the blistering pace set the year before, shortly
after it launched a redesigned version of its best-selling F-150 truck. A modest slowdown in North American
profits combined with weaker sales in China, led to a 9% decline in profit for the quarter.
Ford shares tumbled 8% in 4 p.m. trading on Thursday and its weaker outlook weighed on other car makers'
stocks. General Motors Co. slipped 3% and Fiat Chrysler Automobiles NV dropped nearly 5%.
Chief Financial Officer Bob Shanks said the potential for weaker demand in the U.S., higher costs associated with
the launch of a heavy-duty truck and the impact of the U.K,'s exit from the European Union could hurt the
company's prospects for meeting its 2016 guidance.
Retail light-vehicle sales in the U.S. slowed in the first half, and Mr. Shanks said he takes that as a sign the
market has peaked after six consecutive years of growth. Ford also said a projected slowdown in the U.K. could
result in a $145 million earnings headwind in the second half.
"We're seeing elevated economic risk for the most part globally, and particularly in what is happening with Brexit,"
Mr. Shanks said.
GM last week estimated the hit from Brexit could be as high as $400 million this year due to currency exposure
and volume concerns.
"We see next year's industry [sales] will be weaker than this year," Mr. Shanks said of the U.S. market. "We don't
see growth at least in the near term."
Ford is spending more on sales incentives than last year's levels, and is concerned about the market's reliance on
discounts and rebates.
Executives signaled it is prepared to cut output and will accelerate a "cost-attack" plan to hit full-year guidance.
Ford projects it will at least equal the $10.8 billion operating profit of 2015. It has earned $6.8 billion in pretax
profit through June this year.
It reported a profit of $2 billion in the second quarter, compared with $2.2 billion in the year-ago period. Revenue
rose 6% to $39.5 billion from $37.3 billion a year ago.
"This was surprising," wrote RBC Capital analyst Joseph Spak in a note, referring to the company's guidance. He
said most investors expected strong 2016 results.
Also concerning is the performance for Ford Credit, the company's vehicle financing arm. Operating profit fell
21%, driven by an increase in auto-loan defaults and deepening losses on off-lease cars resold at auction for
lower values than projected.
The cautious tone contrasts with that of GM, which lifted its overall full-year guidance last week despite Brexit
concerns, and continues to forecast an equal-to-better performance for the U.S. market in 2016 compared with
2015.
Document J000000020160729ec7t0003b

My Ride: A British Land Rover for the All-American Road Trip
Cars
My Ride: A British Land Rover for the All-American Road Trip
By A.J. Baime
446 words
20 July 2016
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English
Blake Hennessy, 32, an employment consultant from Burr Ridge, Ill., on road tripping this year in a 1989 Land
Rover Defender 110, as told to A.J. Baime.
At first, we were planning on driving to a trade show in Arizona. But then we thought, if we're going that far, why
not make it a big trip and cross some things off the bucket list? It was late spring, the beginning of road-trip
season. My childhood buddy Rob Bedoe and I cleared 30 days and mapped out 10,000 miles, down to Texas,
over to the West Coast, to the Canadian border and back.
I'd found the Land Rover online 18 months earlier. It was in Lakeland, Fla., and the price was so good, I would
have been a fool not to buy it. I flew down there, paid in cash, and drove it home. Defenders are four-wheel drive
go-anywhere, do-anything vehicles. Land Rover built these trucks for over 68 years. You don't have to worry
about road conditions or the weather. You just keep on going.
We left on Friday the 13th of May. I've driven a lot of crazy cars, and I can say that this one gets a lot of attention
because it looks like something out of "Jurassic Park." The truck was originally purchased in the U.K., so it's
right-hand drive. The old V-8 eats a lot of oil and gas. If I was averaging 11 mpg (pretty terrible), I wasn't
complaining. We did hit some weather. There's a lot of water ingress with this truck, but that's part of its charisma.
For a tent, I went with a company called Tepui. They make tents that mount on top of your vehicle, and even in
bad weather, it didn't leak once. The tent and awning take five minutes to put up and five minutes to take down.
We saw amazing things. The waterfalls at Yosemite were in full force. The wildlife in Yellowstone was like nothing
I'd ever seen. I remember this duck chili at Yaks in the middle of nowhere -- Dunsmuir, Calif. -- and the fried
chicken at Swift Lounge in Portland, Ore.
When I bought the Land Rover, I was thinking I'd drive it for a while and sell it for profit, but I've grown attached to
it now. Next up: From Canada's east coast to the Florida Keys.
---
Contact A.J. at Facebook.com/ajbaime.
Document J000000020160720ec7k00006

OFF DUTY --- Design & Decorating -- 20 Odd Questions: Deborah Berke --- The newly appointed head of the Yale School of Architecture d...
OFF DUTY --- Design & Decorating -- 20 Odd Questions: Deborah Berke --- The newly appointed head of
the Yale School of Architecture defends plywood, finds inspiration in artichokes and insists on mood
lighting
By Sarah Medford
1,292 words
16 July 2016
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English
When she scans the current architectural landscape for a structure to admire, Deborah Berke tends to end up in
the weeds. "I mostly love built things that aren't buildings -- like an industrial shed in the New Jersey
Meadowlands, or a dry dock at the Brooklyn Navy Yard that dates to the Civil War," said the architect, whose
60-person New York firm often designs projects with a similar hardworking grace. These include a rural studio for
artist Peter Halley; the future Women's Building, an ex-prison in Manhattan her team is transforming into a center
for women's support organizations; and the 21c Museum Hotels, a boutique chain whose new Oklahoma City
location opened last month in a former Ford Motors plant. "It's the same reason I prefer smaller, grittier cities to
trophy cities like London or Paris," said Ms. Berke of her predilection for the raw. "I love seeing the exquisiteness
of the not-consciously-designed thing."
She may not go in much for trophies, but Ms. Berke recently landed a big one: On July 1, she succeeded Robert
A.M. Stern as the dean of the Yale School of Architecture, becoming the first female to hold the post. The date
coincided with the publication of her third book, "House Rules: An Architect's Guide To Modern Life" (Rizzoli). In a
recent sit-down, the Upper East side resident -- whose almost-6-foot stature and Sontagian locks make her easy
to spot as she strides around New York City -- discussed her ardor for plywood, a vegetable-themed parlor game
she's itching to try and the scourge of overscale furniture.
As a child I was obsessed with: painting on the walls of my parents' house in Queens. I made murals of vines and
flowers, highly patterned. I think I got it out of my system.
I dream of designing: a house of worship, because the idea of a space that's about silence and reflection is just so
appealing. I think of Bernard Maybeck's First Church of Christ, Scientist, in Berkeley, Calif., or a Quaker
meetinghouse. Just the simplest possible quiet volume.
One of my favorite design moves is: breaking down the barriers between indoors and outdoors. I love screened
porches, floor to ceiling windows and stone flooring that can extend from the inside out. The Japanese notion of
the borrowed view is important to me, because I believe that a site often extends beyond a property line.
The home improvement that's most worth making is: effective lighting you can really control. Lighting is mood and
warmth and happiness. You want task lighting for work and then something more restful, serene or romantic.
My design pet peeve is: over-scaled furniture. I like pieces sized to the body -- that support and comfort you.
People often try to fill a loft or double-height room with large furniture. I prefer to celebrate the vastness of such
spaces.
My go-to seating is: Eero Saarinen's Womb chair -- so comfortable. I have one with the original orange
upholstery.
My favorite underdog material is: plywood. Also basic white ceramic tile, 4 inches square.
I detest the color: pink. I look at it and have no immediate response.
The strangest request I've gotten from a client is: inappropriate for a family newspaper, but it involves a secret
room. Clients' personal quirks were behind other requests: for beach-house windows that open facing a foghorn;
for bedroom floors that feel just so underfoot.

The biggest disrupter in my life is: dogs. Since marrying and having a family, I've always had a Weimaraner or
two. Today we have two rescues, Percy and Blue. I designed William Wegman's loft a million years ago, and
that's how we got turned onto the breed. They're big, they're silly, they're playful -- they bring enormous mess and
enormous joy to our lives.
My favorite design innovation for dogs is: those little rubber booties that protect a dog's feet from getting burned
with street salt in the winter. Otherwise, I like a simple dog bed lined in fabric that matches the color of the carpet
or the walls. You want it to be in the background.
Indispensable in my kitchen is: a cheese grater. We have two or three. I find grating Parmesan very satisfying.
The most interesting food, from an architectural standpoint, is: the artichoke. If you got a group of architects
together for dinner and served artichokes, you'd have the most revealing evening imaginable. Everyone would
have a different method of stacking leaves on the perimeter of the plate. And it might even get competitive -- I can
only fantasize about it.
Everyone should know more about the architect: Lina Bo Bardi. She's gotten some attention lately, but in terms of
a broad public knowledge of her work, she's way underappreciated. Her materiality, color sense, understanding of
climate and her spunk -- to make a career as an Italian woman in midcentury Brazil -- all amazing.
The architecture book I always come back to is: The AIA guide to New York, because I walk the city every day
and then look up the buildings I've seen. I'm waiting for someone to do a guidebook for all the buildings that don't
have famous architects.
I dress for comfort, but I just can't quit: statement earrings by Haroldo Burle Marx, the Brazilian designer whose
brother, Roberto, was a landscape designer and artist. I've got several pairs.
People underestimate the value of: the unexpected material in an unexpected location. Like an old-school
blackboard on your kitchen wall for your kids to draw on.
The shade of white I like most is: impossible to name. You have to choose white based on what the sunlight is
bouncing off outside, which way the room faces, what the floor color is. But there are a million whites and they're
all great.
My interior-design hero is: Alexander Girard. As a child, my parents took me to La Fonda del Sol, his iconic and
unfortunately demolished restaurant in Manhattan. The energy, the colors -- every space, surface and object was
designed to create a total environment that was just great fun. As an adult, I encountered Girard again at the
Miller House in Columbus, Ind., which he designed with Saarinen. Unlike the Glass House or the Farnsworth
House, which are elegant and very austere, it is more like a modernist family villa. It's grand but comfortable, with
tremendous personality, and it was very attuned to how the Millers lived.
An example of repetition elevating the ordinary is: Rows of jars of deep red tomato sauce that look beautiful in the
light. My sister-in-law is a wonderful gardener, and she's rightfully proud of the tomatoes she grows. My brother is
a great cook, and he makes tomato sauce and stores it in Mason jars to use throughout the year. So they keep
them out on display, which is a way of celebrating family and food as a part of everyday life.
The quickest way to give a house curb appeal is to: paint the front door. I love a bright red door, in Benjamin
Moore's Chili Pepper red. It's cheerful and welcoming. I'm also partial to dark, dark green, almost black, in a high
gloss. It's traditional in New England and very beautiful.
---
Edited from an interview by Sarah Medford
Document J000000020160716ec7g00009

A Turnaround at Ralph Lauren, Following a Road Map Used at Ford
COMMON SENSE
A Turnaround at Ralph Lauren, Following a Road Map Used at Ford
By JAMES B. STEWART
1,656 words
8 July 2016
The New York Times
NYTF
1
English
CORRECTION APPENDEDWhen the Ralph Lauren Corporation recently unveiled a turnaround plan, calling it
''The Way Forward,'' it unwittingly invoked another all-American icon fallen on hard times: Ford Motor, whose
''Way Forward'' plan in 2006 saved the automaker from bankruptcy.
Ford's success has become a staple of business school case studies. And much of the current Ralph Lauren
strategy seems inspired by the Ford playbook -- enhancing a venerable but financially challenged brand by
slashing costs, reducing the work force, closing stores and improving quality.
At first blush, a cyclical automaker and a retail fashion designer would seem to have little in common. But like
Ford before its recent renaissance, Ralph Lauren is a globally recognized symbol of American style and expertise
that, in recent years, has faced growing competition, changing consumer tastes, steep discounting and slumping
sales and profits.
Ralph Lauren's still-new chief executive, Stefan Larsson, told me this week that he didn't consciously name his
plan after Ford's, ''Although I'm a fan of Alan Mulally,'' Ford's former chief executive, he said. But he seems to
have reached a similar place on his own.
''I spent the first three months at Ralph Lauren assessing the strength of the brand and business,'' said Mr.
Larsson, 41, who was part of the team that built H&M into a fast-fashion powerhouse and then led a widely
admired turnaround at Gap's Old Navy division.
''I realized quite soon the brand is much stronger than the business,'' Mr. Larsson said. ''That excites me. The
brand is one of the few global iconic brands. We're going to build the business by going back to the core of what
made the brand unique and original.''
That Ralph Lauren, the company, would need a turnaround surely comes as a surprise to many, given its long
cultivation of an image of effortless affluence and confident style.
Ralph Lauren himself, a still-youthful 76, remains the company's chief creative officer and executive chairman. He
built the company by evoking an idyllic past from which hard times were banished, taking inspiration from Ivy
League college students, prewar British aristocrats and frontier cowboys. Mr. Lauren, in essence, made an
upper-class aura accessible to everyone, from Hollywood starlets and hip-hop artists to countless people of
humble origins and means. Few, if any designers have had so much impact on American style and taste.
His designs and marketing captured a singularly American faith in upward mobility and assimilation. No wonder
he put a version of the American flag on his sweaters and, with his initials where the stars would be, made it the
company logo. America's athletes will be wearing his designs in August at the Olympics in Rio, as they did in
London four years ago and in Beijing in 2008.
''I don't think there will ever be another Ralph Lauren,'' said the fashion journalist Teri Agins, author of the books
''The End of Fashion'' and ''Hijacking the Runway.'' ''There isn't any question that he's a genius.''
Still, she added, ''What goes up must come down.''

Lately, the descent has been steep. Since hitting a peak of $188 almost exactly three years ago, the company's
shares have plunged by more than half, to less than $90 this week. After beating Wall Street earnings and
revenue estimates for 14 consecutive quarters, in February 2015 Ralph Lauren stock had its biggest one-day
plunge ever when it missed estimates and lowered forecasts. Since then it's gotten worse.
Revenue growth went from a healthy 7 percent in 2014, to 2.2 percent in 2015, to a negative 2.8 percent in fiscal
2016, which ended in April.
Can Ford's shrink-to-grow approach work for a fashion brand?
Investors have been skeptical, apparently unnerved by the prospect of imminent losses and worse-than-expected
forecasts. Ralph Lauren shares, which closed at $96.33 on June 6, the day before the company announced its
''Way Forward'' plan, were trading around $91 on Thursday.
But turnarounds take time. Ford slashed its work force by 30,000 and closed 14 manufacturing plants while
spending heavily to introduce new products and improve quality. It used the entire company, even the Ford logo,
as collateral to borrow $25 billion.
There was no immediate payoff for Ford shareholders. Ford lost more than $30 billion over the next three years,
as the financial crisis and ensuing recession slammed auto sales. Ford stock went from over $8 a share in 2006
to less than $2 in 2009, a far worse decline than Ralph Lauren. But Ford returned to profitability in 2010. Last year
it had $8.7 billion in profit, and shares traded this week at $12.40, a more than sixfold gain.
Ralph Lauren is starting its turnaround effort from a much stronger position than Ford. The company is still
making a profit -- $582 million last year. Its reputation for quality remains high, unlike that of the American
automakers before the financial crisis. It doesn't have a heavily unionized work force.
But Ralph Lauren's profit was over $1 billion just two years ago. The company has been buffeted by forces
beyond its control, including declining department store sales, the rise of fast-fashion chains, the shift to online
retailing, and greater price consciousness among consumers. In trying to adapt while still pursuing growth, Ralph
Lauren seems to have lost its focus.
''I'd say the Ralph Lauren brand has become a little confused,'' said Neil Saunders, an analyst and managing
director at Conlumino, a retail research and consulting firm. ''The design credentials are still very strong, but the
brand has become a little staid. Brands that have seen growth, like Burberry and Ted Baker, have something
Ralph Lauren doesn't, which is a bit of quirk. Ralph is still carving out his traditional aesthetic. It's consistent, but
younger consumers aren't as interested as they used to be.''
Ms. Agins agreed that millennials, in particular, were causing problems for traditional fashion brands. ''They look
at these fast-fashion brands, like Zara and Uniqlo, with good fashion and good prices, and ask, 'Why pay more?'''
she said. ''They don't feel they need the cachet of a Ralph Lauren. They'll cherry-pick, buy a little of this and that,
rather than stay with the high-end brand.''
Mr. Larsson is fully aware of the problems. ''We had diluted our focus with too many brands and too many
initiatives,'' he acknowledged. As part of the ''Way Forward,'' he said the company would close 50
underperforming locations, lay off 1,000 employees, eliminate three layers of management, streamline the supply
chain and concentrate on just three core brands.
Mr. Larsson said his aim was to make the company even more of a reflection of Mr. Lauren by taking it closer to
Mr. Lauren's original vision.
''It fascinated me, in going through the archives, that Ralph's early work is the closest to the core,'' Mr. Larsson
said. ''I looked at the imagery of Ralph and his family in Montauk. That resonates with what consumers dream of
today. In interviews with young people and influencers, it struck me that they admire what Ralph stands for, and
that he has remained true to his creative idea. We're as relevant to a new creative generation as we were to an
older generation. We just have to make it current and evolve the product, marketing and shopping experience.''
That can be a delicate balancing act. Two years ago, Coach, the venerable American leather goods concern that
shares many of Ralph Lauren's problems and opportunities, embarked on a similar turnaround aimed at slashing
costs and lifting profitability. Under the direction of a new chief executive, the Coach veteran Victor Luis, it said it
would close numerous stand-alone stores in malls, improve its department store locations, open a new flagship in
New York City, revamp its product line to re-emphasize its classic roots and curb discounting.

Investors were skeptical then, too, sending Coach shares plunging from $50 to just over $34.
Two years later, it's too soon for Coach to declare victory, but signs are encouraging. In April, Coach beat
analysts' estimates and said third-quarter profit jumped 22 percent and revenue increased 11 percent. Shares
were over $40 this week, up 23 percent this year. (Last month, Ralph Lauren poached Jane Nielsen, Coach's
chief financial officer, to help oversee the ''Way Forward.'')
Ralph Lauren is a stronger brand than Coach.
''I only took this job because I believe in the brand and I believe that Ralph's original vision can be more relevant
than ever,'' Mr. Larsson said. ''We just need to execute in a way that brings that to life for the consumer.''
''There are a lot of headwinds beyond their control, and they have their work cut out for them,'' Ms. Agins said.
''But Ralph Lauren has the brand, the quality, and the American cool factor. They can fix it.''
Correction: July 12, 2016, Tuesday
This article has been revised to reflect the following correction: A picture caption on Friday with the Common
Sense column, about turnaround efforts at Ralph Lauren, omitted a credit. The picture, of the Lauren family at
Montauk in the 1970s, supplied by the Ralph Lauren Corporation, was taken by the late Barbra Walz and should
have been credited to her estate.
The Ralph Lauren men's wear collection for spring and summer 2017. (PHOTOGRAPH BY VALERIO
MEZZANOTTI) (B1); An archival picture of Ralph Lauren and his family in Montauk.; Ralph Lauren at Fashion
Week in February. The company still makes a profit, and its reputation for quality remains high. (PHOTOGRAPH
BY JEWEL SAMAD/AGENCE FRANCE-PRESSE -- GETTY IMAGES) (B7)
Document NYTF000020160712ec7800035

GM's Rivals Nip at Its Heels
GM's Rivals Nip at Its Heels

By Gautham Nagesh
876 words
30 June 2016
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English
For years, General Motors Co. has been the largest seller of new cars by a wide margin. Now, as U.S. auto sales
climb at a record pace, GM is struggling to meet dealer demand for trucks and sport-utility vehicles, and allowing
its smaller Detroit rivals to narrow the gap in sales.
Since the 2008-2009 recession, Ford Motor Co. and Fiat Chrysler Automobiles NV have gained share of the
lucrative U.S. truck and SUV market, while GM's has fallen significantly. GM's share losses come as trucks and
SUVs have surpassed passenger cars in popularity.
"We absolutely have more customers that want trucks than trucks to sell," Bill Fox, co-owner of Sharon Chevrolet
in upstate New York, said recently. Rich Walicki, vice president of Jim Winter Buick-Cadillac-GMC in Jackson,
Mich., said: "We could have sold more trucks earlier in the year if we had more."
The mismatch is again costing GM precious U.S. market share. Its current 16.7% chunk of the domestic market is
a more-than-three-decade low for the nation's largest auto maker. In contrast, No. 2 U.S. auto maker Ford Motor
Co. has crept up to 15.3% and should inch closer in June, say analysts.
While its executives have pinned the drop on a decision to sell fewer low-margin fleet vehicles, its inability to keep
up with sizzling demand for pickup trucks and sport-utility vehicles also plays a major role in the decline. The
company's dealer say inventories of GM's popular pickup trucks, especially the newer midsize Chevrolet
Colorado and the GMC Canyon are tight.
More recently U.S. auto makers have focused on boosting margins by operating fewer factories and running
leaner. GM argues the tack allows it to spend less money discounting its cars and more on making them better.
Still, with retail demand recently showing signs of a peak, GM's rapidly weakening market position raises
questions about its ability to keep pace with already-low investor expectations. Its shares closed at $28.17 on
Wednesday, below the 2010 initial-public-offering price of $33 a share despite delivering record first-quarter
operating profit this year.
The market-share slump isn't just an inventory problem. While Mr. Fox's lack of Chevy trucks reflects production
constraints from the company's aggressive downsizing before it emerged from bankruptcy in 2009, critical product
launches -- such as a new Cadillac crossover wagon -- also have been delayed, and GM has stale products in
areas such as midsize crossovers and SUVs.
Among the top 10 companies selling vehicles in the U.S., GM is the only one to have sold fewer light trucks
through May -- the segment that includes crossover wagons, SUVs and pickup trucks -- than a year earlier. As
gasoline prices hover around $2 a gallon nationwide, auto sales in the U.S. were up 9.6% through the year's five
months. But GM's once-dominant share of that segment has slipped to 19.7%; Fiat Chrysler's is 18.8% and Ford's
is 18.3%, according to data provider WardsAuto.com.
After 15 years as America's truck king, GM risks falling behind Ford if it can't rush more Chevrolet and GMC
pickups, Cadillac crossovers and similar products to dealer lots.
Ford is riding a wave of momentum provided by fresh products, while Chrysler's cheaper Ram lineup and popular
Jeep portfolio are fueling gains.

Auto makers report June auto sales on Friday, and investors will be watching closely to determine whether GM's
disappointing 18% year-over-year May volume decline -- including a 14% slide in truck sales -- was an anomaly
or the start of a trend.
John Stapleton, GM's North America chief financial officer, said this month the company was adding weekend
shifts at truck plants and taking other measures to better meet demand, but it is avoiding investing new capital
ahead of a potential market cool down.
"They know the down cycle will come [and] ultimately sales will decline, " said Rick Kwas, a Wells Fargo
Securities equity analyst. "They know what can happen."
Still, GM's recent release of more new passenger cars indicates the company was unprepared for the rapid
growth in sales of light trucks. Nearly 58% of its sales this year through May were to light-truck buyers, up nearly
10 percentage points from the same period in 2012.
GM is in the midst of launching several new sedans, small cars and new electric cars as those market segments
continue to sag. In contrast, some rivals including Fiat Chrysler are working to lower their reliance on those types
of vehicles.
Mr. Stapleton indicated fresh products for these lines were on the way.
Other crucial product launches, meanwhile, have experienced hiccups. The Cadillac XT5 crossover, a
replacement for the GM luxury division's best-selling and profit-rich SRX, was delayed by a parts-supplier
problem. GM didn't have enough SRX inventory to bridge the gap.
As a result, Cadillac's sales of crossovers declined 15% through May compared with the same period a year
earlier.
Document J000000020160829ec6u0000d

Business News: Dealers Say Toyota Is Tops
Business News: Dealers Say Toyota Is Tops

By John D. Stoll
441 words
15 June 2016
J
B2
English
Copyright © 2016, Dow Jones & Company, Inc.
Owners of American car dealerships prefer working with Japanese auto makers even after U.S. companies spent
heavily to make domestic retail networks more competitive, according to a new industry survey.
Dealers rank Toyota Motor Corp.'s Lexus and Toyota franchises as the most valuable and say the Japanese
company and two of its rivals are the most responsive to their needs, according to a report published on Tuesday
by the National Automobile Dealers Association.
The trade group, which represents and lobbies on behalf of about 16,500 dealers, based its findings on survey
responses from roughly 9,000 dealers about their views on franchise value, auto maker policies and the field staff
that car companies employ.
NADA's report is the latest indication domestic auto makers still have work to do when it comes to strengthening
relationships with their constituents.
In an influential annual study of car companies' relationships with suppliers published last month, Planning
Perspectives Inc. also placed Japanese auto makers above domestic counterparts in dealing with parts makers,
although General Motors Co. and Ford Motor Co. have made progress in that area in recent years.
Ford and GM are reporting sizable profits in the U.S. amid record light-vehicle sales and low gas prices, which
boosts demand of the light trucks that deliver a bulk of Detroit's black ink.
Many analyst reports, including Bank of America Corp.'s most recent "Car Wars" pipeline report, have lauded
domestic auto makers' future product plans as well.
Another report card will come out later in June when J.D. Power unveils its annual Initial Quality Study. The IQS
has long been viewed as a litmus test of which auto makers make the best new vehicles. Lexus, Toyota and
Honda Motor Co. once dominated the field, but are now closely rivaled by Ford, GM's Chevrolet brand and
Lincoln.
In addition to representing brands, dealers have long played the role of being a customer for auto makers since
revenue is booked on production rather than retail sales. If dealers pull back on orders or stockpile inventory, car
companies need to cut production, boost incentives or dump output into rental fleets.
In the NADA survey, Toyota's brands were followed by Honda and Fuji Heavy Industries Ltd.'s Subaru as
favorites of auto dealers. Volkswagen AG's Porsche rounded out the top five brands -- Fiat Chrysler Automobiles
NV's Jeep franchise -- growing rapidly amid a sport-utility boom -- and Ford's namesake brand were the lone
domestic nameplates in the top 10.
Document J000000020160615ec6f0003f

GM Amps Up Marketing Blitz Targeting Ford
GM Amps Up Marketing Blitz Targeting Ford

By Mike Spector, Christina Rogers and Gautham Nagesh
934 words
9 June 2016
J
B1
English
Facing slowing sales of its Chevrolet Silverado pickup truck and other models, General Motors Co. launched a
broadside against Ford Motor Co. that questions the durability of its crosstown rival's most profitable vehicle.
In a marketing blitz on Wednesday, Chevrolet said lab tests and other demonstrations show the Silverado's
high-strength steel bed better withstands damage than the stamped aluminum bed in Ford's F-150 pickup truck.
GM ads show loaders dumping concrete blocks in both beds, punching holes in the F-150's bed while only
scratching and denting the high-strength steel bed of the Silverado.
The demonstrations were done without bed liners protecting the trucks.
"When you're the market leader for 39 years, competitors sometimes try to take shots at you with marketing
stunts," a Ford spokesman said. He added that the F-150's "high-strength, military grade, aluminum alloy cargo
box" provides leading strength, durability and corrosion resistance, among other benefits.
The marketing offensive, rolling out in print and television ads, marked a significant escalation in the perennial
truck battle among Detroit's auto makers.
Ford's F-series trucks are the U.S.'s best-sellers, with more than 750,000 delivered annually in recent years.
Sales of F-series trucks this year are up more than 7% through May, outpacing flat Silverado sales.
GM said it fares well in direct retail sales to consumers.
GM and Ford often take aim at one another. But the Chevrolet campaign ratcheted up the rhetoric ahead of the
crucial summer selling months, unequivocally taking shots at the F-150's strength and quality in lab tests and
demonstrations in front of prospective truck buyers.
"It's an all-out war," said Dave Sullivan, an analyst at research firm AutoPacific Inc. "There is nothing that appears
to be off-limits now."
Whether consumers will respond remains to be seen. Car shoppers often home in on assessments from Kelley
Blue Book and other third-party researchers rather than advertisements when making buying decisions.
GM officials said they didn't have third-party research showing that the steel bed is more durable than aluminum,
but pointed to other testing showing aluminum is more costly to fix.
Ford rolled out F-150 trucks with aluminum at the end of 2014, attracted by the lighter metal's ability to, among
other things, improve fuel economy and handling.
The Silverado uses aluminum in some truck parts, but not the bed. GM executives on Wednesday insisted the
Silverado's bed is superior for hauling tools and other materials.
GM's salvo comes amid significant market-share declines as the popularity of high-margin pickup trucks and
sport-utility vehicles surges, spurred by cheap gasoline and low interest rates.
The company's share of the U.S. new-vehicle market in May dropped to 15.7% from 17.9% a year earlier.

The campaign also comes just months before Ford launches an aluminum F-250, a heavy-duty version of the
profitable F-series truck.
GM has recently ceded ground to Ford in the competitive race for commercial and government fleet sales.
GM attributes some of its market-share losses to a deliberate pullback in less profitable rental-car sales.
But the result is a fierce battle that encompasses pickup trucks and SUVs.
GM Chief Executive Mary Barra said on Tuesday before the company's annual shareholders meeting that the
auto maker remains focused on profitable retail sales and reducing rental deliveries regardless of the effect on
market share.
She said the strategy would better position GM for a potential economic downturn. But doing so could curb GM's
revenue and profit in the short term.
Investors, meanwhile, are cool to GM's stock despite record profit and sales, with shares trading below the auto
maker's 2010 initial public offering price of $33.
Investors are concerned that car sales, which reached a record 17.5 million in 2015, have peaked, and fears over
the timing and severity of another downturn have become commonplace.
Mr. Sullivan, the AutoPacific analyst, said the GM truck demonstrations weren't overly illuminating.
"It's just one of the characteristics of aluminum," he said of the F-150 damage GM demonstrated. "Having a bed
liner is a must."
GM said it dropped 55 landscaping blocks weighing a total of 825 pounds into the beds of both trucks from 5 feet
above the bed floor.
It also pushed a steel toolbox off the side rail of each truck, to test if the toolbox dented the floor of the beds.
GM still sells the most pickup trucks in the industry, in large part thanks to its decision to re-enter the midsize
truck market.
GM also benefits from offering two full-size pickups: the Silverado and the GMC Sierra, which combined
accounted for 39% of the retail truck market in the first quarter of 2016, compared with 32.3% for Ford, according
to R.L. Polk & Co. registration data. The Silverado's share during the same period was 27.3%.
Chevrolet truck marketing chief Monte Doran said the marketing campaign wasn't meant to attack Ford, but rather
highlight the Silverado's advantages.
A GM spokesman said engineers discovered the testing differences months ago, and the results were replicated
for the ad campaign. He added the campaign aims to lure shoppers away from Dodge and Toyota Motor Corp.
rather than try to persuade loyal, entrenched Ford truck owners.
Document J000000020160609ec690002t

Ford growing but analysts steer toward GM ; Q: Which big automaker's stock is the best?
MONEY
Ford growing but analysts steer toward GM ; Q: Which big automaker's stock is the best?
Matt Krantz
242 words
2 June 2016
USA Today
USAT
FIRST
B.6
English
A: Auto sales in May from General Motors and Ford Motor were far from robust. The same goes for their shares,
leading some investors to wonder if there's opportunity.
GM and Ford, the two top U.S. automakers, have seen their shares sink 6% and 3%, respectively, this year as
investors wisely buckled up for a sales slowdown. Ford on Wednesday reported a nearly 6% decline in U.S. auto
sales -- a steeper decline than some analysts were expecting.
The drop-off was even worse at GM, where U.S. sales fell 18%, also a deeper decline than predicted.
Wall Street remains more optimistic about GM than Ford. GM's adjusted profit per share is expected to rise 12.6%
in the current year and 3.5% in the next, S&P Global Market Intelligence says. Analysts, on average, rate GM
"outperform" and see the stock being worth $39.06 in 18 months, which is 29% higher than Wednesday's price of
around $30 a share.
It's a less bullish story at Ford. The company's adjusted profit is seen growing 9.3% in 2016, far more slowly than
GM's, and 1% in 2017. Analysts rate the stock a "hold" but still think it could be worth 23% more than
Wednesday's price of around $13 a share in 18 months.
photo
Document USAT000020160602ec620008k

REVIEW --- Summer Books: Henry Ford's Toughest Test
REVIEW --- Summer Books: Henry Ford's Toughest Test

By Patrick Cooke
1,238 words
28 May 2016
J
C13
English
Drive! Henry Ford, George Selden, and the Race to Invent the Auto Age
By Lawrence Goldstone
Ballantine, 372 pages, $28
Who 'invented' the automobile? Now that the world has been up on four wheels for more than 130 years,
historians generally agree that a number of talented tinkerers can share credit. Lawrence Goldstone takes a look
at two of those early dabblers in his marvelously told story "Drive! Henry Ford, George Selden and the Race to
Invent the Auto Age." Neither of his subjects claims to have singlehandedly dreamed up the "motorcar," but their
rivalry during its early development proved a milestone on the road to making automotive history.
The spark of inspiration for the first internal-combustion device, Mr. Goldstone informs us, might very well be
attributed to the French scientist Christiaan Huygens, who set off a gunpowder explosion inside a closed tube in
1673. He noted that the energy of the blast moved a primitive piston within a cylinder -- the basis of the
internal-combustion engine even today. With the coming of steam power and its ability to move large objects like
ships and locomotives, the controlled-explosion idea was abandoned, and no inventor seriously returned to it until
the late 1800s.
One of those was George Selden, an upstate New York amateur engineer and patent attorney. He believed that
by using gasoline, a distillate of oil, and not gunpowder as the explosive fuel, he could create a light and compact
motor. In 1879 he constructed a bench model that ran for only a few seconds but long enough to prompt a dash
to the patent office with dreams of raking in millions: Anyone toying with the idea of marketing a gasoline motor,
he thought, would henceforth have to pay him a licensing fee.
It must have greatly discouraged Selden that no one did. Either fellow inventors were not aware of the patent or,
more likely, the rate of nearly simultaneous inventions in the U.S. and abroad was so swift that no one noticed.
In Germany, rickety, gasoline-powered automobiles were rolling out of machine shops by the mid-1880s, piloted
by inventors like Gottlieb Daimler and Karl Benz. In France, Armand Peugeot, Louis Renault and others
experimented by trial and error, making gradual progress in features like steering, comfort, engine reliability and
ease of use. Mr. Goldstone quotes a man describing a friend, in 1896, starting a French-built engine designed by
Emile Levassor: He "turned on the petrol tap, flooded the whole of the engine with petrol, turned the tap off, lit a
match, dropped it inside the bonnet of the motor and then ran away."
Henry Ford was taking in this frantic progress from his home workshop in Detroit, studying engineering journals
and attending auto shows while pilfering (and sometimes improving on) the ideas of other inventors for his early
designs. After enduring a number of false starts, the Ford Motor Co. was incorporated in 1903, and sold its first
Model A to a Chicago dentist with the delightful name of Ernst Pfennig -- he declined the optional "tonneau," a
detachable rear seat -- for $850.
By then George Selden had decided to sell his seemingly disappointing patent, the control of which eventually fell
into the hands of a wealthy group of luxury car makers known as the Association of Licensed Automobile
Manufacturers, which began enforcing the patent's claim. A five-member board decided which aspiring auto
companies would be granted the privilege of paying royalties and thus be allowed to continue doing business.
ALAM's pious purpose was to protect consumers from fly-by-night car makers, but its actual motivation was taking
in cash, restricting competition and steering the direction of the industry -- preferably its way. In 1903, ALAM
decreed that Henry Ford's car company was one of those "unreliable upstarts" and, though Ford offered to pay
the extortion, denied him entry to the cartel, leaving his company (and Ford customers) exposed to infringement
suits.
Ford, with a lifelong nose for publicity, decried his rejection in the automotive press and emerged nationwide as
something of a hero underdog. George Selden, he argued, never built a car! The Selden patent, he said, "does
not cover a practicable machine, no practicable machine can be made from it, and never was." Inevitably the case
landed in court where ALAM felt pressured to prove that the inventor's motor would actually power a car. And so a
one-off Selden, called the "Buggy," was hastily built.
It would only be fair to lightly apply the brakes at this point so as not to give away the topsy-turvy outcome to Mr.
Goldstone's story. It's enough to say that on the day of the Buggy's demonstration trial neither side was confident
of the outcome: ALAM prayed that the car would work; Ford prayed that it wouldn't. The result is an amusing
reminder that sometimes people really do see what they want to see.
There are chapters in Mr. Goldstone's book when Ford and Selden disappear entirely. On those pages, the
author provides a terrific backdrop to the "Chitty Chitty Bang Bang" era in which his story takes place. On display
are lucky scoundrels and unlucky geniuses, hustlers, hacks, and daredevils galore. By the turn of the 20th
century, the Western world was mad about cars, even though most roads were so abysmal that there was really
nowhere to go.
Instead, people attended automobile races by the thousands. Speeds in 1904 had climbed to over 100 miles per
hour where only a few years earlier 15 miles per hour had been considered suicidal. Races were launched from
Paris to Madrid, from Peking to Paris. During the U.S. leg of a 20,000-mile westward race from New York to Paris,
mud-caked drivers faced freezing rain and baking sun; they were pelted with snowballs in upstate New York and
oranges in California. It's astonishing how many dogs and horses failed to get out of the way of automotive
progress.
In Mr. Goldstone's colorful account, we meet moguls like newspaper impresario James Gordon Bennett and
playboy "Willie K." Vanderbilt, both of whom put up prize money to lure men like the cigar-munching driver Barney
Oldfield into their races -- and a few women too, like Camille du Gast. Mr. Goldstone writes of du Gast that, aside
from racing cars, she "was a crack shot and an expert fencer and horsewoman, . . . and the first woman to use a
parachute. She also became a concert pianist and accomplished singer." In 1910, she "successfully confronted a
gang of men who had been hired by her daughter to kill her." If you had to be crazy to race a car in 1904, it
helped if you were already eccentric.
In George Selden's lifetime, only one passenger car was built with his name on it. He died in 1922, the same year
that more than a million Fords rolled off the assembly line at the Rogue River plant in Michigan. Selden was too
early with his gift to automotive innovation; Ford took advantage of it with precision timing. Mr. Goldstone has
written a book that beautifully captures the intertwined fates of these two ingenious pioneers.
---
Mr. Cooke is a frequent contributor to Weekend Journal.
Document J000000020160528ec5s00018

Ford Recalls Some F-150 Pickups for Potential Brake Problem
Business/Financial Desk; SECT

Ford Recalls Some F-150 Pickups for Potential Brake Problem
By CHRISTOPHER JENSEN
290 words
26 May 2016
The New York Times
NYTF
The New York Times on the Web
English
Ford is recalling about 271,000 2013-14 F-150 pickups with 3.5-liter V-6 engines because the brakes may
malfunction, the automaker said on Wednesday. The company said it was aware of nine accidents but no injuries.
Ford said the brake master cylinder in the affected trucks could leak fluid, and as a result it was possible that the
front brakes' ''effectiveness could be reduced.'' The rear brakes, which use a different hydraulic system, would still
work, but typically the front brakes provide the most stopping power.
The automaker said if a pickup lost too much brake fluid, there warning lights and chimes would go off.
However, many of about 120 owners who complained to the National Highway Traffic Safety Administration said it
felt as if they had lost all stopping power, and there was no advance warning.
''The pedal went straight to the floorboard,'' an owner from Yuma, Ariz., wrote last October. ''I had to sharply veer
off to the right to avoid slamming into another vehicle.''
The safety agency began investigating complaints in February. The agency also has owner complaints of one
brake failure on a 2015 and another on 2016 model F-150, neither of which is covered by the recall.
Asked about those model years, a Ford spokeswoman, Elizabeth Weigandt, said in an email: ''Our decisions are
driven by the available data and we move quickly on behalf of our customers when we determine a safety recall is
needed.''
The action covers about 225,000 vehicles in the United States, almost 44,000 in Canada, 400 in Mexico and
small numbers in South America and Europe.
Document NYTF000020160526ec5q0006l

Business News: Ford Founding Family Keeps Backing of Shareholders
Business News: Ford Founding Family Keeps Backing of Shareholders

By Christina Rogers
627 words
13 May 2016
J
B3
English
Ford Motor Co. shareholders knocked down a proposal to strip control from the company's founding family,
preserving a decades-old ownership structure amid growing impatience from investors with the auto maker's
stagnant stock price.
Shareholders on Thursday defeated the proposal, a perennial occurrence at Ford's annual shareholder meeting,
by a 63% margin, similar to a 2015 result.
The proposal sought to abolish supervoting shares that give the Ford family effective control of the nearly
113-year-old company. The Ford family holds a separate class of stock that gives them 40% voting control over
the Dearborn, Mich., auto maker.
While routinely proposed and defeated, the measure's support has gained ground over the past few years. Nearly
four in 10 Ford shareholders voted for the proposal on Thursday, up from a third in 2013.
Ford Chairman and family scion Bill Ford has repeatedly defended the stock arrangement, contending that
long-term ownership stakes among his relatives ensure stability and a "loyal investor base" in good times and
bad. Other Ford directors also defend the structure.
Ford, after nearing financial brink in the middle of the last decade, is now posting historic profits.
Still, Ford's stock price has languished since Chief Executive Mark Fields took over from Alan Mulally in July 2014
amid concerns from analysts that U.S. car sales have peaked. Shares are off 23% since Mr. Fields took the reins.
One stockholder, Roger Heymann, who spoke up at Ford's meeting Thursday, had another explanation,
attributing the decline to Ford's uneven monthly sales this year in the U.S. and China, two of the world's largest
auto markets, and confusion around its mobility efforts.
Mr. Ford responded that the company planned to provide more clarity this year to its mobility strategy that would
ease concerns.
(END)
Ford Motor Co. shareholders knocked down a proposal to strip control from the company's founding family,
preserving a decades-old ownership structure amid growing impatience from investors with the auto maker's
stagnant stock price.
Shareholders on Thursday defeated the proposal, a perennial occurrence at Ford's annual shareholder meeting,
by a 63% margin, similar to a 2015 result.
The proposal sought to abolish supervoting shares that give the Ford family effective control of the nearly
113-year-old company. The Ford family holds a separate class of stock that gives them 40% voting control over
the Dearborn, Mich., auto maker.
While routinely proposed and defeated, the measure's support has gained ground over the past few years. Nearly
four in 10 Ford shareholders voted for the proposal on Thursday, up from a third in 2013.

Ford Chairman and family scion Bill Ford has repeatedly defended the stock arrangement, contending that
long-term ownership stakes among his relatives ensure stability and a "loyal investor base" in good times and
bad. Other Ford directors also defend the structure.
Ford, after nearing financial brink in the middle of the last decade, is now posting historic profits.
Still, Ford's stock price has languished since Chief Executive Mark Fields took over from Alan Mulally in July 2014
amid concerns from analysts that U.S. car sales have peaked. Shares are off 23% since Mr. Fields took the reins.
One stockholder, Roger Heymann, who spoke up at Ford's meeting Thursday, had another explanation,
attributing the decline to Ford's uneven monthly sales this year in the U.S. and China, two of the world's largest
auto markets, and confusion around its mobility efforts.
Mr. Ford responded that the company planned to provide more clarity this year to its mobility strategy that would
ease concerns.
Document J000000020160513ec5d0003b

Ford partners with Pivotal in $182M deal to upgrade software
MONEY
Ford partners with Pivotal in $182M deal to upgrade software
Brent Snavely
445 words
6 May 2016
USA Today
USAT
FIRST
B.5
English
Ford said Thursday it is investing $182 million in Pivotal, a Silicon Valley-based software development company,
to gain access to cutting-edge software-development expertise the automaker admits it would struggle to develop
on its own.
Ford's investment is part of a $253 million financing package for Pivotal that also includes funding from Microsoft,
GE, EMC and VMware. The Dearborn, Mich., automaker's investment in the Silicon Valley developer is the latest
in a string of partnerships and acquisitions announced recently between Detroit automakers and Silicon Valley
tech companies, including a deal between Fiat Chrysler Automobiles and Google this week.
The growing number of tie-ups between the automakers and the tech companies underscores a rapid pace of
collaboration as the two industries jointly develop autonomous vehicles, more advanced in- car entertainment and
mobility services.
Pivotal CEO Rob Mee said Microsoft's investment is in response to a number of its customers, including Ford,
who want a closer relationship between Pivotal Cloud Foundry, a cloud computing platform, and Azure,
Microsoft's Azure public cloud business.
"Pivotal is the fastest growing modern cloud platform in the market," Microsoft Executive Vice President Scott
Guthrie said in a statement.
Ford CEO Mark Fields said the automaker wants its software engineers to work side-by-side with Pivotal
developers and learn from the Silicon Valley company.
"This is going to really provide us with the opportunity to provide our customers with a lot of cloud-based services
and do it in a way that we can acquire the skills by having this partnership at speeds that we wouldn't have been
able to do on our own," Fields told the Free Press.
Ford's software engineers are adept at creating software to manage and control engines, transmissions and
braking and other automotive hardware but said the automaker needs to be able to quickly develop software used
by consumers, Fields said.
Fields first visited Pivotal's offices about 21/2 years ago and was impressed with the company's innovative culture
and willingness to share technology with its customers and partners.
At the time, Ford was in the early stages of developing FordPass, a free service that allows customers to access
features of their vehicle from a smartphone and to reserve parking, pay for transportation costs and pay bills.
That visit brought the automaker and Pivotal together and led to the development of FordPass. That relationship
grows deeper after Thursday's investment. "It's kind of like going from dating to getting married," Fields said.
photo Ford Motor Co.

Document USAT000020160506ec560000p

Temporary, part-time workers fight back Other wins by contingent workers ; More pushing for higher pay, benefits -- and even union member...
MONEY
Temporary, part-time workers fight back Other wins by contingent workers ; More pushing for higher pay,
benefits -- and even union membership
Paul Davidson
Paul Davidson, @Pdavidsonusat, USA TODAY
1,157 words
4 May 2016
USA Today
USAT
FIRST
B.3
English
The nation's growing army of contingent workers is increasingly demanding -- and often winning -- higher pay and
benefits and union membership, pushing back against efforts by companies to deploy a less costly, more flexible
workforce.
An Ohio supplier of axles to Ford recently agreed to let its entire staff of 58 temporary workers join the United
Auto Workers after they threatened to strike. Last month, Washington University in St. Louis announced a
tentative four-year contract that raises the pay of adjunct professors. And a new Seattle law would allow Uber and
Lyft drivers to form unions.
"These workers are standing up and claiming a greater share of the profits their labor has generated," says Sarah
Leberstein, senior staff attorney for the National Employment Law Project, a worker advocacy group.
Some, she says, have been inspired by walkouts by fast-food workers, many of whom are part time, and their
demands for $15-an- hour pay, a movement that led to legislation setting that pay floor in California and New York
in a few years. And with unemployment at 5%, the victories reflect a tighter labor market that has shifted leverage
to workers and the power temporary and part-time employees are beginning to wield as their ranks swell.
"Employers are going to start having trouble finding workers they need at the wages they're paying," Upjohn
Institute economist Susan Houseman says.
In recent years, businesses have relied increasingly on contingent workers to cut costs, meet fluctuating demand
and tap specialized skills for short-term projects. The trend intensified during and after the recession in 2007-09
as firms tightened their belts. About 20% of the U.S. workforce is made up of contingent workers -- including
temporary and part-time employees, contractors and freelancers -- up from 12% in 2010, according to Staffing
Industry Analysts. Temps typically earn less, have fewer benefits and little job security.
There's no reliable data on the share of such workers who are union members, though there may be hints. From
2013 to 2015, the portion of all U.S. workers in unions fell to 11.1% from 11.3%, continuing a decades-long trend,
Labor Department figures show. The unionized portion of administrative and support employees -- a category that
includes temps hired through staffing agencies -- rose to 3.5% from 3.1%.
Temporary and part-time workers in fields such as janitorial services, home health care and security have been
organizing for at least 30 years, says Kate Bronfenbrenner, director of labor education research at Cornell
University. What's new, she says, is the rapid rise in contingent workers and their spread to higher- skill
occupations in sectors such as technology and academia. Some are pressing for unions.
They're also unionizing or stepping up demands in fields that hadn't been hospitable to such challenges in part
because of their high turnover and the fact that temporary staffing agencies are often their direct employers, even
though managers at their workplace control their wages and other terms. Temps make up 14% of the auto parts
workforce, but they aren't unionized, according to NELP and UAW. Workers at the axle-making plant in Avon,
Ohio, had clout in part because all are temporary, says Ken Lortz, head of the UAW'S Region 2B who led the
organizing effort.

The Detroit Chassis plant is the only one producing axles and mounting them on tires for the heavy-duty trucks
assembled at a nearby Ford factory. A strike would have shut down the Ford plant, Lortz says, and a replacement
temporary workforce could not have been recruited quickly.
The workers earn $9.50 to $11.50 an hour, and auto parts temps on average make 29% less than direct
employees of manufacturers, NELP says. The Avon employees, who are slated to be converted to permanent
employees of Detroit Chassis, seek higher wages and better benefits through collective bargaining.
"We were just tired of the low wages and knowing that Ford is selling the trucks for $60,000, and workers at Ford
are making $20 an hour," says employee Kevin Patton, 43.
Other plants may follow. Houseman says auto parts factories across western Michigan are struggling to recruit
temporary workers in a tight job market and are "beginning to question the temp model."
OTHER WINS BY CONTINGENT WORKERS
Adjunct faculty. The contract for adjunct professors at Washington University was the latest in a flurry of such
victories at private colleges and universities. So-called non-tenure-track faculty were members of the Service
Employees International Union at just two private schools three years ago, but they have joined at 33 since, the
SEIU says. The trend, it says, is largely a response to a shift: 70% of university faculty are on non-tenure tracks,
mostly adjuncts, up from 30% in the 1970s, as schools have trimmed expenses, among other strategies.
At Washington, adjuncts earn a median of $4,500 per class per semester, or $27,000 to $36,000 a year for those
teaching three to four classes -- equivalent to other low-wage workers even though many have doctorates,
adjunct English professor Michael O'Bryan says. They often don't know if their assignments are renewed until
days before a semester starts, he says, adding, "You're in a constant state of suspension." Besides pay hikes,
they'll get fees if classes are canceled at the 11th hour.
Warehouse workers. The past few years, some of the 100,000 warehouse workers in Southern California have
secured better working conditions and recouped unpaid wages after staging walkouts or filing claims with
regulators or courts. The vast majority are non- unionized, and many are temporary. About 500 of the temp
workers have gained permanent status, says Sheheryar Kaoosji, co-director of the Warehouse Worker Resource
Center, which supports the employees.
Last year, about 150 temps at a large warehouse near the Port of Los Angeles got raises, and about 50 became
permanent employees after mounting petition drives. The workers also persuaded the manager to give them
more heat-related breaks. Last month, however, the warehouse owner, California Cartage, said it was switching
to another temporary staffing agency and firing the employees. The workers call the move an illegal retaliation
and have asked city officials to prevent the layoffs, Kaoosji says. The company would not comment.
Uber drivers. In December, Seattle passed a law allowing Uber and Lyft drivers to form unions, even though the
firms consider them independent contractors and are likely to challenge the measure. Similar legislation has been
introduced in California. Early this year, after Uber cut fares in dozens of cities, drivers in several cities, including
San Francisco, Tampa and New York City, waged strikes and protests.
photo Spencer Platt, Getty Images

Document USAT000020160504ec540000x

A Mom's Engineering Feat: Return to Work After 24 Years
WORK & FAMILY

A Mom's Engineering Feat: Return to Work After 24 Years
By Sue Shellenbarger
1,286 words
4 May 2016
J
D1
English
Stepping out of the workforce for two decades is enough to kill any career in technology or engineering.
After spending 24 years out raising her four children and teaching at a home-schooling co-op, 54-year-old Wendy
MacLennan scaled a Mount Everest-like learning curve to make a comeback as an automotive engineer.
THE PROBLEM: Ms. MacLennan, of Northville, Mich., had worked at General Motors Co. and Ford Motor Co. in
the 1980s, helping road-test Corvettes, design front axles for the Ford Ranger and manage the design process for
Ford's Econoline van.
By the time she decided to try to re-enter the workforce in 2014, vehicles had evolved from gasoline-powered
models you could repair in your garage to complicated hybrids powered by hundreds of microprocessors. Paper
drawings had been rendered obsolete by computer-assisted-design software.
As Ms. MacLennan sat down to write her resume, she told her husband of 32 years, Scott, who is also a
mechanical engineer, "I have no idea what to say."
THE SOLUTION: Mr. MacLennan helped her write a resume framing her home-schooling experience in a
professional way.
In her time away from Ford, Ms. MacLennan had taught chemistry and physics in a home-schooling co-op and
helped run an annual robotics competition. Her new resume stressed the project-management and marketing
skills she used as program coordinator and interim director for Robofest, an international robotics competition in
Southfield, Mich., that draws nearly 2,000 students annually. She included her teaching work and noted:
"Successfully prepared 4 children for college by age 15." Her children, now 18, 21, 22 and 25, have finished or
nearly finished college and are launching careers in engineering or physics.
Networking served Ms. MacLennan well. The husband of a fellow Sunday school teacher at the MacLennans'
church, Duane Grider, was an engineering team leader at Ford. After his wife mentioned that Ms. MacLennan
was looking for a job, Mr. Grider introduced himself, asked about her experience and suggested that she apply for
an engineering job on his team at Ford.
Ms. MacLennan interviewed well, Mr. Grider says, conveying leadership skills, a desire to learn and a strong work
ethic. His boss, Keith Oglesby, manager for hybrid systems, challenged Ms. MacLennan to describe experiences
that had prepared her for a job at Ford, and she was able to give relevant examples from her home-schooling
work, Mr. Oglesby says.
Ms. MacLennan thought the position they offered -- as a systems engineer and project manager designing new
hybrid vehicles -- seemed like a good fit. Her last job at Ford had been at a similar level as a project coordinator,
working with teams designing a chassis for the Econoline van.
She looked forward to working with other engineers again, she says, and she was excited "to rub shoulders with
people who are almost as young as my kids."
THE IMPLEMENTATION: The new job "was way harder than I thought it would be," she says.
Returning to engineering after 24 years was "like being dropped off in a land where you don't speak the
language," Ms. MacLennan says. "The processes and acronyms were all very different."
She was unfamiliar with hybrid vehicles and the powertrain systems she was working on, including the engine,
transmission, electric motor and drivetrain components. The acronyms and terms co-workers used were baffling.
Her group was guided by a sprawling document called a timing chart. Covered with cryptic dates, acronyms and
symbols, the chart enabled engineering teams working on dozens of different parts and systems to coordinate
their efforts.
"The first few months were overwhelming," Ms. MacLennan says. "It's comical when I look back on it. I'd sit
through a whole meeting and not know what people were talking about."
The virtual-meeting software her colleagues used was bewildering compared with the overhead projectors used
to share documents in the past. "I really felt foolish when I first began to present anything," she says. "Sometimes
I felt like it took me 10 minutes to do what most others could do in 10 seconds." She asked her husband to
practice holding virtual-meeting sessions with her, "so I could get the hang of it," she says.
Her colleagues were encouraging. She commiserated with Niklas Pettersson, 37, a hybrid-systems engineer
seated a few feet away, when his 10-month-old son was teething, and she brought a box of Legos from home for
Mr. Pettersson's 5-year-old daughter to use. Seeing Ms. MacLennan struggle, Mr. Pettersson helped her learn to
move documents and share screens. "At the beginning there was a steep learning curve, but she picked up the
pace really quickly," he says.
One of Ms. MacLennan's roles as a hybrid systems engineer was to help coordinate the work of many different
engineering teams and get them to agree on the timing and delivery of their work. As her list of internal contacts
ballooned to 200, she lamented to Mr. Oglesby that at times she wasn't sure who was the right person to go to for
an answer. He reassured her that everyone has times like that on the job.
She completed many hours of online training and courses at Ford. Still, she was frustrated. "I have pretty high
standards for myself. I need to be able to produce, and that was something I just couldn't do at first," she says.
About eight weeks into the job, she took Mr. Grider aside and asked: "Was this a mistake for me to come back?
Am I ever going to be of value?" Encouragement from him and Mr. Oglesby enabled her to keep trying, Ms.
MacLennan says. "I don't know if I'd still be here if this hadn't been such an encouraging environment."
THE OUTCOME: Last August, Ms. MacLennan faced what Mr. Oglesby calls her trial by fire.
The day after Mr. Grider left for a one-week vacation, her group was asked to make substantial changes in
engineering plans for the powertrains they were working on, Mr. Oglesby says. "It was a pretty big challenge for
us." Deadlines were looming, and the team risked falling behind if they didn't adapt quickly. With Mr. Grider away,
Ms. MacLennan stepped up.
"This was a defining moment for me," she says. She spent the next week in meetings with about 20 team leaders,
working to help them make the changes without missing deadlines. If she spotted a potential problem delivering
designs for components on schedule, she would meet with the team managers involved, alert them to the issue
and frame it in a way that helped them figure out how to avert problems. Eventually, all agreed on a new timing
chart. "The result was excellent," Mr. Oglesby says.
When Mr. Grider returned from vacation, he says, he was pleasantly surprised to learn that Ms. MacLennan had
"found a way to shift the timing and meet all the objectives across departments. Now she's known as a go-to
person" for solving timing problems, he says. "I haven't seen a difficult moment that she can't handle," he says.
Mr. Oglesby suggested that Mr. Grider nominate Ms. MacLennan for an internal award -- Employee of the Month
in their 600-person department. A committee considering several candidates chose her to be honored, bringing a
cash award, recognition at a monthly department meeting and dibs on a parking space next to the office-building
door. To mark the occasion, Ms. MacLennan brought home-baked cookies to share.
Document J000000020160504ec540000q

Ford posts record first-quarter profit Priceline CEO resigns over relationship
A-Section
Ford posts record first-quarter profit Priceline CEO resigns over relationship
912 words
29 April 2016
The Washington Post
WP
FINAL
A14
English
Ford Motor reaped the benefits of Americans' love of SUVs and pickups in the first quarter, posting record net
income of $2.5 billion, exceeding analysts' estimates.
Earnings excluding one-time costs were 68 cents a share, Ford said in a statement Thursday. That beat the
48-cent average estimate of 16 analysts surveyed by Bloomberg. Ford gained market share in North America,
bolstered by sales of F-Series pickups and SUVs such as the Explorer and the Flex.
Ford's string of record profits may have started to win over investors, who have been concerned that the U.S.
auto market peaked last year at a record 17.5 million deliveries. Ford shares fell 9.1 percent last year and have
continued to drop, even as U.S. SUV sales rose 16 percent in the quarter. Ford stock closed up 3.2 percent
Thursday, to $14.10 a share.
Shares rose after chief executive Mark Fields said during an analyst call that Ford is working on a long-range
electric vehicle to compete with models coming from Tesla and GM that would go 200 miles or more on a charge.
Ford posted quarterly pretax earnings of $3.8 billion, a record for any quarter, aided by an all-time high North
American margin of 12.9 percent. Solid profits in Europe and growth in China also contributed. Net income
doubled to 61 cents a share, from $1.15 billion, or 29 cents, a year earlier.
Online travel giant Priceline said chief executive Darren Huston is resigning after having a personal relationship
with an employee that violated the company's code of conduct, Priceline said in a statement Thursday.
Former CEO and chairman Jeffery Boyd, who led the company from 2002 to 2013, will replace Huston as interim
CEO while Priceline looks for a new leader. Huston also resigned as chief executive of Booking.com. Chief
operating officer Gillian Tans will take over as permanent CEO of that Priceline subsidiary.
"This resignation was not related in any way to the company's operational performance or financial condition,"
Leslie Cafferty, a spokeswoman for Priceline Group, said in an email. There were no issues related to accounting
or financial reporting, Cafferty said.
Huston's resignation follows an investigation by independent members of the board into a relationship he had with
an employee who was not under his direct supervision. The probe found Huston acted "contrary to the company's
code of conduct and had engaged in activities inconsistent with the board's expectations for executive conduct,
which Mr. Huston acknowledged and for which he expressed regret," Priceline said.
l Abbott Laboratories agreed to buy heart-devicemaker St. Jude Medical for $25 billion, as the industry
consolidates to gain bargaining power with hospitals. St. Jude shareholders will receive $46.75 in cash and
0.8708 shares of Abbott common stock, about $85 per share, according to a statement Thursday. That's 37
percent above St. Jude's closing price Wednesday. Abbott will also assume or refinance St. Jude's $5.7 billion in
debt.
l Verizon Communications raised its proposal for a wage increase to 7.5 percent over the length of a contract for
about 36,000 workers on strike in the phone company's landline division. The strike was in its 16th day Thursday,
and more than 1,000 union-represented employees have returned to work, Verizon said. The strike by workers
represented by the CWA and the International Brotherhood of Electrical Workers has had minimal effect on
operations, Verizon said.

l Aetna raised its earnings forecast for the year after first-quarter profit topped analysts' estimates, helped by
rising premiums. The health insurer now expects 2016 earnings of $7.90 to $8.10 a share, excluding some items,
up from a February forecast of at least $7.75, according to a statement Thursday. First-quarter net income fell 6.5
percent, to $726.6 million, or $2.06 a share, from $777.5 million, or $2.20, a year earlier. Operating earnings per
share of $2.30 topped the $2.23 average of analysts' estimates.
l Amgen beat and then raised profit expectations after surging sales of its medicines, tight cost controls and other
factors lifted the biologic drugmaker's first-quarter profit by 17 percent. The company on Thursday reported net
income of $1.9 billion, or $2.50 per share. Adjusted first-quarter profit was $2.90 per share. Revenue rose 10
percent, to $5.53 billion. The company increased its 2016 financial forecasts. It now expects adjusted earnings
per share of $10.85 to $11.20, up from $10.60 to $11, and sales of $22.2 billion to $22.6 billion, up from $22
billion to $22.5 billion
l Restaurant Brands International, the owner of Burger King and Tim Hortons, reported first-quarter
comparable-store sales that topped analysts' estimates. Same-store sales rose 4.6 percent at Burger King, the
Ontario-based company said Thursday, thanks partly to new grilled hot dogs and meal deals. Still, revenue fell
1.6 percent, to $918.5 million. Profit was 21 cents a share. Tim Hortons' comparable-store sales increased 5.6
percent.
l 8:30 a.m.: Labor Department releases the first-quarter employment cost index.
l 8:30 a.m.: Commerce Department releases personal income and spending for March.
l Earnings: Exxon Mobil.
WP20160429digest0429
Document WP00000020160429ec4t00002

Business News: Ford Profit Doubles as New Models Soar --- Auto maker earned $2.5 billion as margins jump on higher output, demand for new...
Business News: Ford Profit Doubles as New Models Soar --- Auto maker earned $2.5 billion as margins
jump on higher output, demand for new cars
By Christina Rogers
729 words
29 April 2016
J
B3
English
Ford Motor Co. reaped the benefits of its costly F-150 truck revamp, doubling income in its first quarter and
posting a North American operating margin rivaling those returned by luxury brands.
The Dearborn, Mich., company is among auto makers benefiting from record U.S. light-vehicle demand and low
gasoline prices, a trend fueling sales of the most profitable models on dealer lots. As sales of trucks and
sport-utility vehicles soar, Ford is receiving a strong profit and sales boost from product redesigns rolled out since
Chief Executive Mark Fields took over in mid-2014.
The No. 2 U.S. auto maker by sales also is gaining steam in China, earning more than $400 million last quarter in
a country where it historically has lagged far behind General Motors Co. and bigger rivals. That momentum in
China, combined with an abrupt reversal of fortunes and return to profit in Europe, is more than offsetting
weakness in South America, Russia and other emerging markets.
Ford reported profit of $2.45 billion, or 61 cents a share, up from $1.2 billion, or 29 cents a share, in the first
quarter of 2015. That year-earlier quarter was hurt by short supplies of the latest F-150 truck as production of the
aluminum-bodied vehicle was still gearing up. Last quarter, the company was able to flood the U.S. market with
that high-margin truck.
In North America, Ford posted a record 12.9% operating margin for the three months ended March 31, far
outpacing GM's 8.7% and the 7.2% reported by Fiat Chrysler Automobiles NV, both for the same quarter.
The strong profit follows a quarter when Ford relied heavily on fleet sales to support market-share growth in the
U.S. Typically considered to be less profitable than retail sales, Ford's reliance on fleet business had been a
source of concern for analysts.
On an operating basis, the company earned $3.8 billion or 68 cents a share, and the margin in its global
automotive business nearly hit 10%.
The results handily beat analyst expectations of a 48-cent-a-share profit. Its stock gained 3.2% to $14.09 in 4
p.m. New York Stock Exchange trading on Thursday.
Ford's revenue increased 11% to $37.7 billion, from $33.9 billion in the same period a year ago.
"You're starting to see a better balance of profitability," finance chief Bob Shanks said on Thursday, citing
improving results in Asia and Europe. He said the company has an opportunity for further profit growth in the U.S.
As far as the belief that the best days are behind conventional auto makers after a half-decade of strong earnings,
Mr. Shanks said, "we're proving that to be a misconception," he said. There is no sign that U.S. light-vehicle
demand is headed for a pothole, he said. He disputed suggestions that the U.S. economy could be headed for a
mild recession.
The company's launch of a new Super Duty F-Series truck is coming in the third-quarter. A heavier-duty version
of its pickup truck line, Mr. Shanks said, it is the first major overhaul in 19 years and it should help lift earnings in
the back half of this year.

Robust demand for Ford's pricier trucks, including the F-150 pickup, in the U.S. continued to drive its operating
profits in North America, which nearly doubled to a record $3.1 billion in the first quarter versus a year ago. Ford's
U.S. sales grew 8.4% in the first quarter.
Ford posted its best quarter in Europe since 2008, swinging to a $434 million pre-tax profit from a $42 million loss
in the same period in 2015.
Profit in Asia Pacific doubled to $220 million versus $105 million a year ago amid growing profitability in China.
Ford's equity income from its Chinese joint ventures was up 23% to $443 million in the just-ended quarter.
In South America, its operating loss widen to $256 million on spreading economic malaise in the region.
Document J000000020160429ec4t0003g

Ford Doubles Profits for a Record Quarter, as Low Prices at the Pump Help Move Pickups

Ford Doubles Profits for a Record Quarter, as Low Prices at the Pump Help Move Pickups
By NEAL E. BOUDETTE
767 words
29 April 2016
The New York Times
NYTF
3
English
The combination of low gasoline prices and record auto sales in the United States is making for good times in the
auto industry, and nowhere is that more evident than at Ford Motor.
Ford, the No. 2 American carmaker, on Thursday reported a record $2.5 billion in net income for the first three
months of the year, an increase of 113 percent and more profit than in any other quarter in its 112-year history.
In North America, Ford's operating profit doubled to $3.1 billion. It produced fewer vehicles on the continent than
General Motors, but made about $800 million more in profit than its crosstown rival.
''The first quarter was an absolutely terrific start to the year for us,'' Ford's chief executive, Mark Fields, said in a
conference call.
Leading the way for Ford was the recently redesigned, aluminum-bodied F-150 pickup, which had strong sales,
like those of other trucks and sport utility vehicles, as gas sold for less than $2 a gallon in many parts of the
country.
A year ago, Ford was just starting production of the aluminum model, working out hitches in the new
manufacturing process. But now its F-150 lines are humming.
''They can't make enough of them,'' said David Kudla, chief executive of the investment firm Mainstay Capital
Management.
Also helping Ford is a turnaround in Europe, where it made more money in the first three months of 2016 than it
did in all of last year.
In recent weeks, the auto business's six-year expansion streak has shown signs of losing momentum since hitting
a high of 17.4 million cars and light trucks sold in 2015. To keep growth going, automakers have offered more
incentives, pushed leasing to record levels and sold more cars into rental fleets.
Ford said it sold 1.7 million vehicles in the first quarter, an increase of about 10 percent.
And Mr. Fields said Ford was in a good position even if the market is at its peak and sales plateau or tail off
slightly.
Besides the F-150, Ford has recently released updated versions of its Explorer and Edge S.U.V.s, and is working
on four more new models, as people increasingly favor light trucks over sedans and compacts.
''We have reached an inflection point,'' Mr. Fields said of the shift. In the first three months of this year, trucks and
S.U.V.s made up 70 percent of Ford's sales in the United States, up from 64 percent in the same period four
years ago.
Because they tend to be higher-priced than cars, trucks and S.U.V.s usually generate more revenue and profit.
''The bottom line is we expect 2106 to be another strong year,'' Mr. Fields said, forecasting ''continued strength
into 2017.''

Like Ford, G.M. and Fiat Chrysler are also gaining from rising truck sales. G.M. and Fiat Chrysler each recently
reported strong earnings increases for the first quarter.
But not all automakers are benefiting as much. Luxury carmakers like BMW and Mercedes-Benz typically sell
more cars than S.U.V.s, so the shift away from cars is not helping them. In the United States, they have
maintained sales but have had to offer more incentives.
Trucks are not the only bright spot for Ford. The company also benefited from an improving economy and the
increased sales of more expensive models.
It did not hurt that Volkswagen, a major competitor, has been hobbled by its emissions-cheating scandal. In the
first quarter, European profits leapt to $434 million. In the same period a year ago, Ford lost $42 million.
China, despite concerns about its economy, is also generating significant returns. Ford was once a laggard there
but it has built a series of plants and is now building up market share. Its share of profits from its Chinese joint
ventures in the first quarter was $443 million -- $83 million more than a year ago
Over all, Ford reported first-quarter revenue of $37.7 billion, $3.8 billion more than in the same period in 2015.
Shares of Ford closed up more than 3 percent.
Mark Fields, Ford's chief executive, left, riding in a Ford F-150 Raptor pickup last week ahead of the Auto China
car show in Beijing. The redesigned F-150 contributed to Ford's record quarter. (PHOTOGRAPH BY MARK
SCHIEFELBEIN/ASSOCIATED PRESS)
Document NYTF000020160429ec4t00054

Ford and Google Join Driverless-Cars Group

Ford and Google Join Driverless-Cars Group
By BILL VLASIC
645 words
28 April 2016
The New York Times
NYTF
4
English
DETROIT -- In an unusual alliance between a traditional automaker and a technology company, Ford Motor and
Google on Wednesday joined to lead a coalition of companies that advocate federal approval of driverless cars in
the near future.
By teaming up to promote regulations that favor fully-autonomous vehicles, Ford and Google may be moving
toward closer cooperation on the actual development of driverless models.
Ford's chief executive, Mark Fields, has said in recent months that his company is evaluating potential
partnerships with other firms on autonomous vehicles, but has not made any formal moves in that direction.
Still, by forming a public policy coalition that includes Google, Ford is aligning with Silicon Valley's most prominent
supporter of cars that can operate without a driver.
The group, which calls itself the Self-Driving Coalition for Safer Streets, presented testimony on Wednesday at a
hearing on autonomous vehicles held by the National Highway Traffic Safety Administration.
The hearing was the second conducted by the federal agency as it tries to develop national guidelines for the use
of autonomous cars on American roadways.
In January, the Obama administration said it hoped to expedite regulatory guidelines for autonomous vehicles
and to invest in research to help bring them to market.
While Google has been at the forefront in testing driverless models, many mainstream automakers like Ford are
also accelerating development of a wide range of autonomous vehicles.
At Wednesday's hearing at Stanford University in California, the nation's top auto safety regulator, Mark
Rosekind, said the federal government was hopeful that driverless technology could help reduce the annual death
toll from traffic accidents. In 2014, the last year for which data was available, 32,675 people died in auto
accidents.
Mr. Rosekind said that more than 90 percent of vehicle accidents every year were the result of decisions made by
drivers at the wheel -- and self-driving technology had the potential to prevent at least some of those accidents.
''We are focused on promoting safety innovation that can do the most to save lives,'' he said.
Automakers are already putting some self-driving features, like automatic braking and steering, in current models.
But the coalition led by Ford and Google is urging swift passage of regulations that allow for totally autonomous
vehicles.
In addition to Ford and Google, the coalition includes the Swedish carmaker Volvo and the ride-sharing firms Lyft
and Uber. The spokesman for the group is David Strickland, a predecessor of Mr. Rosekind's as the head of the
safety agency.
''There are policy issues and inconsistencies in the regulatory environment today that could greatly delay
deployment or possibly deny full self driving from many that could benefit from its promise,'' Mr. Strickland said at
the hearing.
A Ford spokeswoman, Christin Baker, said Ford's involvement with Google was not an indication that the two
companies were working together on a driverless car.
''The five founding members of the coalition are focused on public policy issues,'' Ms. Baker said. ''That's the
mission of the group.''
Other carmakers, including General Motors and Toyota, testified separately at the hearing. A Toyota official, in
particular, suggested that regulators hold off on setting requirements for self-driving technology until it was
introduced in the market.
Other groups that expressed support for self-driving cars included those speaking for disabled persons who
cannot operate a vehicle, and Mothers Against Drunk Driving, which noted that driverless cars could reduce the
number of accidents that involve alcohol consumption.
At an earlier hearing, some consumer groups warned that driverless cars had not been perfected in testing
environments. One group, Consumer Watchdog, said that future regulations should require that a licensed driver
was present and able to take control of a vehicle if autonomous technology failed to operate safely.
Document NYTF000020160428ec4s0003e

Business News: Fiat Chrysler Narrows Profit Gap --- Nearly all its operating profit, and two-thirds of its revenue came from North America
Business News: Fiat Chrysler Narrows Profit Gap --- Nearly all its operating profit, and two-thirds of its
revenue came from North America
By Jeff Bennett
563 words
27 April 2016
J
B5
English
Fiat Chrysler Automobiles NV narrowed the profit gap with its Detroit rivals in the first quarter, drawing on
continued momentum for its Jeep sport-utility vehicles and Ram pickup trucks to more than double operating
margins in North America.
The Italian-U. S. auto maker has been increasing U.S. sales for six years, but failed to keep up with Ford Motor
Co. and General Motors Co. in the closely watched margin race.
It earned 1.23 billion euros ($1.39 billion) in North America in the first quarter, or nearly $2,200 per vehicle sold in
the region, compared with 601 million euros a year ago. Revenue rose 6% in the region, pushing its sales nearer
to Toyota Motor Corp., the No. 3 new-car seller in the U.S.
Fiat Chrysler posted a 7.2% margin in North America that was behind the 8.7% booked by GM during the same
period and topped the 6.7% reported by Ford in the year-ago first quarter. Ford hasn't yet released results for this
year's first quarter.
The operating margin performance answers industry observers and rivals who have criticized Chief Executive
Sergio Marchionne for valuing market share growth over the bottom line.
During a conference call, executives said the company is off to a good start this year, but didn't provide much
insight on whether the strength in North America would last.
That uncertainty, along with weakness in Asia Pacific revenues, pushed Fiat Chrysler shares 2% lower to $8.04
Tuesday. Fiat Chrysler said overall first-quarter net profit rose to 478 million euros. The Italian-American car
maker's net profit represented a sizable jump from the 27 million euros generated during the first three months of
2015, but those results excluded Ferrari, which was spun off in January.
On an operating basis, the company earned 1.38 billion euros, compared with 700 million euros for the same
period a year earlier. First-quarter revenue rose 3% to 26.6 billion euros compared with the first quarter of 2015.
Nearly two-thirds of that revenue and nearly all the operating profit came from North America.
The strength in the U.S. has largely been built on Jeep, an iconic brand that has sold SUVs for 75 years. The
division is benefiting from low gasoline prices. Its 5% U.S. market share outperforms other light-truck brands:
Land Rover, for instance, has under 1% of the U.S. market, and GM's GMC truck lineup is 3%.
Mr. Marchionne, Fiat's CEO since 2002, started merging the Italian auto maker with Chrysler in 2009 as the
Detroit company was in bankruptcy. In recent years, he has been searching unsuccessfully for a merger with a
bigger auto maker.
Of chief concern for potential suitors is Fiat Chrysler's debt. Mr. Marchionne aims to cut indebtedness as part of
his strategic plan, but it is considered behind GM and Ford in terms of the health of the balance sheet.
The company's net industrial debt minus cash on hand rose 31% to 6.59 billion euros during the first quarter. Fiat
Chrysler earned 96 million euros in Europe.
Document J000000020160427ec4r0000k
Business News: In China, Western Auto Makers Temper Ambitions
Business News: In China, Western Auto Makers Temper Ambitions

541 words
26 April 2016
J
B7
English
BEIJING -- After years of trumpeting their gains in China, global car makers are now sounding a more cautious
note over the world's largest auto market.
They still expect overall sales to climb, albeit at a slower pace, but executives at the Beijing motor show admit car
prices are dropping, unit growth is sliding and the government is getting stricter on emissions rules.
Toyota Motor Corp. said it is uncertain about hitting a target it set two years ago to sell two million cars in China
by 2025. "Since then we've seen additional requirements coming up for fuel efficiency and emissions on the
regulator side," said Hiroji Onishi, head of Toyota's China region. "We are reconsidering our product lineup and
trying to come up with a plan that will enable us to secure the volumes and profit as well."
Four years ago Ford Motor Co. unveiled an ambitious plan to double its production capacity in China by 2015.
This year there is "nothing that we're ready to talk about" in terms of further expansion, said Mark Fields, chief
executive of the Dearborn, Mich.-based manufacturer.
And Volkswagen AG last year touted plans to invest 22 billion euros ($24.7 billion) in China in the coming five
years and raise production capacity by 40% to five million cars.
"We are generally staying on the plans, although some things are coming a little bit later," said Jochem
Heizmann, head of Volkswagen's China operations.
The shift in tone emphasizes the easy times are over in the Chinese market. Global auto makers have been some
of the biggest beneficiaries of Chinese consumers' appetite for new products. Booming double-digit percentage
growth was common for global auto makers in the last decade in China.
However, as China's economic growth cools, auto sales rose just 6% from a year earlier. The single-digit
percentage gain came even as China cut by half a purchase tax on small-engine vehicles, which make up more
than two-thirds of the country's new car sales.
Ford expects China overall will sell between 23.5 million and 25.5 million vehicles this year, up 3.7% on 2015.
Toyota said it is aiming to sell 1.15 million cars in China this year, largely unchanged from the volume it sold last
year. General Motors Co. has forecast low-single-digit market growth each year up to 2020.
Big auto makers are sensitive to slowing Chinese growth because they derive a significant amount of their
revenue from the country. China accounts for 37% of GM's global vehicle sales, 36% of Volkswagen's, and 17%
of Ford's.
The companies have built more plants in China than anywhere else since 2008. Now they could be confronted
with too many factories.
At one of GM's joint ventures the production utilization rate fell to 113% last year from 137% the year before.
Meanwhile, the rate at one of Volkswagen's joint ventures fell to 115% from 132%.
Citing fierce competition, John Lawler, CEO of Ford's China business, said China is starting to look like "a mature
market."
-- Rose Yu

Document J000000020160426ec4q0003x

Fast 3-D Printers Earn New Respect
Fast 3-D Printers Earn New Respect

By Loretta Chao
963 words
26 April 2016
J
B1
English
Ford Motor Co. is experimenting with a new form of 3-D printing the auto maker says could solve a structural flaw
that has kept the technology from widespread use in manufacturing.
The ability to "print" parts within an assembly plant would drastically reduce transport and logistics costs for the
auto industry, where car makers must source parts from dozens of suppliers around the world. But the most
widely used version of the technology is ill-suited for mass production because objects are printed layer by layer,
a slow process that also creates tiny fault lines that can crack when stressed.
A startup backed by Alphabet Inc.'s Google Ventures is developing a different 3-D printing method that some
manufacturers, including Ford, say shows more promise. Carbon3D Inc.'s printers project light continuously
through a pool of resin, gradually solidifying it onto an overhead platform that slowly lifts the object up until it is
fully formed. The process takes a fraction of the time of other printing methods, and forms solid items more similar
to those created using conventional auto-part molds, said Ellen Lee, who leads a 3-D printing research division at
Ford.
To be sure, Carbon's technology isn't likely to find its way to the factory floor soon. The company expects to ship
hundreds of the printers this year, but its method is too costly to be used on a large scale. Manufacturers are
more likely to deploy 3-D printers for high-margin or customized products, such as parts for airplanes, prosthetic
limbs, experts say.
Ford is testing parts made with Carbon's printers in its research facilities to see whether they can pass
performance tests to determine if they're worth the expense, Ms. Lee said.
"The big challenge is, if we're making 100,000 vehicles, and we need that many parts, it may just be too
expensive to 3-D print all of them," she said. "It doesn't compete head-to-head with injection molding."
Ron Harbour, partner at consulting firm Oliver Wyman, said the entire auto industry is researching for ways that
3-D printing could be used in production to save on expensive tooling costs. But with the amount of time it takes
to print the parts, the process would still be more costly than traditional methods.
"If I need 300,000 [cars], I spend X-millions on tools to produce it, and I'm producing one every minute," he said.
3-D printers may help avoid heavy tooling costs, but if they can't accommodate that speed, "it's still going to cost
me a whole lot more."
Meanwhile, a greater variety of materials need to be developed to mimic the properties of the plastics, metals and
rubber that go into auto parts, Ms. Lee added.
A growing number of companies expect to use 3-D printing in their supply chains. A survey of 900 supply-chain
professionals released this month by logistics-industry group MHI and Deloitte showed 14% use the technology
today but 48% expect to adopt the technology within the next decade. Research firm Gartner estimates that
world-wide sales of 3-D printers will reach almost $4billion next year, up from $406 million in 2012.
Ms. Lee's research unit at Ford was created two years ago to test new technologies in hopes of using 3-D printing
to manufacture more complex designs that can't be created using traditional methods. It can take months to
create the molds and tools necessary to manufacture a new part, a process that can drag out longer if engineers
need to make changes midway through.

For example, it is difficult to create parts from a single mold with a duct running through their center, a
manufacturing problem that 3-D printing can solve. Such parts could have the built-in ability to transfer fluids,
eliminating the need for a separate hose to do the job.
Other industrial companies have been experimenting with 3-D printing, also known as "additive manufacturing,"
for these benefits. Siemens AG has said the technology can be used to create new geometries for the blades in
turbines for better cooling and greater efficiency.
General Electric Co. said it expects to produce as many as 200,000 fuel nozzles for its aviation business using
3-D printing. GE recently announced that a new research center in Pittsburgh will focus on developing uses for
the technology across all of its businesses.
Objects printed with Carbon's machines perform better in tests than other forms of printing because an item that
is solid all the way through is stronger than one composed of many layers stuck together, some manufacturers
say.
"What intrigued us about the Carbon3D machine . . . Is if you break the [printed] part in half it looks just like a
molded part," said Chip Gear, owner of The Technology House Ltd., which uses a variety of technologies to print
parts for industrial customers.
Carbon's printer takes 40 minutes to print an object that would take 12 hours on a machine that prints layer by
layer, he said.
Carbon leases its printers for $40,000 a year. That compares with more than $100,000 to purchase other types of
3-D printers, Mr. Gear said. Carbon says that cost will fall as it ships more units.
Every breakthrough in cost or speed pushes the bar lower for using 3-D printing in a way that "makes economic
sense," said Steven DuBuc, a supply-chain consultant at AlixPartners LLP. Costs already have been decreasing
for the equipment and materials, but "speed increase is probably the single most important thing."

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Business News: Ford's Sales Gains Come at Price --- Auto makers boost reliance on fleet buyers, sales incentives as retail growth slows
Business News: Ford's Sales Gains Come at Price --- Auto makers boost reliance on fleet buyers, sales
incentives as retail growth slows
By Jeff Bennett and Christina Rogers
628 words
18 April 2016
J
B3
English
Ford Motor Co. hit a rare milestone in March. Long the No. 2 seller in the U.S. market, the Dearborn, Mich.,
company topped General Motors Co. in monthly sales -- one of the few times it has done that in recent history.
The win, however, came at a price.
Nearly 40% of vehicles sold were delivered to fleet buyers such as rental-car agencies or businesses in deals
typically seen as less profitable than those from retail stores.
Dealers, meanwhile, reported a 5% decline in retail sales.
Ford's March performance mirrors the auto maker's first-quarter results and reflects a trend in the U.S. auto
industry that shows fears of a slowdown.
Light-vehicle sales for the industry continued increasing in the first quarter, but retail growth of less than 1% fell to
its slowest rate since deep declines in 2009, according to J.D. Power.
Retail light-vehicle sales rose 3.7% in the first three months of 2015, laying the foundation for record sales last
year.
In an effort to keep modestly ahead of that pace this year, auto makers have dramatically boosted sales
incentives and relied on a practice known as punching sales, according to some dealers.
In these instances, a dealer moves a car from the new lot to the demonstration pool and counts the car as sold
even though it hasn't been put in the hands of a consumer.
Retail demand is closely watched because it reflects sentiment among actual individual car buyers. The
unexpectedly rapid cool down contributes to wider skepticism about the willingness of American households to
spend and concerns that economic growth is sputtering.
Some analysts expect retail sales to bounce back during the summer amid low gasoline prices, cheap loans and
attractive deals. If they are wrong, expectations for the record sales pace to continue "will be at risk," Barclays
auto analyst Brian Johnson said.
A potential downturn raises questions about production.
Strong production levels -- which determine acarcompany's revenue bookings -- are in jeopardy, and many
analysts say auto makers are faced with a tough choice: keep dumping more carsin fleets or pour on sales
incentives which erodes profit margins.
Ford's sales chief Mark LaNeve said high fleet sales are a product of timing decisions and those numbers will
level off, ending the year at about the same level as in 2015.
The company increased dealership stock this year after being caught short last year with too little inventory ahead
of the early summer selling season,he said.
Even with hefty fleet sales, Ford carries the most inventory in the industry. GM's inventory has shrunk amid
product changeovers, and the company has backed off fleet sales.
Ford is carrying 23% more inventory on dealer lots as of March 31 compared with last year, according to
WardsAuto.com, or 19% of the industry's entire stock (compared with 15.6% market share).
Fiat Chrysler Automobiles NV, meanwhile carries 17% of the industry's inventory versus 13.3% market share.
Fiat Chrysler is on pace to catch Toyota Motor Corp. for the No. 3 spot this year, a slot it hasn't attained since
2006.
While Jeep SUVs and Ram trucks help fuel the performance, the company has partially relied on deep discounts
and fleet sales to string together 72 consecutive months of sales gains.
The industry's sales incentives, such as discounts or subsidized loan or lease rates, increased 14% in March
compared with the prior year to an average of $3,100 a vehicle, according to Autodata.

Document J000000020160418ec4i0002a

Ford Revved By China SUV Voom
Heard on the Street

Ford Revved By China SUV Voom
By Abheek Bhattacharya
280 words
18 April 2016
J
C6
English
[Financial Analysis and Commentary]
Sport-utility vehicles are the kings of China's auto market, and Ford Motor is well placed.
Car makers in China shipped 52% more SUVs in the first quarter than in the same period the year before. In no
month since 2015 has growth fallen below 34%. In response, Chinese manufacturers have flooded the market
with low-end SUVs, some equipped with tiny 1.6-liter engines that qualify for tax incentives. There will be 32 new
budget SUVs launched this year versus 20 in 2013, according to Sanford C. Bernstein's Robin Zhu.
With so much new supply, pricing has begun taking a hit. But Ford has an advantage: Its bigger SUVs don't
compete directly with the small, underpowered ones. While its SUV sales grew by just 38% between January and
March from a year ago, its local passenger-car joint venture with Chongqing Changan Automobile has lately
achieved the lowest dealer discounts among all such ventures in China, according to data from Macquarie and
research firm ISE.
More SUVs, which command higher margins than sedans, mean more profits for Ford's partner Changan.
Changan's own domestic SUVs are popular but falling in price, though the Ford venture is the predominant
source of its profits.
Changan shares in Shenzhen that foreigners can trade fetch only 4.75 times forward earnings versus an average
8.72 times for seven peers, according to S&P Global Market Intelligence.
The more consumers flock to Ford SUVs, the more investors should move into Changan shares.
Document J000000020160418ec4i0001e

Business News: Ford to Audition Supercar Buyers --- Shoppers should be prepared to provide videos, social media to get limited-edition GT
Business News: Ford to Audition Supercar Buyers --- Shoppers should be prepared to provide videos,
social media to get limited-edition GT
By Christina Rogers and Gautham Nagesh
649 words
14 April 2016
J
B7
English
For buyers angling to get on the waiting list for Ford Motor Co.'s new GT supercar, having enough in the bank to
cover the roughly $450,000 asking price isn't enough. They also need to convince the company they are ready to
drive it.
In a rare move for the domestic auto industry, the Dearborn, Mich., auto maker is taking applications for the latest
iteration of its mid-engine sports car. Ford will produce only 250 a year, but the company doesn't want them
collecting dust in garages.
The No. 2 U.S. car maker opened up the application process Wednesday morning. The move comes about two
weeks after Tesla Motors Inc. began taking $1,000 deposits for the Model 3, a much less expensive electric
sedan that will arrive next year.
To get a GT, candidates must lay out enthusiast credentials. If they own a previous-generation GT, for instance,
Ford wants to know how many miles they put on that car's odometer.
Prospects also have the chance to plead their case in writing and add supporting material, such as video and
social media posts, that show dedication.
"We really want to find those customers who will use this car and drive this car and be true ambassadors for
Ford," said Henry Ford III, great-great grandson of founder Henry Ford and global marketing manager for Ford's
performance division. Mr. Ford spoke to The Wall Street Journal in a podcast.
The reservation deadline for the first two years of production is May 12. Tesla's Model 3 collected 300,000
refundable deposits in the first week of accepting reservations -- but that car is aiming for the mass market.
Ford's application process "is the velvet rope line at the incredibly trendy club," said Dave Kinney, who publishes
the price guide for Hagerty Insurance Agency LLC, the largest insurer of classic and collector's cars in the U.S.
The latest GT, to be built with carbon fiber body panels and a 600-horsepower engine, made a splash in 2015 at
the Detroit auto show. The company had discontinued a prior edition it started selling in 2004, and it backed away
from investing in its gaudiest models during the financial crisis amid a cash shortage.
It isn't uncommon for high-end cars to have lengthy wait lists or aim for handpicked clientele. Italy's Ferrari NV, a
sports car maker capping annual output at about 7,000, has multiyear waits and often allocates models based on
how many Ferraris a buyer has purchased already.
The GT nameplate dates back to the 1960s, when the GT40 bolstered Ford's racing chops by sweeping the 24
hours of Le Mans.
Ford revived the GT about a decade ago. It was designed to be an American-made, mid-engine supercar rivaling
European exotics like Ferrari and Lamborghini SpA, but with a much lower price tag.
Early in its production run, demand was strong with the car selling over its $150,000 list price. Sales cooled,
however after the initial rush.

Several years later, however, the GT is considered a favorite among collectors. Prices for low-mileage used
models began to soar in late 2012, and today the average 2005-06 Ford GT is worth more than $250,000,
according to Hagerty.
Karl Brauer, a 2005 Ford GT owner and senior analyst for car-research firm Kelley Blue Book, wasted no time
putting in his application for the new one.
"[Ford is] trying to prevent them from becoming objects of the super wealthy to be stored away," Mr. Brauer said.
"It's not a statement car if it sits under a cover."
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Ford looks to Silicon Valley in corporate campus redesign ; Plans to renovate or build 7.5M square feet of office space
MONEY
Ford looks to Silicon Valley in corporate campus redesign ; Plans to renovate or build 7.5M square feet of
office space
Nathan Bomey
645 words
13 April 2016
USA Today
USAT
FINAL
B.2
English
Borrowing a page from the Silicon Valley playbook, Ford Motor is going on a building and renovation spree near
Detroit in hopes of creating more inviting and idea-inspiring workspaces.
Ford plans to renovate or build 7.5 million square feet of office space, research facilities and engineering
operations, marking the first dramatic overhaul of its home base in six decades. Much of the work will be done at
the company's historical base: Dearborn, Mich.
Ford CEO Mark Fields said in an interview that the goal is to develop more open workspaces to encourage
conversations and collaboration between different divisions -- a concept well-known to the tech industry that is
only recently making its way through the more traditional automotive business.
"People really like being connected and not being in, let's say, the 1970s and '80s layout where what was more
appropriate then was to work in cubicle areas and have your own little personal space," Fields said. "We're just
looking at how they're living their lives now, staying connected, and we're saying, 'How do we do that?'"
The sweeping real estate play -- which affects 30,000 employees working in 70 separate buildings -- is designed
to give the company a fighting chance in the war for young professionals as Silicon Valley tech giants with hip
corporate campuses hire away the auto industry's most talented engineers to develop autonomous vehicles and
electric cars.
It also accelerates a trend among major automakers to inject a fresh dose of innovation into their once-stodgy
workplace environments, where PowerPoint presentations and top-down management once prevailed over
collaborative working and free-flowing communication.
Ford's corporate-campus overhaul comes as Toyota is preparing a new North American headquarters in Plano,
Texas, and as General Motors continues a $1 billion renovation of its Tech Center operation in Warren, Mich.
Ford would not reveal an investment figure but said the spending is contained within its previously disclosed
capital plans. Construction will begin within weeks at the research and engineering campus, while work on the
headquarters campus will start in 2021.
All construction is expected to finish by 2026.
The anchor of the engineering campus will be a new, 700,000- square-foot design facility, Ford said.
Steve Morris, a real estate broker and managing principal of Axis Advisors in Farmington Hills, Mich., estimated
that the overall project easily represents a $1.2 billion investment.
"It's a very strong statement about the commitment to community and future of the automobile industry in
Michigan," Morris said.
Most of the square footage included in the overhaul is contained within existing buildings, said Donna Inch, CEO
of Ford Motor Land Development, the automaker's real estate division. But she said the company would construct
several new facilities, as well, declining to say how many.
Many of the buildings have been only lightly upgraded since they were built in the 1950s, Inch said.
Altogether, the plan is to locate 30,000 employees at a corporate campus and an R&D campus in Dearborn,
Mich., which Henry Ford picked as the hometown for his company in the early 20th century.
The actual headquarters building won't change much because of its iconic mid-20th-century architecture, Inch
said, but it will get certain upgrades such as infrastructure improvements and new windows.
Ford also plans to build a new facility for its Ford Credit operation that will be connected to the headquarters.
Fields said Ford is embracing "we space" -- open, collaborative workplaces -- over "me space," or cloistered
offices for individuals and walls separating departments.
"It's a very big transformation," he said.
Contributing: Brent Snavely, Detroit Free Press
photo Ford
Document USAT000020160413ec4d0000v

Business & Energy (A Special Report) --- Ford's Road Map To the Future: Chief Executive Mark Fields gets ready for driverless cars
Business & Energy (A Special Report) --- Ford's Road Map To the Future: Chief Executive Mark Fields
gets ready for driverless cars
By Gerard Baker
823 words
13 April 2016
J
B5
English
The auto industry has been undergoing a remarkable transformation -- and it's only the beginning. Energy prices
and a tough regulatory environment are complicating product planning. Electric motors and autonomous driving
systems may redefine how people move around.
To get a glimpse of how car makers are navigating this uncertain environment, The Wall Street Journal's Gerard
Baker spoke with Ford Motor Co. Chief Executive Mark Fields. Here are edited excerpts of their discussion.
MR. BAKER: We're seeing an extraordinary transformation of the auto market. We're talking about electrification
and autonomous driving. And we're seeing companies like Google and possibly Apple getting into the business.
You're seeing car sharing. Tell us how you are preparing.
MR. FIELDS: We're going to disrupt ourselves. We have this core business of designing, developing,
manufacturing, marketing and servicing and financing great cars, utilities and trucks. But also we see these
emerging opportunities around what we call smart mobility. We want to lead in specific areas around autonomous
vehicles, around the connected car as it becomes part of the Internet of things, around mobility, ride sharing, car
sharing, around data and analytics and how we can anticipate customers' needs.
MR. BAKER: What are you doing to prepare for an age when a huge amount of car mobility may be done through
sharing?
MR. FIELDS: You could say there would be less vehicles sold, but we're changing our business model to look at
this as vehicle miles traveled. And when you look at it that way, it changes your mind to think about what kind of
services can we offer via our products. I could argue that with autonomous vehicles, the actual mileage on those
vehicles will accumulate a lot more than a personally owned vehicle, plus the servicing. That could actually be a
bit of an offset.
MR. BAKER: Does Elon Musk keep you awake at night?
MR. FIELDS: They always ask me, "What keeps you up at night?" Nothing. I am dead tired by the time I get to
bed, because I love what I do. But clearly, we take our competitors very seriously. When you look at the level of
competition we have from traditional and nontraditional competitors, we're embracing that.
MR. BAKER: But he does seem to have something of a head start here.
MR. FIELDS: I would disagree. What he's done with Tesla has been amazing. The biggest benefit he's done is
raise the awareness of electrified vehicles. Now, his company has catered to a very affluent consumer. Our
approach [is that] we have one of the largest selections of electrified vehicles. We're the No. 2 seller in the U.S. in
electrified and No. 1 in plug-in hybrids. We're investing another $4.5 billion, so by the end of the decade, 40% of
our nameplates around the world will be electrified.
MR. BAKER: Some of your competitors, most notably GM, have made some pretty big, splashy investments
themselves. Billion dollars, I think, on cruise automation, half a billion dollars in Lyft, the ride-sharing company.
You haven't gone down the same route.
MR. FIELDS: We formed Ford Smart Mobility LLC a couple of weeks ago. Our business there is to design, build,
grow and invest in mobility solutions. On some things, we will do on our own, in others, we will partner with
others.
MR. BAKER: On autonomous driving, tell us more about what you've invested in, what you might be looking to
do.
MR. FIELDS: We've been working on autonomous vehicles for over 10 years. Our approach is twofold. One is to
be a leader in advanced driver assist and semiautonomous features, features that will keep you in your lane, that
will alert you about traffic, that will adapt your speed. We're one of the leaders in that space. That was what they
call level zero through three, where the driver has to be in control. Then there's level four, where the driver or
passenger does not need to be prepared to take control. That is what we're working on. We will have by some
time this year the largest autonomous-vehicle testing fleet.
MR. BAKER: How close are we to autonomous vehicles being available, driven on our roads, carrying our
children around?
MR. FIELDS: Level-four vehicles -- [which operate] in a defined area that's been 3-D mapped -- we think that
somebody in the industry will have by the end of the decade.
A level-five vehicle, which is, you go into your car, you hit a button, you go to sleep and you wake up at grandma's
house, that is a long way away -- 15, 20 years.
Document J000000020160413ec4d00002

Ford's Planned New Headquarters Borrow Some Silicon Valley Sheen

Ford's Planned New Headquarters Borrow Some Silicon Valley Sheen
By NEAL E. BOUDETTE
749 words
13 April 2016
The New York Times
NYTF
5
English
Over the past year, Ford Motor has raced to develop self-driving cars, put down roots in Silicon Valley and
backed ride-sharing start-ups -- all in an effort to be seen as not just a car manufacturer but a ''mobility company.''
Its goal is to emulate the likes of Google and Tesla Motors as it aims to shape the future of getting from place to
place.
On Tuesday, Ford outlined a plan to make its corporate headquarters a reflection of that vision.
The company, which is 112 years old, said it would begin transforming its headquarters and main development
center in Dearborn, just outside Detroit, into two sprawling, high-tech campuses of energy-efficient buildings.
There, it plans to showcase autonomous shuttles, electric bikes and other green modes of transportation.
The project will take 10 years to complete and consolidate some 30,000 employees now housed in 70 buildings,
the company said.
''This is more than an investment in new buildings,'' Mark Fields, Ford's chief executive, said in a webcast.
Donna Inch, who heads Ford's real estate arm, said the company hoped that the interconnected campuses and
new buildings with new open work spaces would spur innovation.
''The whole idea is to think differently,'' Ms. Inch said in an interview. Ford, she added, takes the view that
automakers must ''keep reinventing yourself if you're going to be relevant for the next 100 years.''
Ford did not indicate how much it would spend on the makeover, except to say it is included in planned capital
expenses. Ford has budgeted $7.7 billion for capital costs this year and is projecting to increase that to $9 billion
by around 2020, a spokesman said.
The headquarters plan reflects a broader struggle by automakers to shed their Rust Belt images and recast
themselves as nimble, high-growth companies, said Akshay Anand, an analyst at with the research firm Kelley
Blue Book.
It is a move that is aimed at investors and potential employees as much as consumers of the future, Mr. Anand
said. ''Ford is now saying, 'We want to be the place everybody is talking about when you're working in these
fields.'''
A year ago, when Ford opened a research center in Palo Alto, Calif., Mr. Fields readily acknowledged that the
company was trying to be seen as ''part of the ecosystem of Silicon Valley.''
Other automakers are moving in the same direction. General Motors recently invested $500 million in Lyft, the
ride-sharing service and main rival of Uber. G.M. also acquired Cruise Automation, a maker of sensors and other
gear that can enable conventional automobiles to drive themselves on highways. G.M. has a Silicon Valley
outpost of its own, too, and is spending $1 billion to renovate its big technology center in Warren, Mich.
Henry Ford founded his car company in Detroit, but in 1917 began building a factory in Dearborn, his hometown.
As more facilities were moved there, the city became synonymous with the company.

Ford's new headquarters is patterned after the campus settings that have become the hallmark of tech companies
like Apple, Google and Microsoft (though some have likened the designs for their new buildings to hippie
communes).
The first phase of Ford's project will begin this year and focus on the company's research and engineering
facilities, which date to 1953. They will be renovated and linked with new green spaces, covered walkways and
bike paths. The centerpiece will be a new design center. Work is supposed to be completed by 2023.
A renovation of its ''Glass House'' headquarters building, which opened in 1956, is scheduled to begin in 2021.
Over several more years, it will be connected to a series of new and existing buildings. They will be linked to
parking decks, soccer fields and a nearby arboretum.
Together, the two campuses will serve as a showcase for the future, with autonomous vehicles ferrying
executives around and other people riding electric bikes.
All of the buildings will be designed to minimize energy use. One of them will demonstrate sustainability by
generating more energy than it consumes. It will rely on solar power as well as geothermal power for heating and
cooling, Ford said.
An artist's rendering of Ford's planned energy-efficient campus in Dearborn, outside Detroit. Work is expected to
take a decade. (PHOTOGRAPH BY FORD)
Document NYTF000020160413ec4d00034

Fiat Chrysler Cuts Jobs, Pares U.S. Car Lineup
Fiat Chrysler Cuts Jobs, Pares U.S. Car Lineup

By Jeff Bennett
611 words
7 April 2016
J
B1
English
Fiat Chrysler Automobiles NV plans to cut 1,300 jobs this summer at the Michigan factory where it assembles a
small Chrysler sedan -- its first large-scale cutback since 2009 -- amid a sharp decline in U.S. demand for cars.
The affected workers will lose their jobs effective July 5. Wednesday's announcement involves 41% of the
factory's hourly workforce. About 120 other workers at a nearby factory that produces metal parts for the sedan
also will lose their jobs.
Such large-scale cuts, once a common practice among the Detroit Three, are now rare amid recent strong annual
industry sales gains and cleaner balance sheets at General Motors Co., Ford Motor Co. and Fiat Chrysler.
The move accelerates Chief Executive Sergio Marchionne's shift to an emphasis on trucks and sport-utility
vehicles away from small-car production in the U.S. He has earmarked $1 billion to adjust its U.S. manufacturing
to the changes. The Sterling Heights, Mich., plant that will lose the workers is expected to be revamped to build a
pickup truck or SUV. Details of the model weren't disclosed.
The news is a blow to Fiat Chrysler and the United Auto Workers union which have used the auto maker's
recovery since its 2009 bankruptcy to bolster its their images. The auto maker has said it has hired 11,000
Detroit-area workers since its bankruptcy and posted 72 consecutive months of year-over-year sales increases.
Norwood Jewell, a UAW official, said the move wasn't a surprise. "Fiat Chrysler is not the only company
experiencing a slow market for small cars," he said.
Ford is moving some of its small car production to Mexico. On Tuesday, it said it would spend $1.6 billion to
construct a new Mexican factory for small cars, opening space to build more trucks in the U.S.
Fiat Chrysler's Dodge Dart small car, which is built alongside Jeep SUVs in Illinois, also will be dropped from U.S.
production in the future in favor of a pickup truck or SUV. The 200 and the Dart at one time were lauded as
evidence the company could successfully make small cars in America.
Through March, 57% of vehicles purchased in the U.S. were classified as light trucks, a trend stoked by cheap
gasoline. Fiat Chrysler is on the cusp of passing Toyota Motor Corp. as the No. 3 seller in the U.S., a position it
hasn't held since 2006.
Fiat Chrysler's sales gains have been built on the strength of its Jeep SUV and Ram truck brands. Weakness in
small cars has been a setback for a company that had once pointed to the Fiat 500 compact vehicle as proof that
it could excel in that segment, and invested heavily to update the Dart and 200.
Mr. Marchionne in January had said the Dart and Chrysler 200 could be phased out if a production partner wasn't
found, a move that likely decreased consumer confidence in those nameplates. Last month, Mr. Marchionne also
told dealers the compact Fiat 500 lineup would be streamlined.
Sales of the 200 declined more than 60% this year through March compared with a year earlier, according to
Autodata Corp., while Dart sales slumped 30%. Fiat Chrysler is sitting on five months' worth of unsold Chrysler
200 cars and three months' worth of Darts.
The auto maker is now offering discounted financing on the Dart and 200 in lieu of the cash rebates that
previously had been offered.

Document J000000020160407ec470002w

Outcry over Ford's Mexico plan ; New factory will staff 2,800 by 2020; UAW calls it 'very troubling'
MONEY
Outcry over Ford's Mexico plan ; New factory will staff 2,800 by 2020; UAW calls it 'very troubling'
Brent Snavely
415 words
6 April 2016
USA Today
USAT
FINAL
B.1
English
Ford Motor said Tuesday it will invest $1.6 billion to build a new plant in Mexico to build small cars, sparking an
outcry from its union and GOP presidential front-runner Donald Trump.
Announcement of the new Mexican plant, to be staffed with 2,800 workers by 2020, marked another blow to the
United Auto Workers union, which pushed for higher wages in its contract talks with the automaker last year. The
announcement also comes amid a presidential election in which Trump has publicly pressured Ford to drop its
plans to expand in Mexico.
After Ford's announcement, Trump issued a statement calling it "an absolute disgrace" and vowing, "These
ridiculous, job-crushing transactions will not happen when I am president."
CEO Mark Fields has repeatedly said the automaker remains committed to investing in the U.S. but will not alter
its plans to expand in Mexico.
While it did not say what vehicles will be built in the new Mexican plant, Ford made it clear last summer that it
planned to move production of its Ford Focus and C-Max hybrids cars from a plant in Wayne, Mich., to another
country by 2018, the same year the new plant in San Luis Potosi, Mexico, is scheduled to open.
Ford has said it will keep the Wayne plant open by building other models there, possibly a midsize Ford Ranger
pickup and a new Ford Bronco SUV.
In the U.S., the UAW had pushed for higher wages in its contract talks with the automaker last year, and
Tuesday's announcement prompted a swift reaction.
"Today's announcement is a disappointment and very troubling," UAW President Dennis Williams said in a
statement. "For every investment in Mexico, it means jobs that could have and should have been available right
here in the USA."
Last month, Trump said he would stop Ford from building in Mexico if he is elected president. He said he would
threaten the company and any other automaker who does so with a 35% tariff on any products or parts imported
into the U.S.
But Ford says it remains committed to investing in the U.S. and adding jobs in America even as it expands its
presence in Mexico.
FOR FULL CONTENT OF GRAPHIC/MAP - PLEASE SEE PRINT OR ONLINE EDITIONS
graphic
Document USAT000020160406ec460000d

Ford Draws Fire From Trump Over Plan for Factory in Mexico to Build Small Cars

Ford Draws Fire From Trump Over Plan for Factory in Mexico to Build Small Cars
By BILL VLASIC
832 words
6 April 2016
The New York Times
NYTF
3
English
DETROIT -- Ford Motor said on Tuesday that it would build a new assembly plant for small cars in Mexico,
continuing a trend of automakers increasing production there because of lower wages and favorable trade laws.
Ford, the nation's second-largest auto manufacturer, said it would invest $1.6 billion to construct a plant that will
employ 2,800 workers and begin making vehicles by 2018.
Several auto companies are expanding operations in Mexico, which has become a major auto manufacturing
center. Last year Mexico produced 3.4 million vehicles, of which about 80 percent were exported to the United
States and elsewhere.
But Ford alone has been singled out for criticism by the Republican presidential candidate Donald J. Trump for its
aggressive expansion in Mexico, which also includes new investments in factories that make engines and
transmissions.
Mr. Trump was quick to comment on Tuesday, saying in a statement that Ford's plan to build a new factory was
''an absolute disgrace.''
While Mr. Trump has accused Ford of building up Mexican operations at the expense of American workers, the
company has vigorously defended its global manufacturing strategy.
Ford's chief executive, Mark Fields, said recently that the automaker had invested $10 billion and added 25,000
jobs in the United States since the last recession. But the company is also intent on growing in Mexico, China and
other countries.
''At the end of the day we are a multinational company, and we will do what's best for the business,'' Mr. Fields
said last month at the New York International Auto Show.
The move announced on Tuesday was not unexpected. Ford had said last year that it would discontinue
production in 2018 of its Focus compact car and C-Max hybrid at its assembly plant in Wayne, Mich.
The company has since said that it will assign replacement models to the Wayne plant, possibly pickup trucks or
sport utility vehicles.
Ford said it would increase the profitability of its small cars by moving production to Mexico, where wages are
less than half the top pay of $29 an hour earned by union workers in the United States.
The United Automobile Workers union did not contest Ford's Mexican plans during contract talks on a new labor
agreement last year.
Still, the union's president, Dennis Williams, on Tuesday called Ford's move troubling, and an example of how
automakers are unfairly exploiting the North American Free Trade Agreement among the United States, Canada
and Mexico.
''Companies continue to run to low-wage countries and import back into the United States,'' Mr. Williams said.
''This is a broken system that needs to be fixed.''

Ford is hardly alone in investing billions in Mexico, which has a number of free-trade agreements that make it an
ideal hub for exporting new vehicles.
Automakers like Toyota, Kia and the Audi luxury division of Volkswagen are also in the process of opening major
new factories in Mexico.
''All of the major automakers are flocking to Mexico because it has all these existing trade agreements with other
countries,'' said Bruce M. Belzowski, a managing director of the Transportation Research Institute at the
University of Michigan.
Mr. Trump had previously said he would try to stop American car companies from investing in Mexico by imposing
a tariff on vehicles built there and imported into the United States.
Mr. Fields, who has had one-on-one discussions with Mr. Trump on the issue, said it was unfair to suggest Ford
had neglected American plants and jobs in its global plans.
''We are very proud of what we do to contribute to economic development in the U.S.,'' he said. ''Eighty percent of
our capital expenditures have been in the United States.''
Automakers are grappling in general with where to build products that can earn the best return on their
investments.
The domestic automakers in particular -- General Motors, Ford and Fiat Chrysler -- are stepping up production of
high-profit trucks and sport utility vehicles in the United States, partly to offset higher union wages.
Fiat Chrysler, for example, recently idled one Michigan plant that builds its slow-selling Chrysler 200 sedan. The
company is expected to convert the plant to truck or S.U.V. production to maximize its sales and profitability.
''The United States is the best market for the high-profit models, so it makes sense to increase production here,''
Mr. Belzowski said.
At the same time, the production of small cars, which generally sell at lower prices than S.U.V.s or trucks, is
gravitating to Mexico and other lower-wage nations.
''This is the way the business is going,'' he said.
Mark Fields, Ford's chief, at the New York auto show. He defended the company's plans to build a factory in
Mexico. (PHOTOGRAPH BY JUSTIN LANE/EUROPEAN PRESS AGENCY)
Document NYTF000020160406ec4600053

Business News: Ford Plans New Factory In Mexico for Small Cars
Business News: Ford Plans New Factory In Mexico for Small Cars
By Christina Rogers and In-Soo Nam
532 words
6 April 2016
J
B2
English
Ford Motor Co. plans to spend $1.6 billion on a new car factory in Mexico, the latest in a series of auto industry
investments flowing south of the border, and an investment that would help the Dearborn, Mich., company double
its Mexican production starting in 2018.
It is the second big expansion announcement for Ford in Mexico in a year. The No. 2 U.S. auto maker last April
outlined $2.5 billion in factory investments in Mexico, part of a wider plan to add 6,600 jobs in the country over the
next few years. The new plant, in the central Mexican state of San Luis Potosi, would build small cars the
company is struggling to sell at a profit.
Fiat Chrysler Automobiles NV also is moving a significant slice of its passenger car output out of the U.S. over the
next 15 months, and devoting more U.S. capacity to trucks and sport-utility vehicles.
General Motors Co., while also emphasizing truck production, is continuing to build small cars in the U.S. On
Tuesday, GM said it would scrap a plan to move some full-size car production to South Korea.
Ford's Mexico plans have been criticized by Republican presidential front-runner Donald Trump, who accuses the
auto maker of shifting American jobs to Mexico. Mr. Trump has threatened to slap a 35% tax on cars, trucks and
auto parts exported to the U.S. from Mexico as a deterrent.
The United Auto Workers union also knocked the move.
Last year, it signed four-year labor contracts with the Detroit Three that analysts said will drive up their U.S. labor
costs. UAW President Dennis Williams on Tuesday called Ford's decision to expand in Mexico "a disappointment
and very troubling."
Ford's plan to shift production of its Focus and similar vehicles to Mexico unwinds an experiment begun by former
Chief Executive Alan Mulally aimed at building small cars profitably at union plants in the U.S. Demand for smaller
cars has sagged amid low fuel prices, leaving compact-car assembly lines in the U.S. operating well below
capacity.
Ford received a $5.9 billion U.S. loan commitment in 2009 to retool 11 factories in five states to deliver
fuel-efficient technologies. The loan was credited with creating or saving 33,000 jobs and including hundreds of
millions of dollars' worth of work to convert a Wayne, Mich., plant to make small cars, electric vehicles and
hybrids, which would now be shifted to Mexico. Labor rates in Mexico for auto factory workers are about one-fifth
of those paid to union workers in the U.S.
A Ford spokeswoman said the company won't cut U.S. jobs as a result of the new plant near Mexico City.
GM, meanwhile, on Tuesday quit plans to expand production of the Chevrolet Impala to South Korea due to high
costs and market shifts, dealing a blow to workers there. It will continue exporting the Impala to Asia from Detroit.
Document J000000020160406ec4600014

Soaring Profits Produce Parade of New Cars

Soaring Profits Produce Parade of New Cars
By BILL VLASIC
1,026 words
24 March 2016
The New York Times
NYTF
1
English
Vehicle sales in the United States are running at a record pace, prompting automakers to consider ways to
capitalize on the boom times.
One of their strategies is becoming increasingly clear. Automakers are quickly expanding their product lineups,
introducing a blitz of new models in virtually every market segment -- from giant sport utility vehicles to compact
electric cars.
Many of the latest offerings were on display on Wednesday at the media previews for the New York International
Auto Show. Both Nissan and Volkswagen's Audi luxury brand unveiled high-horsepower sports cars, and Ford's
Lincoln division showed a new version of its full-size Navigator S.U.V. At the other end of the spectrum, Hyundai
introduced a new sedan devoted to hybrid and electric power.
The parade of new models provide another reminder of the striking turnaround in the auto industry. Just a few
years ago, after a deep recession, automakers faced major restructuring, including the government-backed
bankruptcies of General Motors and Chrysler.
Back then, the goal was to pare back brands and models to save money. But now, with most companies posting
big profits, they are splurging on new investments and technology.
And with the industry coming off record sales of 17.5 million vehicles last year in the United States, no automaker
wants to be underrepresented in hot segments like small S.U.V.s, or even niche products, such as sports cars.
''The industry as a whole has never been as healthy as it is now,'' said Carlos Ghosn, chief executive of Nissan
and Renault. ''It's a very favorable environment.''
Nissan, which has enjoyed strong sales of its mainstream cars and S.U.V.s, is adding to its lineup with new
versions of its GT-R sports car and Titan pickup truck. The goal, Mr. Ghosn said, is to increase market share in
the robust American market.
''Market share is a result of the investment that you do,'' said Mr. Ghosn. ''We're doing all this investment to get a
good return by having a bigger piece of the pie.''
Industry sales so far this year are running ahead of the pace set in 2015. But there are concerns among Wall
Street analysts that automakers may fall back into bad habits such as overproduction or subsidizing sales with
heavy incentives.
Some analysts have cautioned that the sales cycle may be peaking and maybe even headed for an inevitable
downturn.
''The sales results in the U.S. so far this year have been positive, but there remains a question of when will the
next shoe drop,'' said Jack R. Nerad, an analyst with the auto research firm Kelley Blue Book.
Analysts point out troubling signs that the industry is trying to prop up sales. Some carmakers, for example, are
pushing slower-selling models with more discounts and cheap leases, and are making mostly cosmetic changes
to older vehicles to freshen their appeal.

Industry executives say that the competitive environment is driving them to add more models in segments that are
growing, such as S.U.V.s.
''Competition is always good for us and the consumer,'' Mark Fields, chief executive of Ford Motor, said. ''We're
not going to spend money for the sake of it, but we want to meet the demands of the market.''
In Ford's case, the company needed to invest in a new Navigator to take advantage of the renewed popularity of
big S.U.V.s with three rows of seating.
Company executives admitted that the vehicle had grown old in comparison with the Cadillac Escalade produced
by General Motors.
It also is a linchpin in Ford's long-term strategy to build Lincoln into a stronger competitor in the high-profit luxury
segment. ''We plan to get an even bigger share of the full-size luxury S.U.V.s,'' said Mr. Fields.
The German luxury brands are also aggressively adding new products. Audi, for example, introduced a
convertible version of its R8 sports car powered by a huge V10 engine.
Audi executives say companies need to stretch their product portfolios to appeal to the specific tastes of various
consumers.
''We are seeing more fragmented market segments, so we have to come up with new concepts,'' said Dietmar
Voggenreiter, a member of Audi's board of management.
Other companies are simply eager to enter segments that are dominated by competitors.
The Korean carmaker Hyundai competes head-on with Toyota in many passenger car and S.U.V. categories. But
the company did not have a product to rival Toyota's top-selling line of Prius hybrids, powered by a combination of
gasoline engines and batteries.
On Wednesday, Hyundai introduced its new Ioniq sedan that will be available in hybrid, plug-in hybrid and pure
electric versions. The automaker is also ramping up its luxury Genesis brand to broaden its clientele of wealthier
consumers.
Yet even as Hyundai and others step up their offerings of hybrids and electric vehicles, leaders in various
segments continue to broaden their own lineups to stay ahead.
Toyota has dominated hybrid sales for years with the Prius, but the company recently introduced a new
generation of the basic model and, on Wednesday, introduced a new variation called Prius Prime.
Among other things, Prius Prime lets drivers operate the vehicle solely on battery power, in addition to its
traditional hybrid mode. The car is also packed with autonomous features like parking assistance and cameras
that monitor blind spots in the driver's field of vision.
Toyota calls the vehicle the most technologically advanced hybrid on the market -- serving notice that it will keep
investing to stay ahead of the competition.
Riding in a Jeep during a preview of the New York International Auto Show. Robust auto sales have spurred car
companies to spend more on new models. (B1); A Mercedes-Benz display, above, at the Javits Center, where the
latest vehicle offerings were unveiled. Left, cleaning a Toyota Prius in preparation for the auto show.
(PHOTOGRAPHS BY SAM HODGSON FOR THE NEW YORK TIMES) (B2)
Document NYTF000020160324ec3o00041

Can carmakers redefine mobility again?
Editorial-Opinion
Can carmakers redefine mobility again?
George F. Will
796 words
24 March 2016
The Washington Post
WP
FINAL
A19
English
DEARBORN, Mich.
If Mark Fields's theory is correct, his industry faces novel challenges. His theory about the changing role of driving
in Americans' lives is one reason Ford Motor Co. now describes itself as an "automotive and mobility company."
Fields, Ford's chief executive, remembers a time when, on the day a teenager became old enough for a driver's
license, he or she made an early morning beeline to get it. Many still do, but increasing numbers are less ardent
about the machine that made modern America. In 2014, only 76.7 percent of people 20 to 24 years old had
driver's licenses, down from 91.8 percent in 1983.
Until recently, Fields says, driving meant the freedom to go out and connect with friends. Now, texting teens
squinting at their devices' screens "don't have to move to stay connected." And given car-use entities like Zipcar
and ride-sharing services like Uber, young people don't have to buy a car in order to move.
American automakers sold a record 17.5 million vehicles last year, assisted by low gas prices, low interest rates
(the average new-car loan is for more than 65 months and the average amount financed is almost $28,000), and
a record-high average age (11.4 years) of the cars and light trucks on America's roads. But although interest rates
will not forever be so low, and although the Federal Reserve Bank of New York estimates that any one
percentage point increase in interest rates could decrease vehicle sales 12 percent, Fields sees a $3.1 trillion
opportunity.
The world's core vehicle business (cars, trucks, financing, parts and service) is a $2.3 trillion industry, of which
Ford's share is 6 percent. But there is a $5.4 trillion sector of emerging opportunities
for automakers to meld their businesses with other businesses. Automakers can, he thinks, prosper, perhaps
even selling fewer cars, while providing what Fields describes as "mobility beyond our traditional definition." Such
mobility can involve the mundane, such as electric bicycles. Or the exotic, such as self- driving cars that go far
beyond automatic parallel parking to driverless delivery of children to soccer practices or seniors to medical
appointments, using sophisticated algorithms and urban mapping.
Car ownership among young adults is declining and vehicle miles driven per American in 2012 were 6.4 percent
lower than in 2004, and no higher than in 1997. Time was, children raced on their balloon-tire bikes to car
dealerships to experience the excitement of new models. It may someday be that way in emerging markets such
as India, where Ford has 2.6 percent of the automobile market - still an infant market - in a country of 1.3 billion
people. Ford's latest entry in the luxury field, the redesigned Lincoln Continental, was built with an eye to China,
where Beijing now has more billionaires than does New York City.
Fields - whose company's best-selling product is the F-Series pickup truck, many of whose purchasers have an
almost erotic relationship with it - believes that an automobile is "still an emotional purchase." But purchasers who
once cared about chrome are now more emotional about technology add-ons that maintain drivers' connectivity
with their homes, offices and friends.
So far, even the market for electrified vehicles is sluggish. In 2008, the 12 such vehicles had a 2.3 percent market
share. In 2015, the 60 different hybrids, plug-in hybrids and fully electric vehicles had a market share of 2.7
percent. History, however, teaches that automobiles can suddenly floor history's accelerator.
In the lobby of the headquarters of Fields's "automotive and mobility" company sits one of Henry Ford's Model Ts,
arguably history's most transformative machine. Manufactured from 1908 to 1927, during which span its inflation-
adjusted price fell about 80 percent, it launched the automobile age. Hitherto, people had moved only as far and
fast as hooves, sails and then rails could move them. In a historical blink, the automobile emancipated humanity
from what has been called "the tyranny of distance." And from the loneliness of rural life, and the health hazards
posed by the mountains of manure and rivers of urine from urban horses. American households with automobiles
went from essentially zero in 1900 to 93 percent in 1929.
Automakers' coming technological wizardry will not have such sweeping effects on how life is lived. But like the
smartphone in your pocket or purse, which you lived without until about a decade ago and now cannot imagine
living without, future automotive and other mobility innovations will, in the modern manner, quickly change from
unanticipated to indispensable.
WP20160324op-will0324
Document WP00000020160324ec3o0000b

OFF DUTY --- Gear & Gadgets -- Rumble Seat: Ford Puts a Lot of Focus on Performance
OFF DUTY --- Gear & Gadgets -- Rumble Seat: Ford Puts a Lot of Focus on Performance
By Dan Neil
1,382 words
19 March 2016
J
D12
English
They live among you. They seem normal, at first. Then they start talking about cars and then -- oh no! -- you
realize you've been captured by a sport-compact fan. And all he wants to talk about is the 2016 Ford Focus RS
($41,550 as tested), out of the box with 350 hp, 350 pound-feet of torque and an all-wheel-drive system with
automatic "Drift" function. And he has one of those earrings that make a big hole in the earlobe you can see
through. It's sort of distracting.
As a matter of fact, I have driven the new Focus. I found my test specimen waiting for me in Salzburg, Austria, the
four-door hatch painted a blue so vibrant it shook the very columns of the parking structure. French racing blue?
Bugatti blue? Sacre bleu?
My 700-kilometer route would take me from Salzburg to Stuttgart, by way of Berchtesgaden, where
German-language guidebooks note the food and skiing are very good. The skies over the mountains were leaden
with snow. I got down on one knee and prayed to the specially compounded Michelins (235/35YR19s) that would
have been ideal for Monza in mid-June. Let's not have any unplanned drifting action, boys.
From Ford's sin factory in Saarlouis, Germany, the Focus RS sold in the U.S. is nearly the same car, with the
same tires and calibrations, as the ones sold in Europe. Parity has been a sore point between Ford Performance
and its American fans, who loathed the way Ford dumbed down, dialed back or delayed U.S.-spec cars.
As performance cars go, the Focus RS has narrow generational appeal -- you could hardly call it an immortal
beauty -- but for Gen Y, this is what fast looks like: Squat, more hunchback than hatchback, draped on four big
wheels brazen with Brembos, blacked-out glass, a face full of intercooler, with mad wing and splitter.
The RS's interior is awesomely turned out, too, with Recaro sport bucket front seats -- way better than those
ottoman couches in the Focus ST -- and sport steering wheel, all with contrasting blue stitching. As for telematics,
all Focuses for the U.S. will feature an upgraded Sync system, which is good. I hate the original Sync with the fire
of a thousand suns.
Hissing under the hood is a lustily turbocharged, direct-injection 2.3-liter four cylinder, producing nothing but
torque from 2,000-4,500 rpm. This is the heat pump from the Mustang 2.3L EcoBoost, turned up another notch.
Mechanics should use fireplace tongs.
The Focus RS is relatively short-geared so that the 0-60 mph time of 4.7 seconds includes two upshifts with a
manual transmission.
The flywheel is buttoned to a six-speed manual transmission and, aft of that, the RS's elaborate AWD hardware
imbued with what Ford calls Dynamic Torque Vectoring. By way of two fast-acting, fully articulating clutches on
either side of the rear differential, the Focus RS vectors 70-100% of engine torque to the rear axle and even
100% to a single rear wheel.
Now, why would it want to do that? To drift, of course.
The Focus RS is the first car to offer a "Drift" algorithm in its suite of dynamic modes, which also include Sport
and Track. With the Drift switch thrown, the car's AWD system helps the driver maintain control in a nicely
composed, wheel-spinning drift by pitching torque to the outside rear wheel and swiftly modulating distribution at
all four corners. It's the Drift-o-matic 3000.

On my trip, I was rather more interested in directional stability than instability. I did not want to be just another
tourist in Austria, eaten by bears.
What's the Focus RS like from behind the wheel? First, the structure feels stout, rock solid. Against that,
everything else is surprisingly limber, even springy. The clutch pedal travel is long and the takeup is high. The
throttle pedal is likewise way long, but the brakes are tight and short; the combination makes heel-and-toe
footwork difficult.
The suspension spring rates are what I would consider soft for a performance car and suspension travel too. But
the RS also has tremendous stick (lateral acceleration in excess of 1 g), thanks to the miracle Michelins. And in
Sport or Track mode, the two-stage dampers stiffen up significantly.
These factors combine to make a car that dances around a lot in corners but ultimately goes where you point it,
really fast.
So point it at someplace fun.
---
2016 FORD FOCUS RS
Price, as tested: $41,550
Powertrain: Turbocharged and intercooled, direct-injection 2.3-liter inline-4/variable valve timing; 6-speed manual;
full-time all-wheel drive with rear torque vectoring.
Horsepower/torque: 350 hp at 6,000 rpm/350 pound-feet at 2,000-4,500 rpm
Length/weight: 172.8 inches/ 3,500 pounds (est)
0-60 mph: 4.7 seconds
Wheelbase: 104.3 inches
EPA fuel economy: 19/25/22 mpg, city/highway/combined
Cargo capacity: 23.8 cubic feet
---
SOUND CHECK // THE WONDERFUL RUMBLINGS OF THE FORD SHELBY GT350
The Ford Shelby GT350 Mustang ($57,970, as tested) is a delivery system for a sound. Yes, the two-door,
four-seat coupe is an extremely quick (0-60 mph in about 4.1 seconds) and a fantastically wield-able street
machine. It being the baddest original-equipment Mustang anyone has e'er laid eyes on, it makes an impression
wherever it goes, a portable sociocultural lovefest, a tumult of admiration.
But decades hence, collectors will cherish this model due mostly to the operatic properties of its unusual engine:
a naturally aspirated 5.2-liter, 90-degree V-8 with a flat-plane crankshaft.
What witchcraft is this? With a flat-plane crankshaft the connecting rods are attached to the crankshaft at
180-degree intervals, which in a V-8 means the cylinder firing order alternates between cylinder heads. In a
conventional cross-plane V-8, pulses of fresh and spent gas overlap somewhat, constricting engine breathing;
whereas a flat-plane V-8 can rev higher and produce more power. It's like a nasal strip.
So why aren't all V-8s flat cranks? They run rougher than a regular V-8 -- think of the bark and shake of a Nascar
V-8 -- and they are expensive to build, which is why they are almost exclusively in European exotics such as
Ferrari.
The mill is a hand-built 5.2-liter dual-overhead cam V-8, with variable valve timing; all-aluminum block, heads, and
pistons (94.0 x 93.0 bore and stroke); attached to forged con rods and crank.
It is naturally aspirated, which means there is no turbocharger obstructing the acoustic glories of the tube-steel
exhaust manifold and the damn-near straight-pipe exhaust. This engine has 12.0:1 compression ratio, low internal

inertia and a 8,250-rpm redline. Put those things together -- say, on the road back from Palomar Observatory,
Calif. -- and the note of joyous virility would make Pavarotti put his head in a bag.
Oh, the polyphony! At the highest registers the plashing of microfine parts and ultra-slippery cylinder bores, like
the bright tinkling of shell casings falling at your feet.
Hold your foot down in second gear and an astonishing vocalization swells in the cabin, part high-tech and part
something else, something organic -- a whacking wooden snare drum, or the stropping of leather, or cricket bats
splitting ripe melons. Nicely loud, too.
Six-speed manual; limited-slip rear differential; stupendous brakes; 11-inch wide tires, and the animating force
within: 526 hp at a soaring 7,500 rpm and 429 pound-feet at 4,750 rpm. Dude. Wind it all the way out in third gear
and you're quite extralegal on the street. Lift and the back-pressure rattles like cursed dice.
If future generations wonder why it was hard to let go of the gas-powered automobile, they can give this a listen.
Document J000000020160319ec3j0000g

Business News: Holiday Clips Chinese Car Sales --- Lunar New Year cuts demand with GM and Ford hit by 9% year- over-year sales declines
Business News: Holiday Clips Chinese Car Sales --- Lunar New Year cuts demand with GM and Ford hit
by 9% year- over-year sales declines
By Christina Rogers
654 words
8 March 2016
J
B6
English
Corrections & Amplifications
Passenger car sales in China, including sedans, sport-utility vehicles and minivans, totaled 21.1 million vehicles in
2015. A Business News article Tuesday about that nation's auto market said Chinese car sales totaled 24.6
million without making clear that the figure included commercial vehicles.
(WSJ Mar. 10, 2016)
(END)
General Motors Co. and Ford Motor Co. both posted steep sales declines in China last month on a year-over-year
basis, part of a wider slowdown attributed in part to a drop-off around the Lunar New Year holiday.
Sales for both U.S. car makers fell 9% in February, the companies said, following a string of monthly gains driven
by new government subsidies introduced late last year to stimulate demand for fuel-efficient cars.
China's auto market has bounced back from a slump in the summer of 2015 due to the incentives, which can be
applied to 70% of cars sold in the country. But the recent sales declines raise a potential red flag, signaling the
world's largest new-car market could be permanently cooling amid the country's slowing economic growth.
Through the first two months of 2016, GM and Ford sales rose 11% and 18%, respectively, the companies said.
Analysts typically look at January and February sales together to account for the disruption caused by the New
Year holiday. The China Association of Automobile Manufacturers will report official February new-vehicle sales
in Chinafor all car makers later this month.
Other major auto makers also posted declines in February, including Hyundai Motor Co. and Mazda Motor Corp.
Sales for SAIC Corp., China's largest domestic auto maker, dropped 7%, dented by declines reported by
joint-venture partners GM and Volkswagen AG, both market leaders in the country.
China car-sales reached a new high in 2015, rising 7.3% from a year earlier to 24.6 million vehicles. But the
growth rate was slower than the double-digit gains recorded in 2013 and 2014.
The China auto makers' association projects passenger-car sales in 2016 will expand 7.8% to 22.76 million. Car
makers have rushed tobuild factories and boost production in China, hoping to tap surging demand for new cars
created by a rising middle class and rapid urbanization in what is considered one of the industry's most profitable
markets outside the U.S.
January was a particularly strong month for auto makers in China, with sales up 9.3% from a year earlier, as
buyers snapped up new-cars before the holiday. Travel tends to be heavy around the holiday, contributing to a
decline in showroom traffic last month.
"It's like a vacuum effect in February," said Nigel Griffiths, chief automotive economist for researcher IHS
Automotive. March results will be the real test to see whether demand created by the government stimulus is
starting to fizzle, Mr. Nigel said.

IHS Automotive has issued a cautious forecast for new-car sales in China this year, with growth likely to benefit
only certain auto makers. Demand is also starting to shift to local brands with a number of global auto makers
posting weaker sales of late.
Ford has 4% of the market in China and recently completed a $5 billion effort to build new factories and add
models. The Dearborn, Mich., auto maker plans to spend another $1.8 billion on research and development there.
GM also is trying to gain market share with new models and an expanded lineup of Cadillac luxury vehicles.
"It is a very densely crowded market," particularly on factory capacity, that can dent sales and profits across auto
makers, said Bill Russo, a managing partner with consultants Gao Feng Advisory.
Document J000000020160308ec380000q

GM comes up short in February as Ford, Fiat Chrysler sales soar
MONEY
GM comes up short in February as Ford, Fiat Chrysler sales soar
Nathan Bomey; Chris Woodyard
Nathan Bomey, and Chris Woodyard, USA TODAY
293 words
2 March 2016
USA Today
USAT
FIRST
B.1
English
The auto industry shivered its way to mixed results in February, although some automakers, such as Ford Motor
and Fiat Chrysler, posted solid gains.
General Motors' U.S. sales fell 1.5% in February, but Ford was up 20.4% and Fiat Chrysler saw a 12% increase.
Japan's big three -- Toyota, Honda and Nissan -- were up as well.
Volkswagen reported a 13.2% drop in sales as it continues to deal with fallout from admission about rigging diesel
cars to beat emissions tests. At present, it is not selling any one of its diesel models.
The month started slow on the sales front but picked up as it went on, says Judy Wheeler, sales vice president for
Nissan in the U.S.
Some potential buyers apparently dallied in their car-buying decisions as they weighed a slew of economic and
political news but "now they are re-engaged in making decisions," she says.
General Motors says while its overall sales were down slightly, it saw a healthy 7% gain in sales to individual
customers, the one- at-a-time sales that are the most profitable.
Ford not only posted a big sales overall gain, but some of its biggest increases were in one of the most profitable
categories -- crossover SUVs, which surged 29.2%.
"We saw a solid industry last month and a strong month for Ford as customer demand for our newest vehicles --
including new high- end series on Explorer and Edge -- helped Ford increase its average transaction prices at
almost double the industry average," said Mark LaNeve, Ford vice president for U.S. marketing.
photo Ford
Document USAT000020160302ec320000e

Discounts Help Car Sales Roar
Discounts Help Car Sales Roar

By Christina Rogers and John D. Stoll
841 words
2 March 2016
J
B1
English
Auto sales bounced back in February after a lackluster start to the year amid favorable economic conditions,
deeper discounts and pent-up demand among shoppers who put off buying a car in January because of a
late-month blizzard on the East Coast.
Most major auto makers reported light-vehicle sales increased during the month, with Ford Motor Co. and Fiat
Chrysler Automobiles NV delivering double-digit percentage gains. General Motors Co., the No. 1 seller in the
U.S., continued to lose market share due to lower sales of its biggest and most profitable Chevrolet trucks and
SUVs, a significant pullback in sales to fleet customers, and struggles selling as many luxury cars and GMCs as it
did a year ago.
February's selling pace, estimated to have hit a seasonally adjusted annual rate of more than 17.5 million
vehicles, marked a 16-year high for the month, but failed to live up to the 18-million-plus rate of demand that was
hit three months in a row late last year. Researcher IHS Automotive said low interest rates, employment gains
and inexpensive gasoline likely would lead U.S. sales this year to 17.8 million, higher than last year's 17.5 million.
Some analysts pointed to deepening manufacturers' discounts and heavy use of subsidized leases as reason to
believe demand -- while strong -- has reached a plateau.
"Incentives are still fairly elevated and remain a concern" RBC Capital Markets auto analyst Joseph Spak said in
a research note. The sales pace is healthy, he said, but "it seems somewhat incentive driven."
Citing TrueCar Inc. research, the analyst notes average transaction pricing for the industry crept up 1.9%, while
incentives climbed 11%. While attractive offers help keep cars and trucks more affordable, they erode profit
margins and auto makers easily become dependent on them as a way to sell vehicles even when underlying
demand cools.
Such behavior is "what you see at the peak of the market," said Mark Wakefield, a partner with consultants
AlixPartners LLP.
Industry executives say Americans are still in the mood to buy, even if car companies must reach deeper into
their pockets to close deals. "The energy in showrooms was just starting to build in the last week of February,"
Nissan Motor Co.'s U.S. sales chief, Judy Wheeler, said.
"February was just an incredible month," said Beau Boeckmann, president of Galpin Motors Inc. which operates
dealerships in California. "We just don't see any signs of it slowing down. In fact, we see it picking up speed."
Despite widespread optimism among industry players, concerns about a sales plateau have dampened investor
sentiment, with shares of GM and Ford down 5.6% and 10.3%, respectively, since the beginning of the year. Ford
shares closed up 4.6% on Tuesday at $13.09 apiece, while GM registered a 1.9% gain to $30.01.
A total of 1.34 million light vehicles were sold in February, according to data provider Autodata Corp.,
representing an increase of 6.9% over the same period a year ago. There were an equal amount of selling days
last month compared with a year ago. With gasoline falling below $2 per gallon in many parts of the country,
sport-utility vehicles, crossover wagons and pickups continued to dominate sales. Autodata reports 57.4% of
February sales were light trucks.

Ford's F-series pickup, Explorer SUV and Edge crossover all posted hefty gains. Fiat's Chrysler banked its 71st
consecutive monthly sales increase on continued gains from its Jeep SUV division, which increased 23% to
further cement itself as the fastest-growing mainstream brand in the car industry.
Ford sold 216,045 vehicles in February, a 20% increase compared with the same period in 2015. Fiat Chrysler's
182,879 deliveries represented a 12% increase, nearly equal to the 12.8% increase notched by Honda Motor Co.,
which sold 118,985 new cars and light trucks.
Fiat Chrysler's tally fell just short of Toyota Motor Corp. The Japanese auto giant sold 187,954 vehicles last
month, up 4.1% from the prior year.
GM, meanwhile, hit a pothole with a 1.5% decline to 227,825 vehicles sold. The company said it sold 39% fewer
vehicles to rental firms, but sales of Chevy's Silverado, Tahoe and Suburban -- three of the company's most
profitable vehicles -- slumped. Several of the brand's less-lucrative passenger cars, including the plug-in hybrid
Volt, the Malibu and the compact Sonic, gained considerable ground.
Volkswagen AG continues to suffer in the U.S. in the wake of an emissions-testing scandal that led to the halting
of diesel car sales and damaged its reputation.
The German auto maker's namesake brand reported a 13% decline in sales during the month even as its Audi
luxury brand and Porsche sports car brand posted gains.
---
Anne Steele contributed to this article.

Document J000000020160302ec3200022

Auto Sales Up, Helped by Cheap Gas and Easy Credit

Auto Sales Up, Helped by Cheap Gas and Easy Credit
By BILL VLASIC
530 words
2 March 2016
The New York Times
NYTF
3
English
Several automakers on Tuesday reported substantial increases in sales in the United States in February, as
consumers continued to take advantage of cheap gas and easy credit to buy new vehicles.
Over all, industry sales were expected to rise as much as 8 percent compared with the month a year ago, when
there was one fewer selling day on the calendar.
Analysts estimated the closely watched seasonally adjusted annual sales rate in February at more than 17.7
million vehicles, in part because of consistent demand for new models to replace older vehicles.
''February had an extra day this year, but that alone can't account for the massive new vehicle sales reported last
month,'' said Karl Brauer, an analyst with the auto research firm Kelley Blue Book.
Low fuel prices were a factor in lifting demand for pickups and sport utility vehicles, particularly for two of the
major American automakers, Ford Motor and Fiat Chrysler.
But the third domestic automaker, General Motors, reported a slight decline in sales, as it sought to reduce sales
to rental car fleets that generate lower profits than sales to retail customers.
G.M., the nation's biggest auto manufacturer, said it sold 227,000 new vehicles during the month, which
represented a decline of 1.5 percent from a year earlier.
The company said it reduced its deliveries to rental fleets significantly during the month and also trimmed
inventories to better match its production capacity.
''Our strategy is simple: grow profitable retail share while maintaining discipline with inventory levels and incentive
spending,'' said Kurt McNeil, G.M.'s vice president for United States sales.
While G.M.'s sales declined, Ford Motor said it had its best February performance in 11 years.
Ford said sales increased 20.4 percent to 217,000 vehicles during the month because of strong demand across
its product lineup. The company reported nearly a 10 percent gain in sales of its F-Series pickup truck and a 29
percent improvement in S.U.V.s.
Analysts said some of Ford's improvement could be traced to deliveries to rental fleets, but mostly attributed the
overall increase to consumer demand for virtually all of the company's models.
''Ford's growth in almost every category confirms its success in meeting demand throughout the new-vehicle
market,'' Mr. Brauer said.
Fiat Chrysler, the smallest of the three domestic automakers, said it sold 182,000 vehicles in February, up 11.8
percent from last year.
While sales of its passenger cars declined by 27 percent, the company said that sales of its Jeep S.U.V.s and
Ram pickups both rose by 23 percent during the month.

Foreign automakers also enjoyed good months, with Honda reporting an increase in sales of 12.8 percent and
Nissan reporting a 10.5-percent improvement.
A Ford F-150 at the Detroit auto show in January. Low fuel prices are lifting demand for pickups. (PHOTOGRAPH
BY MARK BLINCH/REUTERS) CHARTS: How the Industry Fared; Most Popular Cars and Trucks; How the
Automakers Fared (Source: MotorIntelligence.com)
Document NYTF000020160302ec320003d

Ford CEO leans toward privacy in dispute between Apple, FBI ; 'We want to be trusting stewards' for customers' data, says Mark Fields
MONEY
Ford CEO leans toward privacy in dispute between Apple, FBI ; 'We want to be trusting stewards' for
customers' data, says Mark Fields
Edward C Baig
Edward C. Baig, @edbaig, USA TODAY
705 words
24 February 2016
USA Today
USAT
FIRST
B.5
English
Ford Motor's CEO stressed privacy and security when asked to weigh in on whether Apple should hack into a
killer's iPhone, aligning with concerns big tech companies have raised on the issue.
CEO Mark Fields' stance is fitting since one of the key issues driving his appearance at Mobile World Congress
this week is Ford's continuing goal of being viewed as both automotive company and a tech-driven mobility
company.
"We're watching the (Apple) situation closely," Fields said during an interview with USA TODAY. "Our view as a
company is we take the security and privacy of our customer data when they share it with us very carefully.
Customers own their data. We want to be trusting stewards for that data, and we're committed to protecting it."
Field's comments somewhat echo those of Facebook CEO Mark Zuckerberg, who also weighed in on the Apple
debate at the MWC confab by expressing sympathy for Apple, though Fields stopped short of declaring support
for one side over the other. Ford spokeswoman Christin Baker said after Fields' comments were published: "We
don't have enough facts to have a position."
Tech companies, particularly Apple, have stressed responsibility to their customers in keeping their data safe.
Google CEO Sundar Pichai, in tweeting support for Apple last week, said, "We build secure products to keep your
information safe."
Apple CEO Tim Cook, in a letter to customers posted to its website, noted, "Customers expect Apple and other
technology companies to do everything in our power to protect their personal information, and at Apple we are
deeply committed to safeguarding their data."
In attending MWC, Fields is mindful that people keep talking about how the auto industry is at risk of being
disrupted by tech companies. His answer: "At Ford, we've decided to disrupt ourselves by expanding our
business model."
Ford announced that it was tripling its engineering investments over five years in semi-autonomous technologies
and driver-assist features. The technologies aim to help drivers parallel park or steer into perpendicular spots. Or
alert drivers who may drift outside their lanes.
At MWC, Fields talked up the latest initiatives, including GoPark, a pilot program designed to direct drivers to a
place where they're most likely to find an available parking spot. And GoPark is open to everyone, not just Ford
owners, Fields says.
Ford continues to press on testing fully-autonomous vehicles; at the CES conference in January, the company
announced that it was tripling its test fleet for such vehicles.
Still, Fields says not everyone will gravitate toward self- driving cars, which he previously said would arrive around
2020.
"I think during our lifetimes and probably our kids' lifetimes there will still be a majority of people that like to drive,"
he says.
Fields' visibility at a European mobility conference reflects the importance of the market to Ford. The company
announced that it was bringing its Sync 3 connected infotainment technology to Europe, which launched in North
America last summer on the Ford Escape and Fiesta.
"We turned the corner with Ford Europe last year vs. the last number of years. We returned to profitability," Fields
said.
Fields also has his eye on global trends to examine the impact on Ford's business.
Urban congestion is one concern. In London, motorists are charged a fee for driving in certain congested areas.
"(And) you have places like Oslo that have outlawed the use of private vehicles in the downtown area by 2019.
We're looking at that and (asking), 'How do we we respond to that?'"
Back in the U.S., Ford recently announced that it was teaming up with Amazon to bring its cloud-based Alexa
voice, the same vocal digital assistant inside the Amazon Echo wireless speaker for the home, into the car. The
vision is you might ask Alexa what the weather is like or to have her turn on the lights or open the garage door as
you near home.
photo Francisco Seco, AP

Document USAT000020160225ec2o00025

C-Suite Strategies (A Special Report) --- The Challenging Road to Get to the Connected Car: Ford Motor's CIO says the key is putting just...
C-Suite Strategies (A Special Report) --- The Challenging Road to Get to the Connected Car: Ford Motor's
CIO says the key is putting just enough things in the vehicle; But not too many
By Steven Norton
1,218 words
22 February 2016
J
R5
English
As Ford Motor Co. seeks to become a technology-driven "transportation services" company, as well as an auto
maker, the role of information technology within the firm is rapidly changing.
So says Marcy Klevorn, the Ford veteran who became company's chief information officer in January 2015.
Over the past year, the 56-year-old Ms. Klevorn has expanded Ford's presence in Silicon Valley and taken a
broader role in product development as software becomes an integral part of every vehicle.
Ford also is experimenting with ride-sharing and pay-by-mile rental cars, expanding it research fleet of driverless
vehicles, and in April will roll out an app called FordPass that will allow both Ford owners and nonowners alike to
do things such as reserve and pay for parking spots or rent out their vehicles to other drivers.
The Wall Street Journal spoke with Ms. Klevorn about her role in turning Ford into a market leader in
connected-car technologies. Here are edited excerpts:
WSJ: As Ford introduces new technologies into vehicles, how has the way the company thinks about IT
changed?
MS. KLEVORN: The scope has totally changed. When I started 32 years ago at Ford, information technology was
payroll processing in some backroom somewhere. Then it became about business-process mechanization to find
efficiencies.
And now, truly, you have to almost think about how do we [leverage IT] to help our customers and help Ford.
Now, we really have to think more about the revenue side of the equation.
WSJ: From a customer perspective, what am I going to see inside or outside of the vehicle from Ford that I
haven't seen before?
MS. KLEVORN: When you think about something like FordPass, it's really about how Ford can help you improve
your life and make it more efficient, whether you purchase a car or not. It may be in the vehicle; it may be outside
the vehicle. One of the paradigm shifts that we're experiencing as a company -- and where we're kind of
disrupting ourselves here -- is that our business model used to be a one-one relationship with a person and a
vehicle. That is changing. My son lives in New York City. I would like him to be a customer of Ford through these
other services that we can provide.
WSJ: What is the biggest challenge of bringing FordPass and these other "connected car" technologies to
market?
MS. KLEVORN: It really gets back to the integration and the architecture. There are going to be a lot of things you
can put in the vehicle, as well as things you can interact with outside the vehicle. I think it's getting that mix right,
and figuring out how artificial intelligence plays into it and how to support it when something goes wrong. How all
of this fits together and how we integrate everything will determine who wins.
WSJ: What do you mean by getting the mix right?
MS. KLEVORN: I think about things such as, is there something I can do inside my vehicle that today I have to do
outside my vehicle? If I could do those things inside my vehicle, then when I'm stuck in traffic for a half-hour I
might do more of them. Improving customers' lives may have nothing to do with the vehicle per se, but there are
things that people need to do that can be brought into the vehicle. [The challenge is finding] the right balance,
where it isn't an overload and where it isn't distracting to the driver, where you really are improving their lives, not
complicating them.
Another issue is customer help. The trend over the last several years has been if something goes wrong you're
first encouraged to go to a website and try to solve your own problem. I see the trend swinging back to more
hands-on [help]. Let us interact with you and use the interaction to learn about you as a customer. But then you
have to be mindful of cost and you want to respect people's time. So that's another balancing act. Sometimes you
can do too much and it ends up being complicated and confusing.
WSJ: How do you persuade customers to use the new technologies Ford is developing, and what can you learn
from them?
MS. KLEVORN: We have had modems in our electric vehicles for a while, so we're using that to start the
connected-vehicle data platform. And that will be a platform of data that we're pulling off the vehicle -- with our
customers' permission, because it's an opt-in program -- and analyzing to see if there are more proactive ways
we can tell you about service opportunities.
[For example,] can we coach you on a better route, knowing that you always do X-Y-Z every single day? Can we
connect with your home and as you approach turn your heat on, or open your garage door? If I see that you
always go to Starbucks on Tuesday, do I send you a coupon to say here's a free coffee on Tuesdays?
WSJ: How do you start to educate people about vehicle software and engage them in a conversation about what
it can do for them?
MS. KLEVORN: This reminds me of a personal experience. I moved to Germany a few years ago -- I was CIO of
Ford in Europe -- and I'm thinking of my mother. She was 70ish at the time. She wanted to be able to
communicate with me via FaceTime or somehow keep in contact with me. So we went and got her a MacBook
Air, and she went to the Apple store because she could sit down next to somebody and ask questions. After
getting a little bit smarter [about the technology] and trying some things, she could then go back and ask more
questions. It wasn't intimidating.
When I think about our vehicles, nobody's going to bust out the manual and read through pages of stuff, although
we do provide that. Today, people usually want to learn through experience and by talking to other people who
have had those experiences.
So I [see us doing more with] crowdsourcing, providing group experiences, chat experiences, and even rethinking
the way we do on-site support here at Ford.
There are situations where people want to sit next to somebody with their technology and have a conversation.
For consumers and their vehicles, I think we have to be more like an Apple store, where there is someone I can
talk to who is approachable and not intimidating. And then, once I learn a few things, I can take my vehicle back
and maybe ask another question or join an online group of other 75-year-olds who have my vehicle. We need to
think more like that.
---
Mr. Norton is a reporter for CIO Journal in New York. He can be reached at steven.norton@wsj.com.
Document J000000020160222ec2m00001

CFO Journal: Investors Shrug Off Lofty Payouts --- Dividends, buybacks fail to ignite stocks as economic jitters preoccupy market
CFO Journal: Investors Shrug Off Lofty Payouts --- Dividends, buybacks fail to ignite stocks as economic
jitters preoccupy market
By Maxwell Murphy
868 words
16 February 2016
J
B5
English
Finance chiefs say they aren't influenced much by short-term stock prices, but a growing number of them are
scratching their heads about why the market is punishing their stocks despite record revenues and rising
dividends.
Over the past year, the S&P 500 index has fallen 11%, even though many of its constituents sport lofty dividends.
Many companies also continue to buy back their stock. But that hasn't been enough to tempt investors, who are
worried about global economic growth and low oil prices.
Ford Motor Co. is rewarding shareholders with a supplemental $1 billion dividend on top of its regular first-quarter
payout. The auto maker's regular dividend now yields 5.4%. Still, shares are down 18% this year, including a 10%
slide since the extra dividend was announced.
"It's disappointing for sure. Am I discouraged? No." said Robert Shanks, Ford's chief financial officer. The
company's share price, he said, will likely move higher over the long term if its financial results continue to
improve.
Ford isn't alone. Nearly one in five companies in the index have a dividend yield that beats yields of 30-year U.S.
Treasury bond. Over 100 yield 3.3% or more, meaning the dividend will return more than the cost of investment
over the next three decades, assuming the payouts hold.
General Motors Co., like Ford coming off a record year for adjusted earnings, carries a payout fractionally higher
than Ford's.
A GM spokesman said the company "can't control the stock market," but is "confident solid business results
translate into stock performance."
Dividends can bolster stocks, especially when they outperform corporate and government bonds, assuming
companies are able to fund the payments for the long term. The annual payout on 30-year U.S. Treasurys is
roughly 2.6%.
Of course, stocks can fall, and dividends sometimes get cut during tough times. But unlike with bonds, rising
stock prices and dividend increases can fatten investor returns over time.
Low crude-oil prices are pummeling oil and oil-related stocks, despite solid payouts. Shares of Chevron Corp.,
known for its dividend consistency, yield 5.2%.
A Chevron spokesman declined to comment.
Heavy-machinery maker Caterpillar Inc. yields 4.7% a year. Its stock has been punished because its sales
depend partly on China, whose growth is slowing, and oil-field services, a sector battered by cheap energy prices.
Douglas Oberhelman, Caterpillar's chief executive, recently told investors that its cash flow would more than
cover its dividend and capital spending, but it is closely monitoring spending to keep it below last year's levels.
Protecting the company's balance sheet and dividend, he said, are "really a high priority."

At 7.1% a year, Iron Mountain Inc.'s yield ranks sixth in the S&P 500. But a downtrend in earnings could in theory
jeopardize the returns on the real-estate-investment trust, which distributes the bulk of its earnings to
shareholders via dividends.
"We've tried to lay out the path" of stable dividends, said Roderick Day, Iron Mountain's CFO. "The dividend is
sacrosanct."
Royal Caribbean Cruises Ltd., with a more modest 2.2% distribution, is wondering if it should return more cash to
investors. The cruise operator's shares tumbled 15% earlier this month on disappointing guidance, and CFO
Jason Liberty said its management and directors are evaluating whether increased capital distributions would
help.
He said many investors these days want to know "what is going to happen in the next 90 days" before they invest.
From longer-term shareholders, who make up a big chunk of Royal Caribbean's owners, "There is no noise."
Fund managers focused on capital returns aren't convinced now is the time to buy stocks with the highest
dividend yields, given market turbulence. "Unfortunately, the market can handicap stocks very well," said Margie
Patel, senior portfolio manager with Wells Fargo Funds.
She says higher yields are consistent with her view that stock prices will drop another 10% or more before what
she believes will be a second-half rebound this year. "One of the biggest mistakes I've seen is investors focused
on the dividend," she said, even as companies move away from share repurchases to focus on their payouts, as
they did during the recent recession.
She says she follows a "less is more" approach, and favors stocks with a more modest dividend and room for
growth over those with rich distributions whose businesses or industries carry the risk of a rapidly changing
economy.
"Companies that were the leaders 20 years ago," Ms. Patel said, often became a bad investment.
Even so, some CFOs are doubling down. International Paper Co. raised its dividend during the fourth quarter, and
also boosted the percentage of free cash flow it hopes to return to investors, said CFO Carol Roberts.
As for investors seeking short-term, share-price pops, she said, "There's not much you can really do to satisfy the
90-day investors."
Document J000000020160216ec2g0002h

Ford plans to launch four new SUVs by 2020
MONEY
Ford plans to launch four new SUVs by 2020
Brent Snavely
304 words
12 February 2016
USA Today
USAT
FINAL
B.3
English
Ford said Thursday that it will launch four all-new sport- utility vehicles over the next four years in recognition of
the growing global popularity of SUVs and crossovers.
"That's all new entries," Mark LaNeve, Ford's vice president of sales and marketing, said at the Chicago Auto
Show. "These are in segments of the SUV market where we currently do not compete."
So far, Ford is not saying when or where the new nameplates will be added, but it is emphasizing that the
products are part of its global plan. As such, the new models could be added either to the automaker's
mainstream Ford brand or to Lincoln.
The SUVs could be launched in North America, Europe, Asia or South America or in all of those regions. The
Dearborn, Mich.-based automaker also says there are no plans to eliminate any models as part of the plans.
In the U.S., consumers have been increasingly choosing to buy small and midsize crossovers, and the
percentage of passenger cars is shrinking.
Last year, LaNeve said Ford sold 740,000 Ford Escape, Explorer, Edge and Lincoln SUVs in the U.S., the most
since the early 2000s.
"We can't keep them on dealer lots," LaNeve said.
Both Baby Boomers and Millennials increasingly prefer SUVs and crossovers because they offer more space
than a car with the same footprint while also offering improved fuel economy over the SUVs of the past.
"Some SUVs now rival the fuel efficiency of V-6-powered midsize sedans from only a few years ago," LaNeve
said.
Ford says its research shows that once Millennials begin thinking about starting a family, their interest in shopping
for SUVs goes up significantly.
photo Bill Pugliano, Getty Images

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VW Forms Clean-Energy Unit in U.S. .............................................................................................................................

Workers Benefit as Auto Sales Rise ...............................................................................................................................9

Trump Offers Auto Makers Relief ..................................................................................................................................13

Trump, in Meeting, Urges Automakers to Build Factories in United States ..................................................................15

Ford Invests to Promote Online Auto Loans .................................................................................................................23

U.S. Car Makers' Unlikely Patriots ................................................................................................................................27

Auto Makers in Hot Seat As Political Pressure Rises ...................................................................................................30

Auto Makers Equip Cars With AI Software....................................................................................................................32

Ford, a Target of Trump, Cancels a Mexico Plant.........................................................................................................34

Old-Line Firms Chase Startups .....................................................................................................................................37

Business News: Ford Is Set To Raise $2.8 Billion ........................................................................................................42

Redesigned Ford Fiesta stays true to its roots ..............................................................................................................45

Ford's Tango With Trump..............................................................................................................................................49

In Overture, Ford Rethinks Car Plan .............................................................................................................................51

Was Ford move driven by tax or trade policy? ..............................................................................................................53

World News: Ford to Keep Lincoln Line in Kentucky ....................................................................................................55

Page 1 of 186 © 2020 Factiva, Inc. All rights reserved.

Business News: Ford, Union Face Deadline In Canadian Labor Talks.........................................................................61

BlackBerry Teams Up With Ford ..................................................................................................................................62

Ford's third-quarter profit, revenue slide........................................................................................................................63

Business News: Ford Profit Falls on Recalls.................................................................................................................64

Detroit Keeps Pedal to Metal With Pickups ...................................................................................................................66

Business News: Ford Stumbles With New Truck ..........................................................................................................73

Business News: Auto Makers Shift Output to SUVs .....................................................................................................74

Feds probe 'complete loss of brakes' in Ford F-150s....................................................................................................75

Election 2016: Ford Motor, Trump Tussle Over Trade ..................................................................................................78

Business News: Ford Unveils Deal to Acquire Bus Service ..........................................................................................85

Ford Expands a Costly Recall of Door Latches.............................................................................................................86

Business News: Ford Cuts Guidance On Recall Charges ............................................................................................87

Information Age: Humans: Unsafe at Any Speed..........................................................................................................89

Uber Plans Self-Drive Taxis ..........................................................................................................................................91

Ford promises driverless cars by 2021 .........................................................................................................................96

Ford Sets Plans For Cars Without Steering Wheels .....................................................................................................98

Ford recall to fix doors that could swing open .............................................................................................................105

A Turnaround at Ralph Lauren, Following a Road Map Used at Ford .......................................................................113

GM's Rivals Nip at Its Heels ........................................................................................................................................116

Business News: Dealers Say Toyota Is Tops .............................................................................................................118

GM Amps Up Marketing Blitz Targeting Ford .............................................................................................................119

REVIEW --- Summer Books: Henry Ford's Toughest Test..........................................................................................122

Business News: Ford Founding Family Keeps Backing of Shareholders ...................................................................125

Ford partners with Pivotal in $182M deal to upgrade software ...................................................................................127

A Mom's Engineering Feat: Return to Work After 24 Years ........................................................................................130

Ford and Google Join Driverless-Cars Group .............................................................................................................138

Business News: In China, Western Auto Makers Temper Ambitions..........................................................................142

Fast 3-D Printers Earn New Respect ..........................................................................................................................144

Ford Revved By China SUV Voom .............................................................................................................................150

Ford's Planned New Headquarters Borrow Some Silicon Valley Sheen.....................................................................157

Fiat Chrysler Cuts Jobs, Pares U.S. Car Lineup .........................................................................................................159

Page 3 of 186 © 2020 Factiva, Inc. All rights reserved.

Soaring Profits Produce Parade of New Cars .............................................................................................................165

Can carmakers redefine mobility again? .....................................................................................................................167

GM comes up short in February as Ford, Fiat Chrysler sales soar .............................................................................174

Discounts Help Car Sales Roar...................................................................................................................................175

Ford plans to launch four new SUVs by 2020 .............................................................................................................186

Page 4 of 186 © 2020 Factiva, Inc. All rights reserved.

VW Forms Clean-Energy Unit in U.S.

License this article from Dow Jones Reprint Service

Page 5 of 186 © 2020 Factiva, Inc. All rights reserved.

Page 6 of 186 © 2020 Factiva, Inc. All rights reserved.