Jump to content

Ford Market News

Recommended Posts

Ford Motor Company has withdrawn its 2020 financial guidance, and has suspended its dividend to preserve cash.

Ford plans to fully draw on credit lines, providing $15.4 billion of additional cash on its balance sheet.

Share this post

Link to post
Share on other sites

Ford’s Suspended Dividend Tests Family’s Patience With Hackett

Bloomberg  /  March 19, 2020

Ford Motor Co.’s Chief Executive Officer Jim Hackett was already under pressure before the coronavirus pandemic upended economies worldwide. But after suspending the dividend payment that management had said was sacrosanct, he’s now testing the faith of the founding family that has supported him.

Executive Chairman Bill Ford has not been shy about stressing the importance of the stock and dividend to his clan. “Most of our net worth is tied up in the company,” he said at Ford’s 2017 annual shareholders meeting. A year later, he joked about his family’s keen interest in the dividend when reading a question from an investor.

“Why is the company so stingy with paying dividends?” Ford read during the webcast shareholder meeting. He quipped: “Was that sent in by a member of the Ford family?”

But now, with the automaker halting production at its North American factories after shutting plants in Europe earlier this week, Hackett said he has no choice but to conserve cash and offset a financial hit one analyst estimates will cost the company $1 billion in earnings before interest and taxes.

“While we obviously didn’t foresee the coronavirus pandemic, we have maintained a strong balance sheet and ample liquidity so that we could weather economic uncertainty and continue to invest in our future,” Hackett said in a statement.

Bunker Mode

To give the company financial breathing room and keep important new model launches rolling, the automaker also is fully drawing down $15.4 billion from two credit lines and retracting earnings guidance it had given investors on Feb. 4.

“They maxed out their credit line, so they have well over $30 billion in cash now and that is a massive hoard,” said David Whiston, an analyst with Morningstar in Chicago. “That, along with the dividend suspension, basically puts Ford in lockdown mode. They’re going into their bunker.”

The unprecedented circumstances should buy Hackett some time and patience from the Ford family, which derived annual income of tens of millions a year from the 15-cent quarterly payout. While all common shareholders receive the dividend, the progeny of Henry Ford hold a special class of stock that gives them 40% voting control of the company.

Ford last suspended its dividend in 2006 before reinstating it five years later. That included a period when U.S. auto sales plunged to 10.4 million in 2009.

Stock Under Pressure

When Ford restored the payout, management pledged it had re-engineered the company so it could maintain the dividend through the next downturn.

“Ford has said many times, even before Hackett became CEO, that the dividend would be safe if sales went back to ‘09 levels,” Whiston said. “And even the lowest projections as of mid-March are not for ’09 levels in 2020.”

The dividend reversal puts even more pressure on Hackett, who has faced questions from Wall Street about his job security.

Ford shares fell as much as 8.9% shortly after the start of regular trading. The stock, which as of early this month had fallen further under Hackett than his predecessor, closed Wednesday at the lowest since April 2009.

Hackett, 64, took the steps to bulk up on cash hours before Ford planned to halt output at all North American factories through March 30 for deep cleaning. The shutdown will cost the company $1 billion in lost earnings before interest and taxes, Michael Ward, an analyst at Benchmark Co., estimated in a note to clients on Thursday.

Ford will lose the equivalent of 140,000 vehicles worth of production during the 11-day shutdown, or about $5.3 billion of revenue, he wrote. Ward lowered earnings estimates for the carmaker, which he rates a hold.

Analysts have speculated in the wake of the virus that factory closings and the global slowdown of vehicle purchases probably would force Ford management’s hand. Then-CFO Bob Shanks said in August 2018 that reports the dividend was at risk were “baseless.”

“The dividend’s been a legendary value creator at Ford,” Hackett said Feb. 4. “I want to continue that, because we said we could do it, and right now we can.”

Joseph Spak, an analyst at RBC Capital Markets, predicted a dividend cut last week, writing in a report that the $2.4 billion annual cost of the payments would be too much of a burden for a company that’s repeatedly come up short with its earnings and just issued a disappointing profit forecast for the year.

Heir Apparent

In an effort to change that negative dynamic, Hackett recently shook up management by appointing Jim Farley chief operating officer and gave him a mandate to accelerate an $11 billion restructuring. But credit-ratings companies have raised concerns about the efficacy of those efforts, with Moody’s Investors Service downgrading Ford to junk and S&P Global Ratings cutting the company to the lowest rung of investment grade rating last year.

Ford’s board of directors last week cemented Farley’s status as heir apparent to Hackett by disclosing it had arranged a $2.5 million stock award for the 57-year-old if he is not named the next CEO.

Bill Ford and his family have stood by Hackett through setbacks and struggles. And now they’re likely hoping this dividend suspension is short-lived.

“I would not be shocked if the dividend comes back as soon as this year,” Morningstar’s Whiston said. “But that’s certainly not a base-case expectation because we just don’t have visibility on anything in U.S. autos.”

Share this post

Link to post
Share on other sites

I can't believe that the family could be so dumb-not sure that is  the right word, maybe "clueless"?-to pin this on Hackett.  I myself always  thought he was the wrong guy for the job based on his prior experience, but what do I know.  He convinced Bill Ford he was a genius.  

In any case with the economy basically shutting down to stop the spread of this thing what else can a company like Ford do?  Keep cranking out vehicles that no one is buying?  Those dollars that would have gone out  will be needed to keep the product line updated.

I guess the family members-most I'm sure have never worked a day in  a Ford facility- will just have to switch to jug wine😎

Share this post

Link to post
Share on other sites

Looking at Ford's balance sheet and doing a little updating... After adding $15B in debt and figuring in the devaluation of vehicles in inventory, Ford is near bankrupt. At least on paper.

Share this post

Link to post
Share on other sites

Not so sure that they are that close to bankruptcy.  Lots to factor in.  Inventory is a two part equation.  Vehicles sitting on dealer lots are financed by the dealer out of pocket or through a floorplan credit facility through FMC (separate from Ford manufacturing) or through a commercial bank.  This inventory shouldn't have an effect on Ford's balance sheet.  Inventory of vehicles produced but not shipped does.  Now, vehicles typically aren't going to depreciate sitting in inventory this early in the year unless there is a new model release scheduled for mid year.  In this case, production is suspended and as a result any new launch will be delayed.  In the meantime, cars will sell and dealers will be keen to move them.  Ford will be keen to move its unshipped inventory to the dealers and get it off the books.  Couple this with reductions in labor cost and limited to nonexistant need for working capital to produce new vehicles during the suspension, and ongoing R&D becomes the biggest expense other than debt service.  Neither of which are insignificant, but with 30 billion in cash on hand there should be ample time.

Ford, during the last auto crisis fared much better than the other two of the Big Three.  Their strategic offloading of Aston Martin, Jaguar, Volvo and the Rover Group as well as other JV's left them in the least vulnerable position of the Big Three and as a result the least burden on the taxpayer.  Unlike General Motors that stripped Saturn, Hummer and other brands into an insolvent company for pensions and the taxpayer to choke on while taking billions in TARP funds, and Chrysler who Obama summarily gave to the Italians.

I'm no expert (at least any more) as I have long since transitioned from Wall Street to Healthcare, but not ready to throw the towel in on Ford yet.

  • Like 1

Share this post

Link to post
Share on other sites

Ford is one of America's powerful families. They have money that is publicly visible, and money that isn't.

Share this post

Link to post
Share on other sites

Ford to suspend production in India, South Africa, Thailand, Vietnam

Reuters  /  March 23, 2020

Ford Motor Co. said on Monday it will temporarily halt vehicle and engine production at its factories in India, South Africa, Thailand and Vietnam in response to the growing impact of the coronavirus.

In India, the suspension began on March 21 and will be followed by other markets, the company said, adding that the shutdowns will continue for several weeks.

"We are continuing to act in real time and taking added safety measures by temporarily halting production at our manufacturing sites in the international markets," International Markets Group President Mark Ovenden said.

Last week Ford, along with General Motors and Fiat Chrysler, said it would temporarily suspend production in North America due to coronavirus risks. It also suspended production at its plants in continental Europe.

Ford last week also moved to hoard cash, drawing down $15.4 billion from two credit lines and suspending its dividend. It abandoned its 2020 financial forecast and said the cash would be used to deal with a squeeze on capital caused by shutdowns in production.

Share this post

Link to post
Share on other sites

Ford credit rating cut by Fitch

Bloomberg  /  March 23, 2020

Ford Motor Co. and its Ford Motor Credit Company was downgraded by Fitch Ratings as the coronavirus pandemic sends shock waves through supply chains, decreasing demand across the auto industry.

Fitch downgraded Ford’s credit rating one notch to BBB- on Monday with a negative outlook. The company’s price target was lowered March 11 by Morgan Stanley analyst Adam Jonas who cited “demand shock” sparked by the virus.

“The downgrade of Ford’s IDR to ‘BBB-’ with a Negative Outlook reflects Fitch’s significant concerns about the effect that the global coronavirus mitigation actions currently underway will have on the company’s near-term financial performance and credit profile,” the company said in its report. “Fitch currently believes the company has the financial flexibility to manage through an extended shutdown of its facilities, but concerns are increasing that a combination of an extended shutdown followed by weak demand in a global recessionary environment could further pressure the company’s credit profile.”

Moody’s Investment Service downgraded Ford to the first rung of speculative grade last September, and the auto giant sits just one step above junk at S&P Global Ratings. The company was upgraded to investment grade from junk in 2012.

CEO Jim Hackett is now under pressure to accelerate his $11 billion restructuring after a disastrous rollout of the redesigned Explorer led to dismal earnings and a disappointing profit forecast. While Hackett maintains the support of Executive Chairman Bill Ford, great-grandson of founder Henry Ford, he shook up his management team in February by installing Jim Farley as his new number two executive to speed up the company’s turnaround efforts.

Share this post

Link to post
Share on other sites

Ford partnering with GE, 3M to build ventilators, respirators, face shields

Michael Martinez, Automotive News  /  March 22, 2020

DETROIT -- Ford Motor Co. plans to build respirators, ventilators and face shields in partnership with its UAW work force, manufacturing company 3M and GE Healthcare to aid medical workers as the coronavirus pandemic threatens to overwhelm their supply.

The automaker on Tuesday said it will use fans from F-150 pickup seats, portable tool battery packs and 3D-printed parts to quickly assemble disposable air purifying respirators alongside 3M at its advanced manufacturing center near Detroit in Redford, Michigan.

Ford's Powered Air-Purifying Respirator (PAPR) has a clear mask that fits over the face. Air is drawn in through a tube connected to a pump that filters the air. The PAPR will be made using parts from both Ford and 3M, including fans used in the Ford F-150's optional ventilated seats. Ford said it is exploring the possibility of producing the device at one of its Michigan factories. 3M will also make the respirators at its own factory.
Ford said its partnerships were code-named “Project Apollo” after the Apollo 13 launch in 1970 when a lunar landing was aborted after an oxygen tank failed two days into the mission, forcing the astronauts to improvise a fix.
"Working with 3M and GE, we have empowered our teams of engineers and designers to be scrappy and creative to quickly help scale up production of this vital equipment," Ford CEO Jim Hackett said.

Ford said it initially would be able to make up to 1,000 respirators per month, helping 3M boost production of the respirators tenfold.

In addition, Ford plans to produce up to 100,000 face shields per week, also in Michigan. Roughly 75,000 of these shields are expected to be finished this week, and more than 100,000 face shields per week will be produced at Ford subsidiary Troy Design and Manufacturing's facilities in Plymouth, Michigan.

Ford also is partnering with GE Healthcare to expand production of a simplified version of GE's ventilator design. Ford said the ventilators could be produced at a Ford manufacturing site in addition to a GE location.

"This is such a critical time for America and the world," says Executive Chairman Bill Ford. "It is a time for action and cooperation.

"By coming together across multiple industries, we can make a real difference for people in need and for those on the front lines of this crisis. At Ford, we feel a deep obligation to step up and contribute in times of need, just as we always have through the 117-year history of our company."

Ford joins General Motors and Tesla, which have also announced plans to build medical equipment in the U.S. Ford also is working on another initiative in the United Kingdom with a number of companies in Europe to produce additional ventilators, it said Tuesday.


Photo 2.jpg

Share this post

Link to post
Share on other sites

Ford to keep North American plants shuttered beyond March 30

Michael Martinez, Automotive News  /  March 24, 2020

DETROIT — Ford Motor Co. on Tuesday said its North American manufacturing facilities will remain closed beyond March 30, the date it originally planned to restart production, as the coronavirus pandemic continues to spread.

The automaker last week, following pressure from the UAW, agreed with General Motors and Fiat Chrysler Automobiles to shutter plants in the U.S., Mexico and Canada for more than a week until March 30. Since that decision, a number of U.S. states where Ford has plants, including Michigan, have issued orders for residents to stay at home unless they work in essential fields.

The automaker did not offer a time frame for when its plants might reopen.

Michigan and at least 15 other U.S. states, along with Ontario, Canada, have instituted stay-at-home orders. In Michigan, the order extends until April 13. 

"We are assessing various options and working with union leaders — including the United Auto Workers and Unifor — on the optimal timing for resuming vehicle production, keeping the well-being of our work force top of mind," Kumar Galhotra, Ford's president of North America, said in a statement.

General Motors is standing by its plan to suspend production until at least March 30, spokesman David Barnas said.

"Production status will be reevaluated week to week after that," he said.

Fiat Chrysler Automobiles has not yet made a decision about whether the shutdown would need to be extended past the end of March.

Ford CEO Jim Hackett, speaking Tuesday on the "CBS This Morning" show, said the automaker was focused on making sure its workers remain healthy.

"What we're trying to do is get through this quarantine period where everyone has a job and then, on the other side, quickly rebuild demand," he said. "We're working really closely with the UAW and there's an agreement that when it's time to go back to work, everyone's going to go back to work."

Hackett said he thinks the situation could last into early May.

"We can see what happened in China, we see what happened in South Korea and I'm hopeful we get started before then," he said. "We're ready to go."

Share this post

Link to post
Share on other sites

Ford credit downgraded to junk by S&P

Bloomberg  /  March 25, 2020

Ford Motor Co. was cut to junk by S&P Global Ratings as the coronavirus pandemic delivers a shock to the global auto industry, rendering the No. 2 U.S. automaker the largest fallen angel to date.

S&P downgraded Ford’s credit rating one notch to BB+ and may cut it further, according to a statement Wednesday.

The move follows Moody’s Investors Service, which dropped its rating Ford for the second time in sixth months earlier Wednesday.

With Ford’s factories shut around the globe -- including all North American plants -- and no decision as to when they’ll resume production, the automaker is under immense financial pressure, according to S&P.

“The stress of having all of a company’s plants shut down differs from that of a conventional recessionary downturn,” the agency said, noting that the shutdowns mean Ford isn’t generating revenue to cover costs. “The rate of cash burn, even for a few months, could be faster than that which transpires during a typical recession.”

S&P also placed General Motors on credit watch late Wednesday. The agency indicated there is at least a 50 percent chance it will lower GM's credit rating by one notch if the company's plants "remain idle for longer than we expect, causing its cash flow generation to turn negative, eroding its liquidity, and increasing its debt leverage with no signs of an imminent improvement."

Moody's also warned it was considering cutting GM to junk as it faces sharply lower demand.

"A severe disruption in automotive demand due to the coronavirus, combined with the possibility of a follow-on economic recession, will place considerable pressure on GM's cash flow and credit metrics," Moody's said.

Because the spreading coronavirus has idled plants, prompted mass layoffs and curbed demand for big-ticket purchases across the globe, light-vehicle sales will decline by 15-20 percent in the U.S. and Europe, and by 8-10 percent in China, this year, S&P said.

Ford is one of many auto companies facing what Moody’s calls an unprecedented “credit shock,” with the coronavirus outbreak also posing a major threat to peers including GM and Volkswagen Group.

But Ford is particularly at risk because of the problems it’s been having with executing an $11 billion restructuring that’s yet to improve performance.

The cost to protect Ford’s debt against default for five years has soared this month more than fourfold, though it’s come down this week. Its bonds due 2025 trade around 78 cents on the dollar.

“Ford is managing through the coronavirus crisis in a way that safeguards our business, our workforce, our customers and our dealers,” the company said in an emailed statement. “We plan to emerge from this crisis as a stronger company.”

Share this post

Link to post
Share on other sites

An automakers liabilities are huge in a recession, especially one that builds on speculation and finances a significant portion of their sales. Ford's probably got a half million unsold vehicles they own outright, darn near as many in dealer inventory that they're flooring, and maybe 15 million more vehicles Ford is financing or leasing. That's a million new vehicles wholesaling for mid $30k each= $30B, which is about Ford's assets minus liabilities. Then there's maybe another $150B in hopefully not bad debt in all those vehicles Ford is financing or leasing... If those debts go bad en masse, Ford is bankrupt. 

Share this post

Link to post
Share on other sites

Many of the smaller dealerships have long closed up shop in this area. Five I know of always owned their cars and trucks outright having no debt to Ford, GM, or Chrysler. We have yet to have an import nameplate marketed here. Two of the Ford dealerships, and one GM exited after the former(s) mandated they build new buildings and infrastructure to be able to market their products.

The automakers are not interested in dealerships that may only sell a hundred cars a year.  

Share this post

Link to post
Share on other sites

Bill Ford to defer salary amid coronavirus pandemic

Michael Martinez, Automotive News  /  March 26, 2020

DETROIT — Ford Motor Co. Executive Chairman Bill Ford will defer 100 percent of his salary for at least the next five months and other top executives will defer up to half of their pay as the automaker looks to conserve cash amid the coronavirus pandemic.

In a filing with the Securities and Exchange Commission, the company said CEO Jim Hackett, COO Jim Farley and CFO Tim Stone will defer 50 percent of their salaries, effective May 1. Bill Ford's deferment also is effective as of that date. 

The accumulated deferred salary amounts will be paid after the company has repaid at least $7 billion of the $15.4 billion credit lines it tapped earlier this month.

Hackett, in a letter to Ford employees, said the company's top 300 executives will defer 20 to 50 percent of their pay.

"The character of people and organizations is revealed in difficult times," Hackett wrote. "I'm extremely proud of how Ford is keeping our people safe, doing our part to limit the spread of the virus, taking care of customers and managing through the crisis in ways that safeguard our work force, our business and our partners."

Bill Ford earned a $1.7 million base salary in 2018, according to the automaker’s latest proxy filing. Hackett collected a $1.8 million base salary over that same period.

Farley’s base salary recently rose to $1.4 million when he was named COO effective March 1.

'Tougher actions'

Hackett, in the letter, said Ford intended to get through the pandemic without any job losses, although he noted that it may have to “take tougher actions” if the situation lasts longer than anticipated.

Additionally, Hackett said Ford will begin deferring merit-based salary increases, suspending overtime for salaried workers and freezing hiring for “noncritical skill positions.”

He said work schedules and pay might be “temporarily reduced” for workers whose jobs can’t be done from home and that others may be offered voluntary sabbaticals. 

Hackett said the company would continue to provide health insurance and paid time off to cover a 14-day quarantine if workers are exposed to the virus. 

Share this post

Link to post
Share on other sites

Jeez- Mr Martinez, Ohio does not build "pick ups" . Or are you reading a Ford "fact sheet" that is in error?

Share this post

Link to post
Share on other sites

Ford aims to start making ventilators with GE in 3 weeks

Reuters  /  March 30, 2020

Ford said on Monday it will produce 50,000 ventilators over the next 100 days at a plant in Michigan in cooperation with General Electric’s healthcare unit, and can then build 30,000 per month as needed to treat patients afflicted with the coronavirus.

Ford said the simplified ventilator design, which is licensed by GE Healthcare from Florida-based Airon Corp and has been cleared by the Food and Drug Administration (FDA), can meet the needs of most COVID-19 patients and relies on air pressure without the need for electricity.

Share this post

Link to post
Share on other sites

Car & Driver  /  March 30, 2020

Ford and GE Healthcare announced a collaboration today to begin production of ventilators beginning the week of April 20. Together, they plan on building 50,000 of the systems in the following 100 days, or by July 4.

The ventilators will be built at Ford's Rawsonville plant in Ypsilanti, where 500 United Auto Worker employees will construct them, working 24 hours a day to hit the production goal. The companies aim to produce the first 1500 ventilators by the end of April.

“The Ford and GE Healthcare teams, working creatively and tirelessly, have found a way to produce this vitally needed ventilator quickly and in meaningful numbers,” Jim Hackett, Ford’s CEO, said in a statement. “By producing this ventilator in Michigan, in strong partnership with the UAW, we can help health care workers save lives, and that’s our No. 1 priority.”


Photo 2.jpg

Photo 3.jpg

Photo 4.jpg

Share this post

Link to post
Share on other sites

Ford indefinitely delays reopening N.A. plants; third worker death reported

Michael Martinez, Automotive News  /  March 31, 2020

DETROIT -- Ford Motor Co. is postponing for a second time the reopening of its North American manufacturing facilities amid the global surge in coronavirus cases.

The automaker said Tuesday it will indefinitely delay the restart of production at plants in Mexico, Canada and the United States and refused to offer a restart date.

It was previously aiming to begin work at Hermosillo Assembly in Mexico on April 6 and a handful of U.S. plants on April 14. Those dates came after it pushed back original projections of returning to work March 30.

"The health and safety of our workforce, dealers, customers, partners and communities remains our highest priority," said Kumar Galhotra, Ford president, North America. "We are working very closely with union leaders -- especially at the UAW -- to develop additional health and safety procedures aimed at helping keep our workforce safe and healthy."

Meanwhile Tuesday, Ford and the UAW confirmed that a third union worker has died from the virus. The employee worked at Dearborn Diversified in southeastern Michigan, according to the union.

"It is a tragic reminder that the coronavirus crisis is everywhere and requires the attention of all of us,” a Ford spokeswoman said. “Our thoughts are with their families, friends and co-workers during this difficult time."

Ford and the union over the weekend confirmed two other employees had died from the virus: a worker at Dearborn Stamping, which was among the plants slated to reopen April 14, and a skilled trades member of the Ford Data Center in Dearborn, Mich.

"Today's decision by Ford is the right decision for our members, their families and our nation," UAW President Rory Gamble said. "Under Vice President Gerald Kariem, the UAW Ford Department continues to work closely with our local unions and Ford to make sure that as we return to production all members are safe, and our communities are protected from this spreading pandemic."

Gamble and union leaders originally pushed the Detroit 3 automakers to shutter their plants earlier this month. Gamble also expressed concern when that target was announced.

Despite the indefinite closure, Ford will open its Rawsonville Components Plant in Ypsilanti, Mich., the week of April 20 to begin production of ventilators in partnership with GE Healthcare. The automaker will use 500 paid UAW volunteers on 3 shifts to build 50,000 ventilators by July 4, then 30,000 per month after that.

Coronavirus Plant Closings - https://www.autonews.com/topic/coronavirus-plant-closings

Share this post

Link to post
Share on other sites

Interesting.   50,000 ventilators in 75 days.  In WW II Ford's Willow Run plant was rolling a new B-24 out the door every 59 minutes!  Key is 1000 ventilators a day after the ramp up.  Anyone see any figures as to typical number of  days a person needs a ventilator before recovery?

Share this post

Link to post
Share on other sites

Ford to build respirators in Michigan near home of Mustang

Michael Martinez, Automotive News  /  March 31, 2020

Ford Motor Co. plans to build respirators using paid UAW volunteers assigned to an idled assembly plant in Flat Rock, Mich., beginning the week of Monday, April 6, according to the union local representing those workers.

The automaker will build respirators on three shifts at a building near the factory, according to a Tuesday post from UAW Local 3000.

Ford said last week it is partnering with 3M to build respirators but didn't disclose details. Flat Rock workers typically build the Mustang and Lincoln Continental, but all of Ford's North American plants have been temporarily shuttered to help stem the spread of the coronavirus.

It's unclear how many paid UAW volunteers Ford will use to build respirators.

"This is a call to action for a cause that transcends everyday comforts," according to a transcript of a robocall to workers. "It is an opportunity to make a bad situation better and help our medical professionals, first responders and all affected by COVID-19."

Ford, in a statement late Tuesday, did not confirm the details released by union officials.

"Ford is humbled to work with 3M, GE Healthcare and the UAW to manufacture medical equipment to help those on the front lines fighting COVID-19," a spokeswoman said. "We'll have more to share about this in the future."

Ford is working with 3M to boost output of respirators 3M is producing while simultaneously building its own respirators using a makeshift design that includes fans from F-150 pickup seats, hoods from assembly plant paint shops, 3D-printed parts and portable-tool battery packs that could allow the devices to run for up to eight hours.

Some components and subassemblies are being made at Ford's advanced manufacturing center near Detroit in Redford, Michigan.

Ford last week said it initially would be able to make up to 1,000 respirators per month, helping 3M boost production of them tenfold.

Ford also is working with GE Healthcare to build 50,000 ventilators between late April and early July at its Rawsonville Components Plant in Ypsilanti, Mich. In addition, the automaker is building face shields at a rate of roughly 100,000 per week at Ford subsidiary Troy Design and Manufacturing's center in Plymouth, Michigan.

Share this post

Link to post
Share on other sites

Ford Expects Talks With U.S. on Cash for Clunkers-Like Stimulus

Bloomberg  /  April 2, 2020

Ford would like the U.S. government to sponsor an automotive stimulus program to help the industry get back on its feet after the coronavirus crisis abates.

“We think some level of stimulus somewhere on the other side of this would help not only the auto industry and our dealers, which are a huge part of our overall economy, but will help the customers as well,” says Mark LaNeve, Ford’s vice president of U.S. marketing, sales and service. “We’re in discussions about what would be the most appropriate.”

Those discussions are internal at Ford for now, but are eventually expected to involve the government, LaNeve said.

One model being considered is the government’s “cash for clunkers” program of more than a decade ago, which helped stimulate auto sales following the global financial crisis by encouraging drivers to turn in older cars in exchange for money toward buying new ones.

“Cash for clunkers was very effective at that time,” LaNeve said. “It would be nice to think we could have something equally as effective for 2020 when we get out of this because it was a great program.”

Ford reported a 12% drop in first quarter U.S. sales on Thursday. Automakers sold cars and light trucks in March at the slowest pace since 2010, and analysts expect calamitous results for April.

Share this post

Link to post
Share on other sites

No we do not need another cash for clunker scam, just let people go back to work.

Share this post

Link to post
Share on other sites

Ford CEO Jim Hackett's compensation falls to $17.36 million in 2019

The Detroit News  /  April 3, 2020

Ford Motor Co. CEO Jim Hackett in 2019 received $17.36 million in total compensation, the Dearborn automaker reported in a Friday filing with the Securities and Exchange Commission.

Hackett's income last year, his second full year as CEO, fell 2.2% from the $17.75 million the chief executive was paid in 2018. While Hackett's base salary was steady at $1.8 million and his stock awards were up 3.5% at $13.19 million, incentive bonuses fell 32% to $1.75 million.

Ford's $6.379 billion in earnings before interest and taxes in 2019 missed the lowered guidance the automaker set of between $6.5 billion and $7 billion. The start of production of the company's redesigned Explorer SUV faced manufacturing problems, resulting in delays and fallen sales.

Hackett's compensation was 157 times more than the median employee compensation of $110,706, which was up from $64,316 in 2018 because of increased pension contributions.

The annual report filed Friday with the SEC details the pay for Ford's top executives.

Executive Chairman Bill Ford Jr. made $16.76 million in 2019. That's more than the $13.83 million total compensation he received in 2018 mostly from a $2.65 million change in pension value and deferred compensation earnings. Ford's base salary in 2019 was $1.7 million, the same as in 2018.

Jim Farley, Ford's former president of new businesses, technology and strategy who became chief operating officer last month, made a total of $8.36 million in 2019, down from $5.86 million in 2018. Farley's base salary in 2019 was $1.1 million, up from $1.07 million in 2018. Farley received a discretionary bonus that valued $185,600.

In his new role, Farley's compensation includes a $1.4 million base salary, a performance-based incentive bonus target of $1.89 million and an annual stock grant of $5 million, the automaker recently disclosed.

Joe Hinrichs, Ford's former president of automotive, received $11.02 million in total compensation in 2019. That was more than the $5.81 million he made in 2018 when he received a $97,920 bonus. Although Hinrichs did not receive a bonus in 2019, he received more in stock awards valued at $6.09 million and $2.65 million from a chance in pension value and deferred compensation earnings. Hinrichs' base salary last year was $1.3 million, up slightly from $1.1 million in 2018. Hinrichs retired last month after Ford reported its disappointing 2019 earnings results.

Tim Stone, Ford's chief financial officer, received $8.32 million for the first year the automaker publicly reported his compensation. That included a $783,338 base salary, a $1.48 million discretionary bonus, $4.3 million in stock awards and $742,500 in incentives.

Bob Shanks, Ford's former chief financial officer, was paid $8.32 million in total compensation in 2019, down from $8.42 million in 2018. His base salary was $1 million, up from $971,250 in 2018.

All of Ford's top executives had to meet performance goals in quality; automotive-segment operating cash flow and operating margin; Ford Credit pre-tax profit; and automotive revenue to receive the bonuses included in their total pay. These incentive bonuses ranged from $1.75 million for Hackett to $486,000 for Bill Ford.

Farley's was $742,5000, Hinrichs' was $850,500, Stone's bonus was $742,500 and Shanks' was $675,000.

Ford also paid $419,275 for Bill Ford's personal use of company aircraft and $899,219 for security. The company paid $91,523 for Hackett's use of the aircraft. Stone received $692,652 to relocate from California.

Hackett's compensation in 2019 tops that of Fiat Chrysler Automobiles NV CEO Mike Manley, who received $12.46 million. GM has not yet reported 2019 salaries.

The Detroit automaker typically releases its annual report in April. GM CEO Mary Barra was the highest-paid executive of Detroit's three automakers in 2018, earning $21.87 million.

Share this post

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • Create New...