Ford is acknowledging the trouble prone Ford Powershift transmission and is extending the warranties on them.  The 6-speed transmission is a dual clutch setup meant to increase fuel economy in Ford's smallest cars.  While a solid idea on paper, customers reported a number of problems with them including slippage, hesitations while accelerating, jerkiness through the gears, difficulty downshifting, and premature wear on the clutch packs. 
The extended warranty will cover 2014 - 2016 model year Ford Focus, and 2014 - 2015 model year Ford Fiesta and will increase the warranty coverage of the clutch from five years/60,000 miles to seven years/100,000 miles.  Ford will also reimburse customers in this group who have already paid for clutch repairs out of pockets.  The transmission control module will also be warrantied to 10 years/150,000 miles. 
In addition to that, there is a small group of customers (16%) who need a software update which Ford will provide for free. 
Affected customers will receive a letter from Ford with instructions on how to proceed.

View full article

Ford is acknowledging the trouble prone Ford Powershift transmission and is extending the warranties on them.  The 6-speed transmission is a dual clutch setup meant to increase fuel economy in Ford's smallest cars.  While a solid idea on paper, customers reported a number of problems with them including slippage, hesitations while accelerating, jerkiness through the gears, difficulty downshifting, and premature wear on the clutch packs. 
The extended warranty will cover 2014 - 2016 model year Ford Focus, and 2014 - 2015 model year Ford Fiesta and will increase the warranty coverage of the clutch from five years/60,000 miles to seven years/100,000 miles.  Ford will also reimburse customers in this group who have already paid for clutch repairs out of pockets.  The transmission control module will also be warrantied to 10 years/150,000 miles. 
In addition to that, there is a small group of customers (16%) who need a software update which Ford will provide for free. 
Affected customers will receive a letter from Ford with instructions on how to proceed.

Ford and GM, the U.S.'s top two auto manufacturers are bracing themselves for the worst.  They have been running economic modeling to determin the steps they would take given a medium or severe recession in the US and across global markets.  General Motors has a stockpile of $18 billion in cash while Ford has $20 billion saved up.
GM is relying on deferring non-essential capital expenditures and a shift in production to lower cost vehicles as part of its plan to save costs in the event of a a strong downturn.  Ford says is is evaluating its future moves. 
Fears of a recession have plagued Wall St. most of 2019 while a trade war with China rages on.  Higher costs of materials due to tariffs is adding to the pain of weak product demand in the U.S., China, and Europe.  In Germany, Europe's biggest economy, growth shrank by 0.1 percent in Q2 2019 as trade conflicts and auto industry troubles weighed heavily on the economy.  Both exports and lagging demand at home have put a strain on German automakers already looking to slash costs. 
Today, a strong signal that a recession is looming appeared as the 10-year treasury yield dropped below the 2-year treasury yield while do Dow Jones Industrial Average sank over 450 points.  
Related:
Honda Slowing Production, Cutting Shifts
Nissan Profit Plunges 99%; 12,500 Job Cuts Eminent
Ford Europe Laying Off Another 12,000
Daimler Books First Quarterly Loss in Ten Years

View full article

Ford and GM, the U.S.'s top two auto manufacturers are bracing themselves for the worst.  They have been running economic modeling to determin the steps they would take given a medium or severe recession in the US and across global markets.  General Motors has a stockpile of $18 billion in cash while Ford has $20 billion saved up.
GM is relying on deferring non-essential capital expenditures and a shift in production to lower cost vehicles as part of its plan to save costs in the event of a a strong downturn.  Ford says is is evaluating its future moves. 
Fears of a recession have plagued Wall St. most of 2019 while a trade war with China rages on.  Higher costs of materials due to tariffs is adding to the pain of weak product demand in the U.S., China, and Europe.  In Germany, Europe's biggest economy, growth shrank by 0.1 percent in Q2 2019 as trade conflicts and auto industry troubles weighed heavily on the economy.  Both exports and lagging demand at home have put a strain on German automakers already looking to slash costs. 
Today, a strong signal that a recession is looming appeared as the 10-year treasury yield dropped below the 2-year treasury yield while do Dow Jones Industrial Average sank over 450 points.  
Related:
Honda Slowing Production, Cutting Shifts
Nissan Profit Plunges 99%; 12,500 Job Cuts Eminent
Ford Europe Laying Off Another 12,000
Daimler Books First Quarterly Loss in Ten Years

Ford's second quarter 2019 income fell 86 percent to just $148 million.  The result is largely due to one-time charges related to its restructuring of operations globally.  Excluding the one-time items, Ford's income before interest and taxes fell just 2% to $1.65 billion.  Global revenue was flat year over year at $38.9 billion.
The charges are primary caused by plant closures in Europe and South America. Ford has said it would cut 12,000 jobs in Europe by the end of 2020.  Ford's sales in the US have fallen 7 percent, including a large decline in Ford Explorer sales as the company moves the nameplate to a new rear wheel drive platform. Ford CEO Jim Hackett said that the changover was a "bigger endeavor" than overhauling the F-150 to an aluminum body. 

View full article