4839 4 PDF

Need more speed? Mustang upgrade has that and more...............................................................................................
Business News: Ford's Workhorse Trucks Haul In Solid Profit .......................................................................................6
Detroit Trims Fat to Take On Big Tech............................................................................................................................8
Business News: GM Wrestles With Excess Capacity --- Auto maker is operating too many U.S. plants, which saddles
it with higher fixed costs ................................................................................................................................................10
Ford to cut $14B, bets on electric..................................................................................................................................13
GM, Ford, Toyota lead September rebound in auto sales ............................................................................................15
GM, Ford, Toyota lead September rebound in auto sales ............................................................................................17
Business News: Ford Set to Shift $7 Billion Toward Trucks and SUVs ........................................................................18
Business News: Detroit Rolls Ahead On Electric Vehicles............................................................................................19
Lyft adds Ford as a self-driving car ally .........................................................................................................................20
Lyft and Ford Reach Deal To Test Self-Driving Cars ....................................................................................................21
Ford creates a baby Ranger Raptor pickup ..................................................................................................................23
Business News: Ford Idles 5 Plants Amid Slowing Sales .............................................................................................24
Auto Makers in Push for Patents ...................................................................................................................................25
Ford Links Up With Indian Firm .....................................................................................................................................28
Google Learns to Speak Detroit --- Alphabet's self-driving car unit hires auto-industry veteran to bridge divide with the
Motor City ......................................................................................................................................................................29
Domino's, Ford team to test driverless pizza delivery ...................................................................................................33
Business News: Ford Starts China Electrics Project .....................................................................................................35
Business News: Vehicle Sales Rally in China ...............................................................................................................36
OFF DUTY --- Gear & Gadgets -- Rumble Seat: Honda Odyssey: The Gas-Powered Marital Aid ...............................37
Ford probes police SUVs with carbon monoxide fume issues ......................................................................................40
Bill Ford Thinks Ford Needs a Vision -- His --- Chairman wants company to shift faster into electric, self-driving cars ...
41
Tesla Adds Debt In Growth Push ..................................................................................................................................45
Slump in Auto Sales Extends to 7th Month ...................................................................................................................48
Business News: Aluminum Car Parts Lose Speed --- Study expects use of the metal to grow, but other materials also
will take the place of... ...................................................................................................................................................51
Ford Logs Modest Profit But Is Facing Challenges .......................................................................................................53
Page 1 of 182 © 2020 Factiva, Inc. All rights reserved.

Ford ups full-year forecast after second-quarter earnings beat ; Auto- maker credits sales in North America, lower tax
rate for $2 bi... ...............................................................................................................................................................55
Business News: Ford's Net Rises, but Its Shares Take a Hit........................................................................................57
Two Carmakers Seek a Waiver From a Widening Recall Involving Defective Airbags .................................................58
Ford and Mazda Hope to Be Removed From Latest Airbag Recall ..............................................................................60
Roadblock: China's Grip on Maps --- Beijing limits digital mapping that can be done by foreign firms, citing national
security ..........................................................................................................................................................................62
Financing Avenue Reopens For Ford ..........................................................................................................................64
OFF DUTY --- Gear & Gadgets -- Rumble Seat: 2017 Ford GT: When Performance Tops All ....................................65
For CEOs, High Pay, Higher Anxiety ............................................................................................................................68
Volvo Gives Tesla a Shock, As Others Plan Electric Push ...........................................................................................70
Correction ......................................................................................................................................................................72
Ford CEO Presses Decision Making .............................................................................................................................73
Correction ......................................................................................................................................................................74
Business News: Business Watch ..................................................................................................................................75
Economics lessons from Ford ......................................................................................................................................77
OFF DUTY --- Gear & Gadgets: Go Big and Go Home --- Minivan not quite large or hip enough for your family's
needs? More Americans are... ......................................................................................................................................78
Ford's Plans Send Signal: Chinese Cars Are Ready to Compete on World Stage .......................................................80
CFO Journal: Index Mulls Booting Unequal Voting Shares --- FTSE Russell proposal comes as big holders press for
change; a stock's price at... ...........................................................................................................................................82
Business News: Ford Unit to Break Out Results ...........................................................................................................84
In May surprise, Ford does a number on GM in auto sales ; SUVs, pickups lead way as automakers add more
discounts .......................................................................................................................................................................85
GM Falls Behind in Flat Market --- Auto maker struggles with softer demand for its cars and trucks; more job cuts
coming ...........................................................................................................................................................................87
Business & Technology -- Keywords: CEOs Must Grasp Tech Like Never Before.......................................................90
Business News: Ford Goes Back to the Future With Hire --- Engineer returns after stint at Uber as auto maker
continues management overhaul ..................................................................................................................................92
Ford's Key Deputies Expand Their Roles......................................................................................................................94
Ford's Turmoil Is Not About Tesla .................................................................................................................................95
Fields out, hackett in as patience wears thin.................................................................................................................97
Fields out, hackett in as patience wears thin ; Automaker trying to speed up decisions, boost stock price................100
U.S. News: Ford Picks Leader to Make New Inroads .................................................................................................103
Ford Taps New Boss To Close Tech Gap...................................................................................................................105
Ford Was Unprepared for Investor Revolt and C.E.O. Change ..................................................................................108
U.S. News: Head of GM Enjoys Her Board's Support.................................................................................................109

U.S. News: Fields Got Caught in Crosshairs Of Trump ..............................................................................................110
New Boss Won't Fix Ford Quickly ...............................................................................................................................111
Ford replaces its CEO in a race to take on Silicon Valley ...........................................................................................112
As Profit Dwindles, Ford Is Said to Replace Its C.E.O. ...............................................................................................114
Ford Weighs Executive Shake-Up ..............................................................................................................................116
Car Makers Must Share More Technology..................................................................................................................117
Ford confirms that it will slash workforce.....................................................................................................................118
Ford Sharpens Ax for Salaried Jobs ...........................................................................................................................119
Ford to Cut 1,400 Jobs As Market Moves On .............................................................................................................121
Car Makers Pull Back on Jobs Pledge ........................................................................................................................123
Ford may cut 10% of its global workforce ; That's 3,000 jobs as automaker struggles with business plan ................126
Ford Looks to Cut Jobs 10% Globally .........................................................................................................................128
Ford CEO, Chairman Feel Heat ..................................................................................................................................130
Pressure Mounts on Ford's Chief ................................................................................................................................131
Ford Spoils Tesla Chief's Name Joke .........................................................................................................................134
Business News: Tesla Presses Ahead With Model 3..................................................................................................135
Small cars suffer as auto sales slump in April .............................................................................................................137
Auto Sales Shrink, Inventories Grow...........................................................................................................................138
Management -- Your Executive Career: How Millennial Bosses Can Gain Trust --- For young executives, the
challenge is admitting what they don... .......................................................................................................................140
Business News: Detroit Is Upbeat as Car Sales Slow Down ......................................................................................142
Ford's profit tumbles as vehicle costs jump.................................................................................................................143
Business News: Ford's Pace Eases After Long, Hot Run --- Demand for trucks remains solid, but U.S. auto market as
a whole is downshifting ...............................................................................................................................................144
Tesla Must Aim High To Justify Its Valuation ..............................................................................................................146
Musk bickers with Tesla investors over board.............................................................................................................148
Business News: Tesla Vies to Top GM Value .............................................................................................................149
Streetwise: High Debt Levels Are A Cause Of Concern .............................................................................................151
Ford Plans Electric Vehicles In China .........................................................................................................................153
Ford Takes a Chance on China Plan ..........................................................................................................................154
Ford cruises to head of self-driving car pack ; Study: Tech trails in plans to commercialize autonomous vehicles..........
155
Ford Aims To Pivot In Raising CEO's Pay ..................................................................................................................157
Ford Taps BlackBerry In Hiring Engineers ..................................................................................................................159
Business News: Ford Raises Spending in Michigan ...................................................................................................160

Business News: Ford Offers Guarded View On Affordability of Leases......................................................................162
Ford's Lincoln to make SUVs in China in 2019 ; Automaker says sales of luxury vehicle in country tripled last year
over 2015 ....................................................................................................................................................................164
For GM, Opel Deal Ends Fund Source .......................................................................................................................165
Four Carmakers Knew of Hazard, Suit Says...............................................................................................................167
Study finds many rich folks opt for plain ol' pickups ; Economy cars and mainstream brands show broad strength .......
170
OFF DUTY --- Gear & Gadgets -- Rumble Seat: Ford F-350: The Country Boy's Rolls-Royce .................................172
California Steers Agenda on Cleaner Cars --- State has power to set its own mandate for zero-emission vehicles,
separate from Washington's........................................................................................................................................175
Ford Invests $1 Billion for a Future of Riders ..............................................................................................................177
Business News: Ford Takes the Wheel at Startup --- Move for Argo AI is latest to extend its reach into developing
self-driving technology.................................................................................................................................................179
Ford Bulks Up in SUVs................................................................................................................................................181

Need more speed? Mustang upgrade has that and more
MONEY
Need more speed? Mustang upgrade has that and more
Mark Phelan
440 words
27 October 2017
USA Today
USAT
B.5
ISSN:07347456
English
© 2017 USA Today. Provided by ProQuest Information and Learning. All Rights Reserved.
Ford Mustang owners aren't the only ones who love late nights in the garage working to wring more speed out of
their pony cars. So does the engineering team that developed the 2018 version of the world's best-selling sports
car.
The result: Performance Pack Level 2, a $6,500 set of options engineers developed working after hours and
grabbing unused minutes in Ford wind tunnels to take the Mustang's handling and grip to new levels.
It's the second major performance upgrade announced for the Mustang in a week, following a new GT package
that accelerates to 60 mph in less than four seconds. Both should help Mustang compete against its archrivals,
Chevrolet Camaro and Dodge Challenger.
Performance Pack 2 is less about straight-line acceleration than steering, braking, grip and aerodynamics. It has
a six-speed manual instead of the mainline GT's 10-speed automatic, so it won't be the fastest Mustang to 60
mph, but it should take the 460-horsepower GT's handling on road courses closer to the 526-horsepower, 5.2-liter
Shelby GT 350.
Mustang fans can order it on a Mustang GT with a 5-liter engine now for delivery next spring. There's no rush,
because PP2 includes Michelin Pilot Sport Cup 2 "streetable track and competition" tires, which are street legal
but designed for use on tracks in dry weather and temperatures well above freezing.
The package also includes specially tuned antilock brakes and stability control, MagneRide adaptive shock
absorbers, redesigned front splitter and rear spoiler, stiffened springs and stabilizer bars.
The new splitter and spoiler increase aerodynamic downforce on the car to keep it stable at high speeds. At 80
mph, they generate 24 pounds of downforce, the exact opposite of the aerodynamic lift some vehicles develop at
speed.
The engineering team used a 3-D printer to make prototypes of the spoiler and other parts that ended up in the
PP2.
Ford's formal plan for the 2018 Mustang didn't include any of the features in Performance Pack 2, but like
countless Mustang fans before them, the engineering team didn't know when to stop.
"A passion to create something special is what really drove this project," Mustang vehicle engineering manager
Tom Barnes said. "That really showed in the off-the-clock way we went about doing our work."
Key members of the team included tire and wheel expert Chauncy Eggleston; aerodynamics specialist Jonathan
Gesek; and dynamics boss Jamie Cullen.
"It will just beg you to go faster," Cullen said.
Document USAT000020171027edar0000f

Business News: Ford's Workhorse Trucks Haul In Solid Profit
Business News: Ford's Workhorse Trucks Haul In Solid Profit

By Mike Colias and John D. Stoll
693 words
27 October 2017
The Wall Street Journal
J
B3
English
Copyright 2017 Dow Jones & Company, Inc. All Rights Reserved.
Ford Motor Co. delivered a fresh reminder that -- amid all the talk about driverless cars and electric vehicles --
Detroit is a truck town.
The No. 2 U.S. auto maker on Thursday reported a 63% third-quarter profit increase, a positive sign following a
summer marked by management reshuffling, a renewed cost-cutting drive and continued malaise for the share
price. Those results were fueled by sales of F-series trucks, hulking vehicles that likely made up more than half of
the $2 billion in operating profit Ford fetched over the period.
The average Ford pickup sold for $45,400 even with incentives factored in during the July through September
period. That price firmly outpaces the $31,200 that J.D. Power estimates is the average transaction price on
vehicles sold in the U.S., and it was also $2,800 higher than F-series prices during the same period a year ago.
General Motors Co., which reported earnings Tuesday, also saw truck pricing increases, raking in $43,220 per
Chevy Silverado or GMC Sierra sold in the third quarter, or nearly $1,300 more than the same period a year ago.
Ford's results highlight a persistent reality for car executives eager to showcase investments in future technology.
The billions of dollars being spent on autonomous-vehicle research and making more affordable electric cars
wouldn't be available if it weren't for brisk truck sales.
The truck momentum has been sparked by the redesign of Ford's so-called Super Duty lineup, a series of bulky
work trucks that can cost more than $100,000. The auto maker put a new version on sale last fall as U.S. buyers
soured on bread-and-butter sedans and compact cars. It marked the first major redesign of the Super Duty in
several years.
Ford also sells the F-150 truck for lighter-duty needs. The F-series has been the best-selling vehicle in America
since 1977.
Competitors, convinced that low gasoline prices and favorable economic conditions will remain, are angling to cut
in on Ford's truck dominance. GM and Fiat Chrysler Automobiles NV are prepping redesigned models for
introduction late next year, and those projects require billions of dollars and thousands of engineers.
Pickup trucks are a vital source of profit for the Detroit companies. While the Asian auto makers are formidable
rivals in cars and crossover SUVs, none offer any serious challenge in the market for big pickups. Profit margins
on those trucks -- used to haul recreational boats and on construction sites across America -- are typically far
above 10% and can outpace luxury cars.
Ford needs to protect its turf. North America continues to fuel Ford's bottom line, contributing nearly all of its
automotive operating profit as other regions net out at about break-even. Ford's operating margin rose to 8.1% in
the third quarter, short of the 10% margins that Detroit executives expect to squeeze from core operations but
substantially better than the same period a year ago.
Ford's overall profit increase during the quarter was also attributed to a lower tax rate and belt-tightening
measures. The No. 2 U.S. auto maker by sales reported net income of $1.6 billion for the July through September
period, and it raised its full-year earnings guidance.
The brighter outlook is a sign the company is optimistic about measures it is taking to improve its business, Chief
Financial Officer Bob Shanks said during a round table with reporters. Ford posted adjusted earnings per share of
43 cents, better than the average analysts' forecast of 33 cents.
Revenue grew 1% to $36.5 billion, surpassing Wall Street expectations of $32.8 billion.
Ford cited early progress on new Chief Executive Jim Hackett's goal of slashing billions of dollars in engineering
and manufacturing costs to improve Ford's "fitness" as it pivots to longer-term bets on electric cars and
autonomous vehicles. Costs improved by about $700 million in the quarter.
License this article from Dow Jones Reprint Service
Document J000000020171027edar0002q

Detroit Trims Fat to Take On Big Tech
Business/Financial Desk; SECTB

Detroit Trims Fat to Take On Big Tech
By BILL VLASIC
1,174 words
27 October 2017
The New York Times
NYTF
Late Edition - Final
6
English
Copyright 2017 The New York Times Company. All Rights Reserved.
DETROIT -- Detroit's Big Three automakers are showing a new sense of bottom-line discipline as they angle for
any advantage in the race with Silicon Valley, and one another, to develop the cars of the future.
This week, the companies -- General Motors, Ford Motor and Fiat Chrysler -- reported earnings that highlighted
the underlying strengths in their basic business of building mass-market vehicles, particularly hot-selling trucks
and sport-utility vehicles.
Ford was the latest to weigh in, announcing Thursday that robust sales of its bellwether F-series pickup had
fueled a $1.6 billion profit for the third quarter, a 63 percent increase over the same period a year ago.
And like General Motors and Fiat Chrysler, which reported their results earlier in the week, Ford needs to keep
squeezing more profits from mainstream products to finance the new technology necessary for electric and
self-driving models.
''We have a clear path to leverage what we've done historically,'' said Jim Hackett, who became Ford's chief
executive five months ago. ''Our first priority is to restore revenue and attack costs.''
Mr. Hackett's predecessor, Mark Fields, was ousted in May after he failed to deliver the high-tech strategy that
investors were eager to see for future growth.
Mr. Hackett has reorganized his management team with an eye toward incremental improvements in the more
mundane aspects of the business, such as cutting material costs and streamlining production, as a prelude to
making larger investments in electric-powered models driven by computers. It also announced a long list of senior
management appointments and departures this week.
''We are committed to transforming our business,'' Mr. Hackett said of his company's efforts to bring new
driverless technology to market. Yet he seemed most proud on Thursday that Ford had achieved 8 percent
operating margins on vehicles it builds and sells in the North American market.
That is the type of performance that the Detroit companies must achieve to win over investors, who remain leery
of the domestic manufacturers because of their roller-coaster financial histories.
It was just eight years ago that both G.M. and the former Chrysler needed bankruptcies and government bailouts
simply to survive.
For its part, Ford weathered the last recession without the benefit of Chapter 11 or federal aid -- but only after it
borrowed heavily and sold off divisions to generate the capital it needed to stay alive.
Now all three manufacturers are committed to reining in costs, aligning production volumes with demand, and
reducing unprofitable sales of slow-moving vehicles to corporate fleets and rental-car companies. The Chrysler
half of the Italian-American company Fiat Chrysler has gone a step further by dropping most small and midsize
passenger cars from its lineup.
Its focus on Jeep S.U.V.s and Ram pickups helped Fiat Chrysler post record third-quarter earnings of about $1.1
billion, an increase of 50 percent over the same period a year ago.

The results drew praise from one analyst because of the company's aggressive approach to maximizing
shareholder value. ''Fiat Chrysler has continued a relentless restructuring of its brand portfolio to de-emphasize
areas where it couldn't make money,'' the analyst, Adam Jonas of Morgan Stanley, wrote in a research note.
The earnings announcements this week were welcomed on Wall Street, with Ford's shares gaining almost 2
percent on Thursday.
But attacking costs and shifting investment to more popular products may not be enough for automakers to
sustain strong profits if market conditions continue to weaken.
Overall sales of new vehicles in the United States have fallen about 2 percent so far this year, after back-to-back
record years. An overhaul or abandonment of the North American Free Trade Agreement -- which is being
renegotiated by the United States, Canada and Mexico -- could also upset the delicate balance of production and
parts manufacturing spread over the region.
Competition is also getting stiffer, as companies such as the Japanese automaker Nissan expand their S.U.V.
lineups and underperforming automakers like the German giant Volkswagen rev up their expansion plans.
Still, the healthy profit reports out of Detroit are becoming a proof point that the major domestic carmakers are
better prepared than ever for a longer-term downturn in demand.
Some of the biggest changes are underway at G.M., the nation's largest automaker. The company has made
major moves in recent months, such as selling its unprofitable Opel-Vauxhall unit in Europe. Moreover, G.M.
slashed its third-quarter production in North America by about 25 percent to respond to weak demand for many of
its passenger car models.
The company reported a loss of $3 billion for the quarter, mostly because it is still absorbing hefty charges for the
sale of the European assets to the French carmaker PSA Group. But G.M. reported 8 percent profit margins on
vehicles it did sell in its home market, and pledged to stay focused on selling fewer, but higher-priced, vehicles.
G.M.'s chief financial officer, Chuck Stevens, told analysts on a conference call that the results demonstrated ''the
resilience of our core business'' in the face of declining consumer demand. ''This was a solid quarter even with
significantly lower volumes,'' he said.
But as overall sales in the United States continue to slowly erode, the companies must maintain discipline on
production schedules and refrain from piling sales incentives on poor-performing models. ''The market is more
challenging than expected,'' Mr. Stevens said.
Strong balance sheets are essential if the automakers are going to dedicate more spending and resources to
expensive strategies for self-driving and electric cars. G.M., for example, is continuing to build on its acquisition of
the software firm Cruise Automation in its efforts to put fully autonomous vehicles on the road.
The company recently acquired a small laser-imaging company to augment Cruise's work on outfitting all-electric
Chevrolet Bolts with the most advanced self-driving equipment. And G.M. is building more Bolts for
autonomous-driving tests in New York and elsewhere.
Mary T. Barra, G.M.'s chief executive, told analysts that the company was also looking at potential markets for
self-driving vehicles outside the United States. ''Absolutely, we are going to be looking globally,'' she said.
And even Fiat Chrysler, which has been slow to join the race to develop autonomous vehicles, served notice that
it was now in position to accelerate its self-driving program in partnership with the German automaker BMW and
suppliers like Delphi and Intel.
''We're not laggards here,'' the company's chief executive, Sergio Marchionne, said on an analyst call. ''We've just
chosen our spot carefully before we started playing.''
Sales of F-series pickups helped Ford post a $1.6 billion profit for the third quarter, a 63 percent increase over the
same period a year ago. (PHOTOGRAPH BY JOE RAEDLE/GETTY IMAGES)
Document NYTF000020171027edar00036

Business News: GM Wrestles With Excess Capacity --- Auto maker is operating too many U.S. plants, which saddles it with higher fixed costs
Business News: GM Wrestles With Excess Capacity --- Auto maker is operating too many U.S. plants,
which saddles it with higher fixed costs
By Mike Colias
1,218 words
10 October 2017
J
B3
English
ORION TOWNSHIP, Mich. -- Despite its drastic downsizing a decade ago under a federally funded bailout and
bankruptcy restructuring, General Motors Co. again finds itself with too many U.S. factories that can turn out too
many vehicles.
But as GM considers how to trim the excess capacity, which saddles the company with higher fixed costs, it faces
a tricky political factor: President Donald Trump's insistence that auto makers assemble more of their vehicles in
America and not in lower-cost plants elsewhere.
This year through August, GM built about 7% more vehicles at its North American plants than rival Ford Motor Co.
but used about one-third more assembly plants to do so, according WardsAuto.com.
GM's factory-utilization rate in North America averaged 95.1% over the past two years, below Ford's 111.9% and
Toyota's 101.4%, Wards data show. (Rates can exceed 100% when factories work a third shift or schedule
overtime work on weekends.)
GM's sprawling factory here in Orion Township, a suburb north of Detroit, is a glaring example of the company's
predicament. It makes the slow-selling Chevrolet Sonic subcompact and the new Bolt electric model, for which
GM has modest though undisclosed sales goals.
One recent afternoon, workers filed into the parking lot a few minutes after the day's sole production shift ended --
a rarity in an industry that often runs its factories from down to dusk or even around the clock to boost their
efficiency.
GM recently lowered production at Orion by 20%, resulting in 100 lost jobs, people familiar with the matter said.
GM declined to quantify the cuts but confirmed it is making fewer Sonics.
"The Bolt is hanging in there, which is good," Henrietta Holland, an Orion factory worker, said after her shift. "But
we are worried" about job security. "We feel like we should be getting another product."
Factory-utilization rates typically measure how much production capacity a plant uses, based on a 16-hour
workday. GM says its utilization rate is 100% on average when its round-the-clock truck and sport-utility vehicle
lines are figured in with the relatively sleepy factories making cars.
While GM has boosted its U.S. employment by more than 6,000 factory jobs since 2010, it also has bulked up
production in Mexico for export to the U.S. under the North American Free Trade Agreement. It recently started
making two popular crossover SUV models south of the border, and for years has imported large pickup trucks
from there.
GM has no plans to construct new U.S. factories, and executives in recent years have weighed closing at least
two existing ones, according to people familiar with the matter.
Some of the low usage of its U.S. plants stems from a decision GM made a number of years ago to revitalize its
lineup of sedans and coupes, including a new Chevy Malibu that has garnered glowing reviews from critics. But in
the past few years, low gasoline prices prompted millions of Americans to gravitate from passenger cars to
less-fuel-efficient SUVs and pickup trucks.

To be sure, all auto makers have been grappling with the dramatic consumer shift. Less than 10 years ago,
passenger cars accounted for roughly half of U.S. vehicle purchases at retail. Last month, cars accounted for a
record low 35%, according to J.D. Power.
While leaving some GM plants with unused capacity, this switch has boosted the company's bottom line. Its
plants that build the highly profitable Chevrolet Silverado pickup, for instance, are working overtime, which helped
GM earn a record $12.5 billion operating profit in 2016. GM's stock price has hit a multiyear high.
Chief Executive Mary Barra, a GM lifer of more than three decades who once roamed the factory floors as a plant
manager, must contend with the capacity glut at the same time the company is making costly investments in
electric cars and self-driving vehicles.
GM said it is working to "drive further improvements" in its plant utilization, including adding crossover SUVs to
more factory lines. A plant in the Kansas City area that now makes only the Malibu is scheduled to begin
assembling a small Cadillac SUV by late 2018. But such a switch-over typically takes car makers several years of
lead time, to order and install new assembly-line equipment and tooling.
GM operates 17 vehicle-assembly plants in North America, after closing several during its bankruptcy. Most,
except for five that operate around the clock to build trucks and SUVs, have ample unused capacity.
GM's Detroit-Hamtramck assembly plant, the lone factory in the auto maker's hometown, in 1999 cranked out
more than 200,000 Cadillacs and Buicks. It will likely make about 80,000 vehicles this year.
Compared with competitors, GM has a larger number of plants that make only cars. That has forced GM to make
more drastic moves when adjusting production toward trucks and SUVs. It has cut nearly 3,000 jobs since late
last year, leaving many U.S. factories on reduced schedules.
GM has more leeway to cut factory workers under more flexible terms under its recent contracts with unionized
workers. It pays less in unemployment benefits and uses more temporary workers who aren't due money when
they are let go.
---
Acquisition boosts
self-driving efforts
Seeking to bolster its position in the race to commercialize self-driving cars, General Motors Co. said Monday it
has acquired a company that makes lidar, laser-based sensors that help autonomous vehicles navigate.
The nation's largest auto maker by sales said it bought Strobe Inc., a startup based in Pasadena, Calif., with 11
employees. Strobe's engineers will work with Cruise Automation, the San Francisco autonomous-vehicle
developer that GM acquired in early 2016, the company said. Terms of the Strobe acquisition weren't disclosed.
Kyle Vogt, chief executive of Cruise, said Strobe is developing a lidar system that will be much smaller and cost a
tiny fraction of the bulky lidar sensors that the company and others now use on their test cars. "By collapsing the
entire sensor down to a single chip, we'll reduce the cost of each lidar on our self-driving cars by 99%," Mr. Vogt
said in a blog post.
Lidar uses lasers to measure the distance of objects in the car's field of vision. Most autonomous-vehicle
developers use lidar in conjunction with radar and cameras to recognize other vehicles, street signs, pedestrians
and other objects.
The deal comes amid growing investor interest in the potential of GM's stable of advanced technologies, including
the autonomous-driving system now in testing. "Business-es built off of this platform will ramp much faster than is
widely expected," Deutsche Bank analyst Rod Lache wrote in a client note last week.
GM shares have risen 21% in the past month, closing at $45.33 on Monday.
The auto maker has been testing autonomous Chevrolet Bolt electric cars in San Francisco and the Detroit and
Phoenix areas.

Document J000000020171010edaa0002g

Ford to cut $14B, bets on electric
MONEY
Nathan Bomey
358 words
4 October 2017
USA Today
USAT
B.1
ISSN:07347456
English
Automaker says its transformation will include fewer models
Ford Motor will slash $14 billion in costs over a five-year period and invest heavily in electric cars as the
company's new CEO aims to boost profits and position the company for the future.
Ford CEO Jim Hackett on Tuesday outlined his long-anticipated comprehensive strategy to remake the company
after taking the reins in May.
His plan includes a dramatic simplification of Ford's vehicle lineup, including a reduction in passenger cars and
investments in pickup, crossovers and sport-utility vehicles.
"Ford will prepare for disruption by becoming fit," Hackett told investors at an event in New York.
The cost cuts include $10 billion in "incremental" reductions in material costs and $4 billion in engineering cuts as
the company shoots to cut vehicle development time by 20%.
Hackett is targeting a significant cut in the number of vehicle packages available and an increase in shared parts.
Instead of 35,000 possible versions of the Ford Fusion sedan, for example, Ford will offer 96. Instead of 2,302
versions of the Escape SUV, Ford will offer 228.
Optional upgrades, such as special paints, interior trim and infotainment systems, have dramatically increased the
number of vehicles available from Ford.
The company is also expected to reduce car sales, with fewer options available on small cars such as the Fiesta
subcompact and Focus compact, for example.
"We have too much cost across our business," Hackett said. "These are real improvements to the business."
The company plans to cut spending on traditional internal combustion engines by 32% from 2016 to 2022 and
increase spending in electric vehicles by an unspecified amount.
The electric-vehicle plan includes the formation of a new group called Team Edison.
Hackett, facing pressure to bolster profits, warned that it would take more than a year for the changes to boost the
bottom line.
With a company as old as Ford -- like furniture maker Steelcase that Hackett led as CEO for years -- "the decision
to change isn't easy," he said.
Credit: Nathan Bomey, @NathanBomey, USA TODAY
Document USAT000020171004eda40003i

MONEY
Nathan Bomey; NathanBomey
359 words
4 October 2017
USA Today
USAT
B.1
ISSN:07347456
English
bottom line.
CREDIT: Nathan Bomey, @NathanBomey, USA TODAY
Document USAT000020181007eda400045

GM, Ford, Toyota lead September rebound in auto sales
MONEY
Nathan Bomey; NathanBomey
353 words
4 October 2017
USA Today
USAT
B.4
ISSN:07347456
English
Ford and GM pickups, a hot Toyota SUV and Nissan's popular crossovers helped recharge U.S. auto sales in
September.
The auto industry rebounded as several automakers posted significant sales gains, potentially positioning the
industry for a strong end to the year after several months of year-over-year monthly declines.
Overall, U.S. auto sales rose 6.1%, compared with a year earlier, to 1.52 million vehicles, according to Autodata.
The three largest sellers in the U.S. -- General Motors, Ford and Toyota -- posted particularly strong months, with
sales rising 11.8%, 14.9% and 8.9%, respectively. GM and Ford got a big boost from sales to fleet customers, but
retail sales were strong, as well.
Despite the solid month, the industry likely will fall short of the full-year record of 17.55 million vehicles. Sales of
profitable pickups, sport-utility vehicles and crossovers remain strong, while passenger car sales continue to
struggle.
"The auto industry showed renewed strength in September," Jack Hollis, group vice president and general
manager of the Toyota division, said in a statement.
The company's popular RAV4 SUV continued its hot streak, jumping 44% to 42,395, making it the automaker's
most popular vehicle by more than 7,600 units.
Japanese automaker Nissan notched a 9.5% increase to 139,932 vehicles in September, reflecting a company
record for the month. Nissan's extremely popular Rogue crossover, its most popular model, jumped 47% to
38,969 vehicles.
For Ford and GM, pickup sales led the way. The Ford F-series pickup, the most popular vehicle in the U.S.,
soared 21.4% to 82,302 units.
GM's Chevrolet Silverado rose 21.7% to 55,236 vehicles, lifting Chevrolet to a 17.2% increase.
Italian-American automaker Fiat Chrysler recorded a 10.1% sales decline for the month. Fiat Chrysler has been
aggressively slashing its reliance upon sales to less-profitable fleet customers. Retail sales rose 0.3% and fleet
sales declined 41%.
CREDIT: Nathan Bomey, @NathanBomey, USA TODAY
Document USAT000020181007eda40003x

MONEY
Nathan Bomey
358 words
4 October 2017
USA Today
USAT
B.1
ISSN:07347456
English
bottom line.
Document USAT000020171004eda40008i

MONEY
Nathan Bomey
351 words
4 October 2017
USA Today
USAT
B.4
ISSN:07347456
English
Ford and GM pickups, a hot Toyota SUV and Nissan's popular crossovers helped recharge U.S. auto sales in
September.
The auto industry rebounded as several automakers posted significant sales gains, potentially positioning the
industry for a strong end to the year after several months of year-over-year monthly declines.
Overall, U.S. auto sales rose 6.1%, compared with a year earlier, to 1.52 million vehicles, according to Autodata.
The three largest sellers in the U.S. -- General Motors, Ford and Toyota -- posted particularly strong months, with
sales rising 11.8%, 14.9% and 8.9%, respectively. GM and Ford got a big boost from sales to fleet customers, but
retail sales were strong, as well.
Despite the solid month, the industry likely will fall short of the full-year record of 17.55 million vehicles. Sales of
profitable pickups, sport-utility vehicles and crossovers remain strong, while passenger car sales continue to
struggle.
"The auto industry showed renewed strength in September," Jack Hollis, group vice president and general
manager of the Toyota division, said in a statement.
The company's popular RAV4 SUV continued its hot streak, jumping 44% to 42,395, making it the automaker's
most popular vehicle by more than 7,600 units.
Japanese automaker Nissan notched a 9.5% increase to 139,932 vehicles in September, reflecting a company
record for the month. Nissan's extremely popular Rogue crossover, its most popular model, jumped 47% to
38,969 vehicles.
For Ford and GM, pickup sales led the way. The Ford F-series pickup, the most popular vehicle in the U.S.,
soared 21.4% to 82,302 units.
GM's Chevrolet Silverado rose 21.7% to 55,236 vehicles, lifting Chevrolet to a 17.2% increase.
Italian-American automaker Fiat Chrysler recorded a 10.1% sales decline for the month. Fiat Chrysler has been
aggressively slashing its reliance upon sales to less-profitable fleet customers. Retail sales rose 0.3% and fleet
sales declined 41%.
Document USAT000020171004eda40003g

Business News: Ford Set to Shift $7 Billion Toward Trucks and SUVs
Business News: Ford Set to Shift $7 Billion Toward Trucks and SUVs
By Mike Colias
499 words
4 October 2017
J
B3
English
Ford Motor Co. will shift about $7 billion toward the development of more trucks and sport-utility vehicles while
"attacking" costs, part of new Chief Executive Jim Hackett's strategic plan for the No. 2 U.S. auto maker.
Mr. Hackett, the former office-furniture executive appointed in May, outlined his strategy to investors and analysts
in New York late Tuesday. He emphasized faster action to deploy capital in regions and product lines with solid
growth potential while positioning the auto maker for a future of electric vehicles and connected and driverless
cars.
Moving capital investment to higher-margin trucks and SUVs is a response to rapidly shifting consumer tastes in
the U.S. market and abroad, as buyers abandon sedans for vehicles with greater utility and space. Part of the $7
billion capital reallocation includes reintroducing the Ranger pickup truck and Bronco SUV in North America and
moving production of its next-generation Focus small car to China, plans that were previously disclosed.
Ford also said it would shift about one-third of its scheduled investment in gas and diesel engines over the next
five years -- about $500 million a year -- into cars that run fully or partly on battery power. That will come on top of
$4.5 billion the company is spending over five years to expand its electric-vehicle lineup.
The Dearborn, Mich., auto maker appointed Mr. Hackett to succeed Mark Fields, who was ousted in the spring
amid a downtrodden share price and belief inside and outside the company that the auto maker lacked a clear
vision. Mr. Hackett spent four months studying aspects of Ford's business to devise the plan.
The 62-year-old is out to prove to Wall Street that Ford has a plan to take on Tesla Inc. in electric cars and
deep-pocketed tech giants like Google's Waymo unit in driverless technology while also fending off hard-charging
traditional rivals like General Motors Co., which many analysts believe has a lead in advanced technology. Ford is
investing $1 billion in startup Argo AI to develop autonomous-driving technology, which executives said is on track
for commercial deployment by 2021.
Mr. Hackett, who emphasized smart design during his long tenure running Michigan-based Steelcase Inc., wants
to slash costs by modernizing and simplifying Ford's vehicle lineup, factories and product-development process.
The company aims to cut material costs by $10 billion and engineering costs by an additional $4 billion over five
years.
"Ford will prepare for disruption by becoming fit" in operations and capital allocation, Mr. Hackett told investors.
That should give Ford "the time, resources and flexibility to evolve," he said.
Executives said they would move quickly to shore up low-margin or unprofitable parts of the business, as GM has
done in recent years by exiting Europe, India and other money-losing markets.
Document J000000020171004eda40001z

Business News: Detroit Rolls Ahead On Electric Vehicles
Business News: Detroit Rolls Ahead On Electric Vehicles

By Mike Colias
504 words
3 October 2017
J
B3
English
Detroit's largest auto makers ramped up plans for electric vehicles in coming years, the latest push from
traditional car companies to respond to tougher emissions regulations and the prospect that some markets across
the globe could eventually ban internal combustion engines powered with fossil fuels.
General Motors Co. plans to introduce two more electric vehicles in the U.S. over the next 18 months and 20
globally within six years, the nation's largest auto maker by sales said Monday. At the same time, crosstown rival
Ford Motor Co. said it had formed a new team to help direct investments toward new electrified vehicles expected
in the next several years. The Detroit-based group, called "Team Edison," will explore partnerships with suppliers
and other companies, the auto maker said.
The auto makers are investing billions of dollars in electric vehicles despite challenges in turning a profit on them
due to expensive technology costs that increase vehicle prices, and tepid consumer demand. GM and Ford are
currently minting profits in the U.S. with fuel-thirsty pickup trucks and sport-utility vehicles that consumers find
enticing amid low gasoline prices.
Electric vehicles account for less than 1% of U.S. sales, and a sliver of the nearly 90 million total vehicles sold
around the world last year. Infrastructure challenges remain, with additional charging stations needed to keep
vehicles powered and avoid stranded motorists. Investors have bid up shares of Tesla Inc., pressuring traditional
car companies, but the Silicon Valley electric-car maker consistently loses money.
Still, countries including China, the U.K., France and India have signaled plans to ban sales of vehicles powered
with gasoline or diesel fuels in the coming decades. The head of California's Air Resources Board recently
suggested the state could follow suit. That is on top of burgeoning negotiations among California, Trump
administration officials and car executives over potentially relaxing tough future emissions standards that require
companies to sell vehicles getting better mileage.
The upshot is car executives, even while highlighting challenges with market demand and lobbying for regulatory
changes, are increasingly sounding bullish on electric cars and, in some instances, echoing statements from
government officials.
"General Motors believes the future is all-electric," said Mark Reuss, GM's product-development chief, at the auto
maker's suburban Detroit design center. He said GM's future electric vehicles would be profitable, without further
explanation.
GM's lineup will continue to offer hybrids and traditional vehicles reliant on gasoline and diesel fuels during what
the company expects to be a prolonged transition to those predominantly running on batteries, Mr. Reuss said.
GM said it would use the underpinnings of the Chevrolet Bolt electric car currently on sale for coming vehicles in
the U.S. The auto maker also said it has developed a next-generation battery system that will allow for greater
flexibility in electric-vehicle sizes and body styles.
Document J000000020171003eda300022

Lyft adds Ford as a self-driving car ally
MONEY
Lyft adds Ford as a self-driving car ally
Marco della Cava
386 words
28 September 2017
USA Today
USAT
B.5
ISSN:07347456
English
Ride-hailing company says it will be fully operational by 2021
Lyft just can't stop dating when it comes to self-driving cars.
Ford Motor announced Wednesday it has entered into a partnership with the ride-hailing company to share
information in order to accelerate the launch of a commercial self-driving car service.
Lyft plans to be the first ride-hailing company to deploy self-driving cars built by a major automaker, Lyft
spokesperson Sheila Bryson says. Lyft expects to deploy pilot programs in the coming years and be fully
operational by 2021.
The two companies will use the partnership to create platforms that are technologically compatible, determine
what U.S. cities may be the best candidates for such a service and to understand what infrastructure will be
needed.
"Think of it this way," Sherif Marakby, Ford's vice president for autonomous vehicles and electrification, wrote in a
blog post announcing the partnership. "Someday, when you open the Lyft app during a period of high demand,
Ford and Lyft software will need to be capable of quickly dispatching a self-driving vehicle so that you can get to
your destination as quickly and as safely as possible."
Lyft has been rapidly adding more partners to an autonomous-car dance card that now includes both industry
pioneers, such as Google parent Alphabet's Waymo and upstarts such as autonomous car software and
hardware builder Drive.ai.
Self-driving technology is considered critical to ride-hailing companies such as Lyft and Uber, which currently use
much of their considerable cash to either recruit drivers or keep fares artificially low.
While most transportation experts don't expect self-driving cars to find wide success in suburbs, many congested
urban centers are prime candidates for fleets of electric autonomous cars that can remain in constant motion and
eliminate the need for parking.
Uber, which remains the dominant ride-hailing service in the U.S., has been aggressive about launching its own
self-driving car program.
But more recently, the company has been grappling with a series of self-inflicted wounds that saw its co-founder
and CEO, Travis Kalanick, who was replaced by former Expedia CEO Dara Khosrowshahi.
Credit: Marco della Cava, @marcodellacava, USA TODAY
Document USAT000020170928ed9s00008

Lyft and Ford Reach Deal To Test Self-Driving Cars

Lyft and Ford Reach Deal To Test Self-Driving Cars
By MIKE ISAAC
559 words
27 September 2017
The New York Times
NYTF
3
English
SAN FRANCISCO -- For Lyft, winning the race to create the first fully self-driving vehicles on the road is a far
from lonely pursuit. The company's ethos is the more partners, the merrier.
That approach explains the new tie-up between Lyft and Ford Motor. On Wednesday, the companies said they
had struck a partnership to develop and test autonomous vehicle designs and technology, with the aim of putting
Ford's self-driving vehicles on Lyft's ride-hailing network in the future. As part of the agreement, the companies
plan to focus on issues such as software design, customer experience and user interfaces.
''We're focused on partnering with the auto industry because frankly, we think we can't do this alone and need
each other to be successful,'' said Raj Kapoor, Lyft's chief strategy officer. ''It's one thing to do tests with one or
two cars. It's a whole different world doing this on a large scale.''
The partnership represents another shift on the rapidly changing landscape for self-driving cars, where traditional
automakers like General Motors and Silicon Valley companies including Waymo and Uber are all jockeying for the
lead.
Lyft has tried to position itself as an agnostic player in the autonomous vehicle industry with its Open Platform
Initiative, under which it will cooperate with car manufacturers to test their self-driving cars and use their
technology on its ride-hailing network. The self-driving start-up nuTonomy and Land Rover, among others, have
already joined.
At the same time, Lyft has also opened a new self-driving research facility in Palo Alto, Calif., and plans to recruit
new engineering and autonomous vehicle researchers to develop its own autonomous vehicle technology.
Lyft must be careful that it does not alienate any of the large group of partners it is trying to bring to the table.
Allies like Waymo, one of Google's sister companies, which has agreed to work on self-driving technology with
Lyft, could eventually become a competitor if Waymo ever decides to create its own ride-hailing network.
Some tension has already become evident. Since Lyft began its partnership push, G.M., one of Lyft's biggest
investors and partners, has started to test its own version of a ride-hailing network with some of its employees.
G.M.'s self-driving efforts are largely based on the technology developed by Cruise Automation, the start-up the
automaker purchased last year for more than $1 billion.
Ford, which is in the midst of a turnaround under a new chief executive, Jim Hackett, has also bet big on
autonomous vehicles as part of its future. Ford pledged to invest $1 billion in Argo AI, a start-up that is developing
machine learning and artificial intelligence for self-driving cars, over the next five years.
For its part, Ford does not appear concerned with Lyft's growing web of partnerships.
''Some view the opportunity with self-driving vehicles as a race to be first,'' Sherif Marakby, who leads Ford's
autonomous vehicle efforts, said in a company blog post. ''We are focusing our efforts on building a service based
around actual people's needs and wants.''
Follow Mike Isaac on Twitter: @MikeIsaac
Document NYTF000020170927ed9r0005a
Ford creates a baby Ranger Raptor pickup
MONEY
Ford creates a baby Ranger Raptor pickup
Mark Phelan
347 words
20 September 2017
USA Today
USAT
B.5
ISSN:07347456
English
Can you say "Ranger Raptor?" Now try it with an Australian accent: "No worries, mate. I'll pick you up for the
barbie in me Ford Ranger Raptor. G'day."
That's as close as Ford's legions of U.S. truck fans may get to the Blue Oval's latest road warrior for the
foreseeable future. Ford has announced it will sell a high-performance Raptor off-road racer version of its Ranger
midsize pickup in Australia and other countries around the Pacific Rim next year.
"Combining the Raptor's advanced off-road capabilities with the versatility of the Ranger is a significant
accomplishment for Ford's world-class engineering and design teams," said Jamal Hameedi, chief engineer of
Ford's global Performance group.
Easy, digger. That doesn't mean there are plans for a U.S. Ranger Raptor. Far from it. The Ranger Raptors built
in Ford's Thai pickup plant will be very different from the midsize pickup of the same name hitting U.S. roads next
year. The U.S. Ranger has been re-engineered for American buyers. We're not likely to learn its details until auto
show season.
Ford already sells a pickup of which dreams are made in the U.S. With the 450-horsepower engine, the $49,265
F-150 Raptor is a full-size truck engineered for off-road racing. The existence of a Ranger Raptor in other parts of
the world is sure to conjure visions of a smaller, more affordable version in America. But Ford ducks questions
about U.S. sales or production of the Ranger Raptor like an American tourist dodging a Vegemite sandwich.
The words "Ranger Raptor" will excite truck fans, and video of a camouflaged truck rocketing through the
Australian Outback will stoke the fire. In addition to plumes of red dust and shots of a Ranger Raptor in full flight
with all four wheels airborne, the brief video features racing harnesses and close-ups of its modified off-road
suspension in action.
Document USAT000020170920ed9k0000n

Business News: Ford Idles 5 Plants Amid Slowing Sales
Business News: Ford Idles 5 Plants Amid Slowing Sales

By Christina Rogers
414 words
20 September 2017
J
B8
English
DETROIT -- Ford Motor Co. said Tuesday it will temporarily idle production lines at five North American plants,
including three in the U.S., the latest in a series of moves by U.S. auto makers to cope with slowing vehicle sales
and rising industry capacity.
Ford said it is scheduling downtime at the factories to whittle down unsold-car inventory on dealer lots.
Collectively, these five assembly plants, two of which are in Mexico, employ more than 12,000 workers, who will
be put on temporarily layoff during the down weeks. The production hiatus ranges from one to three weeks,
depending on the factory.
The move mostly affects factories building Ford's passenger cars, including the subcompact Fiesta and
bread-and-butter Fusion sedan, whose sales have been hit hard by the shift in consumer demand to larger
crossovers and SUVs.
Ford is also taking down a line at its Kansas City Assembly plant, where it builds the Transit van, to fix a recall
disclosed in June.
Ford executives have signaled throughout the year that production cuts may be needed to counter slowing U.S.
sales. While it has largely resisted permanent layoffs, opting instead to schedule downtime when needed, the
company's inventory levels have crept up in recent months.
General Motors Co., meanwhile, has cut thousands of jobs this year at several passenger-car plants in the U.S. in
response to a pullback in consumer demand for small cars and family sedans.
"We are continuing to match production with consumer demand, as we always do," Ford said.
Ford has made other cuts this year, temporarily laying off 130 workers at its assembly plant in Avon Lake, Ohio.
At the time, the company said the layoffs were expected to last until a newer version of its heavy-duty commercial
trucks launched in September.
The cutback is the latest sign that U.S.-based auto makers are struggling to keep supplies in check as U.S. auto
sales continue to weaken this year, following seven years of uninterrupted growth.
Last month, U.S. light-vehicle sales fell 1.9% from a year earlier, according to Autodata Corp., and the industry's
annualized selling pace, a measure of how sales are tracking for the full year, came in at a lower-than-expected
16.14 million vehicles in August.
---
Chester Dawson contributed to this article.
Document J000000020170920ed9k0002i

Auto Makers in Push for Patents
Auto Makers in Push for Patents

By Christina Rogers
952 words
19 September 2017
J
B1
English
Corrections & Amplifications
Patent holders have exclusive rights on an invention for 20 years after the filing date. A Business & Finance
article Tuesday about auto-industry patents incorrectly said the exclusive rights period starts from the grant date.
(WSJ September 20, 2017)
(END)
DETROIT -- Car fanatics wanting a glimpse at the auto industry's next big thing used to flock to auto shows. Now,
many of them flip through online patent filings.
Auto makers, pressured to keep up with Silicon Valley companies working on autonomous-car technology and
ride sharing, have sharply boosted their U.S. patent filings over the past five years. In 2016, 10 of the world's
largest car makers submitted 9,700 patent applications, up 110% from 2012, according to consulting firm Oliver
Wyman.
"The pressure is forus to invent before the Valley does," said Bill Coughlin, chief executive of Ford Global
Technologies LLC, which handles the Dearborn, Mich., auto giant's patent and copyrights. "The last thing we
want is to be a fast follower."
A growing number of these filings seem straight out of science fiction, covering inventions intended to help people
pay less attention to the road while they drive -- or while they aren't actually driving at all.
Ford Motor Co. seeks a patent for a drone system that would locate passengers who call a self-driving robo-taxi,
while another Ford filing, envisioning self-driving cars with conference-room-style seating, seeks to patent a
special air bag that will fit into a center table to protect the occupants facing it.
For its part, BMW AG wants to patent a system that would allow an autonomous vehicle to communicate with
pedestrians or human drivers in other vehicles, through visual signs, beeps or even speech.
Hyundai Motor Co., meanwhile, seeks to protect a device that would allow a driver to exit from the car and then
push a button to park it, while Toyota Motor Corp. is looking to patent a technology that makes certain car parts
such as door pillars appear to be see-through.
Patent holders have exclusive rights on an invention for as long as two decades after the grant date, an important
weapon for vehicle companies looking for a technological edge in an evolving industry. While patent disputes
rarely make news in the car business, first-movers often enjoy benefits, such as revenue from licensing their
creations to others.
Toyota, long the industry leader in patent filings, innovated several hybrid-vehicle technologies that rivals
eventually needed when looking to compete in combo gas-electric cars. Technology from its groundbreaking
Prius was licensed by Ford, for instance.
"We're not just a company that's looking at putting some nuts and bolts on a vehicle," said Fred Mau, Toyota's
lead intellectual-property attorney in North America. "It's about being prepared for, 'What's the next big thing?'"

One of the Japanese company's most recently published inventions is a system that uses cameras and data
storage to create a road-trip storybook. Toyota has also sought to patent a digital necklace to help the blind sense
their surroundings, an example of how the car maker is looking beyond the vehicle market to innovate.
Auto executives feel the heat from tech companies, as richly funded startups and corporate heavyweights
develop their own moonshot ideas.
For instance, Google parent Alphabet Inc.'s Waymo autonomous-car division in 2015 filed apatent application for
a shape-shifting vehicle that would become flexible in a collision. Amazon.com Inc., which is following Uber
Technologies Inc. and Apple Inc. in creating an in-house driverless-technology division, recently patented a
system to help autonomous vehicles better navigate differing roadway configurations.
Juergen Reiner, a partner at Oliver Wyman, said car companies have an edge in creating automotive hardware,
but will struggle to catch up on the software front. Unlike Silicon Valley companies, traditional vehicle makers face
huge overhead and capital requirements for their factories and product lines.
"It's not a well-balanced battle," Mr. Reiner said. "They need to develop cars and have other distractions."
Patent filings aren't the most efficient way to spy on big ideas at their gestation because they aren't made public
until 18 months after submission. However, because they include the inventor names, they are good for
identifying talent. "These are not the names you would ever read in the press," said Reilly Brennan, a partner at
Trucks venture-capital, a fund that invests in transportation startups. While under the radar, these engineers are
working on projects that are "more exciting than [anything] I'd ever seen at an auto show."
Some car companies aren't moving as aggressively on the patent front, even if they are trying to lead the
technology chase. General Motors Co., for instance, has bought or invested in Silicon Valley firms working on
autonomous technology but narrowed its own patent filings to about 1,000 in the U.S. last year, down 3.4% from
2012.
GM said it trimmed its patent requests to focus more on emerging technologies, including advanced materials,
and sensors and other things linked to connectivity. "We're not looking at patent volume," a GM spokesman said.
"We're looking at patent quality."
Toyota's U.S. filings climbed to over 3,000 last year from 1,271 in 2012, and to 7,000 globally, from 9,950 in 2012.
Ford submitted 5,000 globally, a fivefold increase over 2012, according to Oliver Wyman. Ford says it sees the
potential to boost its licensing revenue; its income from royalties, which includes licensing, totaled $714 million in
2016.
Toyota, Ford and several global rivals have ramped up research centers in Silicon Valley. Ideas like in-vehicle
health monitors and removable steering wheels or pedals for self-driving cars are among recent inventions Ford
has sought to patent.

Document J000000020170919ed9j0001f

Ford Links Up With Indian Firm
Technology
Ford Links Up With Indian Firm
By Christina Rogers
201 words
19 September 2017
J
B4
English
Ford Motor Co. again is distancing itself from crosstown rival General Motors Co., saying it will work with an
Indian auto maker on boosting its prospects in an important emerging market where profits have been hard to
come by.
Ford said Monday that it is linking up with Indian auto maker Mahindra & Mahindra Ltd. in a three-year
partnership to explore potential areas of collaboration on new technologies and retail sales. Such areas could
include everything from co-developing electric vehicles to collaborating on new mobility ventures and
connected-car services. Ford also is looking at ways to leverage the two companies' dealer networks to expand
into new markets.
Ford's move closely follows GM's exit from India, where the auto maker will stop selling vehicles so it can redirect
investment to more lucrative markets. GM is also spending heavily on autonomous-vehicle and electric-car
development.
India is the world's fifth-largest car market by sales. Mahindra has struggled to establish itself and its lineup of
rugged SUVs in mature markets.
Ford's market share in India is 2.5%.
Document J000000020170919ed9j0001m

Google Learns to Speak Detroit --- Alphabet's self-driving car unit hires auto-industry veteran to bridge divide with the Motor City
Google Learns to Speak Detroit --- Alphabet's self-driving car unit hires auto-industry veteran to bridge
divide with the Motor City
By Tim Higgins
2,127 words
12 September 2017
J
A1
English
MOUNTAIN VIEW, Calif. -- John Krafcik can speak two languages, Motor City and Silicon Valley, and if Google
makes progress in developing self-driving cars, it might have his translation skills to thank.
After building his career at Ford Motor Co. and Hyundai Motor Co., Mr. Krafcik, 55 years old, now heads Google's
self-driving car effort, called Waymo. Unlike automotive industry executives, who tend to have plush offices, he
has a desk among software engineers. On a recent afternoon, the desk was mostly clear except for a copy of
trade journal Automotive News.
The tech and auto industries have been at loggerheads for years. General Motors Co. was so annoyed with
Google, a unit of Alphabet Inc., it once tossed one of its software engineers off a test track for plowing through
cones. Fiat Chrysler Automobiles NV's Dodge ran a television ad that took a thinly veiled shot at the tech giant.
More than two years of on-and-off talks with Ford were fruitless.
The mutual mistrust has fostered a confusing array of alliances between auto makers, ride-hailing companies,
rental-car concerns and tech giants. Silicon Valley looked down its nose at the mundane work of manufacturing.
Detroit feared being turned into a commodity producer making a shell for others to fill, like cellphone handset
makers, a problem Mr. Krafcik wants to solve.
"We're not a disruptive element, we're an enabling element," he said in an interview.
Whether Mr. Krafcik can knit the two industries together will go a long way in determining the future shape of the
robot-car market and who stands to profit from it.
At Waymo, Mr. Krafcik is leading efforts to apply driverless technology to a range of uses -- whether for
ride-hailing, freight delivery or public transportation -- and possibly license it to car makers. He has forged
partnerships with Fiat Chrysler and is in talks with Honda to build self-driving cars. That's helped Waymo deploy
the largest fleet of self-driving cars, racking up more than 3 million miles of testing on public roads and leaving
GM, Ford and dozens of other auto makers rushing to develop their own technology.
There have also been setbacks. GM, the largest U.S. auto maker by sales, explored partnerships with Waymo but
shifted tactics after talks stalled and instead acquired an autonomous-car tech startup called Cruise Automation in
a deal that could be worth more than $1 billion. It also invested $500 million in ride-sharing startup Lyft Inc. Talks
also unraveled with Ford, which earlier this year pledged to invest $1 billion in artificial intelligence startup Argo
AI.
Some question whether Mr. Krafcik has figured out how to maneuver the levers of power within the large tech
company.
"He needs to be a futurist, a technologist, a salesman, a counter-regulator, a hacker, a financier," said one
Google car alum.
Misunderstandings between Detroit and Silicon Valley were commonplace after Google began teasing details
about its car efforts in 2010. Automotive executives were dismissive of the engineers Google recruited from
self-driving car competitions held by the Department of Defense. Google's engineers, meanwhile, turned their
noses up at Detroit in their pursuit to quickly put the technology on the road.

One of the earliest flirtations with an auto maker, Fiat Chrysler's Dodge brand, didn't go far. Google gave a test
ride to a senior executive, according to people familiar with the matter. Soon after, Dodge began running
commercials mocking the idea of self-driving vehicles made by "a search engine company." In the TV spots, the
baritone voice of actor Michael C. Hall says, "We've seen that movie . . . it ends with robots harvesting our
bodies," followed by footage of the 2011 Dodge Charger that he introduced as the "leader of the human
resistance."
Around the same time, members of the Google team were invited to an event by GM as it began selling in late
2010 the plug-in hybrid Chevrolet Volt, Detroit's high-profile effort to counter Toyota's Prius. During a driving
session on a closed course, one of the Google employees began showing off his drifting skills -- where the driver
intentionally over steers through a turn. The stunt knocked over safety cones. A furious GM manager threw the
team out, said a person at the event.
The incident became lore among some GM managers. "We had to restrict them a bit. They weren't very good
drivers," said a former senior GM executive involved with the Volt introduction. "At least not as good as the car
guys from Detroit." Google declined to comment.
Google's so-called Chauffeur team, which in its earliest days was a ragtag bunch, tried to polish its pitch to charm
Ford. The Dearborn, Mich., company was interested in replacing its vehicles' software with Google products such
as maps and music but the Google team only wanted to talk about robot cars, a person familiar with the effort
said. "We came across as arrogant Valley punks -- and we were," a former Google employee said.
Ford executives were put off by the fact that Google was testing vehicles on the roadways, a practice Ford
considered premature. "They were looking at our vehicles and thinking of them like science-fair projects," the
former Google employee said.
Google didn't have luck with Japanese auto makers, either. Discussions with Honda Motor Co. before 2014 didn't
progress, said Nick Sugimoto, the head of Honda's Silicon Valley office. "They were inflexible. They weren't clear
about what they wanted, and they really didn't listen to me," he said.
Google couldn't decide whether it should develop its own car or leave that to an auto maker. At one point they
debated the merits of acquiring electric-car company Tesla Inc. Google co-founder Larry Page told the group,
according to a person in attendance, that "he didn't want to drive a Tesla, he wanted to drive a Larry." A Waymo
spokesman declined to comment.
In 2014, Google sent a chill through the automotive industry with the unveiling of a podlike car it had designed.
The "Firefly" car sent a clear message to Detroit that Silicon Valley could compete. Apple's efforts to develop its
own self-driving technology leaked out in 2015.
Google was eager to put more vehicles on the road to test with real customers and pushed for putting the
technology in Ford and GM vehicles. Those talks also stalled.
Jon Lauckner, GM's head of R&D, visited the Google campus and expressed doubt the technology was ready for
use, according to people familiar with the meeting. Months later GM dispatched its president and its product chief
to smooth things over with Google, but the two sides still couldn't cement a deal.
GM executives were unhappy Google wanted the auto maker to only supply vehicles, these people said. Google
thought it had the leverage, thinking GM didn't have another option, this person said. To its chagrin, GM surprised
the industry last year with plans to acquire Cruise Automation.
Mr. Page and Google's other founder, Sergey Brin, realized they needed someone from the automotive industry
with relationships, according to a person familiar with their thinking.
In September 2015, they hired Mr. Krafcik. He had begun his automotive career more than 30 years ago at a car
factory about a half-hour drive from Waymo's offices.
As a young engineer-turned business student at the Massachusetts Institute of Technology, he visited 90 car
factories in 15 countries to study why the Japanese companies were better at making cars than U.S. companies.
His studies contributed to a seminal book, "The Machine That Changed the World," on "lean production"
techniques that inspired a generation of car makers.
As chief executive of Hyundai Motor America, he helped make sales gains in the wake of the 2008 financial crisis
when other auto makers were failing. His name had been floated as a potential Ford chief when Alan Mulally

retired in 2014 and as a candidate to run GM after it emerged from bankruptcy. He also had experience in the
tech sector as president of online car-buying website TrueCar.
"Being able to speak the language of the automotive ecosystem is very important to us," said Astro Teller, head of
Alphabet's Google X, an R&D division that was home for the self-driving project until being spun out as Waymo
last year.
Mr. Krafcik joined Google when the company was months into talks with Ford about investing in an electric car
program in exchange for thousands of cars. The sides were so close to a deal that a news release had been
drafted, according to people familiar with the matter. Mr. Krafcik told Messrs. Page and Brin he thought the project
was too costly and time consuming, the people said. Google ended the talks.
Several of the program's top engineers have left under Mr. Krafcik's watch, including the program's former
leaders, Chris Urmson and Anthony Levandowski, who both set up competing companies.
Mr. Levandowski is at the center of a legal battle between Waymo and Uber Technologies Inc. Waymo alleges
Mr. Levandowski stole trade secrets from Google to help jump start Uber's self-driving program. Uber denies
wrongdoing and fired Mr. Levandowski, who hasn't commented on the allegations.
Mr. Krafcik's message to auto makers is that he wants to make better drivers, not cars. In a world of self-driving
cars, many industry executives expect traditional car ownership to be upended as consumers begin paying for
rides rather than sheet metal.
In a conference room named after a robot, Mr. Krafcik scribbled numbers on a whiteboard: 3 trillion and 17
million. The bigger number was the total miles driven in the U.S. last year, while the smaller one was roughly the
number of new car sales across the country. The challenge was to get consumers spending on the distances they
travel in cars rather than on the cars themselves.
If the average large automotive company turns a profit of about $1,400 per vehicle sold, he said, a vehicle that
lasts 150,000 miles only garners about a penny per mile.
"The thing that the industry is struggling with right now is that for the 100 years it's been in existence it's been
focused on the number of units built," he said. "We are moving to a world where . . . it has to be miles driven."
Mr. Krafcik said he began talks with Sergio Marchionne, the chief executive of Fiat Chrysler, which lacked the
resources to develop its own self-driving software. Months later the two executives announced a deal for Waymo
to integrate its hardware into 100 minivans, a partnership that was expanded to 500 more minivans this year.
Mr. Krafcik liked that the new Chrysler Pacifica minivan had two things: rear doors that open and close with the
push of a button and plenty of electrical power to run onboard computers needed to drive the car. The trial
program marked a turning point for Google. For the first time it was working with an auto maker to install its own
software and hardware. That allowed it to retire the Firefly. Mr. Krafcik then developed a deal with Avis Budget
Group to maintain the growing fleet.
Waymo is also working on a user experience that allows passengers to feel comfortable in a vehicle without a
human driver. It includes a display system that tells riders why the vehicle is making decisions, such as stopping,
people familiar with the effort said.
In December, Mr. Krafcik announced that Waymo and Honda had rekindled talks over a possible partnership.
This time around, Google's attitude was sharply different, said Honda's Mr. Sugimoto. "John was very clear about
his intention is not to invade the auto industry or destroy the existing supply chain," he said.
During a tour that he often gives to curious automotive executives, Mr. Krafcik rushed through a garage with rows
of decommissioned robot cars, now being prepared for exhibits. Then he opened a door to the employee parking
lot and pointed to his ride, a white 1990 Porsche 964 Targa.
"People worry that with the work we're doing . . . that we're going to take all of the joy out of driving," he said. "I
don't believe that's true. There's always going to be stuff like this."
---
Mike Colias and Christina Rogers contributed to this article.

Document J000000020170912ed9c0001q

Domino's, Ford team to test driverless pizza delivery
MONEY
Domino's, Ford team to test driverless pizza delivery
Brent Snavely
786 words
30 August 2017
USA Today
USAT
B.3
ISSN:07347456
English
But will customers like the idea of what amounts to a self-serve pickup process?
Someday, the Domino's pizza you order might show up in a car that drives itself.
Domino's and Ford Motor began testing Tuesday in Ann Arbor, where Domino's is based, to see whether
customers like the idea of driverless-car delivery or stumble over what amounts to a self-serve pickup process
once the pizza arrives.
The test involves using a Ford Fusion sedan with markings and gear on the roof to indicate it is self-driving.
Ford said the Fusion hybrid is capable of driving itself but is driven by an engineer for the purposes of the testing.
The windows will be tinted to prevent the customer from seeing the driver. The main intent of the project is to test
customer reaction, and the customers will think the vehicle is driving itself.
The customer will receive a text message when the vehicle arrives and then go out to the car.
The customer then will enter the last four digits of his or her phone number on a tablet computer mounted on the
outside of the vehicle. The correct number causes the window to open, and the customer can pull the pizza out of
a compartment designed to keep the pizzas warm and prevent them from sliding around.
The nation's second-largest pizza chain isn't sure whether its customers will be eager to go outside to pick up
their pizza from a driverless car in the rain and snow, but it wants to begin testing the idea now so it can position
itself at the forefront of the emerging technology.
"We are delivery experts. This is where the industry is going," said Russell Weiner, president of Domino's USA.
"We think we are the right company, and we certainly are working with the right partner to make this happen."
While the idea will require the customer to do a little extra work, people have adapted in the past to self-service
gas and self-checkout at grocery stores. Plus, the pizza won't cost more, and no tip will be required.
Domino's wants to make sure it continues to explore innovative ways to stay ahead of the competition for getting
pizzas to the right place as fast as possible. The company began dispatching pizzas to homes in 1960 and
delivers more than 1 billion pizzas worldwide every year.
"So delivery is very important to us," Weiner said.
For Ford , partnering with Domino's provides a way to interact with a sophisticated company in the food-delivery
business as it develops self-driving vehicles.
While much of the focus is on self-driving vehicles used by ride-hailing services such as Uber and Lyft, the sale of
vehicles capable of delivering packages and goods could be just as lucrative for automakers.
"When you look at moving goods, there are perishable goods, which are difficult to do, like we are experimenting
with Domino's, and then there are non-perishable goods," said Sherif Marakby , Ford's vice president of
autonomous and electric vehicles.

For now, the partnership only involves one vehicle at one Domino's pizza location in Ann Arbor. Over the next
several weeks, randomly selected Domino's customers will be asked whether they are willing to participate in the
research project and receive their delivery from the self-driving Ford Fusion hybrid.
Kevin Vasconi , Domino's chief innovation officer, said the company expects all kinds of things will go wrong. In
fact, he hopes some customers have problems because the purpose of the test is to discover issues that
engineers haven't anticipated.
But engineers at Ford and Roush Performance, which outfitted the Fusion with the additional hardware and
electronics necessary to turn it into a delivery vehicle, seem to have thought of almost everything.
If the wrong number is keyed in three times, a prompt will direct the customer to call the store for assistance. If a
phone or another object is left in the compartment, as the customer picks up, the pizza's sensors will detect the
object and a voice will remind customers to make sure they have all of their belongings.
A touchscreen interface tablet, which will guide the customer through the experience, is attached on the
passenger side of a Ford Fusion hybrid autonomous research vehicle. And if customers linger too long as they
check out the vehicle, they will be asked to step away so the car can safely drive away. Afterward, customers will
be asked to participate in a survey that will ask how they liked the service.
Document USAT000020170830ed8u0000o

Business News: Ford Starts China Electrics Project
Business News: Ford Starts China Electrics Project

274 words
23 August 2017
J
B3
English
SHANGHAI -- Ford Motor Co. will start a new company to make electric cars in China, the company said
Tuesday, as the world's largest auto market begins to shift decisively away from gasoline-powered vehicles.
The proposed joint venture with local auto maker Anhui Zotye Automobile Co., which is subject to regulatory
approval, will produce electric cars "sold under an indigenous brand," rather than under the Ford marque, Ford
said in a written statement. The company didn't respond to questions about why it was opting to use a new brand.
Chinese regulations require foreign auto makers to set up joint-venture companies to build cars locally. Imported
cars incur a 25% tariff, making mass-market vehicles uncompetitive unless they are built in the country. Ford
already operates two joint ventures in China with local auto makers Changan Automobile Co. and Jiangling
Motors Corp.
China is encouraging auto makers to build electric cars to help meet ambitious national targets for electric-vehicle
adoption. Beijing normally limits foreign auto makers to two joint ventures, but it allows them to set up a third if it
specializes in electric-car assembly.
Zotye, Ford's new partner, is a little-known electric-car specialist. The Chinese company sold more than 16,000
electric cars in the first seven months of this year, according to Ford, or 7% of the 228,000 electric cars sold in
China so far this year.
Ford had already announced plans to start building its first electric car in China -- the Mondeo Energi plug-in
hybrid -- next year.
Document J000000020170823ed8n0000v

Business News: Vehicle Sales Rally in China
Business News: Vehicle Sales Rally in China

By Trefor Moss
330 words
14 August 2017
J
B3
English
SHANGHAI -- Vehicle sales in China revved in July, extending a rally and further allaying concerns following a
decline this spring in the world's biggest car market.
Passenger-car sales were up 4.3% from a year earlier, accelerating from June's 2.3% pace, the
government-backed China Association of Automobile Manufacturers said on Friday. There were 1.68 million cars
sold. Sales for the first seven months of 2017 were up 2% from the year-earlier period.
U.S. auto makers' sales in China this year have failed to keep pace with the overall market, though, with Ford
Motor Co. in particular struggling.
Total vehicle sales in China in July were up 6.2% from a year earlier, at 1.98 million, boosted once again by
red-hot demand for commercial vehicles, whose sales rose 18% to 292,800 units. Total vehicle sales for
January-July were up 4.1%.
Passenger-car sales had declined in April and May, the biggest drop in two years, but July's strong sales put
them on track to achieve the association's forecast of 5% growth this year, said Ye Shengli, the association's
deputy chief.
Ford and General Motors Co. both had a disappointing first half of 2017 in China, with sales down 7% and 2.5%,
respectively, compared with the first six months of 2016. They ended the half with strong June sales -- Ford up
15%, GM up 4.3% -- but that turned out to be the start of a rebound only for GM. Its sales in July were up 6.3%
from a year earlier, while Ford's were down 7%.
Ford, and to a lesser extent GM, have suffered in China this year from fierce Japanese competition. The
Japanese makers' new products -- notably in-demand SUVs -- have matched Chinese market trends, said Yale
Zhang, managing director of Automotive Foresight.
Document J000000020170814ed8e00015

OFF DUTY --- Gear & Gadgets -- Rumble Seat: Honda Odyssey: The Gas-Powered Marital Aid
OFF DUTY --- Gear & Gadgets -- Rumble Seat: Honda Odyssey: The Gas-Powered Marital Aid
By Dan Neil
1,491 words
12 August 2017
J
D8
English
As a group, minivan buyers must skew heavily toward the nice and well-adjusted -- parents who know no other
way but to put their kids first, who bury their own needs in a grotesque hole of denial never to be seen again.
I spent my childhood in a Ford pickup with my father chain-smoking and the windows rolled up, so I know the
difference. Dad actually removed the lap belts because they were "in his way."
For parents of young children, nothing beats a minivan. No vehicular helpmate is ever quite as there for you.
Irrespective of your clinging to a previous automotive identity -- the Jeep Wrangler permanently parked in the
driveway, sad! -- now that you are a parent, the functional advantages of a minivan are dispositive, starting with
the magic of sliding side doors. With floor-to-ceiling hatches that roll back out of the way, access to second- and
third-row seating is much less of a fight for passengers (stop fighting, you two!).
Most important for new parents, the sliders and low cabin floor make it easier to belt/unbelt young children in their
safety seats -- more comfortable for them, too, as opposed to being crammed through the door hole of a Honda
Pilot SUV.
Sliding doors also alleviate the fear of parking too close to other cars and having the kids bang them like you own
a body shop.
Are you feeling more relaxed already? Of course you are, because the essence of minivan design, the leitmotif, is
stress reduction, ease of use and versatility. It's an empowering freedom that says, "Yes, at any time, day or
night, I can drive 200 miles to pick up the swim team."
And as I have long argued, minivans are marriage savers. The primary cause of intimacy issues among American
couples is daily stress and aggravation, which scientists call "children." Minivans reduce the strain on the harried,
horned-up bill-payers in front, by making things quieter, smoother, easier, safer, more connected and less
contentious in the back.
These are the apparent motivations of our test car, the Honda Odyssey minivan, freshly overhauled for 2018 and
wrapped in a tighter, more soundproofed body; generously provisioned with active safety technology, such as
front-crash mitigation; and stuffed to the gunnels with electronica.
(In the age of Big Data, I wonder, is it possible to compare the divorce rate between minivan and crossover/SUV
buyers? Could we drill down to make and model? I think the Ford Raptor pickup's number has got to be, like,
100%.)
Honda claims the Odyssey is the first minivan to offer unlimited data and video streaming via a 4G LTE Wi-Fi
hotspot, supporting up to seven devices (Touring and Elite trim, $20 a month after a three-month complimentary
subscription). Our Elite tester was a fairyland of infotainment distraction, where Apple and Android muses swam
in abundant Bluetooth waters, where devices charged wirelessly, and where even the rear climate control can be
managed by mobile app. Mounted overhead amidships is a fold-down 10.2-inch HD screen with Blu-ray, backed
up by a 550-watt, 11-speaker audio system. Key detail: The audio system's three-zone volume control allows for
discreet, and discrete, programming for front-seat adults.
Here, at last, we have technology meaningfully brought to bear on parental self-soothing. You kids put on your
headphones and watch "Frozen." Mom and I will be up front, feelin' it with Rihanna.

Nobody's saying it's right to ignore your children. The Odyssey offers two systems that allow the bridge crew to
maintain contact/surveillance. One is CabinWatch, a closed-circuit monitoring system pointed at the rear seats --
a dubious improvement over an ordinary mirror, but there you are. Also, should you need to get the attention of
your lotus eaters, there is an in-car intercom.
By Honda's count, the Odyssey led minivan sales (U.S. individual buyers, not fleet sales) for the last seven years,
so it's not like the old one is obsolete. But in these crossover-crazed times, the real competition sits across the
showroom floor. The Honda Pilot three-row SUV employs the same Global Light Truck platform with the same V6
engine and the option of all-wheel drive. It looks tough, runs great.
However, in terms of people moving, it's not even close. Sure, the Pilot might seat as many as eight, but it can't
carry all their overnight bags. And you can just imagine the moment when Dad discovers this fact, standing there
with his hatch hanging open at passenger pickup, traffic-cop whistles in his ears, bags at his feet. Now he has to
explain why he is leaving Mom's rollerboard at the curb. Those are some relationship headwinds.
Old fool that I am, when I look at the Odyssey, I see a mixed-material monocoque with 44% higher torsional
rigidity (minivans have big holes for doors, windows and skylights, which makes acoustics and body stiffness a
special challenge) and lower weight. Although virtually the same size as the previous model, the fifth-generation
Odyssey's insides have been scraped out like a jack-o'-lantern. Specialists will note the trailing-arm independent
rear suspension is even more compact than in years past, further reducing intrusion into the cabin and the
deep-floored luggage space.
I also see a fair bit of legacy, and even resting-upon of oars. There is still no all-wheel drive option for the
Odyssey, nor is there a PHEV variant to compare against the very fine Chrysler Pacifica Hybrid. The 3.5-liter V6
(with VTEC and cylinder deactivation ECO mode) has been the standard-issue engine for more than a decade;
but it has been squeezed for another 32 hp here (280 hp) and reworked to reduce noise-vibration-harshness
(including dynamic engine mounts). The fancier trim levels (Touring and Elite) get a very quiet, clever 10-speed
transmission, one better than the standard nine-speed automatic.
Despite the extra gear ratio and even aerodynamic grille shutters to reduce aero drag, the Odyssey Elite's
mileage remains virtually unchanged at 19/28/22 mpg, city/highway/combined. Such are the asymptotes when
you are dealing with a 4,593-pound hunk of huge with a naturally aspirated V6.
It does get up and go: 0-60 mph goes by in about 7.5 seconds. In interstate-cruise mode, the 10-speed Odyssey
purrs along in super overdrive, turning about 2,200 rpm. The tow rating for Touring and Elite is a useful 3,500
pounds.
Given the envelope, the Odyssey was never going to look svelte. Honda settled for putting racing stripes on this
manatee -- the bent, geometrically unrelated accent lines along the flanks. The Elite's exterior blazes with
polished finishes and narrow-eyed LED lamps, in keeping with Honda's current face-forward style. But the biggest
gain aesthetically was the clever concealment of the door tracks under the lower lip of the rear-quarter glass. It's a
detail that cleans up presentation nicely.
My biggest complaint with the Odyssey just leaves me amazed. This company was once the seat-meister, with
some of the smartest accommodations in the class. However, with the fifth-generation redesign, we meet the
Magic Slide seats, which traverse on lateral tracks. This arrangement makes it possible to remove the center
portion and push the outside captain's chairs toward the middle, as needed, for what Honda calls "walk-in
access."
But these outboard units can't slide forward or fold very far, and even less if there's a child car seat in place. So it
still takes a bit of doing to get past them and into the rear-seat area.
The title "best-selling minivan in America" is more than a strapline. It confers sociocultural significance. Whatever
the Honda Odyssey is selling, Americans are buying. And while others may lament a generation lost in their
digital amusements, I take comfort knowing there are still a lot of good people out there, indulging the hell out
their children. Peace be upon them.
---
2018 HONDA ODYSSEY ELITE
Type: Front-engine, FWD eight-passenger minivan

Price, as tested: $47,610
Powertrain: Direct-injection, naturally aspirated 3.5-liter V6 with variable valve timing/lift, cylinder deactivation and
idle-stop; 10-speed automatic transmission with manual-mode paddle shifters; front-wheel drive
Power/torque: 280 hp at 6,000 rpm/262 pound-feet at 4,700 rpm
Length/height/width/wheelbase: 203.2/69.6/78.5/118.1 inches
Curb weight: 4,593 pounds
0-60 mph: <7.5 seconds
Towing capacity: 3,500 pounds
EPA-estimated fuel economy: 19/28/22 mpg, city/highway/combined
Document J000000020170812ed8c0000c

Ford probes police SUVs with carbon monoxide fume issues
MONEY
Ford probes police SUVs with carbon monoxide fume issues
Eric D Lawrence
464 words
10 August 2017
USA Today
USAT
B.3
ISSN:07347456
English
Modifications made after sale are likely to blame, automaker says
Ford has dispatched five teams of investigators across the country to help police departments deal with reports of
exhaust fumes inside their SUVs.
Ford appears to be buckling down to grapple with troubling reports that could threaten its grip on the high-profile
police car business.
Bill Gubing, chief engineer for the Ford Explorer SUV that is modified into the police version, said investigators
have found police vehicles with holes and uncovered spaces near taillights or rear lift gates that can allow carbon
monoxide, a colorless and poisonous gas, to seep inside the cabin. The Dearborn, Mich., automaker is blaming
improperly installed or sealed aftermarket modifications, such as added emergency lights, for a rash of carbon
monoxide complaints associated with police SUVs.
Those complaints included the police department in Austin, which pulled an estimated 400 police vehicles off the
road in recent weeks. The police department in Portsmouth, N.H., also has raised the issue.
"We are all concerned from the front-line officers all the way up to the chief," said Eric Benson, Portsmouth's
training officer. "We want to get this solved. We certainly don't want to wait until something happens. We want to
take all measures we can to ensure that not only all the officers are safe but the public as well."
While Ford's Explorer Police Interceptors are not part of a recall, or even an investigation by the National Highway
Traffic Safety Administration, the automaker is working quickly to address concerns that began to emerge last
month.
Ford has a long history of dominating police vehicle sales. The company held more than a 70% market share of
police vehicle sales for years until it discontinued the venerable Crown Victoria in 2011. And while police cars are
only a small percentage of the automaker's total sales, they give the company a high-profile vehicle that boosts
brand recognition.
On Tuesday, Ford said its primary concern is to ensure the safety of police officers and get to the bottom of the
issue.
"We've been working with our teams to methodically investigate these incidents with the police," Gubing said.
"Those teams are working to fix the vehicles and get them back on the road as quickly as possible."
Ford has investigators in Austin working on the issue and has made repairs to police vehicles in Auburn, Mass.,
where police said an officer involved in a crash had been exposed to carbon monoxide and other officers were
hospitalized. Ford said that it had worked with more than a dozen police agencies nationwide to repair more than
50 vehicles.
Credit: Eric D. Lawrence, @_ericdlawrence, Detroit Free Press
Document USAT000020170810ed8a0000v

Bill Ford Thinks Ford Needs a Vision -- His --- Chairman wants company to shift faster into electric, self-driving cars
Bill Ford Thinks Ford Needs a Vision -- His --- Chairman wants company to shift faster into electric,
self-driving cars
By Christina Rogers and Joann S. Lublin
2,064 words
9 August 2017
J
A1
English
Two decades ago, when Bill Ford took the helm of his family's auto company, he was ready to talk about the
coming shift to electric vehicles and the eventual demise of car ownership.
His ideas were dismissed. At one point, when he wanted Ford Motor Co. to invest in developing alternative
transportation, "the board kind of looked at me like once again I was over my ski tips," Mr. Ford said in an
interview.
As years went by, other auto makers and tech companies got on board with his thinking. They overtook Ford in
electric and self-driving technologies, and in April, Tesla Inc., which sells stylish electric cars, passed Ford in
investor value, a dashboard warning signaling Wall Street's skepticism about the growth prospects of traditional
car makers.
Ford was being left behind, and the man with his name on the door, who for years had largely deferred to
management, decided to intervene.
In the past, the family heir let CEOs take the center stage. But what was leading the industry forward -- new
concepts in fuel efficiency and transportation -- had been his focus for years. Plus, he was changing, spurred by
the death in 2014 of his father, William Clay Ford Sr., who was a presence at Ford for more than 50 years.
His passing "made me realize it is me now," said Mr. Ford, referring to securing the family's leadership. "I've got
to do this."
A month after the Tesla milestone, Mr. Ford led a rare management shake-up, people familiar with the decision
said. Chief Executive Mark Fields, a 28-year veteran, was out, and Jim Hackett, the executive brought aboard in
2016 by Mr. Ford to run the car maker's innovation unit, was elevated to the chief's job.
"The role we're in now requires us to stick our necks out," said Mr. Ford, the executive chairman, who has taken a
more commanding role over the past year. "We've got to place bets. We've got to have a point of view about the
future."
Mr. Ford believed the company was losing direction and that Mr. Fields didn't have a clear long-term strategy, the
people said. Executives were bitterly divided about how to make progress, they said.
Analysts, though, are still waiting to hear from Mr. Hackett on his broader strategic plan -- details are expected
later this year -- and point out Ford still faces a laundry list of near-term challenges. Shares haven't budged since
the CEO change, and Ford said it expects pretax operating profit to fall between 16% and 25% this year.
Mr. Ford's leadership has had ups and downs. He had operational control as CEO in the early 2000s, and worked
to untangle the complex and splintered organizational model that he inherited from predecessors. But high labor
costs and excess capacity hurt finances, and he turned to an outsider to accelerate the turnaround.
Ford and much of the car industry remain dependent on sales of cars and trucks powered by internal combustion
engines and designed to be sold for private use. That model is being upended by Tesla and other Silicon Valley
tech companies, including Uber Technologies Inc. and Alphabet Inc. They are leading the shift to electric
vehicles, autonomous-driving cars and ride-sharing services, which auto makers fear will reduce the need for
individuals to own cars.

A third of all cars produced in 2025 are expected to be electric and hybrids, up from about 4% in 2016, according
to IHS Markit, a market analysis firm.
Ford is now undergoing a 100-day review of all its operations, with the goal of becoming leaner and more agile. In
his first weeks as CEO, Mr. Hackett rolled out a "shot clock" policy to enforce deadlines to implement plans faster.
Mr. Ford, 60 years old, has spent more than half his life trying to push the Dearborn, Mich., based auto maker
founded by his great-grandfather to think about the environment and new forms of transportation. He conceded
his timing wasn't always right -- including during his own stint as CEO from 2001 to 2006.
In 2008, in the throes of the auto industry's collapse, the board didn't take up his proposal that Ford invest in
nontraditional transportation businesses. He said he realized the struggling company at that time was thinking
about "the next week, not the next 30 years." He had lined up billions of dollars in financing two years earlier that
helped keep the company afloat.
Ford came through that crisis on firmer financial footing due to a restructuring led by former CEO Alan Mulally that
eliminated brands, streamlined global operations and refocused attention on the core Ford and Lincoln lineups.
When Mr. Fields took over in mid-2014, Ford was solidly profitable but needed to switch gears to better prepare
for its future. The company pivoted from Mr. Mulally's focus on core business efforts, turning attention to
"mobility," a term Mr. Ford started using nearly 20 years ago that describes new forms of transportation.
Mr. Fields, who had been groomed for the job for years, struggled. Projects appeared disjointed, without a clear
path to profitability, and shares tumbled 40% during his tenure.
Mr. Fields didn't respond to requests for comment.
Mr. Ford turned to Mr. Hackett, an office furniture executive and member of the Ford board whom Mr. Ford had
helped tap to lead Ford's Smart Mobility alternative transportation unit a year earlier. Ford started the unit after the
company's talks to build self-driving cars with Alphabet fizzled.
"Jim always made me think," showing depth he rarely saw in the car business, Mr. Ford said. "So many people I
meet in this job I hear the same thing over and over again."
The mobility unitis working with a bike-sharing firm in San Francisco and is crunching data on how people in
various settings get from Point A to Point B. It purchased Chariot, an app-based shuttle service that plots out
routes based on user demand, which has a growing presence in San Francisco, New York, Seattle and Austin.
In the interview at the Dearborn headquarters, Mr. Ford described Mr. Hackett, who helped transform office
spaces away from cubicles into flexible plans during nearly 20 years as CEO at Steelcase Inc., as a like-minded
ally in the quest to reinvent the car business.
"We're just very much in sync," Mr. Ford said. "I never have to wonder, and he doesn't have to wonder, what the
other guy is up to."
Ford's sales of hybrids and electrics grew 17% last year -- the genre made up 3% of company sales -- and Ford
plans to sell 13 more electrified vehicles in the next five years, including hybrids of its Mustang sports car and
top-selling F-150 truck.
The auto maker said earlier this year it will invest $1 billion in artificial-intelligence startup Argo AI to develop
autonomous-driving technologies. Ford said it plans to put a fully autonomous car on the road by 2021 for
commercial use.
Mr. Ford said that when he took over as chairman in 1999, 20 years after joining the company as a product
planning analyst, the culture was "hierarchical, almost militaristic."
The rigid style once made Ford a leader in an industry dictated by long development cycles and intense capital
needs, but eventually made it too insular and slow to compete with fast-moving technology companies.
As part of the management shuffle, Mr. Ford has become a more visible steward of the company. He attends and
weighs in at meetings to discuss strategy.

He has direct responsibility for communications and government relations -- he worked to defuse President
Donald Trump's criticism of the company's plans to move production of the Ford Focus to Mexico. Ford now plans
to move production to China.
Last fall, Mr. Ford met with a small group of dealers at a restaurant in Dearborn to talk about Ford's push into new
ventures, such as ride-sharing and autonomous cars.
Dealers were nervous the company was shifting too much attention away from its core business.
"It was a very frank discussion to let the dealers know where all this is going," said Jim Seavitt, whose Ford
dealership is located a few miles from Ford's headquarters. Mr. Ford assured the dealers that new models were
coming and that Ford was still focused on producing vehicles they could sell, said Mr. Seavitt, who has sold Mr.
Ford Mustang sports cars and recently delivered to him a new GT supercar.
In his younger days, Mr. Ford would often shy away from the spotlight, an acquaintance said. As he gained
management experience, he spoke with more authority, and came across as particularly passionate "when he's
talking about something of importance to him like the environment and mobility," the person said.
"Bill may be quiet, he may be modest, but he will step up without fear of consequence or risk when he feels it is
important to do so," said Irv Hockaday, a former Hallmark Cards Inc. CEO who served on Ford's board from 1987
to 2013.
The Ford family holds a separate class of stock that gives the members 40% of the voting power at the
114-year-old auto maker. Mr. Ford himself owns 17.7% of the supervoting shares.
As a young executive Mr. Ford spent time studying Toyota Motor Corp.'s manufacturing techniques and focus on
efficiency and precision.
Later, he spent a decade on the board of eBay Inc., when the online retailer was scrambling to respond to new
e-commerce rivals. "He understood that Silicon Valley was doing something different, and that old-line companies
were being disrupted," said Meg Whitman, who was chief executive when he joined the board in 2005.
Mr. Ford and then-CEO Jacques Nasser showed off Th!nk electric cars at the 2000 Detroit auto show. Ford had
purchased a Th!nk stake as a nod to the belief the auto industry would go electric but sold it in 2002 after failing to
have much impact.
Mr. Ford ousted Mr. Nasser in 2001, after leadership blunders, including the mishandling of a tire recall, sank
Ford's financial results and hurt employee morale.
Mr. Ford continued to push for more fuel-efficient cars, and Ford in 2004 was the first U.S. auto maker to put a
hybrid, a version of the Escape, on the market. He also increasingly spoke out about the problems of traffic
congestion in the world's major cities.
In 2009, a year after the board ignored his idea to invest in nontraditional transportation, he separately launched
Fontinalis Partners LLC with colleagues to provide seed money to companies such as ride-hailing service Lyft Inc.
and self-driving software firm nuTonomy Inc., two tech startups edging in on established auto makers.
In recent years, General Motors Co. and other auto makers have raced past Ford in launching long-range electric
cars, such as the Chevrolet Bolt, which can be driven more than 200 miles on a single charge. Ford has said it
doesn't expect to have a long-range electric car out until 2020.
Toyota and Nissan Motor Co. offer strong-selling electrics and hybrids, some of which are priced for entry-level
buyers. Nissan plans to unveil a redesigned electric Leaf next month.
Tesla, which is a fraction of Ford's size, launched the Model 3, a cheaper electric sedan that Chief Executive Elon
Musk views as akin to the Model T, which Henry Ford designed to be affordable to the masses. As of Monday,
Tesla's market cap was $59.3 billion, compared with Ford's $43.4 billion.
Mr. Ford said he still had a long way to go. "I feel I can and should provide a long-term view for the company in
the way the management can't," he said, pointing to his role in the founding family and in the boardroom. "When
we need some course correction, I will stand up and be counted."
---

John D. Stoll contributed to this article.
Document J000000020170809ed8900025

Tesla Adds Debt In Growth Push
Tesla Adds Debt In Growth Push

By Matt Wirz and John D. Stoll
986 words
8 August 2017
J
A1
English
Tesla Inc. took a step toward financing its transformation from a niche builder of pricey luxury cars to a
mass-market rival of Fords and Chevrolets, setting plans to raise $1.5 billion in its first-ever sale of traditional
bonds.
The electric-car maker, gearing up for an ambitious expansion with the introduction of its more moderately priced
Model 3 sedan, is expected to sell the bonds as early as Friday in a deal underwritten by Goldman Sachs Group
Inc.
The Palo Alto, Calif., company said on Monday that the funds would help push broader sales of its lower-price
Model 3 sedan, which the company plans to use to steal a march on mass-market rivals such as Ford Motor Co.
Tesla has been a big winner in the stock market -- up more than 1,000% in the past five years to a recent market
value of $59 billion -- and investors said they expect the firm's efforts to sell junk bonds to succeed, given the
market's thirst for high-yield debt.
Atthe same time, the auto industry is among the most capital-intensive ventures in business. Tesla posted a loss
of $336 million in its most recent quarter despite rising revenue, highlighting the firm's dependence on raising
capital in the financial markets. Tesla is the most valuable U.S. auto maker, but it sells a fraction of the vehicles
sold by General Motors Co., Ford or Fiat Chrysler Automobiles NV -- and has yet to report an annual profit after
nearly 15 years in business.
Tesla "burns a lot of cash and it's not clear they have a sustainable business," said Bob Schwartz, a bond analyst
for AllianceBernstein LP who is debating whether to buy the new debt. The deal is likely to get strong support
from investment firms that already own Tesla stock, but "just because it has a huge market cap doesn't mean it's
a good credit," he said.
Tesla is rated B-minus by S&P Global, seven notches below the firm's rating of Ford.
Turning to the bond market allows Tesla Chief Executive Elon Musk to raise money without diluting his ownership
or further encumbering corporate assets.
Tesla tapped Goldman to arrange the issue of an eight-year, $1.5 billion bond, and the investment bank is
unofficially marketing it to yield 5.25%, a person familiar with the matter said. Goldman is offering prospective
investors a tour of the company's factory on Wednesday to introduce them to the firm, according to an investor.
The sale comes after Tesla repeatedly sold stock and convertible bonds, which can be exchanged for equity later,
raising almost $8.5 billion in such deals since 2010, according to Dealogic.
The business case for electric cars remains murky. Gasoline is cheap, driving people to pickups and sport-utility
vehicles powered by internal combustion engines, and battery-powered cars are seen as taking too long to
charge, expensive and lacking range. Tesla's cars, to date, have qualified for a $7,500 federal tax credit and
Tesla has spent heavily to place so-called fast chargers all over the world.
Recently, Tesla's Mr. Musk promised to add electric pickup trucks, small SUVs, large trucks and bus-like vehicles.
Analysts expect the future ambitions of Tesla, which is already committing a substantial chunk of the company's
revenue to capital expenditures and R&D, to require additional capital increases.

The Model 3 is aimed at more mainstream buyers, with a base price of $35,000. Critics say that car can't be
plagued with the same quality glitches that Model S or X buyers experienced, and that wait times for service or
delivery need to be curtailed. Selling hundreds of thousands of Model 3s is seen as necessary because it could
bring battery costs closer in line with conventional engines.
An electric car can cost upward of $10,000 more than its conventional counterpart, and analysts say it could take
nearly a decade to close the gap. Tesla, building its own batteries, could have disproportionate influence in
bringing those costs down due to its deep experience, access to technical experts and considerable scale.
A year ago, Mr. Musk combined Tesla with SolarCity, a home-solar company that he served as chairman of at the
time. Combining the two companies was designed to make Tesla a more diverse company focused on batteries,
solar energy and automobiles. Other auto makers have scaled back on alternative business lines.
Mr. Musk runs several ventures outside of the car business, including Space Exploration Technologies Corp. He
is a major backer of those companies, with shares in some being used as collateral for personal loans used to
buy even more stock in the companies he runs.
Bond investors are eager for new deals because there has been little supply in recent months due to a slowdown
in mergers and acquisitions, which are usually funded with junk bonds. High-yield companies issued $9 billion of
new bonds in July, the lowest amount since January 2016, according to Dealogic, when collapsing oil prices
caused junk-debt markets to shut down.
"There hasn't been much new supply and investors have cash they need to spend," said Tom O'Reilly, head of
non-investment-grade credit for Neuberger Berman Group LLC, who says he won't participate in the sale. "As a
new borrower, that's going to play to your advantage."
The bond sale also comes during a summer slowdown in corporate-debt offerings, which some fund managers
said could produce favorable terms for Tesla among investors hungry for new bonds. Yet several prospective
buyers said they remain leery of lending to a company that loses billions and has one of the lowest-possible credit
ratings.

Document J000000020170808ed8800027

Slump in Auto Sales Extends to 7th Month
Slump in Auto Sales Extends to 7th Month

By Christina Rogers and Mike Colias
719 words
2 August 2017
J
B1
English
Auto sales sharply declined in July, the seventh month of a slowdown punctuated by manufacturers' reluctance to
sell discounted cars through leases and car-rental chains that have driven sales in recent years.
Sales fell 7% last month, compared with a year earlier, according to Autodata Corp. Research firm J.D. Power
said manufacturers typically pull back on sales incentives after the July Fourth holiday, "but this year elevated
inventory levels coupled with the sales slowdown have compelled them to maintain aggressive discounts
throughout July."
Detroit's car companies felt the brunt of the decline, with General Motors Co. reporting a 15% sales drop in July
from a year earlier. Sales at Ford Motor Co. and Fiat Chrysler Automobiles NV slid 7.4% and 10%, respectively.
All three were below analysts' expectations.
Despite falling sales, the three companies aimed to protect their bottom lines by trimming incentives for car
leases. Auto makers have banked on such discounts to keep consumers' monthly payments low as sticker prices
soared because of a market shift to heavier trucks and sport-utility vehicles, and technology aimed at making cars
smarter, safer and more efficient.
Manufacturers in July also edged away from discounted, less-profitable rental-car sales to companies such as
Hertz and Enterprise.
The moves reinforce a newfound discipline for domestic manufacturers that have ridden a seven-year growth
streak since GM and Chrysler sought bankruptcy protection in 2009. The Detroit 3 reported tens of billions in
profits during that span, bolstered by falling gasoline prices and surging demand for profit-rich trucks and SUVs.
Overall industry demand softened over the first seven months of 2017, falling about 3% in June, according to
Autodata. The development ushers in an expected plateau for auto sales, an important driver for the broader U.S.
economy.
Sales to government fleets, commercial buyers and rental-car companies have fallen 7.8% in that period,
according to J.D. Power, while sales to retail customers at dealerships fell less than 1%.
Leasing accounted for 31% of all retail sales in the first half of 2017, falling slightly from last year's record of 32%,
according to Edmunds.com. That number dropped to 29% in July, the lowest mark of the year. The declines
appear modest but represent a potential tipping point.
"For a long time, we were all wondering where the ceiling was for leasing," said Jessica Caldwell, an analyst for
Edmunds.com. "Now, it has been hit."
The U.S. auto market, which topped a record 17.5 million units in 2016, has grown for seven consecutive years.
Analysts expect that growth streak to end in 2017 as consumers and companies need fewer vehicles following a
boom in sales during recent years.
The pressure on the leasing business comes as an increasing number of leased vehicles return to the market,
causing resale values to tumble. That has prompted big auto lenders like Ally Financial Inc. to cut back on
leasing.

Some auto makers and their lending arms also are dialing back leasing to avoid being stuck with a glut of vehicles
at depressed prices once their lease period ends, typically after three years. They are also doing so after incurring
higher costs in recent months to keep lease deals attractive.
The average spending on lease incentives climbed to $4,445 a vehicle in the first half of 2017, up from $3,722 for
the same January-to-June period a year ago, according to Edmunds.com.
"It does cost us more to hit those payment points" than it did three years ago, said Ford U.S. sales chief Mark
LaNeve. Ford is increasing monthly lease payments on certain models, including the high-volume Fusion sedan
and Escape crossover, to help counter the fall in used-car values.
Ford's financing arm began pulling back on leasing last year, after reporting red ink tied to the business. The
move limits exposure to falling used-car prices but also dents new-vehicle sales.
GM plans to reduce leasing to between 25% and 0% of its sales volume, from 31% in the second quarter finance,
chief Chuck Stevens said during a conference call with analysts last week.

Document J000000020170802ed820001w

Business News: Aluminum Car Parts Lose Speed --- Study expects use of the metal to grow, but other materials also will take the place of...
Business News: Aluminum Car Parts Lose Speed --- Study expects use of the metal to grow, but other
materials also will take the place of steel
By Chester Dawson
525 words
31 July 2017
J
B3
English
The last name of Dick Schultz, co-author of the Ducker Worldwide study on aluminum use in automobiles, was
misspelled as Shultz in a Business News article Monday about the study.
(WSJ Aug. 1, 2017)
(END)
Aluminum may not be the new steel, according to a new study, as auto makers' use of a single predominant
lightweight material such as aluminum in vehicles like Ford Motor Co.'s F-150 pickup is giving way to a patchwork
of materials replacing heavier sheet metal.
Long seen as a lighter but far more expensive alternative to steel for automotive manufacturers, aluminum has
enjoyed a surge as engineers scramble to shave weight amid tighter emissions standards.
A study to be issued Monday by Ducker Worldwide says the use of aluminum in vehicles is projected to grow
42% over the next decade,but at a slower pace than in previous forecasts.
The average vehicle sold today weighs nearly 4,000 pounds and is made of rubber, plastic, steel, aluminum,
upholstery and other materials. Auto makers have worked to make every component -- from body panels and
engines to brackets and windshields -- lighter, often by substituting materials that can add costs but improve miles
per gallon.
Ford's shift in 2014 from steel sheet metal to aluminum for the best-selling F-150's body panels, which represent
a meaty portion of a vehicle's structure, was seen as a tipping point for aluminum because sales and production
volumes of Ford's truck are so high.
Designers more recently have decided to use a mix of materials including magnesium and carbon fiber to achieve
weight savings, and steelmakers have rolled out stronger but thinner, lighter steels.
At the same time, the Trump administration is considering softening fuel economy regulations, which could slow
so-called light-weighting efforts as urgency fades.
"You'll probably never see anything again that's as aluminum intensive," Dick Shultz, co-author of the Ducker
study, said in an interview. While Ford slimmed down its F-150 by 700 pounds via aluminum, it also added $1,000
in costs per vehicle, he said, while predicting the next generation F-150 would likely use less aluminum in favor of
other materials.
A Ford spokesman declined to comment on the next-generation F-150.
General Motors Co., Ford's chief rival, has said its updated full-size trucks due in 2019 will use a blend of
materials to achieve weight savings.
"Everyone is pursuing the multimaterial approach," said Doug Richman, a vice president at Kaiser Aluminum and
technical chair of trade group The Aluminum Association's transport arm. "It's a pretty clear and durable trend
that's been helped by significant advances in joining technology and production experience."
The Ducker study was commissioned by the aluminum trade group; steelmakers also commission Ducker for
research.
Auto makers have improved fusing steel with other materials on assembly lines to achieve a better balance of
strength and durability. The new Chrysler Pacifica minivan, for example, has all-aluminum sliding doors, the
industry's first high-volume magnesium rear liftgate and 22% more high-strength steel throughout its body than its
predecessor.
Document J000000020170731ed7v0001x

Ford Logs Modest Profit But Is Facing Challenges

Ford Logs Modest Profit But Is Facing Challenges
By NEAL E. BOUDETTE
623 words
27 July 2017
The New York Times
NYTF
4
English
Jim Hackett has said little about his plans to revitalize Ford Motor since he was named its chief executive two
months ago, but the first earnings report in his tenure points to some of the trouble spots he must address.
Ford Motor on Wednesday reported a modest gain in earnings for the quarter that ended in June, thanks to a big
profit increase in its financing business and lower taxes. But profit declined in Ford's auto business in North
America, its most important region, and the company struggled to make money elsewhere.
''Ford can be a much better company,'' Mr. Hackett said in a conference call. ''We can deliver much more value
for shareholders.''
He said he was conducting a review of Ford's global operations and expected to outline a new strategy in the fall.
Without revealing any specifics, he said, ''we have to ask ourselves: What do we have to believe to get the
returns that we expect?''
One of his first moves as chief executive was to announce that Ford would import a new version of its Focus
small car from China, avoiding the cost of building a plant for it in North America. Ford had planned to build a $1.5
billion plant in Mexico but canceled it before Mr. Hackett took the helm.
Over all, Ford reported net income of $2.04 billion in the period ending June 30, an increase of almost 4 percent
from the same period a year ago, as Ford Credit reported a 57 percent jump in profits. Ford also cut its tax bill by
taking advantage of credits from previous losses in overseas markets. Its adjusted earnings per share, $0.56,
beat Wall Street estimates.
Still, it was a difficult quarter in Ford's automotive operations. Industrywide, auto sales are slowing in the United
States, and Ford's North American auto division generated pretax profit of $2.2 billion last quarter, a 19 percent
drop from a year ago. It produced 841,000 cars and trucks in the quarter, but made only $2,614 in profit on each
one, on average, down from $3,206 in the second quarter of 2016.
The results mean Ford is falling behind rival General Motors, which on Tuesday said it earned $3.5 billion in North
American operating profit in the second quarter. But It earned an average of $4,050 per vehicle.
After the earnings report, Ford shares opened lower and stayed down for the rest of the day. It closed down 1.9
percent, to $11.06 a share.
Ford's difficulties will probably continue. The company said it planned to make 665,000 cars and trucks in the third
quarter of this year, about 5 percent fewer than the year-ago period.
In Europe, Ford's profit plunged to $88 million, down from $379 million a year ago. It blamed disruptions from
Britain's planned exit from the European Union, unfavorable exchange rates and the cost of introducing a new
Fiesta compact, an important model in that region.
Ford, which is based in Dearborn, Mich., made money in Asia but suffered a loss in South America.
Mr. Hackett is a former chief executive of Steelcase, the office furniture manufacturer, who joined Ford's board in
2013 and its executive ranks last year. He succeeded Mark Fields, who had come under pressure because of a
decline in profits, a sagging stock price and concerns about whether Ford was falling behind on self-driving cars.
Ford F-150 trucks at a factory in Dearborn, Mich. The company is reviewing its global operations.
(PHOTOGRAPH BY RENA LAVERTY/EUROPEAN PRESS AGENCY)
Document NYTF000020170802ed7r0000p

Ford ups full-year forecast after second-quarter earnings beat ; Auto- maker credits sales in North America, lower tax rate for $2 bi...
MONEY
Ford ups full-year forecast after second-quarter earnings beat ; Auto- maker credits sales in North
America, lower tax rate for $2 billion profit
Brent Snavely
Brent Snavely, @brentsnavely, Detroit Free Press
542 words
27 July 2017
USA Today
USAT
FIRST
B.5
English
Ford Motor said Wednesday it earned a profit of $2 billion during the second quarter, up 3.7% from the same
period last year, as the company's North American region bolstered the bottom line and a lower tax rate also
helped.
The Dearborn, Mich.-based automaker's earnings increased slightly even as U.S. industry vehicle sales start to
decline after seven years of consecutive growth.
"This quarter shows the underlying health of our company," Jim Hackett, who was named CEO in May, said in a
statement.
A lower-than-expected tax rate lifted the company during the period, Ford Chief Financial Officer Bob Shanks
said.
Ford's effective global tax rate during the second quarter was 10%, much lower than the 30% it had projected for
the year. Shanks said Ford's tax rate was lower because of a change in how the company records some of its
prior losses on assets from overseas operations.
Ford said it earned a pretax profit of $2.2 billion in North America during the second quarter, down about $500
million from the same period last year.
North America was the only region where Ford reported a big profit. The company reported a pretax profit of $88
million in Europe and $143 million in the Asia Pacific region but said it had a pretax loss of $185 million in South
America and $53 million in the Middle East and Africa.
Ford was widely expected to lower its financial outlook for the year because of declining industry sales in the U.S.
and rising incentives. Instead, Ford changed the way it calculates expected profits and slightly increased its
outlook.
Previously, Ford said it expected to earn a pretax profit of about $9 billion for the year. Shanks also said the
company expects full-year profits to be in the range of $1.65 to $1.85 a share. If Ford finishes the year at the top
end of that range, it would be just below a previously forecast $9 billion in pretax profit.
Hackett, since being named CEO, has been working on a plan to further improve the company's operations. In
May, Ford said it planned to cut 10% of its salaried workforce in North America and Asia, or about 1,400
employees.
The Detroit Free Press first reported in June that Hackett was looking for ways to improve revenue growth,
improve how the company operates and boost innovation. He is also reviewing how Ford invests its money.
"The entire team is focused on improving the fitness of the business and smartly deploying our capital to improve
both the top and bottom lines in the quarters ahead," Hackett said in a statement Wednesday.
Shanks said results of that review would be announced later this year. "The company is going through a very
intensive review of strategy actions," he said. "I think we are all energized and excited about what we are finding."
Ford's stock has dropped from about $13.86 a year ago to close at $11.06 on Wednesday.
Document USAT000020170727ed7r0000z

Business News: Ford's Net Rises, but Its Shares Take a Hit
Business News: Ford's Net Rises, but Its Shares Take a Hit
By Christina Rogers
407 words
27 July 2017
J
B3
English
Ford Motor Co.'s net income rose slightly in the second quarter due to a better-than-expected tax rate and healthy
financing-arm profits, but Wall Street reacted negatively to revised full-year guidance, sending the auto maker's
stock down nearly 2% in trading on Wednesday.
The lower stock performance illustrates the challenges facing new Chief Executive Jim Hackett, who is trying to
address concerns about the company's ability to weather softer conditions in the U.S. market.
The Dearborn, Mich., auto maker on Wednesday said the lower tax rate, strong pricing on pickup trucks and
SUVs, and strengthening conditions for its Ford Credit lending arm led to a $2 billion net profit for the second
quarter, a 4% improvement over the same period a year ago.
However, the company issued new 2017 guidance, indicating weaker pretax profit than originally forecast.
Ford is now projecting adjusted earnings per share between $1.65 and $1.85, equating to $7.8 billion to $8.7
billion on a pretax operating basis. That is below Ford's previous outlook of $9 billion for full-year 2017 and far
lower than the $10.4 billion earned last year.
Ford's stock closed down 1.9% at $11.06 a share.
"We expect a negative reaction to the implicit reduction in pretax profit," said J.P. Morgan analyst Ryan Brinkman.
"This also may amount to a bit of 'clearing the decks' following the recent change in leadership."
Mr. Hackett was hired in May after the board ousted Mark Fields, who had delivered a string of healthy profits
over a three-year tenure as CEO but failed to deliver a clear vision of how the company will confront a slate of
changes threatening to reshape the auto industry. Ford's stock price also struggled under Mr. Fields, and analysts
expressed concern about a weakening profit outlook.
A former office-furniture executive who until recently ran Ford's smart mobility unit, Mr. Hackett is spending his
first 100 days on the job reviewing all corners of the auto maker's business in an effort to craft a comprehensive
turnaround plan. Company executives are expected to release details of the plan this fall.
Mr. Hackett described the second-quarter performance as "solid" but added that "no one here is satisfied."
Document J000000020170727ed7r0002g

Two Carmakers Seek a Waiver From a Widening Recall Involving Defective Airbags

Two Carmakers Seek a Waiver From a Widening Recall Involving Defective Airbags
By NEAL E. BOUDETTE
548 words
24 July 2017
The New York Times
NYTF
4
English
Ford Motor and Mazda plan to ask federal safety regulators to exclude their vehicles from the latest expansion of
the widespread recall of airbag inflaters made by Takata, a Japanese supplier that sought bankruptcy protection
in June.
Earlier this month, Takata added 2.7 million vehicles to a recall aimed at replacing defective airbags that can
explode too violently and have been linked to at least 17 deaths, including 12 in the United States. That
expansion adds to an effort that had previously been expected to cover 70 million inflaters in 42 countries.
The 2.7 million vehicles include more than two million made by Ford, as well as some from Mazda and Nissan.
But on Tuesday, Ford informed the National Highway Traffic Safety Administration that it intended to fight the
recall, saying its inflaters contain a chemical compound that has proved effective in preventing violent ruptures.
''We intend to file a petition with N.H.T.S.A. to further study our inflaters,'' Ford said in a statement. ''At this point,
there is no data to suggest a recall is needed.''
Takata inflaters use ammonium nitrate to create a controlled explosion that rapidly inflates airbags in the event of
a collision. But prolonged exposure to moisture and temperature fluctuations can make the compound unstable
and cause it to combust suddenly. In such events, drivers or occupants have been sprayed with shards of metal
and plastic.
Over the years, Takata has used a variety of chemical agents to keep the propellant dry, with some combinations
showing a greater propensity to fail than others, according to federal regulators.
Ford said it had tested ''hundreds'' of its vehicles that use Takata airbags and calcium sulfate as a drying agent.
These inflaters ''have not shown any propellant degradation, and have pressure measurements within
specification,'' Ford said.
Ford has until Aug. 17 to file data and documentation to support its request. N.H.T.S.A. will review the material
and make a final decision whether to grant an exemption to the recall.
The affected Ford vehicles include the Ford Ranger, Ford Fusion and Lincoln MKZ sedans and Edge sport utility
vehicle from various model years ranging from 2006 to 2012.
Mazda said it was supporting Ford's petition because its vehicles included in the expanded recall were pickup
trucks made for Mazda by Ford.
Nissan said in a statement that it was going forward with the recall ''out of an abundance of caution.''
Takata's problems with defective devices began in 2008, when Honda initially recalled 4,000 vehicles that used
Takata technology.
In February, Takata pleaded guilty to fraud charges, acknowledging that it had provided false safety test data.
The company agreed to provide $875 million to compensate automakers for costs related to recalls, and $125
million for people killed or injured.

The Justice Department has also filed criminal charges against three Takata executives. Those cases are
pending.
The most recent death related to Takata airbags was reported this month when Honda said a person in Florida
died last summer after an inflater ruptured in a parked 2001 Accord during an attempt to make an unspecified
repair with a hammer.
Document NYTF000020170724ed7o0003k

Ford and Mazda Hope to Be Removed From Latest Airbag Recall
Business/Financial Desk; SECT

Ford and Mazda Hope to Be Removed From Latest Airbag Recall
By NEAL E. BOUDETTE
545 words
22 July 2017
The New York Times
NYTF
The New York Times on the Web
English
Ford Motor and Mazda plan to ask federal safety regulators to exclude their vehicles from the latest expansion of
the sweeping recall of airbag inflaters made by Takata, a Japanese supplier that sought bankruptcy protection in
June.
Earlier this month, Takata added 2.7 million vehicles to a recall aimed at replacing defective airbags that can
explode too violently and have been linked to at least 17 deaths, including 12 in the United States. That
expansion adds to an effort that had previously been expected to cover 70 million inflaters in 42 countries.
The 2.7 million vehicles include more than two million made by Ford, as well as some from Mazda and Nissan.
But on Tuesday, Ford informed the National Highway Traffic Safety Administration that it intended to fight the
recall, saying its inflaters contain a chemical compound that has proved effective in preventing violent ruptures.
''We intend to file a petition with N.H.T.S.A. to further study our inflaters,'' Ford said in a statement. ''At this point,
there is no data to suggest a recall is needed.''
Takata inflaters use ammonium nitrate to create a controlled explosion that rapidly inflates airbags in the event of
a collision. But prolonged exposure to moisture and temperature fluctuations can make the compound unstable
and cause it to combust suddenly. In such events, drivers or occupants have been sprayed with shards of metal
and plastic.
Over the years, Takata has used a variety of chemical agents to keep the propellant dry, with some combinations
showing a greater propensity to fail than others, according to federal regulators.
Ford said it had tested ''hundreds'' of its vehicles that use Takata airbags and calcium sulfate as a drying agent.
These inflaters ''have not shown any propellant degradation, and have pressure measurements within
specification,'' Ford said.
Ford has until Aug. 17 to file data and documentation to support its request. N.H.T.S.A. will review the material
and make a final decision whether to grant an exemption to the recall.
The affected Ford vehicles include the Ford Ranger, Ford Fusion and Lincoln MKZ sedans and Edge sport utility
vehicle from various model years ranging from 2006 to 2012.
Mazda said it was supporting Ford's petition because its vehicles included in the expanded recall were pickup
trucks made for Mazda by Ford.
Nissan said in a statement that it was going forward with the recall ''out of an abundance of caution.''
Takata's problems with defective devices began in 2008, when Honda initially recalled 4,000 vehicles that used
Takata technology.
In February, Takata pleaded guilty to fraud charges, acknowledging that it had provided false safety test data.
The company agreed to provide $875 million to compensate automakers for costs related to recalls, and $125
million for people killed or injured.
The Justice Department has also filed criminal charges against three Takata executives. Those cases are
pending.
The most recent death related to Takata airbags was reported this month when Honda said a person in Florida
died last summer after an inflater ruptured in a parked 2001 Accord during an attempt to make an unspecified
repair with a hammer.
Document NYTF000020170722ed7m0003h

Roadblock: China's Grip on Maps --- Beijing limits digital mapping that can be done by foreign firms, citing national security
Roadblock: China's Grip on Maps --- Beijing limits digital mapping that can be done by foreign firms,
citing national security
By Liza Lin in Shanghai and Tim Higgins in San Francisco
936 words
14 July 2017
J
B1
English
China is creating roadblocks for U.S. auto makers and tech companies to bringing self-driving cars to the world's
largest auto market.
Citing national security concerns, China is limiting the amount of mapping that can be done by foreign companies,
as General Motors Co., Ford Motor Co., Alphabet Inc. and Apple Inc. rush to develop self-driving cars or the
software behind them. High-definition maps are crucial for autonomous cars to help them discern their exact
location, navigate tricky intersections and avoid fixed objects such as buildings.
Global car makers already need to form a partnership with a local company to open factories in China, but some
are skeptical they will be able to find a way to operate their autonomous-car software in China because of the
mapping restrictions.
Brian McClendon, an industry pioneer who helped created Google Maps and later led Uber Technologies Inc.'s
self-driving effort, said he doubted U.S. software would ever be adopted for self-driving cars in China.
"We're going to have a bifurcated market for self-driving -- China will do China and the U.S. will do U.S. and the
rest of the world will quickly choose and do one or the other," said Mr. McClendon, now a research professor at
the University of Kansas.
To secure turn-by-turn navigation maps, foreign car makers currently work with Chinese mapping companies. But
auto makers and tech companies might have reasons to hesitate before working with a third-party map provider in
China on the high-definition maps needed by autonomous cars.
James Wu, co-founder of U.S. mapping startup DeepMap Inc., who formerly worked at Alphabet Inc.'s Google,
Apple and China's Baidu Inc., said ownership of mapping data is crucial in self-driving cars.
"If a non-Chinese company works with a Chinese local map company with a license, then who owns the data?
Who would be responsible for safety issues, privacy issues, security issues associated with the map data? It is a
pretty messy problem to sort out," Mr. Wu said.
GM, Apple and Ford declined to comment on the issue of mapping data in China. Alphabet's autonomous-driving
unit, Waymo, didn't reply to an email seeking comment.
Earlier this year, Li Shufu, founder of Geely Automotive, the Chinese auto maker that owns Volvo, urged the
National Committee of the People's Political Consultative Conference to relax the mapping barriers, which he
cautioned could hurt the country's development of self-driving vehicles.
Unless his call is heeded, foreign tech and car companies will need to work with one of 13 Chinese companies
licensed by the government for surveying and mapping. The three largest are Baidu, the AutoNavi unit of Alibaba
Group Holding Ltd., and NavInfo Co., which is backed by Tencent Holdings Ltd.
German auto supplier Robert Bosch GmbH, for example, announced a partnership this spring with Chinese
mapping firms including Baidu and AutoNavi to cooperate on high-definition maps there. "The market with regards
to maps in China is quite strongly regulated, which is different from other countries," said Renaud Bonhomme,
director of advanced innovation and system engineering with a Robert Bosch unit in China.

Hyundai Motor Co. of South Korea also said recently that it would use Baidu's maps in its vehicles sold in China,
and said it is exploring joint efforts in autonomous driving technologies with the Beijing-based company. Baidu
says its high-definition maps have collected data from 300,000 kilometers of highway in China.
The Chinese companies are considered to be far behind Waymo, which was launched in 2009 and has already
chalked up more than 3 million miles of autonomous driving on public roads in the U.S. Baidu started its
autonomous-driving research in 2014 and claims its high-definition maps have collected data from just 300,000
kilometers of China's nearly 5 million kilometers of roads.
German mapping provider HERE, owned by auto makers Audi, BMW AG and Daimler AG, will bring its maps to
China after receiving investment and forming a 50-50 joint venture with Navinfo last December.
Meanwhile, GM, Volvo and Daimler are in talks about possibly using high-definition mapping technology in China
from Autonavi, said a person familiar with the situation.
Mapping restrictions play out in a small scale today with Google's connected car platform Android Auto. Despite a
rollout in 31 markets world-wide, Google's platform, which connects smartphone applications to a car's
dashboard, isn't available in China.
Google's services, including Google Maps, are restricted by China regulators, resulting in a bad user experience
for Chinese consumers, said Colin Bird, a senior analyst at IHS Automotive.
The California-based technology giant currently has only a local partnership to provide maps for desktop
computers in China, and gaining permission to expand that to smartphones, cars and other uses could be
problematic given the company's stormy departure in 2010 over government censorship of its search engine.
Further hurdles await foreign software and car companies beyond maps. They are likely to face difficulty gaining
approval to conduct test drives in the country, as the government will seek to support its domestic enterprises,
said Li Zhishan, an auto technology analyst at Analysys in Beijing.
---
Mike Colias in Detroit and Wang Fanfan in Beijing contributed to this article.
Document J000000020170714ed7e00013

Financing Avenue Reopens For Ford
Financing Avenue Reopens For Ford

By Katy Burne
400 words
11 July 2017
J
B1
English
A handful of investors recently began extending short-term loans to an affiliate of Ford Motor Co. after more than
a decadelong hiatus, opening a key borrowing spigot for the blue-chip auto maker, which was locked out of
money markets in the last recession.
In recent months, a money-market fund of Federated Investors has been buying a kind of short-term IOU called
"commercial paper" from Ford Motor Credit Co. LLC. The Federated Capital Reserves Fund now holds about
$148 million of such debt, according to fund tracker Crane Data.
Ford Motor Credit has made a comeback since being struck off Federated's eligible investments list in 2003,
when the vehicle-financing company showed signs of struggling. It was later cut to below-investment grade, but
has since regained investment grade.
The Federated holding, while small, is notable because it signals a potential thaw in relations between money
funds and auto companies that could later benefit others, including General Motors Co. and Fiat Chrysler
Automobiles NV. GM and Chrysler Group LLC filed for bankruptcy in 2009, and were subsequently bailed out.
"Autos are generally tied to the consumer, and the consumer, we think, is very healthy right now," said Debbie
Cunningham, chief investment officer for money markets at Federated in Pittsburgh.
She said auto loans are generally the highest priority payment for consumers, behind mortgages, and thus offer a
solid investment for funds willing to consider issuers in the lower tier of the highest short-term rating categories.
Robert Cheddar, portfolio manager at PFM Asset Management LLC, which manages about $63 billion on behalf
of state and local governments, said Ford's fundamental condition has improved. For clients that will allow it, he
started buying the company's commercial paper last year.
Ford Motor Credit had $4.98 billion of commercial paper as of March 31 and is "a much stronger credit" today,
said Stephen Brown, senior director at Fitch Ratings. Last May, Fitch upgraded the issuer's commercial paper
program to F2, equivalent to the second lowest rung of investment grade, from F3.
Ford Motor Credit declined to comment.
The interest from Federated reflects the yield offered on the debt -- about 1.3%, above what is available on
short-term Treasurys and bank commercial paper -- as well as Ford's improved health.
Document J000000020170711ed7b00026

OFF DUTY --- Gear & Gadgets -- Rumble Seat: 2017 Ford GT: When Performance Tops All
OFF DUTY --- Gear & Gadgets -- Rumble Seat: 2017 Ford GT: When Performance Tops All
By Dan Neil
1,327 words
8 July 2017
J
D10
English
Strapped into the slim-hipped driver's seat, my helmet bumping the roof, my heart in my throat, I swung the nose
of the pharmaceutical-yellow Ford GT toward the main straight of Le Mans and opened the taps. Destiny.
Officially, and for tax purposes, I went to France last month to test this car, the DOT-approved version of Ford's
Le Mans-winning GT, now being built at a rate of one per day by Ford's assembly partner, Multimatic, in
Markham, Ontario. Unofficially, my audience was with la belle circuit: the towering circus maximus of
grandstands, the blind approach to Dunlop Bridge, the Porsche curves, all splitting at speed around me for three
whole laps.
I'm sorry to say these laps were merely warm, not hot. I had to stay behind a safety car limited to 140 mph, which
in the GT felt like following a Bourbon Street funeral procession. Still, this was bucket-list sports tourism. Imagine
getting to play pitch-and-putt at Augusta, or plinking grounders from home plate in an empty Yankee Stadium, or
excusing yourself from the tour at Churchill Downs to hurl in Eddie Arcaro's private stall.
The car is pretty special, too: a slashing, belt-high fantasy of grilles and glass, a pinup of hips and headlights
coming at you at angles you never saw in Euclid. This thing looks like it flew off God's ax handle.
At first you may be blind to all but the spectacular roof buttresses staving off the rear side-pods. The buttresses
are one of many design details that turned out to be good for both the race and road car. The arrangement
reduces overall form drag (top speed is a whopping 216 mph) by channeling air around the teardrop-shaped
fuselage like blood grooves on a sword. The design also aids cooling by positioning the heat exchangers into
cleaner airflow.
At speed, these buttresses also act like airfoils, generating a bit of downforce while also looking like hell's kitchen
drawer.
Deep inside its folded figure is the cause of all the fuss: a production-based 3.5-liter twin-turbo V6, massively
boosted to generate 647 hp and 550 lb-ft of torque, blasting creation through high-mounted dual exhaust ports
that are always nicely blackened, like the tips of retrorockets. Crackle, Pop? Your ride is here.
Let's just run the checklist: seven-speed dual-clutch rear transaxle; inboard spring-and-damper suspension with
hydraulic ride-height adjustment (which, put a pin in it, is the secret to the whole operation); active aerodynamics
in the front and rear, including the articulating rear wing/air brake; carbon-ceramic brakes that would stop time.
It is rather fast. The following day I was able to take a GT into the French countryside, with Ford executive vice
president Raj Nair joining me in the narrow cockpit -- or conjoined, like Siamese twins. Here and there on
two-lane roads, I was able to drift back from the cars I was going to overtake, downshift into 2nd and lean into the
GT's throttle. A blur, a sawtooth roar, a flash of the digital tachometer, and then a thudding upshift like a meat
mallet on a thick steak. The GT's quickness from a standing start -- under 3 seconds to 60 mph -- is the first act of
a much bigger performance drama.
And now, dear readers, as we come to the price, please refrain from eating or drinking anything spit-able:
$450,000. Ford will limit production to 1,000 cars over four years. That's right: as in Henry Ford.
While it looks like a machine, the Ford GT is actually 100% narrative. From its initial conception, in 2013, as the
"Phoenix Project," the GT was blueprinted to win its class at Le Mans. Management targeted the 2016 race for

the big push to celebrate the 50th anniversary of Ford's epic 1-2-3 sweep, with Carroll Shelby and the original
GT40s.
After a pretty horrible 24 hours, a Ford GT did win the GTE Pro class, by the skin of team owner Chip Ganassi's
teeth. In 2017, they weren't even as lucky as that, quelle dommage.
While many sports cars are turned into professional race cars -- Porsche 911, Ferrari 488 GTB, Aston Martin V8
Vantage, Chevrolet Corvette -- not many purpose-built race cars go the other way. The design compromises are
pretty fundamental. For example, in order to minimize the GT's frontal area -- one of the multipliers of
aerodynamic drag -- the GT's greenhouse canopy was kept low and narrow, requiring driver and passenger to
sit/slump shoulder to shoulder. The seats are molded into the floor, and the pedal box, steering wheel and
seat-back adjust to accommodate.
Whereas other production sports car must get a roll cage installed, the GT's carbon-composite safety cell has one
already built in, partly explaining the low ceiling.
The GT's very proportions, especially its grandiose nose, are dictated by the slew of radiators required to run Le
Mans, around which cars are at wide-open throttle 80% of the time.
Talk about an afterthought: The entire cargo capacity amounts to a hatched compartment, built into the rear deck
of the car, that's about the size of a four-slice toaster. Your grand touring better involve a lot of nudity.
Between the 12.8-inch rear tires and the thrumming turbo V6 in the small of your back, the GT's cabin noise and
vibration levels are also pretty vivid. Fortunately, my declining hearing compensated.
The key enabler is the car's two-stage hydraulic ride-height adjustment, and if you think the price is high, just
remember it's like getting two cars in one. At normal ride height, the GT sits on a sophisticated inboard
suspension with spring-and-damper sets, an arrangement typical of race cars. In part thanks to its extra long
lower suspension arms, the GT's real-world ride comfort is surprisingly tolerable. But when the driver switches
over from Sport to Track, everything changes. The car's chassis abruptly drops 2 full inches, as hydraulic pistons
compress the springs completely. This leaves the torsion bars as the only source of elasticity. The damping gets
hard, the road feel gets thrashy, the body roll goes from nil to none.
Switching to Normal mode causes the car to jump back up like a Pop-Tart.
There was a time when the beau ideal was to drive your sports car to the track, paint numbers on it, go racing and
then drive home. It's been decades since any road car could be really convincing on track against purpose-built
race cars -- the McLaren F1 and Maserati MC12 come to mind. But in its thoroughly dual nature, its ability to
leave public roads and hunker down to speed work with a press of a button, the GT can do this gallant old trick as
well as any car I've ever driven.
For all its blade-running futurism, it's actually a bit of a throwback.
---
2017 Ford GT
Price, as tested
$450,000
Layout/construction
Two-seat, mid-engine berlinetta coupe, carbon-fiber safety cell/monocoque, aluminum front and rear subframes,
inboard suspension, rear-wheel drive.
Powertrain
longitudinally mid-mounted, dual turbocharged and intercooled, port- and direct-fuel injected, 3.5-liter DOHC V6;
seven-speed dual-clutch rear transaxle; rear-wheel drive
Horsepower/torque
647 at 6,250 rpm/550 lb-ft at 5,900 rpm

Length/dry weight
187.5 inches/3,054 pounds
Wheelbase
106.7 inches
0-60 mph
< 3 seconds (est.)
1/4-mile elapsed time
< 10.5 seconds (est.)
EPA fuel economy
11/18/14 mpg, city/highway/combined
Document J000000020170708ed780000c

For CEOs, High Pay, Higher Anxiety
For CEOs, High Pay, Higher Anxiety

By Vanessa Fuhrmans and Joann S. Lublin
1,003 words
6 July 2017
J
B1
English
The bosses of America's biggest and best-known companies are learning a common lesson this year: The pay is
great, but job security has rarely been shakier.
In June alone, the chief executives of General Electric Co., Uber Technologies Inc., Whirlpool Corp., Buffalo Wild
Wings Inc., Perrigo Co. and Pandora Media Inc. resigned or announced their departures.
Among those, only Whirlpool's Jeff Fettig didn't have to confront investor pressure in the months before
announcing he will step down.
Their exits follow an especially busy season of upheaval in corner offices. In the first five months of 2017, 13
companies with market values of more than $40 billion installed new CEOs -- including American International
Group Inc., Ford Motor Co. and Caterpillar Inc. -- according to an analysis for The Wall Street Journal by
executive-recruitment firm Crist/Kolder Associates. That is more than double the CEO changes at
mega-corporations in the same period last year.
This chief executive churn reflects a broader reality for the country's business elite: An array of challenges -- from
increasing impatience on Wall Street and in boardrooms to a corporate landscape rapidly transformed by new
technologies and rival upstarts -- have made the top job tougher and more precarious than just a few years ago,
top executives say. Even the biggest companies are vulnerable to shareholder disapproval and competitive forces
that their size and stature once helped them fend off.
The typical CEO of a major company a decade ago resembled a ship captain "who could rally a group of people
with a lot of process and procedures," said Deborah Rubin, a senior partner at RHR International, a
leadership-development firm. "Today's CEO has to be much more like a race car driver," she added. "You have to
do the sharp maneuvers."
Flush with more cash than ever, activist investors are pursuing bigger corporate prey. This year, they have helped
push out the leaders of AIG, railroad operator CSX Corp. and aluminum-parts manufacturer Arconic Inc. Indeed,
one-third of the 42 S&P 500 and Fortune 500 companies that replaced a CEO through May this year grappled
with the demands of activist shareholders during the prior chief's tenure, Crist/Kolder's analysis found.
Through June 23, activists had launched nine campaigns targeting top management at U.S. companies this year
-- and the fastest pace since 2014, according to FactSet, a research firm.
Even GE CEO Jeff Immelt's disclosure that he would depart this summer came amid brewing tensions with
activist investor Nelson Peltz over the conglomerate's languishingstock price.
Though the move was part of a long-in-the-works transition, Mr. Peltz's Trian Fund Management LP had recently
stepped up pressure on GE to cut costs more aggressively and boost profits, setting off speculation about when
the longtime CEO might leave.
Mr. Immelt said he decided in 2013 that he would step aside sometime this year after 16 years at the helm, and
GE board officials have said Trian played no role in the leadership change. "My predecessor did it for 20 years --
it's not a 20-year job today," the 61-year-old Mr. Immelt said last week at the Aspen Ideas Festival in Colorado.
Growing shareholder clamor for quick results comes as new technologies are upending entire industries. If you
run a retailer, for instance, "you are watching your whole market go away in just a matter of years," said Peter D.
Crist, chairman of Crist/Kolder.
J. Crew Group Inc. and Macy's Inc., two such retailers that have struggled to adapt to consumer shifts created by
online shopping and upstarts with more nimble supply chains, have recently appointed new CEOs. Both of their
predecessors, J. Crew's Mickey Drexler and Macy's., two such retailers that have struggled to adapt to consumer
shifts created by online shopping and upstarts with more nimble supply chains, have recently appointed new
CEOs. Both of their predecessors, J. Crew's Mickey Drexler and Terry Lundgren, are remaining chairmen of their
companies.
Likewise, Ford's ouster of Mark Fields after less than three years in its highest job was the starkest sign yet of
how tech players such as electric-car maker Tesla Inc. and Alphabet Inc.'s autonomous-car unit Waymo threaten
the traditional auto sector. Mr. Fields had been groomed for years to take Ford's helm, but his fellow board
members swiftly replaced him after he failed to persuade Wall Street he was reinventing the car maker quickly
enough. Ford said Mr. Fields, who retires in August, wasn't available to comment.
"That's just not enough time to do that kind of job" required at Ford, said Bill George, former chief executive of
Medtronic PLC who is now a professor at Harvard Business School. Some CEOs Mr. George speaks with, he
said, are asking themselves "How much time do I have?"
Corporate boards increasingly reply: Not much.
"In boardrooms, sentimentality is officially dead," said Constantine Alexandrakis, head of the U.S. for recruiting
firm Russell Reynolds Associates Inc.
Such pressures aren't just forcing boards to jettison CEOs. Donald Hambrick, a professor of management at
Penn State University's Smeal College of Business, said he suspected some corporate chiefs are voluntarily
hastening their retirements.
Roland Smith, hired to run struggling Office Depot Inc. in November 2013, retired this year after saying he had
always plannedto do so after three years.His tenure at the office-supplies retailer marked the fifth CEO stint for
the 62-year-old turnaround specialist -- and one of his toughest.
Mr. Smith's latest challenge: A 13,000-mile motorcycle trip with his son from Key West, Fla., to Alaska and then
Jackson Hole, Wyo.
"I am in total control of everything I do on the [motorcycle] ride," Mr. Smith said from the road last week. "As the
CEO, you only are in control of a small proportion that happens."
Document J000000020170706ed7600021

Volvo Gives Tesla a Shock, As Others Plan Electric Push
Volvo Gives Tesla a Shock, As Others Plan Electric Push

By John D. Stoll and Tim Higgins
854 words
6 July 2017
J
A1
English
Volvo, the auto maker that spent 90 years polishing a reputation for safety, indicated Wednesday it is mounting
an ambitious challenge to Tesla Inc.'s electric cars.
But the even tougher news for Tesla's billionaire founder, Elon Musk, is that the Scandinavian company isn't the
only deep-pocketed rival planning to compete with the Silicon Valley pioneer. Nearly all global vehicle makers are
mounting their own electric-car push, powered by ever-cheaper prices for batteries, stricter emissions rules and
lucrative government incentives for customers.
Tesla's shares fell more than 7% Wednesday, the steepest decline in a year in which it passed both General
Motors Co. and Ford Motor Co. in stock-market valuation.
The Volvo announcement is "the hard-reality case that Tesla will face intense competition by next decade from
legacy [auto makers] expanding their electric options," Barclays auto analyst Brian Johnson said in an investor
note. "Tesla may have a lead in battery costs," he said, but the "scale advantages" of multinational car companies
likely means Mr. Musk's lead isn't as sizable as often believed.
Investors also were reacting to Tesla's news Monday that second-quarter sales of its luxury Model S and Model X
sport-utility vehicle were lower than analysts had projected because of a supply issue with battery packs, raising
new fears the company will have trouble meeting ambitious production targets for its cheaper Model 3, which
starts at $35,000.
Several analysts also questioned whether demand for Tesla's two niche products is waning as it scrambles to
make the leap to the mass market. The Model S, which sells for about $100,000, "is getting a little long in the
tooth," said Dave Sullivan, an analyst for AutoPacific Inc.
Owned by China's Geely Holding Group, Sweden-based Volvo on Wednesday outlined ambitious plans to
transition its entire lineup to vehicles powered either by batteries or hybrid electric-internal combustion engines by
2019.
While representing potentially the biggest bet yet against gasoline and diesel cars, the announcement follows a
blueprint being drawn up by Toyota Motor Corp., Volkswagen AG and Daimler AG. Those companies plan to sell
millions of electric cars by 2025 -- evidence the auto industry's incumbents believe the internal-combustion engine
has an expiration date.
While Mr. Musk is broadly credited with making electric cars sexy, regulations and financial incentives in the U.S.,
the European Union and China are the driving force pushing most auto makers to look to batteries as the
industry's silver bullet for reducing emissions.
Strict fuel-economy mandates are in place in the world's largest vehicle markets, often matched by tax breaks that
can cut up to 50% off the price of an electric vehicle.
In the U.S., Mr. Musk's Tesla is the face of the electric-car movement, outpacing all-electric offerings from GM
and Nissan Motor Co. that are cheaper but considered dull by comparison.
A new class of electrified or hybrid vehicles will soon challenge Tesla's thrust, however, with nameplates as exotic
as Aston Martin, as rugged as Jeep's Wrangler or iconic as Ford's Mustang.

Investors have prized Tesla's focus on technologies, including semi-autonomous driving and over-the-air software
updates -- but Volvo and others are looking to match them.
Car makers in the U.S. are threatening to edge in on Tesla's turf, pressured by Obama-administration rules
mandating a steep increase in miles-per-gallon performance over the next eight years.
Auto executives say a broad shift toward electrification -- whether hybrids that pair high-powered batteries with
conventional gasoline engines, or full-blown electric cars -- will be needed to meet those regulations.
The Trump administration is reviewing federal emissions rules, but any rollback could take several years and may
not address mandates at the state level. California, and several states that subscribe to its clean-air rules,
demand that 15% of vehicle sales by 2025 be zero-emission cars.
Yet Americans continue to shrug off electric vehicles. While all but two states have regulations or incentives
designed to promote their sales, cheap gasoline means car makers are investing in a technology that today offers
meager returns.
Ford, for instance, is spending $4.5 billion to revamp its U.S. portfolio with electric or hybrid trucks and SUVs,
including a hybrid version of its F-150 pickup, the best-selling vehicle in America.
But less than 1% of the record 17.5 million-plus vehicles sold in the U.S. in 2016 were all-electric, says
WardsAuto.com.
In Detroit, electrified vehicles have long been panned as "compliance cars" because they help the makers comply
with clean-air rules -- even if they don't excite many customers or turn a profit.
To get electrification into the mainstream, analysts say gas prices likely need to rise while government subsidies
remain in place or increase, and charging stations for the vehicles become much more numerous.
Document J000000020170706ed7600023

Correction
Editorial-Opinion
Correction
50 words
2 July 2017
The Washington Post
WP
FINAL
A22
English
Copyright 2017, The Washington Post Co. All Rights Reserved
The June 28 editorial "Economics lessons from Ford" said Ford Motor Co. had decided not to build small cars in
Mexico after President Trump's election. Ford decided not to build a new small-car factory but plans to produce
some at an existing plant.
WP20170702cx-editford0701
Document WP00000020170702ed720000i

Ford CEO Presses Decision Making
Ford CEO Presses Decision Making

By Christina Rogers
341 words
1 July 2017
J
B2
English
Ford Motor Co.'s new chief executive is enforcing a "shot clock" on lingering decisions at the auto maker to
implement plans faster and regain competitive footing in vital segments of the car business.
CEO Jim Hackett, speaking to analysts this week, rolled out the shot-clock idea -- borrowing from a rule employed
in basketball to quicken the pace of the game -- as part of his agenda for the first 100 days in his new job.
Mr. Hackett, who succeeded Mark Fields at the helm in May, spoke Thursday with Wall Street analysts, the first
such meeting for Ford's new chief as he confronts an underperforming stock price. The company has been widely
criticized for appearing indecisive on important technology bets, including self-driving cars or electric vehicles.
In addition to setting firmer deadlines on decisions, Mr. Hackett said he plans to focus on costs, according to
analysts' reports recounting the event. He also wants to move faster to target weaknesses in the business, such
as slumping U.S. sedan sales.
"Mr. Hackett acknowledged that past slow decision-making -- sometimes caused by confusion over 'who was in
charge' within newer efforts -- has been an issue at Ford," said Itay Michaeli, an analyst with Citigroup.
Ford and other conventional auto makers are scrambling to counter the automotive ambitions of such tech giants
as Alphabet Inc., Intel Corp. and Apple Inc., and electric auto maker Tesla Inc.
Ford is now investing in autonomous-vehicle research, including taking financial stakes in startups, and is
spending more than $4 billion to improve its electric-car lineup. Mr. Hackett signaled an openness to revisit the
strategy he inherited from Mr. Fields, the analysts said.
The CEO change, coming as Ford's stock traded about 40% below its level when Mr. Fields became chief in
2014, is seen as an attempt to fix the 114-year-old company's culture.
A Ford spokesman confirmed the meeting with analysts took place.
Document J000000020170701ed710001z

Correction
Editorial-Opinion
Correction
50 words
1 July 2017
The Washington Post
WP
FINAL
A14
English
The June 28 editorial "Economics lessons from Ford" said Ford Motor Co. had decided not to build small cars in
Mexico after President Trump's election. Ford decided not to build a new small-car factory but plans to produce
some at an existing plant.
WP20170701cx-editford0701
Document WP00000020170701ed7100006

Business News: Business Watch
Business News: Business Watch

469 words
29 June 2017
J
B3
English
FORD MOTOR
Auto Maker Books
Expense for Recalls
Ford Motor Co. will book a $142 million expense for recall costs related to Transit vans, the latest in a series of
quality-related expenses dinging the auto maker's bottom line.
The U.S. car maker said the costs will cover three new recalls in North America, including a campaign to fix
400,000 model year 2015-2017 Transit vans. The defect can cause the drive shaft to separate, resulting in a loss
of power or unintended vehicle movement.
In March, Ford said it would take a $295 million charge for recalls covering vehicles with fire risks and faulty door
latches. Ford said it isn't aware of any accidents or injuries related to vehicles covered by the recalls.
-- Christina Rogers
---
GAWKER MEDIA
Permission Granted
To Subpoena Thiel
A bankruptcy judge has given Gawker Media permission to subpoena venture capitalist Peter Thiel about his
relationship with the lawyer who represented Hulk Hogan in the lawsuit that proved to be the publisher's undoing.
Judge Stuart Bernstein of the U.S. Bankruptcy Court in Manhattan ruled Tuesday that Gawker has established
cause for examining Mr. Thiel's relationship with the lawyer, Charles Harder. Gawker seeks evidence, if any
exists, that Mr. Thiel conspired with Mr. Harder to destroy the media company, which could be used to build a
lawsuit against the billionaire venture capitalist.
Gawker's inquiry will be limited significantly by the settlement the company signed last year with Terry Bollea,
Hogan's real name. The agreement prohibits discovery by Gawker into litigation involving Mr. Bollea.
-- Jonathan Randles
---
XOMETRY
Online Marketplace
Raises $15 Million
Xometry Inc., an online marketplace for custom-manufactured parts, has raised $15 million in a funding round led
by BMW Group's venture-capital arm, the startup said Wednesday.

The Gaithersburg, Md.-based firm connects companies that need prototypes and custom parts with a network of
domestic manufacturers and machine shops that can swiftly turn those orders around.
Xometry has raised $38 million since its founding in late 2013. The company generates about $20 million in
annual revenue, said Randy Altschuler, Xometry's co-founder and chief executive.
-- Jennifer Smith
---
TESCO
Supermarket Chain
To Cut 1,200 Jobs
Tesco PLC is cutting 1,200 jobs at its head office, the latest round of cuts as the supermarket chain works to turn
around its performance under Chief Executive Dave Lewis.
Grocers in the U.K. have for years battled one another in a fierce price war. After Brexit, and sterling's slump,
chains face a further headwind: higher costs that are forcing up prices.
"We have made good progress so far in our turnaround but we have more to do," said a spokesman.
-- Saabira Chaudhuri
Document J000000020170629ed6t0002a

Economics lessons from Ford
Editorial-Opinion
Economics lessons from Ford
Editorial Board
561 words
28 June 2017
The Washington Post
WP
FINAL
A18
English
AS A candidate for the White House, Donald Trump blasted the Ford Motor Company for planning to shift
production of its leading compact car, the Focus, to Mexico. He even went so far as to threaten a huge tariff on
any and all U.S. cars formerly produced in this country that might be exported from Mexico back into the United
States. After Mr. Trump's election, Ford seemed to cave by announcing it would not be building the cars in Mexico
after all.
So what are we to make of the surprising facts that Ford now plans to make the Focus in President Trump's other
trade nemesis - China - and that the Trump administration's response is, essentially, "whatever"? Ford's move
just "shows how flexible multinational companies are in terms of geography," Commerce Secretary Wilbur Ross
observed. You don't say!
Lesson one: Economic reality is stubborn. Gas prices are plunging. Ergo, the American consumer can afford to
indulge a preference for larger vehicles, to the detriment of smaller, fuel-efficient models such as the Focus, U.S.
sales of which fell 31 percent between 2012 and 2016. Assembling these slow-selling vehicles in high-wage
American factories is not profitable; even nonunion Japanese and Korean carmakers are de-emphasizing
small-car production in the United States, in favor of SUVs and crossovers. Mr. Trump's coercion was bound to
fail, and while it's not ideal to see any production shift overseas, kudos to Ford for calling Mr. Trump's dictatorial
bluff - especially because the company plans not to lay off workers but to redeploy them producing pickups and
SUVs in Michigan.
A second lesson, though, is that government subsidy can't overcome fundamental market dynamics either. Ford
was the recipient of a $5.9 billion low-interest loan from the Energy Department, authorized under a bipartisan
program signed into law by President George W. Bush in 2007 but funded by the Obama administration in 2009,
the purpose of which was to help Ford produce the next generation of fuel-efficient vehicles in the United States.
"We have an historic opportunity to help ensure that the next generation of fuel-efficient cars and trucks are made
in America," President Barack Obama said. A declared purpose of the huge loan was to convert two truck
factories to car production. The loan did, indeed, help Ford raise the fuel efficiency of its best-selling F-150 pickup
(which it might have done anyway to meet stricter federal standards). But as Ford's recent moves demonstrate,
the dream of hot-selling gas sippers, made in the U.S.A., has apparently died, a victim of low gas prices and high
U.S. production costs.
Is it too much to hope that the federal government will stop purporting to micromanage specific business-location
decisions using either threats or bribes? The right approach is to enhance business conditions generally -
especially through corporate tax reform - so that the United States remains competitive with all the other places in
the world where capital may freely locate. Mr. Ross seemed to concede this, noting that after Ford's move,
German and Japanese automakers will be attracted to this country by Mr. Trump's "reforms." So we're wondering:
What was the point of all that protectionist fuss?
WP201706281edit-Ford0628
Document WP00000020170628ed6s0002c

OFF DUTY --- Gear & Gadgets: Go Big and Go Home --- Minivan not quite large or hip enough for your family's needs? More Americans are...
OFF DUTY --- Gear & Gadgets: Go Big and Go Home --- Minivan not quite large or hip enough for your
family's needs? More Americans are looking to the commercial fleet
By Jonathan Welsh
1,012 words
24 June 2017
J
D12
English
Whether due to vanity or insecurity, some people simply refuse to drive a minivan. Haters point to the vehicle's
bread-loaf styling and the "I've given up" vibe it exudes. So what are style-conscious Americans to do when they
have an abundance of children or gear to haul? Go even bigger. Intended for businesses, commercial passenger
vans -- the descendants of those that shuttled you to camp or baseball games when you were a kid -- are
nonetheless becoming the darling of harried families.
Although not exactly glamorous, commercial passenger vans have been known to turn heads at the school pickup
line or the country-club entrance. The practical appeal is clear: While most minivans and large SUVs can seat
seven or eight, the Ford Transit, Mercedes-Benz Sprinter and Chevrolet Express can be configured to
accommodate from five to 15. The vans also offer plenty of room in back for your stuff (no need to install a roof
rack or haul a trailer.)
Unlike the gas-guzzling commercial passenger vans that Detroit's Big Three began selling in the 1970s, the latest
models are notably fuel-efficient, thanks in part to their diesel engines. And the market is growing fast. The
Mercedes Sprinter started shaking up the U.S. van world more than a decade ago, but the Transit, NV and Ram
ProMaster, from Fiat Chrysler, have arrived more recently to meet demand.
Indeed, big vans have become a bright spot in the U.S. auto market. Sales of full-size commercial vans were up
more than 15% in 2016 over the previous year, with some newer models posting huge increases in the same
period: ProMaster sales, for example, jumped by 45%.
The big vehicles are also attracting buyers with wanderlust. A couple that might otherwise seek out a larger RV
can live in one fairly comfortably. Sites like Van Life (van-life.net) and Digital Nomads Forum
(digitalnomadsforum.com) offer advice to those looking to use these vans for extended road trips, camping and as
full-time mobile homes.
Here, an overview of the latest bigger-than-a-minivan options.
1. Nissan NV
When Nissan launched its NV passenger van in 2011, the company expected it to appeal to airports, hotels and
resorts with shuttle fleets, according to Mark Namuth, Nissan's senior manager of fleet and commercial sales.
"But the design team was telling us that families were going to buy this vehicle, so we needed to pay more
attention to the interior," he said. Although he doubted the wisdom of investing in better seats, storage and other
amenities, he's glad he relented. "They were right. We sell about 60% to 70% of our passenger vans to families,"
he explained. While other large vans have flat front ends, the NV's prominent hood gives it a muscular,
pickup-truck profile. The design also moves the engine and transmission forward, where they don't encroach on
front-seat space. From $33,800, nissancommercialvehicles.com
2. Ram ProMaster
Based on a Fiat design popular in Europe, this unabashedly boxy van is the shortest bumper-to-bumper -- and
the only one in this roundup with front-wheel drive. As a result, it turns tightly and parks relatively easily. The
standard version is no longer than a Toyota Avalon sedan and handles pretty much like a midsize SUV. Like most
of its competition, the ProMaster is available in a range of lengths and roof heights. Although it ships from the

factory with up to three front seats, you can outfit this van to seat 15 via one of the many third-party ProMaster
"upfitters" out there. From $29,995, ramtrucks.com
3. Chevrolet Express
Though the design of the Chevrolet Express hadn't evolved in any meaningful way for the past three decades or
so, just this year, the Express leaped into the modern age with a new diesel engine -- only slightly larger than that
in the Mercedes Sprinter -- significantly boosting fuel economy. The engine comes with an 8-speed automatic
transmission (the most gears in this competitive group) for smoother acceleration and better fuel economy. Car
makers aren't required to publish fuel-economy ratings for big vans, but a Chevy spokesperson said that company
staffers have driven the diesel Express thousands of miles at 25 mpg and better. Not bad for a family road trip.
From $33,140, chevrolet.com/express
4. Mercedes-Benz Sprinter
The Sprinter was the first of the "Euro-style" commercial vans to arrive in the U.S. in the early 2000s. Delivery
companies including FedEx snapped them up, despite their relatively steep sticker price, because their fuel
economy made them a long-term value. Consumers soon caught on. The Sprinter is available with a four-cylinder
diesel engine that might seem underpowered for such a large vehicle, but it has plenty of kick, and the
smooth-shifting 7-speed transmission gives the Sprinter surprisingly peppy acceleration. The biggest surprise:
When going just under 70 mph on the highway, the Sprinter managed an impressive 28 miles per gallon. From
$39,170, mbvans.com
5. Ford Transit
Unlike traditional large vans and trucks, whose frames and bodies are fabricated separately and then bolted
together, the Transit's are integrated, just like a traditional passenger car's chassis and body-panels. This setup
stiffens the Transit's overall structure, resulting in a smoother ride and more agile handling. While the majority of
Transits are used in commercial fleets, many customers buy one for personal rather than business use, according
to Ford sales analyst Erich Merkle. In line with the broader trend, retail sales of the Transit, which include
personal-use customers, have risen 7% so far this year. From $34,365, ford.com/new-commercial-trucks.
Dan Neil's Rumble Seat column will return in two weeks.
Document J000000020170624ed6o0000f

Ford's Plans Send Signal: Chinese Cars Are Ready to Compete on World Stage

Ford's Plans Send Signal: Chinese Cars Are Ready to Compete on World Stage
By KEITH BRADSHER; Ailin Tang contributed research from Shanghai.
1,222 words
22 June 2017
The New York Times
NYTF
2
English
HONG KONG -- After years of predictions that cars sold in the West would bear the ''Made in China'' label, the
time has finally come.
Ford Motor's plans to build its popular Focus compact cars in China, rather than Michigan or Mexico, is a
milestone in China's automotive rise. Chinese auto industry leaders praised the move as long-awaited
confirmation that the country's factories have become as efficient and high-quality as those in the United States
and Europe.
The question now is how political leaders greet the development, amid rising skepticism in the United States over
Chinese trade policies and the benefits of free trade in general. Though the White House so far has been muted
in its reaction to Ford's move, President Trump in particular was strongly critical of Chinese trade policies during
his campaign last year. China's high tariffs on imported cars and auto parts have already emerged as a potential
trade issue.
''Ford's moving production to China shows China's competitiveness in manufacturing is continuously increasing
and our industrial supply chain is improving,'' said Cui Dongshu, the secretary general of the China Passenger
Car Association, a government-backed trade group in Beijing. ''But this is obviously against Trump's policies -- it
is quite complicated and may cause some friction in Sino-American trade in the future.''
China represents a competitive challenge and a profitable opportunity for American carmakers.
China is already the world's largest automaker, with annual car production roughly equal to that of the United
States and Japan combined. Chinese players have long wanted to develop underused factories dotting major
cities to increase production and export the excess.
For years, it has been a quixotic dream. Such factories tend to churn out lower-quality, domestic-brand rides that
would not pass muster with American or European consumers.
But China is angling for a big share of the future. Beijing has put very heavy pressure on Western automakers to
transfer their latest, most cutting-edge technology to China as a condition of doing business. Many companies,
including Volkswagen, General Motors and Ford, have plans to shift more research and development to China,
particularly around electric cars.
China has an increasingly global auto presence. General Motors began exporting the Buick Envision compact
sport utility vehicle to the United States last year, although the Envision is a much lower-volume model than the
Focus. Volvo, which is owned by a Chinese company, started exporting S60 sedans from China to the United
States in 2015, while Cadillac this spring started shipping its Shanghai-made CT6 Plug-in hybrid to the United
States.
Ford's decision will significantly ramp up the country's car exports. The Focus would more than triple China's
exports of fully built cars to the United States.
As a manufacturing base, China holds strong appeal for Detroit's automakers. Auto factory pay in China is similar
or slightly higher than in Mexico at around $1,250 a month, including government-mandated benefits like
contributions to savings funds with which workers can buy housing. Overtime adds roughly $300 a month. But

that pay is much lower than in the United States, where workers earn several times as much even before
overtime.
Auto parts are also much cheaper in China than in the United States, because labor tends to be a larger share of
the cost than final assembly. The global auto parts industry has shifted much of its production to China, partly
because of low costs and partly because China's steep tariffs make it impossible for multinational manufacturers
to compete in the Chinese market unless they produce in China.
And quality is high at Chinese factories run by Western carmakers.
Global automakers already have built some of their most modern factories in China. A Ford factory in Hangzhou
has 650 robots. A somewhat smaller General Motors factory in Shanghai has 530 robots that make Cadillacs with
all-aluminum bodies -- one of the latest and toughest manufacturing challenges even in the West.
G.M.'s China-made Buick Envision ranks slightly above average in initial quality surveys of American consumers
among 13 compact sport utility vehicles, according to J.D. Power and Associates, the international quality rating
company. The top three concerns of the Envision's American buyers involved the ease of use of its voice
recognition system and other consumer electronics -- concerns indicating that American consumers were
basically satisfied with the actual car.
Chinese domestic automakers still lag in quality surveys. But among the global brands, cars made in China come
from assembly lines that are identical in almost every respect to factories in the West -- except that the factories
in China, because they are new, tend to be more automated. Jeff Cai, the general manager of the China
automotive practice at J.D. Power, said that the relative newness of Chinese factories tended to balance out the
limited experience and high turnover of Chinese workers.
''In terms of the building quality,'' he said, ''it's pretty similar.''
Industry insiders fear that all the auto factory capacity will encourage China to increase exports if homegrown
demand slows down. Thanks to a cut in sales taxes last year, car sales in China in 2016 grew by an amount
almost equal to the entire Japanese market. That helped absorb some of China's overcapacity. But with the
partial expiration early this year of the sales tax cut, demand is starting to slow.
Ford's sales in China in the first five months of this year were down 11 percent from the same period last year.
But Sinead Phipps, a Ford spokeswoman, denied any connection to the new export plans. ''We've made the
decision because it allows us to reduce global Focus production by one plant, improve the health of our Focus
business, save $1 billion in investment costs and further improve our scale in China,'' she said.
The Chinese government is so worried about overcapacity that in June it tightened the approval process for any
further auto assembly plants. But automakers are still rushing partially built factories to completion.
Ford's decision could shift work away from American auto parts factories, which are heavily concentrated in Ohio,
Indiana and southern Michigan. The Focus made in Michigan currently has 40 percent of its parts manufactured
in the United States and another 26 percent in Mexico, where business activity tends to involve a lot of materials
imported from the United States. By contrast, United States government data shows that only 2 percent of the
Envision's parts come from the United States.
Ford was a relative laggard in China compared with G.M. for many years. Today, it is increasingly part of an
industry shift across the Pacific to China. Shortly before he was replaced last month as Ford's chief executive,
Mark Fields said in Shanghai, ''You can see from our series of announcements, we are not holding back.''
Follow Keith Bradsher on Twitter, @KeithBradsher

A worker checking quality at the body shop of the Ford plant in Hangzhou, China. The Ford factory there has 650
robots. (PHOTOGRAPH BY GIULIA MARCHI FOR THE NEW YORK TIMES)
Document NYTF000020170622ed6m00054

CFO Journal: Index Mulls Booting Unequal Voting Shares --- FTSE Russell proposal comes as big holders press for change; a stock's price at...
CFO Journal: Index Mulls Booting Unequal Voting Shares --- FTSE Russell proposal comes as big holders
press for change; a stock's price at risk
By Richard Teitelbaum
638 words
20 June 2017
J
B5
English
A proposal being floated by a large index firm could force finance chiefs at companies such as Alphabet Inc.,
Facebook Inc. and Ford Motor Co. to choose between keeping their places in broad stock benchmarks or
changing their share class structures.
FTSE Russell is proposing possible restrictions on the inclusion of companies with unequal voting rights in its
indexes, but the firm will weigh input from clients and investors before working out specifics.
The proposal calls for setting a minimum threshold for the percentage of voting control attached to company
shares in an index. For example, a company whose Class A shares in an index control 40% of the total votes
might be excluded from FTSE Russell's main indexes, like the Russell 3000 or Russell 2000, if the threshold were
higher.
FTSE Russell, which is owned by London Stock Exchange Group PLC, gave until last Friday to respond to its
proposal. A spokesman said it expects to release a decision in July.
The firm asked for feedback on what the threshold might be. It also said it might ultimately decide not to change
FTSE Russell rules at all.
The proposal addresses a corporate governance issue important to key investors. "The future of the markets are
at stake," said James Andrus, an investment manager at the California Public Employees' Retirement System.
Many institutional investors are increasingly critical of unequal voting rights. Organizations like the Council of
Institutional Investors, an advocacy group, have called for banning nonvoting shares from indexes.
Whether barring companies with unequal voting rights from indexes would prompt them to opt for a different
share class structure when going public is uncertain. "The answer would depend on how restrictive [the ban is],
that is how many indexes we were excluded from," said Fitbit Inc. Chief Financial Officer Bill Zerella in an email.
"We would have to weigh that with the benefits of a dual class."
Fitbit went public in 2015 with Class A shares entitled to one vote and Class B shares entitled to 10 votes.
All things being equal, companies shifted from popular indexes are likely to see share prices fall because
investors who track the benchmark are no longer required to hold their stock. "There are some studies that show
it could make a 15% difference," Mr. Andrus said.
By FTSE Russell's estimates, 38.64% of Alphabet's voting power is represented by the shares included in its
main indexes. For Facebook, 30.27% of total votes are represented by the shares in its main indexes and 59.64%
for Ford Motor.
Alphabet and Facebook didn't respond to emails seeking comment on the proposal or FTSE Russell's estimates.
A Ford spokesman referred to a section of the company's 2017 proxy statement that says, "Our ownership
structure has helped insulate our Company from business cycles and related short-term pressures."
Critics of unequal voting rights are likely to applaud restrictions. "The mere fact that they are considering keeping
nonvoting shares out of the index is a good thing," said Charles Elson, a professor of corporate governance at the
University of Delaware.
Kathleen Smith, co-founder of investment firm Renaissance Capital LLC, said excluding dual voting class
companies may result in leaving out superior stock-market performers. "This could be a minefield," she said.
Rival index firms S&P Dow Jones Indices and MSCI Inc. also have launched reviews of nonvoting share policies.
A spokeswoman for S&P said the index firm would complete its consultations with market participants on June 30
and announce its decision soon after.
An MSCI spokeswoman didn't return requests for comment.
Document J000000020170620ed6k0002p

Business News: Ford Unit to Break Out Results
Business News: Ford Unit to Break Out Results

By Christina Rogers
272 words
9 June 2017
J
B5
English
Ford Motor Co.'s smart mobility subsidiary will start breaking out separate financial results to help offer investors
better clarity on the revenue and earnings potential for the company's alternative transportation businesses.
Raj Rao, the mobility unit's chief executive, said Thursday the intent is for Ford Smart Mobility LLC to have its
own profit and loss statements, much like Ford's other divisions, although he didn't give exact timing on when that
would begin.
The unit oversees efforts to diversify into ride-sharing, autonomous-car fleets and other service-based business
that executives believe have the potential to boost margins beyond what Ford earns from its traditional auto
operations.
Analysts have pressed Ford executives for more financial details on the future technologies it is investing in and
better clarity on how they will deliver the 20% margins forecast by former chief executive Mark Fields. Mr. Fields
was ousted last month in part because he wasn't able to provide a cohesive strategy on how the future bets would
tie together.
Ford's new CEO Jim Hackett had recently led the mobility unit as chairman until his appointment to the top job.
Separately, Ford is offering buyouts to 15,000 salaried workers in North America and Asia in a move aimed at
boosting profit amid slowing sales in the U.S. and China.
The offers target 10% of the white-collar workforce in each region with the aim of trimming 1,400 employees from
the global head count, the company said.
Document J000000020170609ed690001m

In May surprise, Ford does a number on GM in auto sales ; SUVs, pickups lead way as automakers add more discounts
MONEY
In May surprise, Ford does a number on GM in auto sales ; SUVs, pickups lead way as automakers add
more discounts
Nathan Bomey
Nathan Bomey, @NathanBomey, USA TODAY
590 words
2 June 2017
USA Today
USAT
FIRST
B.3
English
In a surprise, Ford Motor edged its archrival and perennial first- place automaker General Motors when it came to
sales last month.
Although likely a temporary blip, Ford outsold crosstown rival GM by about 3,000 new cars and trucks in May,
making it the largest automaker in the U.S. market, for now. It was the first time Ford outsold GM since March
2016. Before that, it hadn't happened since March 2011.
Ford's sales rose 2.3% for the month compared to the same month last year, GM was down 1.4% and the third of
Detroit's Big 3, Fiat Chrysler, was down 0.9%, Autodata reported. Overall, all automakers selling new vehicles in
the U.S. saw a 0.5% drop for the month. Toyota sales were off 0.5%, but Honda and Nissan posted slight gains
among Japan's Big 3.
Following Ford's stunning removal of Mark Fields as chief executive last month amid consternation over the
company's stock price, investors have been watching Ford closely as it tracks a new direction under new CEO
Jim Hackett.
The company's 2.3% sales increase in May, fueled by strong sales of sport-utility vehicles and pickups, inspired
some fresh confidence. Ford stock increased 2.6% Thursday to close at $11.41.
Despite GM's unexpected sales decline of 1.4%, the company also enjoyed a stock boost. GM shares closed up
1.5% to $34.43.
The rivalry between GM and Ford is prone to occasional flare- ups. Ford sales chief Mark LaNeve acknowledged
that when Ford tops GM, it's typically because the company sold more vehicles to fleet customers, which include
rental car companies.
"It feels good for about 10 seconds and then we move on," he said on a conference call.
Still, Ford's most important model, the F-150 pickup, cemented its role as the nation's top-selling vehicle by
outdistancing the competition for the month with a 12.8% sales gain.
In another surprise, Ram's full-size pickup was the second best- selling vehicle for the month ahead of
Chevrolet's Silverado, which is usually No. 2. And Chevy has been heavily promoting its truck in TV ads.
GM spokesman Jim Cain said GM had made a "conscious decision" to lower its reliance on rental car sales,
which are less profitable than retail units. "The quality of our sales was much higher," Cain said in an email.
The rivalry between GM and Ford is a "silly" sideshow, Autotrader analyst Michelle Krebs said.
"Yes they have the strong rivalry, but to focus on each other is just the wrong focus," she said. "There are so
many other competitors around them they need to be paying attention to."
Overall, heightened competition among automakers kept new- vehicle sales humming along at a high pace in
May, but increasing discounts took a bite out of the bottom line.
Analysts at Kelley Blue Book and Edmunds.com projected U.S. auto sales would rise 0.2% and 0.3%,
respectively, compared to a year earlier. It would mark the first monthly sales increase of the year.
Incentives are enticing consumers to take the plunge. For example, dealers boosted auto financing incentives by
33%, compared to a year earlier, Edmunds.com analyst Jessica Caldwell said in a report.
photo Gene J. Puskar, AP

Document USAT000020170602ed6200004

GM Falls Behind in Flat Market --- Auto maker struggles with softer demand for its cars and trucks; more job cuts coming
GM Falls Behind in Flat Market --- Auto maker struggles with softer demand for its cars and trucks; more
job cuts coming
By John D. Stoll and Adrienne Roberts
982 words
2 June 2017
J
B1
English
General Motors Co. is limping into the highly anticipated summer selling season, beaten by Ford Motor Co. as the
market's top seller in May and on course for more job cuts at its American factories.
GM, among the world's most profitable auto makers, has been scrambling to adjust production as the U.S. market
plateaus. The adjustment reflects a discipline installed by Chief Executive Mary Barra after decades of stocking
dealers with more cars and trucks than customer demand warranted.
GM sales are off 1% through five months compared with the same period in 2016, including a 1.3% drop in May.
Since January, it has disclosed plans to lay off more than 4,000 workers.
Once known for flooding rental-car agencies with its cars and putting generous discounts on even its most
popular models, GM has retreated from profit-sapping fleet sales and shown restraint in incentive spending.
The strategy, however, comes with a price. GM's market share has stagnated near historically low levels, and the
one-time global powerhouse risks eventually losing its crown as the top American auto maker.
GM shares rose 1.5% to $34.43 on Thursday. But the stock is marginally above its $33 initial public offering price
set in 2010, raising pressure on Ms. Barra, whose onetime counterpart at Ford, Mark Fields, was abruptly fired
last month.
Mr. Fields struggled to compose a strategy for combating an onslaught of tech companies, including Alphabet Inc.
and Tesla Inc., looking to displace Detroit companies as industry leaders.
Ms. Barra has made a series of high-dollar investments and product introductions as part of GM's response to
Silicon Valley and enjoys backing from the company's board. In addition, she has pulled GM out of several
markets to ensure profit growth as the U.S. car market cools.
Overall, auto makers sold 1.52 million vehicles in the U.S. in May, down less than 1% from a year earlier,
according to Autodata Corp.
"While demand for new vehicles is still relatively strong, it's a bit of smoke and mirrors," said Jessica Caldwell, an
Edmunds analyst. "Dealers and [auto makers] really pushed the deals over the holiday weekend to prop up their
May numbers."
The average incentive across the industry touched a new May record, exceeding $3,650 per vehicle.
Ford reported an unexpectedly strong performance due largely to a steep increase in sales to fleet buyers, while
Toyota Motor Co. and Fiat Chrysler Automobiles NV reported modest declines. Honda Motor Co., Nissan Motor
Co. and Volkswagen AG also reported sales increases.
GM has been buffeted on two fronts this year. It had to curtail production amid plummeting demand for its
bread-and-butter Chevrolet Malibu sedan, the Cadillac CTS luxury car and other passenger cars. At the same
time, pickup sales -- the backbone of GM's high-margin truck business -- are slumping even as Ford's F-Series
pickups and Chrysler's Ram trucks thrive.

Mark LaNeve, Ford's U.S. sales chief, said both fleet and retail sales of F-Series trucks rose in May. "The
F-Series had a sensational month," he said. "It continues to gain market share. We anticipate [June will be]
another strong month."
GM's latest job cuts are modest in number, but they will occur in a city central to one of the Michigan counties that
played an outsize role in the 2016 presidential election. GM's transmission plant in Warren, Mich., will cut about
150 jobs, affecting temporary and unionized workers living in Macomb County communities where President
Donald Trump's "America First" theme played well.
A spokesman noted GM's cuts in Warren, scheduled for late June, affect less than half the workforce at the
factory and are part of a broader plan to trim sedan capacity amid weak demand for passenger cars.
A sustained run of cheap prices at gasoline pumps and steady job growth have boosted the appeal of sport-utility
vehicles, including a stable of models GM is in the process of updating.
Traditionally the top U.S. auto maker in terms of sales, GM has struggled to keep up with rivals in the pickup truck
department. Sales of Chevy's Silverado and Colorado pickups, and sibling versions of the trucks sold by GMC,
have slipped 5.6% in 2017. Meanwhile, Ford's best-selling F-Series lineup is up 8.5% and Ram truck sales have
increased 8%.
GM's weakness in the sector -- a primary generator of profits for auto makers -- is a big concern for analysts.
Detroit's dominance of this market has proven impenetrable. The three domestic companies have fended off
repeated attempts by Japanese competitors to gain significant market share with models like the Nissan Titan
and Honda Ridgeline.
However, when any one of the domestic pickup lines struggles, it raises questions about the willingness of
consumers to spend more for a new vehicle and the appetite of commercial buyers -- ranging from small-business
owners to municipal fleet managers -- to invest in equipment in response to economic optimism.
Sales of light-duty pickups have soared in recent years amid declining gasoline prices and job growth, now
representing 16% of light-vehicle sales, according to Autodata Corp. However, the segment fell in April, the first
decline for pickups in 11 months.
Inventory of pickups has particularly worrisome, touching 97 days' supply as of the beginning of May, or a 12%
increase in actual vehicles on dealer lots compared with the prior year, according to WardsAuto.com. That
number is far above the industry norm for inventory and has helped fuel an emerging price war in the U.S.
market.

Document J000000020170602ed620002e

Business & Technology -- Keywords: CEOs Must Grasp Tech Like Never Before
Business & Technology -- Keywords: CEOs Must Grasp Tech Like Never Before
By Christopher Mims
854 words
27 May 2017
J
B3
English
Investors and boards long obsessed with quarterly profits are now hunting for leaders to make big, fast bets to
fend off upstarts shooting for the moon.
Ford Motor Co.'s recent decision to boot then-Chief Executive Mark Fields, a 28-year veteran of the company,
exemplified a shift in the priorities of big companies across the U.S. The message is simple: In an age of rapid
disruption by the software and tech industries, a leader has to pick up the tempo and make riskier bets sooner . . .
or else.
To make things worse for established players, investors aren't comparing them to their traditional rivals, but to
quick-moving Silicon Valley startups that are poised to make them irrelevant.
For pretty much any industry you can name -- not just autos but other manufacturing, logistics, finance, media
and of course retail -- there are tech startups purporting to have better ideas, ones they say they don't need
decades to make into realities. It isn't as if all these industries will see massive CEO turnover, but it does mean
established companies need to consider drastic measures. They must be willing to tell their stakeholders they
may have to lose money and cannibalize existing products and services, while scaling up new technologies and
methods.
"Ten years ago, innovation was based on features and functions," says William Ruh, chief digital officer at
General Electric. "Now it's about your business model and transforming your industry."
Before, companies could innovate by acquiring tech startups. But the top disrupters now grow so quickly and
capture so much market share, they become too valuable to buy or are unwilling to sell. "It's now a battle to the
death," says Mr. Ruh.
Mr. Fields did much that was good for Ford, returning consistent profits. But as it became clear the automotive
market was entering a revolution of electric vehicles, self-driving technology and ride-sharing -- with stars like
Uber, Tesla, Lyft and Waymo starting to shine -- Ford's stock sank. The share price is off 40% from when Mr.
Fields took over three years ago.
Mr. Fields even set a course for adopting these emerging technologies. He just couldn't do it fast enough for Ford
and its shareholders.
Other CEOs are being dismissed as their businesses post losses in the face of tech-heavy competition. In the
past year alone they include Ronald Boire of Barnes & Noble, GNC Holdings' Mike Archbold and top executives
at three of the six major Hollywood studios.
Mickey Drexler, CEO of beleaguered J. Crew, admitted that if he could go back 10 years, he might have done
things differently, to cope with the rapid transformation of retail by e-commerce. Who then would have predicted
that in 2017 the No. 1 online retailer of clothing to millennials would be Amazon?
CEO turnover isn't the only solution on the table, says Horace Dediu, a fellow at the Clayton Christensen Institute
for Disruptive Innovation, a think tank based in the San Francisco Bay Area. Companies also have to incubate
potentially disruptive startups within their own corporate structures. This means protecting them as they develop,
and being willing to absorb their losses for as long as their competitors do. Consider, for example, that Amazon
made almost no profit for its first 20 years.

Another retailer, Amazon rival Wal-Mart Stores, recently has seemed to be managing this transition well. In its
most recent quarter, Wal-Mart's e-commerce division increased sales 29% from a year earlier. Many analysts
thought the company overpaid for Jet.com, which cost it $3.3 billion in August 2016. But the acquisition brought
e-commerce veteran Marc Lore, who became chief executive of Wal-Mart's online operations and quickly
replaced existing executives with members of his own team. Importantly, Wal-Mart credits its recent growth in
online sales to "organic" growth of its Walmart.com operations -- the division Mr. Lore heads.
Even companies that have long depended on in-store, analog experiences are following this playbook. Luxury
brand company LVMH Moet Hennessy Louis Vuitton, for example, hired Ian Rogers, the former CEO of
headphone maker Beats and a former Apple Music executive, to build an e-commerce portal for its high-end
brands.
To the extent that an executive shake-up brings in leaders who can nurture disruptive business models, the new
leaders must be part of a team with the rare skill of maintaining an existing business at the same time. It's a skill
that GE Chief Executive Jeff Immelt, for one, has mastered.
GE has seen steady growth as its core businesses expand while it adds new product lines. It can't just innovate; it
has to deliver innovations at scale. Before we give up on every company that doesn't have an eccentric,
hard-charging founder and technologist at its helm, remember the advantage big companies like GE do have over
upstarts: the manufacturing and logistics infrastructure sufficient to deliver new products globally.
Document J000000020170527ed5r0001y

Business News: Ford Goes Back to the Future With Hire --- Engineer returns after stint at Uber as auto maker continues management overhaul
Business News: Ford Goes Back to the Future With Hire --- Engineer returns after stint at Uber as auto
maker continues management overhaul
By Christina Rogers and Tim Higgins
771 words
26 May 2017
J
B3
English
Ford Motor Co. has wooed back a senior engineer who had left to develop autonomous vehicles at Uber
Technologies Inc., underscoring the auto maker's determination under new leadership to compete with Silicon
Valley on new technologies.
Sherif Marakby returns to Ford as vice president responsible for self-driving and electric-car businesses, the auto
maker said Thursday as it announced a raft of management changes under new CEO Jim Hackett. Mr. Marakby
will oversee companywide profits and losses for those business lines, part of a broader effort by Ford to highlight
for investors the earnings potential of the company's emerging technologies.
Mr. Marakby's departure from Ford in 2016 for Uber was seen as a stark example of traditional auto makers
losing top talent to Silicon Valley in the race to develop robot cars. The promise of autonomous vehicles, though
still unproven, threatens to upend the estimated $2 trillion of annual revenue tied to the automotive industry in the
U.S.
With Mr. Markby's return, Mr. Hackett has succeeded at installing a prominent engineer in a key role designed to
bridge various departments and execute Ford's vision for self-driving cars.
The 114-year-old auto maker also announced that product and technical chief Raj Nair will take over North
American operations, a region responsible for nearly 90% of the company's profits. He succeeds Joe Hinrichs,
Ford's new global operations chief. Also, Steven Armstrong, Europe's operating chief, will be elevated to run the
region, replacing Jim Farley, who was named global markets president on Monday.
Ford announced earlier this year plans to invest $1 billion in startup Argo AI that was co-founded by Bryan
Salesky, a leader in autonomous development from Alphabet Inc. Ford is aiming to put an autonomous vehicle for
commercial use on the road in 2021.
"The problem was that there was no one to communicate how Argo could evolve into a revenue stream for Ford,"
said Dave Sullivan, an analyst for consultancy AutoPacific. "Marakby will have to work on communicating on all of
the items Ford has invested in since he was last there in regards to how they can translate into revenue in the
future."
Mr. Marakby wasn't available for comment.
Mr. Marakby's tenure at Uber likely educated him on how some of the leading developers of self-driving cars
work, and could help him smooth differences between the corporate suite in Dearborn, Mich., and the upstart tech
culture at Argo AI.
Peter Rander, Argo's co-founder and chief operating officer, worked at Uber on its self-driving test vehicles. And
as Argo has pushed hiring, it has drawn from the ranks of the ride-hailing company, especially its Pittsburgh
operations, according to LinkedIn bios.
Mr. Marakby left Uber in April as the company's autonomous-vehicle program was beset by trade-secret
allegations from Google parent Alphabet Inc. Uber is contesting the lawsuit, which alleges the company conspired
with a former Google engineer, Anthony Levandowski, to steal self-driving-car secrets to jump-start its own
efforts. Mr. Levandowski, who hasn't commented about the allegations, has since stepped aside as head of
Uber's autonomous-vehicle program, putting its future in doubt.

As Detroit and Silicon Valley race to develop self-driving technology, they are competing fiercely for talent --
especially among the small pool of engineers and programmers with expertise in areas of computer vision and
machine learning. "There are more jobs for those people than there are people who can do them," said Max
Brown, co-founder of Silicon Beach Talent, a recruiting firm that specializes in automotive-tech hiring.
Sebastian Thrun, the so-called Godfather of Google's self-driving car project, created a stir when last fall he told
Recode that the going rate for self-driving talent is $10 million per person.
Among other Ford moves Thursday, longtime marketing executive Peter Fleet will take over Asia-Pacific
operations, a vital region including China, from Dave Schoch, who is retiring after 40 years. Purchasing chief Hau
Thai-Tang will add global product development to his role, the company said.
The changes highlight how Mr. Hackett, less than a week in the new job, is restructuring the management team to
be more agile with him having fewer direct reports than his predecessor. Many of these executives will now report
to either Mr. Farley or Mr. Hinrichs.
Document J000000020170526ed5q0002m

Ford's Key Deputies Expand Their Roles
Ford's Key Deputies Expand Their Roles

By Christina Rogers
425 words
25 May 2017
J
B1
English
The top agenda item for Ford Motor Co. Chief Executive Jim Hackett is carving out a clear strategy for the
114-year-old auto maker's role in an evolving car business. For just about everything else, he can rely on Joe and
Jim.
Ford's executive shuffle, announced Monday, led to broader roles for current Americas Chief Joe Hinrichs and
current Europe Chief Jim Farley. They will leave specific regional duties, with Mr. Farley taking charge of global
markets, and Mr. Hinrichs running global operations.
The moves hand considerable sway over day-to-day decisions to the pair. As Mr. Hackett succeeds Mark Fields
at the helm and looks to accelerate innovation and energize the workforce, analysts say his top lieutenants are
being positioned as candidates to eventually succeed him for the top job.
In a note to investors, Barclays analyst Brian Johnson said the new job descriptions signal both are "vying to take
over as CEO after Hackett's work is complete." He said "both have big challenges and perhaps the board's
thinking is this will move them to cut deeper, act faster."
A Ford spokesman said the company doesn't comment on succession planning.
Ford last week said it would cut white-collar head count by 10%, or 1,400 people, in North America and Asia
following similar actions in Europe and South America. In an interview, Chairman Bill Ford said more "hard
actions" need to be taken to address underperforming parts of the business but declined to elaborate.
Mr. Farley, 54, is an ex-Toyota Motor Corp. executive with a sharp tongue and bulletproof resume. He was
recognized by the board as a top performer in 2016 after posting a $1.2 billion profit in Europe, a sharp
improvement from 2015.
Mr. Farley -- recruited by Mr. Ford and then-CEO Alan Mulally -- stanched red ink and increased margins to 4.2%
in Europe, a market long burdened by overcapacity and pricing wars.
Mr. Hinrichs, 50, made his name on the manufacturing side, and spent the past 4 1/2 years running North
America. He was a candidate to succeed former Mr. Mulally as CEO before the job went to Mr. Fields in 2014. Mr.
Hinrichs has remained a source of stability for Ford in its most vital region amid a flood of new managers and the
initiation of business ventures, including the Smart Mobility innovation unit that Mr. Hackett headed before
becoming CEO.
Document J000000020170525ed5p0001p

Ford's Turmoil Is Not About Tesla
Business World
Ford's Turmoil Is Not About Tesla
By Holman W. Jenkins, Jr.
841 words
24 May 2017
J
A17
English
Now let's consider the defenestration at Ford Motor Company of Mark Fields. Ford's stock price under his
three-year leadership has been down 37%. Tesla's is up nearly 50%. This has been all the explanation the media
needs.
A New York Times report lays the meme on thick, blaming the car efforts of "Google, Apple, Uber and not least
Tesla, the electric-car maker now valued more highly than any of the Detroit giants. The upheaval at Ford, the
nation's No. 2 auto maker by sales, after G.M., reflects the challenges that lie ahead for companies that cannot
adapt to that new landscape fast enough."
Really? Is that really what's happening? Then why is Fiat Chrysler, a notable laggard compared with GM and
Ford in all the gee-whiz categories, enjoying the best share performance of all -- up 60% in the past year?
The theory falls even flatter with a simple thought experiment. Suppose GM or Ford burned cash the way Tesla
does, putting off for the long-term any hope of profits. Would the market applaud and give either a Tesla-like
multiple? Not in a million years. The people like Mr. Fields and GM's Mary Barra who run car companies aren't
dumb. If they could mint stock-market wealth by investing heavily and not worrying about profits, they wouldn't
need to be asked twice.
To continue with the now-standard narrative, GM's stock price has held fairly steady while Ford's has dropped so
this must mean GM is doing a better job of not falling behind Tesla, Google, etc.
Here's the truth about GM. It's valued on the profits it generates from cars and trucks -- mostly trucks. Its
diversion of a few billion in capital toward autonomy, ride-sharing, electrification, etc., is looked on indulgently by
investors because they see what's going on. Such investments are partly a brand-burnishing accompaniment to
hardheaded business decisions to withdraw from unprofitable markets like India, Russia and Europe, and to
minimize the burden of manufacturing profitless small cars for the domestic market under U.S. fuel-economy
regulations.
It's the sense that GM's Ms. Barra is shedding unprofitable cost structures. It's the sense that she is focusing GM
on those geographical and product markets (trucks, SUVs) that can provide acceptable returns. This is why GM is
perceived as playing the underlying game better -- the underlying game being all about capital efficiency and
rationally maximizing shareholder value.
At Ford, Mr. Fields also tried to minimize small-car burdens, by shifting small-car production to Mexico. Alas, his
plan ran into Donald Trump. And, like GM, he understood that Ford's profits and persistent competitive advantage
come from SUVs and pickups, especially the F-150. Alas, its billion-dollar bet on aluminum for its best-selling
pickup looked to many like a move to placate fuel-economy regulators, not to create commensurate value for
Ford pickup buyers in a time of cheap gas. Such choices on so crucial a product naturally give rise to doubts.
The real problem became glaring every time Mr. Fields and company chairman Bill Ford opened their mouths in
the past year. They kept saying, in answer to investor worries about lagging profits and the company's long-term
viability, just wait for the fat margins that our post-car businesses like "mobility" will generate.
When they heard this, shareholders were rightly terrified that Ford had lost the plot that GM leadership has been
so undeludedly attuned to.

The new guy, former furniture executive Jim Hackett, gives mixed signals. His talk of faster decisions, attention to
efficiency, and rethinking the small-car burden all sound good. But though he has been a director since 2013, his
executive career at Ford only started a year ago as overseer of its mobility division -- i.e., ride-sharing and all that.
It isn't that autonomous driving, battery technology and car-sharing won't affect the industry's future. But these
new technologies will be available to everyone playing in the market. They won't be anybody's unique competitive
advantage. Ford's meal ticket will remain its enduring strength in designing and assembling complex,
consumer-ready machines. And its bread-and-butter trucks and SUVs will be the least affected. Yes, technology
will transform even these vehicles. What boat owner won't want computerized help in keeping the trailer straight
when backing up? But these will remain vehicles that suburban and exurban Americans will want to own and
drive themselves (and cherish) for a long time to come.
GM's leaders don't kid themselves or their shareholders that profits from new "mobility" businesses will be the
salvation of the old, metal-bashing business. Making vehicles needs to be profitable in its own right. Ford
shareholders want to know that Ford's leadership understands this too.
Document J000000020170524ed5o00010

Fields out, hackett in as patience wears thin
MONEY
Fields out, hackett in as patience wears thin
Nathan Bomey; Brent Snavely
1,127 words
23 May 2017
USA Today
USAT
B.1
ISSN:07347456
English
Automaker trying to speed up decisions, boost stock price
In a move that takes dead aim at Silicon Valley, Ford replaced its CEO on Monday with a former office furniture
executive who lately has been focused on the future of transportation.
With Ford's stock price flagging, Ford Motor ousted CEO Mark Fields and replaced him with Jim Hackett, an
outsider known for corporate culture change and the former head of Steelcase, who'd only been at the automaker
for about a year.
Ford, based in Dearborn, Mich., is seeking to recapture the magic of an outsider's insight and expertise. It worked
once before with Alan Mulally, a former Boeing manufacturing executive who saved the automaker from
bankruptcy in the late 2000s despite never previously working in the auto industry.
"It's hard to do," Ford Executive Chairman Bill Ford said. "But Jim is a change agent."
Hackett, 62, had been heading the automaker's "mobility" division and was a favorite of Bill Ford's.
"Ford is no stranger to looking outside of the house of Dearborn for someone to affect radical change," Morgan
Stanley analyst Adam Jonas said in a note to investors. But with the future uncertain, "in many ways, Mr.
Hackett's job may be more challenging than Mr. Mulally's."
Ford needs to reinvent itself as a more efficient company poised to capitalize on a future in which people may not
drive or own their vehicles. Investors are bracing for seismic change to sweep through the transportation sector --
potentially making car ownership unnecessary for millions of consumers in an autonomous ride-sharing world.
Nothing short of major transformation will impress them.
Automakers, both in Detroit and abroad, are in a race with Silicon Valley's best-known technology companies to
develop self-driving cars that could prowl the streets and be shared. Hackett's biggest challenge may be
convincing the world that Ford can fend off Tesla, Google and Uber, as well as traditional rivals such as General
Motors and Toyota.
He has shown before that he isn't afraid of setting a bold new course. At Steelcase, Hackett distanced the
company from its treasured cubicle furniture and emphasized open-space work environments, which turned out to
be a savvy bet. He cut costs aggressively, including shedding thousands of jobs.
During a recent stint as interim athletics director at the University of Michigan, where he had played football for
iconic coach Bo Schembechler, he hired fan favorite Jim Harbaugh as head coach and returned the Wolverines to
respectability.
Bill Ford said Hackett's ability to pair a focus on the future with operational improvements was enticing. The two
corporate leaders have long admired each other, often exuding a chummy vibe when paired together on media
campaigns.
The company's board made the call Friday. "But no decision like this is made hastily," Bill Ford said. "There have
been some discussions for some time."

Though a radical change at the corporate level, Ford vehicle customers might not notice much in the short term.
The switch, Bill Ford said, is aimed at remaking Ford's legendarily hierarchical culture, expediting
decision-making, pursuing a cohesive vision for the future and improving day-to-day operations.
Hackett said he would "be more emphatic about parts of the culture that need to come out," citing the need to
move faster as one key. He even lightly criticized Mulally -- nearly sacrosanct territory in the automotive industry
-- for carrying out a strategy that did not adequately position Ford to handle "complex strategy questions."
The shakeup comes after the board grew impatient with the company's lagging stock price, down 34% from when
Fields took over in July 2014.
On Monday, Ford shares rose 2% to close at $11.10.
The move puts an abrupt end to a nearly three-year tenure at the top for Fields, 56, who got the job when Mulally
retired from full-time corporate leadership.
Under Fields' leadership, Ford posted respectable profits. The company capitalized on industry-record sales in
the U.S., having introduced an aluminum-body F-series pickup, the most popular vehicle in the business, and
minting money with large SUVs amid low gasoline prices.
But unexpectedly steep costs and quality issues, including major recalls, helped take down Fields, AutoPacific
analyst Dave Sullivan said.
The automaker said Hackett would focus on "operational execution," identifying a viable future and adopting data
science, artificial intelligence and automation to modernize the company.
"It was a little bit overdue," Sullivan said. "There was some growing frustration with the day-to-day operations."
The future is a concern, too. The company recently fell behind Tesla in market value -- despite vastly higher sales
and profits -- in a symbolic punch to the gut for the Blue Oval automaker.
Ford's archrival GM faces its own stagnant stock price but has charted a clear path to a self-driving car,
introduced a mass-market electric vehicle and struck a promising ride-sharing deal with Lyft, Kelley Blue Book
analyst Karl Brauer said.
Ford has promised a self-driving car by 2021 after making a major investment in a self-driving car start-up, but "I
don't see an obvious pathway" to it, Brauer said.
Hackett will be charged with overhauling the company's culture after he was credited with doing the same thing at
Steelcase.
"Any time you go to a company like this, the culture is not gonna change overnight," Sullivan said. "It's been set in
stone for a hundred years."
Hackett said he's here to stay, and he wants to make it fun for people to come to work.
"I think this culture of curiosity that I created at Steelcase" can be transferred to Ford, Hackett said in an interview.
Still, he may be a placeholder boss designed to keep the job for a few years while Ford identifies its long-term
leader.
In a series of changes announced Monday, the company set up what could be a race to succeed Hackett among
three people who will report directly to him, each with the title of president.
Jim Farley, Ford's chief of Europe, Middle East and Africa, becomes president of global markets. Americas
division chief Joe Hinrichs becomes president of global operations, with oversight including product development.
And chief information officer Marcy Klevorn becomes president of the company's mobility division.
Fields became CEO of Ford after several years in top leadership positions, including as president, chief operating
officer and president of the company's Americas division. He was instrumental in Ford's North American
turnaround during that stretch.
Credit: Nathan Bomey, and Brent Snavely, USA TODAY and Detroit Free Press
Document USAT000020190608ed5n00001
Fields out, hackett in as patience wears thin ; Automaker trying to speed up decisions, boost stock price
MONEY
Fields out, hackett in as patience wears thin ; Automaker trying to speed up decisions, boost stock price
Nathan Bomey; Brent Snavely
Nathan Bomey, and Brent Snavely, USA TODAY and Detroit Free Press
1,139 words
23 May 2017
USA Today
USAT
FIRST
B.1
English
In a move that takes dead aim at Silicon Valley, Ford replaced its CEO on Monday with a former office furniture
executive who lately has been focused on the future of transportation.
With Ford's stock price flagging, Ford Motor ousted CEO Mark Fields and replaced him with Jim Hackett, an
outsider known for corporate culture change and the former head of Steelcase, who'd only been at the automaker
for about a year.
Ford, based in Dearborn, Mich., is seeking to recapture the magic of an outsider's insight and expertise. It worked
once before with Alan Mulally, a former Boeing manufacturing executive who saved the automaker from
bankruptcy in the late 2000s despite never previously working in the auto industry.
"It's hard to do," Ford Executive Chairman Bill Ford said. "But Jim is a change agent."
Hackett, 62, had been heading the automaker's "mobility" division and was a favorite of Bill Ford's.
"Ford is no stranger to looking outside of the house of Dearborn for someone to affect radical change," Morgan
Stanley analyst Adam Jonas said in a note to investors. But with the future uncertain, "in many ways, Mr.
Hackett's job may be more challenging than Mr. Mulally's."
Ford needs to reinvent itself as a more efficient company poised to capitalize on a future in which people may not
drive or own their vehicles. Investors are bracing for seismic change to sweep through the transportation sector --
potentially making car ownership unnecessary for millions of consumers in an autonomous ride-sharing world.
Nothing short of major transformation will impress them.
Automakers, both in Detroit and abroad, are in a race with Silicon Valley's best-known technology companies to
develop self- driving cars that could prowl the streets and be shared. Hackett's biggest challenge may be
convincing the world that Ford can fend off Tesla, Google and Uber, as well as traditional rivals such as General
Motors and Toyota.
He has shown before that he isn't afraid of setting a bold new course. At Steelcase, Hackett distanced the
company from its treasured cubicle furniture and emphasized open-space work environments, which turned out to
be a savvy bet. He cut costs aggressively, including shedding thousands of jobs.
During a recent stint as interim athletics director at the University of Michigan, where he had played football for
iconic coach Bo Schembechler, he hired fan favorite Jim Harbaugh as head coach and returned the Wolverines to
respectability.
Bill Ford said Hackett's ability to pair a focus on the future with operational improvements was enticing. The two
corporate leaders have long admired each other, often exuding a chummy vibe when paired together on media
campaigns.
The company's board made the call Friday. "But no decision like this is made hastily," Bill Ford said. "There have
been some discussions for some time."

Though a radical change at the corporate level, Ford vehicle customers might not notice much in the short term.
The switch, Bill Ford said, is aimed at remaking Ford's legendarily hierarchical culture, expediting
decision-making, pursuing a cohesive vision for the future and improving day-to-day operations.
Hackett said he would "be more emphatic about parts of the culture that need to come out," citing the need to
move faster as one key. He even lightly criticized Mulally -- nearly sacrosanct territory in the automotive industry
-- for carrying out a strategy that did not adequately position Ford to handle "complex strategy questions."
The shakeup comes after the board grew impatient with the company's lagging stock price, down 34% from when
Fields took over in July 2014.
On Monday, Ford shares rose 2% to close at $11.10.
The move puts an abrupt end to a nearly three-year tenure at the top for Fields, 56, who got the job when Mulally
retired from full- time corporate leadership.
Under Fields' leadership, Ford posted respectable profits. The company capitalized on industry-record sales in
the U.S., having introduced an aluminum-body F-series pickup, the most popular vehicle in the business, and
minting money with large SUVs amid low gasoline prices.
But unexpectedly steep costs and quality issues, including major recalls, helped take down Fields, AutoPacific
analyst Dave Sullivan said.
The automaker said Hackett would focus on "operational execution," identifying a viable future and adopting data
science, artificial intelligence and automation to modernize the company.
"It was a little bit overdue," Sullivan said. "There was some growing frustration with the day-to-day operations."
The future is a concern, too. The company recently fell behind Tesla in market value -- despite vastly higher sales
and profits -- in a symbolic punch to the gut for the Blue Oval automaker.
Ford's archrival GM faces its own stagnant stock price but has charted a clear path to a self-driving car,
introduced a mass- market electric vehicle and struck a promising ride-sharing deal with Lyft, Kelley Blue Book
analyst Karl Brauer said.
Ford has promised a self-driving car by 2021 after making a major investment in a self-driving car start-up, but "I
don't see an obvious pathway" to it, Brauer said.
Hackett will be charged with overhauling the company's culture after he was credited with doing the same thing at
Steelcase.
"Any time you go to a company like this, the culture is not gonna change overnight," Sullivan said. "It's been set in
stone for a hundred years."
Hackett said he's here to stay, and he wants to make it fun for people to come to work.
"I think this culture of curiosity that I created at Steelcase" can be transferred to Ford, Hackett said in an interview.
Still, he may be a placeholder boss designed to keep the job for a few years while Ford identifies its long-term
leader.
In a series of changes announced Monday, the company set up what could be a race to succeed Hackett among
three people who will report directly to him, each with the title of president.
Jim Farley, Ford's chief of Europe, Middle East and Africa, becomes president of global markets. Americas
division chief Joe Hinrichs becomes president of global operations, with oversight including product development.
And chief information officer Marcy Klevorn becomes president of the company's mobility division.
Fields became CEO of Ford after several years in top leadership positions, including as president, chief operating
officer and president of the company's Americas division. He was instrumental in Ford's North American
turnaround during that stretch.
photo Hackett by Rena Laverty, EPA; fields by LLUIS GENE, AFP/ Getty Images
Document USAT000020170523ed5n00009
U.S. News: Ford Picks Leader to Make New Inroads
U.S. News: Ford Picks Leader to Make New Inroads

536 words
23 May 2017
J
A2
English
Jim Hackett made his name turning Steelcase Inc. into an office-furniture juggernaut. Now as Ford Motor Co.'s
new chief executive, he needs to take on the likes of tech mogul and Tesla Inc. founder Elon Musk.
In wooing Mr. Hackett as a Ford director in 2013, Ford Chairman Bill Ford had hoped to "inject his tech-savvy
energy into the board," according to an executive recruiter familiar with the process.
In 2016, Mr. Hackett was tapped to lead outgoing Chief Executive Mark Fields's new Smart Mobility innovation
unit.
As he succeeds Mr. Fields, Mr. Hackett, 62 years old, must transition from outsider to team player.
Part of Mr. Hackett's role in his new job "will be to teach and groom the next generation" of leaders, Mr. Ford said
on Monday.
Mr. Hackett is charged with better harnessing data and analytics to tap into car-buying trends and future needs of
people walking into dealerships. Mr. Ford wants more research on parts made by 3-D printers and new modes of
transportation, such as self-driving cars.
During his 30 years at Steelcase, an office-furniture maker based in Grand Rapids, Mich., Mr. Hackett pushed to
modernize the workspace, dispensing of old-style cubicles and using technology to create open-office spaces
better suited to today's work habits.
Taking over Steelcase as CEO in the mid-1990s when the firm was bleeding red ink, he led the company through
a painful downsizing that resulted in thousands of job cuts. He is credited with transforming the product line,
putting a greater emphasis on selling experiences and solutions, rather than individual chairs and desks.
Following his retirement from Steelcase, Mr. Hackett made waves in the Detroit area as interim athletic director
for the University of Michigan.
More recently at Ford, he oversaw the creation of the Smart Mobility unit. The subsidiary, formed last year, is
responsible for experimenting with car-sharing programs, self-driving ventures and other services aimed at
helping Ford better compete with Uber Technologies Inc., Alphabet Inc. and other tech firms trying to edge into
the auto industry.
In Mr. Hackett, Mr. Ford saw a "serious and experienced executive" who was well known to the board, said one
person close to the company.
Mr. Hackett, however, lacks a high profile in Silicon Valley. And he doesn't have a background in the world of
machine learning, artificial intelligence andother areas important to the future of self-driving cars.
Still, his involvement with Ideo, an influential design firm that Steelcase invested in during his tenure, indicates he
can handle the learning curves.
"He is a collaborative kind of leader and that is a quality that wins in Silicon Valley, Dearborn and Delhi," said
Reilly Patrick Brennan, a partner at Trucks Venture Capital, which invests in mobility startups.
In an interview last year with The Wall Street Journal, Mr. Hackett said he wasn't interested in being a chief
executive again but was interested in helping Mr. Fields think through tough challenges.
---
Tim Higgins contributed to this article.
Document J000000020170523ed5n00026

Ford Taps New Boss To Close Tech Gap
Ford Taps New Boss To Close Tech Gap

By Christina Rogers and John D. Stoll
1,087 words
23 May 2017
J
A1
English
Mark Fields spent a quarter of a century preparing to run Henry Ford's company, but it took Silicon Valley less
than three years to force him out.
Jim Hackett, an industry outsider who the board of Ford Motor Co. considers a visionary capable of mending what
some senior executives say is the auto giant's fractured and listless culture, now takes over as chief executive.
Mr. Fields, 56 years old, was let go Friday after delivering record profits and jump-starting Ford's businesses in
Europe and China. He had risen to the CEO suite on the 12th floor of Ford's Dearborn, Mich. headquarters after
executing a series of repair jobs within the company and becoming known as its hard-charging fix-it man.
Mr. Hackett's promotion Monday was the clearest indication yet the conventional auto industry is feeling pressure
from tech giants and young startups edging in on a business long dominated by Detroit and its foreign rivals. Mr.
Fields struggled to answer the threats posed by electric-vehicle maker Tesla Inc., ride-hailing service Uber
Technologies Inc., or Alphabet Inc.'s Waymo autonomous-car unit.
"We have to move faster and we have to trust people to move faster," Chairman Bill Ford said in a news
conference Monday. The great grandson of the company founder and a former CEO of the company, Mr. Ford
said in an interview "we need speed" and the new boss "needs to take hard actions."
Mr. Fields, who spent 28 years at Ford, couldn't be reached for comment on Monday. Mr. Ford thanked the
outgoing executive and longtime ally for taking bold steps during his career, including drawing up a Way Forward
restructuring plan that slimmed down Ford's U.S. operations more than a decade ago.
Ford, selling more than 6 million cars globally each year, earned a record $10.8 billion in operating profit in 2015
and another historically high $10.4 billion last year.
But when the company's stock market valuation fell behind Tesla's in April, it highlighted Mr. Fields' inability to
persuade Wall Street he was ready to reinvent an industry anchored for a century in gasoline engines and
steering wheels.
Ford's share price fell nearly 40% during Mr. Fields's tenure. The share price closed Monday at $11.10, up 2.12%
from Friday.
Ford on Monday announced a series of other management moves, including the firing of a longtime public
relations chief, Ray Day. According to people familiar with the matter, the communications department was
recently seen as a liability, fumbling Ford's response to President Donald Trump's criticism of Ford's Mexico
production plans and failing to articulate a technology strategy. Mr. Day couldn't be reached for comment.
Jim Farley, a Toyota Motor Corp. recruit, credited with turning around Ford's European unit, will become the head
of Ford's global markets; Joe Hinrichs, an energetic executive known for manufacturing expertise, will oversee
operations.
A relative newcomer to the auto industry, Mr. Hackett, 62, is a bit of throwback to Alan Mulally, a career Boeing
Co. airplane engineer who took Ford's helm in 2006 in the twilight of a celebrated management career. Mr.
Hackett's reputation was built by modernizing office furniture giant Steelcase Inc. He then took over the University
of Michigan athletic department, recharging the campus's vaunted football team by hiring NFL coach Jim
Harbaugh.

Mr. Hackett joined Ford's board in 2013, but was asked last year to run Ford's new Smart Mobility innovation unit.
That group has grown, though it has struggled to show how multiple experiments and investments will transform
the 114-year-old auto giant.
Mr. Ford referenced similarities between Messrs. Hackett and Mulally, saying Mr. Hackett can "capture the hearts
and minds of our employees" and get the company's 200,000-strong workforce rowing in the same "One Ford"
direction set by Mr. Mulally.
Messrs. Fields and Mullaly worked closely on repairing the balance sheet, restructuring United Auto Worker
deals, updating the portfolio and selling off unnecessary brands and appendages, such as Volvo and
Jaguar-Land Rover.
As a result, Ford avoided the bankruptcy filings that claimed General Motors Co. and Fiat Chrysler Automobiles
NV's Chrysler unit in 2009. Ford therefore had a head start in rebuilding after the financial crisis. It created more
innovative products including a more efficient aluminum-bodied F-150 pickup truck that delivers a big portion of
Ford's $10 billion in global operating profits.
Mr. Hackett's to-do list, however, departs from Ford's previous leaders. In an interview, Mr. Hackett said Ford's list
of successes and the pressing need for change presents a balancing act: "All the profits and capability are one
side and all of the promise is in another."
Ford recently announced investments in ride-sharing companies, a company that makes laser-detection units
needed for autonomous vehicles and an artificial intelligence company with a handful of employees, but none of
those efforts return profits.
The moves resemble actions taken by GM Chief Mary Barra, who took over a crisis-plagued company six months
before Mr. Fields got his job. GM's stock price has languished under Ms. Barra, but people familiar with the
company said she has won the board's confidence through the purchase of San Francisco autonomous-car
development startup, Cruise Automation, the launch of an in-house car-sharing service and by investing in Lyft
Inc., an Uber rival.
GM unveiled a long-range electric car, the Chevrolet Bolt, at least three years before its crosstown rival. Ford
intends to pump $4.5 billion into electric-vehicle programs through 2020, but it has been slow to introduce
vehicles to combat Tesla's growing product line.
Mr. Fields often referred to a company with "one foot in today and one foot in tomorrow." Mr. Ford said he fears
that led to a splintered approach with a company culture that had too much concern about hierarchy and a myopic
focus on either the current product line or moonshot bets.
"We don't want competing groups," Mr. Ford said. "We don't want one group to feel like they're the cool group and
the other group is left out. It's not that way at all."
---
Joann S. Lublin and Mike Colias contributed to this article.

Document J000000020170523ed5n00024

Ford Was Unprepared for Investor Revolt and C.E.O. Change
BREAKINGVIEWS
Business/Financial Desk; SECT
Ford Was Unprepared for Investor Revolt and C.E.O. Change
By ROB COX
412 words
23 May 2017
The New York Times
NYTF
The New York Times on the Web
English
Ford Motor's many gaffes under Mark Fields were becoming an existential crisis for the $43 billion carmaker's
founding family. Two weeks ago, a majority of those shareholders not named Ford voted to abolish the family's
super-voting stock. The Fords got the message, and Mr. Fields, the chief executive, is now leaving. But naming a
62-year-old from the furniture trade to replace him hints at how unprepared the family was for a revolt.
It was no secret that Mr. Fields's job had been in jeopardy. The 36 percent decline in Ford shares since he
replaced Alan Mulally nearly three years ago was the mathematical manifestation of investors' discontent with his
stewardship. Even General Motors withstood only a 10 percent slide, while Fiat Chrysler and Tesla both
increased strongly.
Despite robust investment, Ford is perceived to be lagging rivals -- not just Tesla but even the dowdy GM -- in
developing the next generation of electric and self-driving cars. Car sales are down this year, and margins are
under pressure.
This spurred a last-ditch move by Mr. Fields a week ago to cut white-collar workers, potentially irritating President
Trump, with whom the company had also clashed over plans to move production of some small cars to Mexico. It
backtracked on that decision, in part because of slack demand for those vehicles.
All these woes coalesced at Ford's annual meeting. Shareholders didn't just call out Mr. Fields. Some 35 percent
of them also voted to abandon the dual-class share structure that gives the descendants of Henry Ford two-fifths
of the vote with less than 2 percent of the stock. Stripping out the family's votes meant that at least 58.5 percent
of investors favored moving to one share, one vote -- an act of open rebellion.
What's surprising is the family's solution: appointing Jim Hackett, an executive from an unrelated industry. That
worked with Mr. Mulally, a former Boeing executive, who arrived in 2006 and kept Ford from bankruptcy. Mr.
Hackett, who runs Ford's autonomous vehicle division, is a year older than Mr. Mulally was when he took the
reins. Mr. Hackett ran another old Midwestern industrial company, the furniture maker Steelcase, for nearly two
decades. The company went public in 1998 at $28 a share -- a price it has not seen since.
Document NYTF000020170523ed5n0004c

U.S. News: Head of GM Enjoys Her Board's Support
U.S. News: Head of GM Enjoys Her Board's Support

By Mike Colias
463 words
23 May 2017
J
A2
English
Mary Barra took the wheel at General Motors Co. about six months before Mark Fields took over at crosstown
rival Ford Motor Co. Much as with Ford, GM's shares have languished.
A slumping stock helped grease Mr. Fields's exit on Monday. But Ms. Barra, who became the first woman to run a
global car company, continues to enjoy broad support from GM's board and presides over a unified executive
team, according to people with knowledge of the company.
GM's directors see the sagging stock price as symptomatic of investor ambivalence toward auto stocks in general
and are comfortable with Ms. Barra's growth plan, one of the people said. They remain supportive of her dual
strategy to bolster GM's core car-making business while also investing in autonomous driving and other future
technologies that promise to transform the industry.
GM's struggling stock price also belies an improving bottom line. The nation's largest auto maker is on pace to
notch its third straight year of record profit, bolstered by strong truck sales in North America and continued
strength from China.
A hallmark of Ms. Barra's tenure has been her willingness to shrink a company that once prided itself on being the
auto industry's largest. By unloading the albatross of GM's European business -- which lost nearly $20 billion over
the last two decades -- and withdrawing from big emerging markets like Russia and India, Ms. Barra, 55 years
old, has crafted a message to investors that the company is carefully choosing its bets in an industry that has
multiplying demands on capital.
GM also has gotten generally higher marks than Ford under Ms. Barra's watch for its future-technology strategy.
Last year, GM acquired autonomous-car developer Cruise Automation. It has fostered the startup as an
autonomous business unit and now is using Cruise's San Francisco headquarters to establish a Silicon Valley
beachhead to attract software engineers in the battle for leadership in self-driving cars.
GM also spent $500 million last year for a stake in ride-hailing company Lyft. The auto maker plans to use its
partnership with Lyft to underpin a future network of autonomous vehicles.
Ms. Barra also has won praise for her progress on changing a corporate culture long viewed as insular and
hidebound. Colleagues cite her candor and swift decision making in a company long known for dithering.
Still, activist shareholders lurk. Ms. Barra is facing down her second proxy fight in as many years, a proposal from
David Einhorn's Greenlight Capital to split GM's shares. He also has proposed a slate of three directors.
Document J000000020170523ed5n0001b

U.S. News: Fields Got Caught in Crosshairs Of Trump
U.S. News: Fields Got Caught in Crosshairs Of Trump

By John D. Stoll
327 words
23 May 2017
J
A2
English
It wasn't just poor communication with Wall Street that cost Mark Fields his chief executive post at Ford Motor Co.
-- he also struggled with Washington.
A longtime Ford executive, Mr. Fields is seen as having unnecessarily put the iconic car company on President
Donald Trump's radar during last year's election campaign, according to a person familiar with the board's
thinking. As then-candidate Mr. Trump was railing on companies that make products in Mexico and ship them to
U.S. stores, Mr. Fields boldly told shareholders about a plan to move production of the Ford Focus from Michigan
to San Luis Potosi.
What Mr. Fields didn't make clear was that the auto maker had specific products in mind to replace the Focus and
preserve jobs, the person said. Mr. Trump pounced, painting the auto maker founded by Henry Ford as the poster
child for outsourcing and Exhibit A of why the North American Free Trade Agreement was bad for American
workers, including the roughly 150,000 factory workers employed by Detroit's Big 3.
The actions Mr. Fields took in the span between Mr. Trump's nomination as the Republican candidate for
president and Inauguration Day only created more confusion, the person said, and ended up costing the company
hundreds of millions of dollars in lost investment due to the cancellation of the San Luis Potosi plant. Mr. Fields
couldn't be reached for comment.
Almost as soon as he announced the Mexico strategy for outsourcing small cars, Mr. Fields worked to clarify it,
saying the company would invest heavily to retool the Michigan factory for production of trucks and SUVs. The
company also worked to highlight its North American footprint, providing statistics that showed an overwhelming
amount of the products sold in America were built in the U.S.
Document J000000020170523ed5n0001a

New Boss Won't Fix Ford Quickly
Heard on the Street

New Boss Won't Fix Ford Quickly
By Stephen Wilmot
276 words
23 May 2017
J
B14
English
[Financial Analysis and Commentary]
Ford Motor's new boss comes from the future side of the business. That implies more long-term investment, not a
quick profit turnaround for suffering shareholders.
Ford announced a management shake-up: Passing over many able lieutenants, Ford tapped Jim Hackett, the
head of the company's year-old "Smart Mobility" unit, to replace Chief Executive Mark Fields.
The Detroit-based auto maker has lost share in a slowing U.S. market and has also had to pay for a couple of
costly recalls following technical problems. This has made it harder for Ford than for crosstown rival General
Motors to absorb the mounting costs of investing in technology such as electrification, driverless systems and
mobility apps. First-quarter numbers were particularly weak.
Management announced 1,400 job cuts last week, but for a company with 200,000 employees this won't have a
huge impact on profits. Cutting back on money-losing technology investments would be another way to boost the
numbers; Fiat Chrysler, which competes with Ford in the U.S. light-truck market, has opted to partner with Silicon
Valley rather than develop its own car tech. But judging by the appointment of Mr. Hackett, this isn't likely either.
As the U.S. auto boom peters out while technological change accelerates, car makers are in a unenviable
position.
This -- not market-share losses or technical hiccups -- is the key reason Ford's stock is so lowly valued. Investors
shouldn't expect the new boss to deliver a quick fix.
Document J000000020170523ed5n0000x

Ford replaces its CEO in a race to take on Silicon Valley
A-Section
Ford replaces its CEO in a race to take on Silicon Valley
Thomas Heath Jena McGregor
1,120 words
23 May 2017
The Washington Post
WP
FINAL
A12
English
Ford Motor Co. on Monday replaced its chief executive as the 114-year-old auto giant gears up to compete with
Silicon Valley upstarts such as Tesla in the coming revolution in smart driving.
Mark Fields retired after 28 years at the company. He was replaced by former Steelcase chief Jim Hackett, a
longtime furniture executive who had almost zero experience in automobiles until he joined the company last year
to head its "smart mobility" transportation initiative.
"We need speed [in] decision-making," Ford Chairman Bill Ford Jr. said in a Wall Street Journal interview. Ford,
the great-grandson of company founder Henry Ford, said he expects the 62-year-old Hackett to be in the job "for
a good, long time."
Ford earned more than $25 billion in profit in the past four years, helped largely by the surging U.S. auto and
truck market. But the auto icon is reeling from several challenges, including a stock price that has plummeted
more than 30 percent since Fields took over three years ago from Alan Mulally, a former Boeing executive.
"The main issue is the underperformance of the stock price," said Ivan Feinseth, chief investment officer at
Tigress Financial Partners. "I didn't think that Mark Fields was a bad CEO. But the net result is that the stock is
down in an up market. The stock is down in a period of up auto sales. There is nothing that will limit CEO
longevity more than a stock price that is down in an up market."
Traditional auto companies have seen their share prices lag in recent years because investors believe that the
boom cycle - driven by historically low interest rates that bolstered auto sales - may be exhausted and that
fast-changing technology presents an uncertain future. Ford may be down more than its counterparts, but some
analysts think the change has more to do with the company's founding family.
"Ford has one, big shareholder," said Matthew Stover, an analyst with Susquehanna Financial Group, referring to
the extended Ford clan. "The board and the Ford family thought, 'We have ideas and we aren't acting fast enough
and we're not getting enough credit.' I don't think it's more complicated than that."
Despite its 14.6 percent share of the U.S. car and truck market in 2016, Ford's market value of $44 billion has
been surpassed by electric-car upstart Tesla at $50 billion. The U.S. auto market is expected to slow this year.
Hackett's job will be to reinvent Ford into a new transportation company capable of prospering in a highly
competitive and fast-changing business.
Ford is facing competition not only from traditional competitors such as General Motors and Toyota. The icon is
also battling a new cadre of would-be transportation players who have Detroit on edge.
In addition to Tesla, ride-sharing companies such as Uber Technologies and tech juggernauts such as Alphabet
are venturing into the transportation domain with smart-car ambitions and revolutionary ideas around fuel.
Karl Brauer, executive publisher for Autotrader and Kelley Blue Book, credited Fields with turning in profits and
investing in technology. "But over this same period Mary Barra and GM have produced even more impressive
financial results by focusing on where GM can be profitable while removing business units showing little promise,"
Brauer said, referring to the GM chief executive. "Add in the rise of Tesla . . . and the impressive results Fields
delivered simply weren't enough to satisfy Ford's stockholders."
Palo Alto, Calif.-based Tesla, founded by billionaire Elon Musk, lost hundreds of millions of dollars last year, has
yet to turn a profit and last year produced just 84,000 cars. But its rise has put a scare into the legacy automakers
such as Ford and General Motors.
Ford is betting that Hackett is up to the job. The former center for the University of Michigan football team is a
personal friend of Bill Ford's, whose family controls the auto giant through its ownership of voting shares. Unlike
most auto executives, Hackett does not have a long history in the industry.
When Hackett joined Ford Smart Mobility, he had been on the Ford Motor board of directors for three years.
"Hackett, together with Bill Ford, will focus on three priorities: Sharpening operational execution, modernizing
Ford's present business and transforming the company to meet tomorrow's challenges," according to a company
news release.
Ford is known for making some unusual CEO choices. Bill Ford in 2006 hired Mulally from Boeing. Mulally
privately borrowed nearly $30 billion to rebuild Ford without government assistance. His overhaul of the
automaker included forging new agreements with auto unions that saved costs. Mulally retired after putting the
company on a solid footing.
Hackett is known as a customer-minded turnaround artist who thinks outside the box. Like Mulally, Hackett's style
is reported to be more relaxed and direct.
The company seems conscious enough about those comparisons that in a Monday news conference, Bill Ford
said, "I promised myself I wouldn't compare [Hackett] to Alan this morning because it's not right - they're very
different leaders for very different times." But, he said, "I'll break this rule just this once," saying both Mulally and
Hackett were the types of leaders able to "capture the hearts and minds of employees" and make them feel that
"not only could we win but we were going to win and they were going to have fun on the journey."
Ford could also be hoping that an outsider will strike gold again.
"It certainly breaks with a long, inbred tradition," said Noel Tichy, a professor at the University of Michigan's Ross
School of Business who has studied CEO succession. Traditionally, "these guys live in a little cocoon in the
greater Detroit area," making Mulally and Hackett more unusual picks, he said.
As the chief executive of Steelcase, where he served for almost two decades, Hackett transformed the business
culture of the office furniture company and advocated a more open-office physical space. He stepped down in
2014.
Chris DeRose, a consultant in Ann Arbor, Mich., who has worked with Tichy and with Steelcase, said of Hackett
taking the helm: "The analogous thing is he would talk about taking Steelcase out of commodity hell. When you
think about where the auto industry is, I think there's a pretty clear message that here's a guy who knows how to
differentiate in a low-margin, commodity-based business."
thomas.heath@washpost.com
jena.mcgregor@washpost.com
WP20170523ford0523
Document WP00000020170523ed5n0000f

As Profit Dwindles, Ford Is Said to Replace Its C.E.O.

As Profit Dwindles, Ford Is Said to Replace Its C.E.O.
By BILL VLASIC
705 words
22 May 2017
The New York Times
NYTF
1
English
DEARBORN, Mich. -- In a shake-up reflecting the pressures on the American auto industry, Ford Motor is
replacing its chief executive, Mark Fields, according to officials briefed on the move.
Jim Hackett, who oversees the Ford subsidiary that works on autonomous vehicles, will take the reins from Mr.
Fields. Ford plans to make an announcement on Monday morning, the officials said.
During Mr. Fields's three-year tenure -- a period when Ford's shares dropped 40 percent -- he came under fire
from investors and Ford's board for failing to expand the company's core auto business and for lagging in
developing the high-tech cars of the future.
The change came less than two weeks after Mr. Fields was sharply criticized during the company's annual
shareholders meeting for Ford's deteriorating financial results.
Mr. Hackett, 62, a longtime chief of the office furniture giant Steelcase and a former Ford director, joined the
company's operational ranks last year as head of its ''smart mobility'' operation, which includes driverless
technology.
As recently as last week, Mr. Fields, 56, had been trying to strengthen Ford's bottom line by cutting 1,400 salaried
jobs. But, unable to reverse the stock decline, he ran out of time to carry out his strategy to slash costs and
expand Ford's lineup of trucks and sport utility vehicles, while also investing in autonomous and electrified
vehicles.
Despite spending heavily on self-driving research, Ford was struggling to keep pace with larger automakers such
as General Motors and tech giants like Google, both of which have been testing self-driving vehicles. Ford is
promising to have a fully autonomous vehicle on the road by 2021.
The upstart electric-vehicle maker Tesla -- which recently surpassed G.M. and Ford in market capitalization -- is
bringing a mass-market model to market later this year.
At the annual meeting on May 11, Mr. Fields said Ford was capable of staying competitive in the current market
for new vehicles, while also ''keeping one foot in the future'' of an industry heading toward autonomous,
battery-powered cars.
Yet Ford is showing troubling signs of decline. Profit in the first quarter dropped more than 30 percent from a year
earlier, and the company's American market share declined slightly.
And with auto sales in the United States cooling off after two record years, Ford faces a tough balancing act to
maintain strong results in North America while investing in projects for the future.
Mr. Fields was also at the forefront of an abortive plan to build a $1.6 billion assembly plant in Mexico for small
cars. The project was abandoned early this year as sales stalled and President Trump's election brought pressure
on Ford to make more vehicles in the United States.
So far this year, Ford has had a number of safety recalls that have raised red flags about its overall vehicle
quality. The company has also experienced a deep decline in the sale of small and midsize cars, leading some
Wall Street analysts to suggest that it drop unprofitable models from its portfolio.
Ford's car sales are down 25 percent this year -- far more than the overall industry decline in the car segment --
and it is making little, if any, money on the cars it does sell.
The personnel changes at the company extend beyond the departure of Mr. Fields and ascension of Mr. Hackett,
according to the officials briefed on the move.
Joseph R. Hinrichs, head of Ford's critical Americas division, will expand his role to become executive vice
president for global operations. James D. Farley Jr., who runs Ford's European unit, has been appointed to
oversee worldwide sales and marketing. And the company's chief technical officer, Marcy Klevorn, will take over
Mr. Hackett's duties as chief of mobility initiatives.
In a related move, Mark Truby, who previously led the company's communications teams in Asia and Europe, will
immediately take over as its communications chief. He succeeds Raymond F. Day.
This is a more complete version of the story than the one that appeared in print.
Document NYTF000020170522ed5m00043

Ford Weighs Executive Shake-Up
Ford Weighs Executive Shake-Up

By Christina Rogers, Joann S. Lublin and John D. Stoll
328 words
22 May 2017
J
B1
English
Ford Motor Co. is considering significant changes to the auto maker's senior leadership team amid tension among
top executives, dissatisfaction with the stock price and a drive to clarify the company's strategy, according to
people familiar with the situation.
The moves could include a shuffling of executives who were hired or rose to prominence during the tenure of Alan
Mulally, the company's chief executive for eight years ending in 2014. The current management team has been
retooling the company to better prepare for shifts in the global auto industry.
A Ford spokesman declined to comment on management changes. The company is "staying focused on our plan
for creating value and profitable growth," according to a statement.
Bill Ford, Ford's executive chairman, and the board are taking an influential role in the discussions, these people
said. Mr. Ford served as CEO until Mr. Mulally's hiring. Chief Executive Mark Fields has proposed certain
personnel changes as part of the process.
Mr. Fields has overseen a profitable three-year period at Ford as consumers have flocked to the pickup trucks
and SUVs that the auto maker has long been known for. The lifetime Ford executive has routinely said he wants
to transform the company's business model to better combat the threat presented by Silicon Valley tech firms,
including Alphabet Inc., Apple Inc., Tesla Inc. and Uber Technologies Inc.
Mr. Fields's top lieutenants include Joe Hinrichs, the head of North American operations; and Jim Farley, who is
credited with accelerating Ford's performance in Europe at a time when General Motors Co. is abandoning that
region.
Last week, Ford granted retention bonuses to four senior executives including Mr. Farley, product chief Raj Nair
and Hau Thai-Tang, head of purchasing. Messrs. Hinrichs and Fields weren't included in that series of grants.
Document J000000020170522ed5m00028

Car Makers Must Share More Technology
Heard on the Street

Car Makers Must Share More Technology
By Stephen Wilmot
475 words
19 May 2017
J
B12
English
Detroit is putting a lot of faith in car-sharing. It may have to get better at technology-sharing.
In what may be the first of many such disclosures in the auto industry as sales growth stalls, Ford Motor is
planning substantial job cuts following a first-quarter plunge in profits. Investments in far-off tech may be early
victims of industry belt-tightening. A more collaborative approach could limit losses while keeping car makers
close to the technological frontier.
Ford and General Motors have rival Silicon Valley ventures for developing driverless cars, perhaps the hottest
area of car tech today. GM bought Cruise Automation last year for roughly $1 billion.
In February, Ford bought Argo AI in which it said it would invest $1 billion. The car makers are also developing a
range of apps to compete with Uber Technologies, among others. GM offers short-term rentals through its Maven
unit and taxis through a $500 million stake in Lyft, Uber's key U.S. competitor. Ford has said its new
"smart-mobility" unit will eventually have a 20% profit margin.
Silicon Valley is increasingly open to collaboration. Google sister company Waymo, which is widely seen as the
leader in self-driving technology, revealed Sunday that it would work with Lyft. That is after making clear last
December that it had no interest in producing a car itself. Apple's secretive car project also appeared to shift its
focus last year from making a vehicle to developing self-driving technology.
There are few details surrounding the Waymo-Lyft deal, but the motivations are clear. Drivers account for almost
three-quarters of the cost of a ride-hailing business, estimates brokerage Evercore ISI.
Self-driving cars would cut costs significantly, paving the way for mass adoption and market dominance for the
company that gets there first. In exchange, Waymo may eventually get access to Lyft's customers and their travel
data, and a bit more leverage over Uber, which it is suing over the alleged theft of its technology.
Lyft is also expected to test GM's driverless-car technology, so the ride-hailing company will end up with two
different self-driving systems on trial.
All this duplication may be good for technological progress, but wastes investors' money.
There is the odd example of platform-sharing. The German car makers formed a joint venture to buy mapping
service Here from Nokia in 2015. BMW has courted partners for the self-driving technology it is developing with
Intel, Mobileye -- now being acquired by Intel -- and Delphi Automotive.
Investors are tolerating the current technological arms race while sales are strong. With the industry set to enter
tougher times, collaboration, not competition, seems the obvious route.
Document J000000020170519ed5j0000o

Ford confirms that it will slash workforce
MONEY
Ford confirms that it will slash workforce
212 words
18 May 2017
USA Today
USAT
FIRST
B.1
English
Ford Motor, facing pressure to improve profitability, confirmed that it would cut nearly 10% of its salaried
workforce in its North America and Asia Pacific divisions. The cuts would occur through voluntary buyouts and
early retirement packages and will affect 1,400 of about 15,000 salaried workers in those regions. Hourly workers
at Ford's factories aren't affected.
Qualcomm sues Apple over royalty payments
In a federal lawsuit filed Wednesday, Qualcomm claimed that Apple has instructed its contractors to withhold
patent-related license fees on iPhone sales, the latest development in an escalating fight between the tech
companies over money and patent rights. Apple says Qualcomm is overcharging for these fees and began
refusing to pay royalties until the courts determine how much it owes. Qualcomm, which denies it's overcharging
Apple, says Apple is also telling its contractors that it will indemnify them for damages from any lawsuits as they
withhold payments. Qualcomm has separate licensing agreements with the contractors.
Longtime Halliburton Chief stepping down
Halliburton Co. said Wednesday that CEO Dave Lesar will step down June 1 but will remain the company's
executive chairman. Jeff Miller, the company's president, will replace Lesar, who has been CEO since 2000.
Document USAT000020170518ed5i0002v

Ford Sharpens Ax for Salaried Jobs
Ford Sharpens Ax for Salaried Jobs

By Christina Rogers
602 words
18 May 2017
J
B2
English
Ford Motor Co. outlined new steps in its global cost-cutting efforts, saying it will reduce salaried workforce in
some regions by 10% amid "an accelerated attack on costs."
The push, expected to result in 1,400 job cuts in North America and Asia by September, comes as Chief
Executive Mark Fields strives to provide more clarity to investors about the auto maker's strategy. Ford's share
price has slumped during Mr. Fields's three-year tenure at the helm, and profit growth has ground to a halt as
U.S. sales volumes plateau.
The reductions would contribute to a $3 billion cost-reduction goal for 2017. Ford also said Wednesday that
head-count cuts are under way or completed in Europe and South America.
Mr. Fields was recently granted a $2.5 million stock incentive by the board, which included the task of "developing
a lean mind-set" at the company.
Ford, which has approximately 200,000 employees world-wide, steadily increased its workforce as the U.S.
market rebounded from the financial crisis and as a plan to expand in China unfolded. The Dearborn, Mich., auto
maker has profited as demand for lucrative pickups and sport-utility vehicles surged amid lower gasoline prices.
The company's share price recently has been hovering at $11, however, more than one-third lower than its level
when Mr. Fields succeeded Alan Mulally in the summer of 2014. Ford's stock touched as low as $10.75 on
Wednesday, the lowest point since August 2015, before closing at $10.76, down 1.7% on the day.
Ford will offer employee buyouts in the U.S., China and other countries. Staff in several of the company's
departments -- including factory personnel, analytics, information technology and product development -- aren't
eligible for buyouts.
The Wall Street Journal on Monday was first to report Ford's plans to trim its salaried workforce, targeting a 10%
reduction in head count.
Ford said Wednesday that it remains focused on "becoming as lean and efficient as possible" but didn't provide
specifics on anticipated cost savings. Those figures will be outlined later this year, along with related personnel
costs, which will be booked as special items in the third quarter, a company spokesman said.
Ford, which employs 55,000 hourly employees, hasn't indicated any plans to cut that segment of its workforce.
Ford's $3 billion cost-cutting target is aimed at restoring profit growth in 2018 and helping offset increased
spending to develop new technologies, such as electric vehicles and self-driving cars. The auto maker's market
capitalization this year sunk below that of electric-car startup Tesla Inc. amid slower earnings growth.
Mr. Fields has pledged to take more decisive action, telling Wall Street analysts last week that the company will
improve communications to demonstrate resilience in its core automotive business.
Ford, like many of its rivals, faces mounting concern about its ability to weather a potential downturn in the global
auto market. Mr. Fields has worked to persuade investors that a series of investments and experiments are
girding his company to battle a wave of tech companies -- including Tesla, Apple Inc. and Alphabet Inc. -- that
threaten to unseat Detroit as an auto industry powerhouse.

Ford is putting $4.5 billion into electric-vehicle research, but has been vague about a long-range electric vehicle
that it plans to launch in coming years.
The auto maker recently committed to invest $1 billion in a startup specializing in artificial intelligence.
Document J000000020170518ed5i0002g

Ford to Cut 1,400 Jobs As Market Moves On

Ford to Cut 1,400 Jobs As Market Moves On
By BILL VLASIC and NEAL E. BOUDETTE; Bill Vlasic reported from Detroit and Neal E. Boudette from Ann
Arbor, Mich.
1,166 words
18 May 2017
The New York Times
NYTF
1
English
DETROIT -- It was not long ago that Ford Motor was considered the healthiest of the Detroit automakers.
Unlike General Motors and Chrysler, Ford survived the financial crisis that began in 2007 without the help of
bankruptcy or a government bailout, and had appeared well positioned to take advantage of the booming
American auto market.
But investors have taken a more pessimistic view, raising questions about the leadership of its chief executive,
Mark Fields.
Ford's stock has declined about 40 percent since Mr. Fields took over three years ago, and 10 percent since Jan.
1, even as the overall market has risen. And with profits slipping, Ford is under pressure to engineer a turnaround
-- starting with Wednesday's announcement that it would cut 1,400 salaried jobs in North America and Asia.
The cutbacks are relatively small given Ford's global work force of 202,000. Yet it appears to be just the
beginning of a long retrenchment for the nation's No. 2 car company, and a critical test for Mr. Fields and his
strategy to vault Ford into the high-tech race to develop self-driving cars and electric vehicles.
''I think Ford is in a tough spot,'' said David Whiston, an analyst with the investment firm Morningstar. ''There's no
one or two silver bullets that will make the stock rally.''
Cutting costs while investing in advanced technology is, indeed, a difficult balancing act. Ford is trimming salaried
employees, G.M. is cutting production shifts at some factories and Fiat Chrysler has idled plants that make
passenger cars. Automakers have also increased discounts to move bulging inventories of unsold models.
Ford, for its part, is tamping down expectations for its all-important North American division, which accounts for a
vast majority of its profits. The company's earnings fell more than 30 percent in the first quarter, and Mr. Fields
has said the full-year results will also be down from 2016.
But it is proving hard to sell Ford shareholders on diminished results in the short term, while the company
continues to invest heavily in future technology -- particularly when it is competing with Silicon Valley
heavyweights like Google on self-driving research.
When it announced quarterly earnings last month, Ford said it would achieve $3 billion in efficiencies this year,
mostly offsetting the cost of investments in those ''emerging opportunities,'' an allusion to technologies like
driverless and electric vehicles and ride-hailing services.
Some analysts have suggested that Mr. Fields should be bolder in remaking the company by reducing its car
lineup further -- and possibly getting out of the unprofitable small-car business entirely.
But most have generally supported Ford's twin-barreled approach. Brian Johnson of Barclays, for example, said
the company's strategy was sound, and contrasted its ''unsplashy'' actions with the stock-market hype
surrounding the upstart electric carmaker Tesla.
''As opposed to making Twitter claims around full autonomy and electric trucks, Ford has an underappreciated
strategy toward electrification and autonomy,'' Mr. Johnson wrote in a research note.
The anticipation for Tesla's future has helped it pass Ford and G.M. in market value, even though it makes a
fraction of the cars that Ford produces. And Tesla already has two distinct electric cars on the road, while Ford is
limited to selling niche, battery-powered versions of conventional models.
The business pressures add up to a moment of truth for Mr. Fields. His predecessor, Alan R. Mulally, was given
credit for steering Ford through the recession and simplifying its product lineup through his ''One Ford'' strategy.
Much of Ford's emphasis during his tenure was on smaller, fuel-efficient passenger cars, which have since lost
favor with customers because of low gas prices.
And while G.M. and Chrysler floundered with high costs, shifting strategies, and constant turnover of senior
executives, Ford seemed a model of consistency.
''The One Ford plan was an elegant and powerful blueprint that became the mantra of the firm's reinvention from
the last crisis,'' said Adam Jonas, an analyst with Morgan Stanley. ''There are important lessons here.''
Mr. Fields is clearly trying to sharpen his focus after an extended board meeting last week. William C. Ford Jr.,
Ford's chairman, admitted at the company's recent annual meeting that he was frustrated by the stock price.
The first sign of how Mr. Fields is responding to the drumbeat of negative news came on Wednesday, when the
company said it would offer early retirement packages and buyouts to 10 percent of salaried workers in certain
business units in North America and Asia.
Those separation packages, however, do not include employees in product development, information technology
and the company's Ford Credit arm. The company said factory jobs were also unaffected.
The cutbacks are aimed at ''reducing costs and becoming as lean and efficient as possible,'' the company said in
a statement. At the same time, Ford said it was committed to ''investing aggressively, but prudently'' in new
operations devoted to future technology.
Ford is holding its own in selling truck and sport-utility vehicles, but it has big problems in passenger-car
segments, where sales have plunged almost 25 percent so far this year.
By comparison, sales of cars at Toyota and G.M.'s Chevrolet division are down only about 11 percent during the
same period.
One analyst said Ford's cars were older in comparison to its rivals, and need to be updated to better compete.
''The Fusion was pretty cutting edge when it was redesigned in 2013, but now it looks dated,'' said the analyst,
Jessica Caldwell of the auto-research site Edmunds.
Ford also has a big hole in the subcompact S.U.V. segment, and has gained little traction in the market from its
hybrid gas-electric models.
The larger issue is whether Mr. Fields could tinker with the current strategy enough to convince investors that
Ford has a bright future.
Among the company's initiatives is a plan to create a sprawling, high-tech headquarters campus in Dearborn,
Mich., of energy-efficient buildings that will be linked by self-driving vehicles. The project is expected to take 10
years to complete and is estimated to cost at least $1 billion. Ford also pledged to invest $1 billion over the next
five years in the software company Argo AI.
Those investments were intended to help Mr. Fields reach an ambitious goal. Last summer, speaking at Ford's
research center in Silicon Valley, he vowed that the company would begin mass producing a self-driving car --
with no steering wheel and no pedals -- by 2021.
Ford's stock has declined about 40 percent since Mark Fields took over as chief executive in 2014, and 10
percent since Jan. 1. (PHOTOGRAPH BY EDUARDO MUNOZ/REUTERS) (B4)
Document NYTF000020170518ed5i00050

Car Makers Pull Back on Jobs Pledge
Car Makers Pull Back on Jobs Pledge

By John D. Stoll and Mike Colias
836 words
17 May 2017
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A1
English
Amid softening U.S. car sales and mounting investor skepticism about Detroit's ability to weather the industry's
first downturn in nearly a decade, auto executives are facing a tough choice in whom to please: Wall Street or the
White House.
Detroit has been an engine of growth for U.S. employment since the financial crisis, with General Motors Co.,
Ford Motor Co. and Fiat Chrysler Automobiles NV adding tens of thousands of jobs to keep pace with growing
demand and fund autonomous-car engineering and other moonshot programs. Earlier this year, company
executives promised to add head count at certain factories in response to criticism from President Donald Trump.
Now, those executives are quickly retreating. GM and Ford are making cuts to their U.S. workforces that could far
outpace the job commitments made in recent months amid political pressure. Armed with union contracts that
were reworked a decade ago, domestic car companies can respond more rapidly to investor concerns about the
bottom line.
"There is a lot of a balancing act going on," said Jeff Schuster, LMC Automotive's senior vice president of
forecasting. "We're finally at the point where we're likely to see a contraction in demand [and] obviously the new
administration pushing for jobs." Mr. Schuster said that with "pressure on both sides of the equation, something
has to give."
Auto executives are leaning on Mr. Trump for significant reforms, including relief from emissions standards set
during the Obama administration and lower corporate taxes. GM, Ford and Chrysler, under pressure from the
President over their reliance on Mexican production and the protections afforded by the North American Free
Trade Agreement, have said Mr. Trump's pro-business stance could be a factor in rerouting investment to
American factories that would otherwise head south of the border.
The industry's message for Wall Street has a different tone.
GM in recent months has disclosed plans to lay offmore than 4,000 workers as demand for certain passenger
cars, such as the Chevrolet Malibu and Cadillac CTS, dwindles. Ford is planning to cut 10% of its staff to shore
up sagging profit.
Frank Giamboy, an adviser with financial planner Waddell & Reed in Wilmington, Del., said it is clear that
executives are "still trying feel their way around" in the early days of the Trump administration. But "I don't think
Ford should be kowtowing," he said. "It's got to do what it has to do to stay alive."
Mr. Giamboy, a longtime investor in Ford with his own money, said the auto maker needs to show it is focused on
managing costs. His concern is shared by the auto maker's board, which granted Chief Executive Mark Fields a
$2.5 million stock incentive for "developing a lean mind-set," even as he focuses on future initiatives at the car
maker.
Shares of Ford and GM are trading well below their value when Mr. Fields and his countpart at GM, Mary Barra,
took the helm in 2014. GM's stock price, closing at $33.42 on Tuesday, is only slightly above the company's 2010
initial public offering; Ford's share price, stuck below $11, is down about 40% from when Mr. Fields replaced Alan
Mulally three years ago.

Ford and GM slipped behind Tesla Inc. earlier this year in market capitalization, underscoring a rapid shift in the
way investors view the industry, which is expected to change dramatically as autonomous cars and electric
vehicles replace conventional transportation.
Both companies have sought to boost value by implementing stock buybacks or special dividends in recent years.
The measures, coming as Detroit auto makers report historically strong profitability, have had little impact on
investors due to their concerns about the cyclical nature of the car business.
GM executives, citing changes made to United Automobile Workers' contracts before the company's 2009
bankruptcy, recently told analysts about one-third of hourly GM workers have relatively short layoff benefits and
that percentage will rise, making it easier to cut jobs.
Ford, aiming to cut $3 billion in costs, had been reluctant to lay off hourly workers, instead staggering
assembly-plant schedules by giving workers weeks of downtime. It will now slim down its global workforce, cutting
10% of jobs mostly from its salaried ranks, according to people familiar with the plan.
Total auto manufacturing employment, including parts suppliers, hit 945,000 in April, 50% higher than industry
employment in 2009 when GM, Chrysler and several auto suppliers were undergoing bankruptcy restructuring.
GM's U.S. employment during the decade has been rebuilt, growing from 77,000 in 2010 to 105,000 last year. It
recently committed to add $1 billion in fresh investment, which could lead to 1,500 new factory jobs. Ford and Fiat
Chrysler also promised jobs early this year, many of which had been committed during 2015 negotiations with the
UAW.
---
Christina Rogers contributed to this article.

Document J000000020170517ed5h0002c

Ford may cut 10% of its global workforce ; That's 3,000 jobs as automaker struggles with business plan
MONEY
Ford may cut 10% of its global workforce ; That's 3,000 jobs as automaker struggles with business plan
Brent Snavely
761 words
17 May 2017
USA Today
USAT
FIRST
B.2
English
Ford, saddled with a corporate strategy that has failed to ignite investor confidence, is sending signals to Wall
Street that it's willing to make big changes to adapt to tougher market conditions and is said to be considering a
plan to cut its global workforce by 10%.
That news of pending job cuts comes after a busy stretch of days for the Dearborn automaker, which had its
annual meeting with shareholders Thursday and met with Wall Street analysts Friday. On Monday, The Wall
Street Journal reported that Ford is poised to announce a plan in the coming days that mostly will target salaried
workers.
Pressure is mounting on Ford CEO Mark Fields because he has failed to outline a business plan that has the
clarity of his predecessor, Alan Mulally, who steered Ford through the recession with his simple "One Ford" plan,
Morgan Stanley analyst Adam Jonas said.
"After a recent breakfast with Ford CEO Mark Fields, we are left with the impression of a company that is not at all
satisfied with its share-price performance, aware of the challenges facing the business and actively pursuing
alternative ways to take advantage of opportunities that could narrow the value gap," Jonas said.
Jonas said Ford appears to be considering major strategic changes, including these:
Scaling back production of cars as consumers continue to gravitate toward crossovers, SUVS and pickups.
Paying down its debt so it has a bigger cash cushion going as the U.S. auto industry heads into a period of slower
new-vehicle sales.
Exiting businesses or parts of the world, such as India, where the automaker is underperforming.
Creating new companies or new lines of business so it is better positioned to be a big player in autonomous
vehicles and the ride- sharing business. Ford has made big moves in this arena with the creation of Ford Smart
Mobility and a commitment to launch a fully autonomous vehicle by 2021, but it may become even more
aggressive, Jonas said.
Ford is poised to outline a plan to cut jobs globally as early as this week, according to The Wall Street Journal.
Ford employs about 200,000 employees globally and about 85,000 workers in the United States.
In the U.S., about 30,000 of those workers are salaried and about 55,000 are hourly. That means a job cut plan
aimed at 10% of the company's salaried workers in the U.S. would add up to about 3,000 people.
On Tuesday, Ford officials did not deny The Wall Street Journal report but said the automaker will announce a
plan in the coming days.
In a statement, Ford officials emphasized their commitment to "transforming underperforming areas of our core
business and investing aggressively, but prudently, in emerging opportunities."
Analyst Arndt Ellinghorst at Evercore ISI investment bankers said investors likely would welcome a Ford move to
cut costs.

"It isn't clear whether any potential job cuts would be part of the already announced cost savings target of $3
billion for 2017, which is part of Ford's plan to increase profitability in 2018," Ellinghorst said.
Executive Chairman Bill Ford told shareholders last week the company isn't happy with the company's stock
price, which has dropped 17% since January.
"Look, we're as frustrated as you are by the stock price," Ford said. "And a couple of people have said, 'Well,
does the Ford family care about the stock price?'
"The short answer is yes, a lot," Ford said. Much of our -- most of our -- net worth is tied up in the company."
Historically, Wall Street doesn't give automakers much credit for making billions during boom times and fails to
see promise in their long-term plans. That dynamic is playing out again, according to Barclays analyst Brian
Johnson, who argues Ford's "unsplashy strategy should be appreciated."
Ford, as well as General Motors, also recently suffered the embarrassment of 14-year-old Tesla Motors
surpassing it in total market value. Founded by serial entrepreneur Elon Musk, Tesla has captured the
imagination of Wall Street even as his company continues to lose money. Tesla lost $397.2 million during the first
three months of the year while Ford earned a profit of $1.6 billion.
"It's been a tough go for Ford stock, but hopefully some of its unsplashy actions can lead to better stock
performance," Johnson said.
photo Bryan Thomas

Document USAT000020170517ed5h00002

Ford Looks to Cut Jobs 10% Globally
Ford Looks to Cut Jobs 10% Globally

By Christina Rogers
1,015 words
16 May 2017
J
A1
English
Ford Motor Co. aims to cut about 10% of its global workforce amid Chief Executive Officer Mark Fields's drive to
boost profits and the auto maker's sliding stock price, according to people briefed on the plan.
The move comes as Ford targets $3 billion in cost reductions for 2017, a plan intended to improve profitability in
2018 even as U.S. auto sales plateau. Ford's share price has suffered during Mr. Fields's three-year tenure, and
the company's market value has slipped far behind those of Tesla Inc. and General Motors Co.
The job cuts, expected to be outlined as early as this week, largely target salaried employees, these people said.
It is unclear if the plan includes reductions in the hourly workforce at Ford's factories in the U.S. and abroad. Ford
has 200,000 employees globally, half of which work in North America.
"We remain focused on the three strategic priorities that will create value and drive profitable growth, which
include fortifying the profit pillars in our core business, transforming traditionally underperforming areas of our
core business and investing aggressively, but prudently, in emerging opportunities," Ford said in a statement.
"Reducing costs and becoming as lean and efficient as possible also remain part of that work. We have not
announced any new people efficiency actions, nor do we comment on speculation," the company said.
Deep job cuts in the U.S. could trigger a political backlash at the White House, as President Donald Trump has
repeatedly pointed to auto makers like Ford as examples of companies adding U.S. jobs.
Mr. Trump pressured Ford to pull back on Mexico production and invest in U.S. factories. Ford committed to scrap
a Mexican factory that had been under construction until earlier this year. The company will add 700 jobs in
Michigan with money saved in Mexico.
Mr. Fields last week faced heightened scrutiny from board members and investors who have long complained
about Ford's sluggish stock performance in an era of record profitability.
Ford has launched into a series of new technology investments under Mr. Fields, including a $4.5 billion
electric-vehicle program and an aggressive autonomous-car project. While both programs could contribute to
Ford's longer-term prospects, the spending erodes profit margins at a time when sales of lucrative pickups and
sport utilities remain strong.
The auto maker's stock price has fallen nearly 40% since Mr. Fields became CEO in mid-2014. Shares have
fallen even as the broader U.S. auto market has grown for seven straight years. Now, as volumes stabilize,
executives are turning to downsizing moves like those of a decade ago.
Ford shares were up 2 cents at $10.94 in 4 p.m. composite trading Monday on the New York Stock Exchange.
While Mr. Fields worked to ease political tensions, he hasn't been able to answer investor concerns about Ford's
ability to weather a downturn or find new sources of revenue. The Dearborn, Mich., auto maker has booked
substantial profits in recent years, including delivering two consecutive years of record earnings, but its market
value sank below electric-car maker Tesla Inc. earlier this year.
Now, Ford has said it expects its profits to fall in 2017 and has flagged slowing sales in the U.S. and China -- two
of the world's largest auto markets.

Ford has been steadily expanding both its salaried and unionized workforce since the financial crisis. While many
employees have been added to support higher volumes and expansion in global markets, Mr. Fields has also
been hiring to support new technology ventures that fall outside of the company's core business of building and
selling cars.
These new projects include a unit called Ford Smart Mobility LLC, and an expanding presence in Silicon Valley,
where several tech giants are rushing forward with car-sharing ventures, driverless cars and other future mobility
experiments. Ford in February, announced it would acquire artificial-intelligence startup Argo AI with plans to
invest $1 billion over the next five years to expand the firm.
General Motors, meanwhile, has been retrenching under Chief Executive Mary Barra. It began cutting thousands
of U.S. jobs in the U.S. earlier this year in response to soft demand for passenger cars, and has pulled out of
several underperforming markets, including a plan to sell its Opel unit to Peugeot.
Ms. Barra, like Mr. Fields, faces pressure from investors. Greenlight Capital Inc., a hedge fund run by David
Einhorn, is pleading with shareholders ahead of GM's annual meeting to support his plan for a revamped capital
structure and new board members.
Ford steered clear of the bankruptcies that allowed GM and Fiat Chrysler Automobiles NV's Chrysler unit to cut
significant costs under chapter 11 protections. Ford did, however, implement a series of painful cuts aimed at
slimming down unionized head count at manufacturing plants and shrinking the white-collar ranks.
Mr. Fields, a 28-year veteran of the company, ran Ford's core North American unit for several years and served
as architect of many of those downsizing efforts. He has overseen several tense negotiations with United Auto
Worker officials. He also shrank the company's European operation earlier last decade, earning a reputation as a
hard-nosed leader willing to attack the cumbersome cost structure that long burdened Detroit's car companies.
As sales rebounded following the 2009 financial crisis, Ford's ranks swelled. Employment in North American,
responsible for the bulk of the auto maker's profits, has grown 25% over the past five years and the auto maker
has also been expanding in China.
Ford has been a big beneficiary from surging demand for SUVs and pickups, including the best-selling F-150.
Like GM and Chrysler, Ford has been forced to trim production of smaller cars, such as the Focus, and the auto
maker has taken action to reduce dealer inventories in the U.S.
Document J000000020170516ed5g00028

Ford CEO, Chairman Feel Heat
Ford CEO, Chairman Feel Heat

By Christina Rogers
249 words
12 May 2017
J
B1
English
Ford Motor Co. shareholders put heat on Chief Executive Mark Fields and Chairman Bill Ford during their annual
meeting Thursday, pressing the executives about the stock's loss of more than a third of its value during Mr.
Fields's tenure.
The auto maker, like its Detroit rival General Motors Co., has booked substantial profits during a seven-year hot
streak for U.S. car sales and, especially, lucrative trucks -- but shares in domestic auto companies have been
battered. Ford and GM have long been subject to the industry's boom-and-bust cycle, and have struggled to sell
investors on a strategy to escape that trend.
"We are as frustrated as you are about the stock price," Mr. Ford told shareholders. "The stock price matters a lot
to us."
Tesla Inc., the Palo Alto, Calif., electric-car maker run by billionaire Elon Musk, surpassed Ford's and GM's
market capitalization earlier this year, underscoring Wall Street's concerns about Detroit's ability to outgun Silicon
Valley in developing must-have electric cars or autonomous driving capabilities. Tesla sells a fraction of what
Ford or GM delivers, yet has captivated investors with its prospects for growth.
Mr. Fields, who became CEO in 2014, faced heightened scrutiny from the board of the 114-year-old company this
week, as directors added a day of meetings to press the executive for clarity on strategy.
Document J000000020170512ed5c0002i

Pressure Mounts on Ford's Chief
Pressure Mounts on Ford's Chief

984 words
10 May 2017
J
A1
English
Ford Motor Co.'s directors are pressing Chief Executive Mark Fields to sharpen his strategy as the company
races to catch up on electric cars, reverse its shrinking market share in the U.S. and buoy its languishing stock
price, according to people familiar with the situation.
Company directors, meeting this week in Dearborn, Mich., ahead of the annual shareholders meeting Thursday,
scheduled an additional day of talks Tuesday to address growing uncertainty about the auto maker's course,
these people said. Ford has been solidly profitable since Mr. Fields became CEO in July 2014, but its stock price
has fallen by about a third in that period.
Mr. Fields is pushing to retool the company for an industry that is migrating to new technologies such as electric
vehicles and self-driving cars. But amid uneven progress on that front, he has come under criticism from some
managers for shifting too much focus away from conventional businesses that still account for the bulk of profits.
While Chairman Bill Ford and other directors support Mr. Fields, the people say, they are urging him to heighten
his focus on growth opportunities.
"We do not share details or discussions from our board meetings for competitive reasons," a Ford spokesman
said. "We also are unable to comment on rumors or speculation."
Ford shares closed Tuesday at $11.16. The stock slipped below $11 earlier in May, its lowest point since August
2015.
Founded in 1903 by one of the industry's most iconic figures, Henry Ford, the auto maker was dealt a blow in
early April when its market capitalization fell below electric-car startup Tesla Inc.
Tesla is valued at $52.4 billion, or 18% higher than Ford, despite the Silicon Valley electric-car company's
financial losses. Tesla sells a fraction of the cars delivered by Detroit's auto makers but is seen as having a lead
on new technologies.
When asked about Tesla's surge during an earnings call last month, Mr. Fields said Ford needs to do a better job
quantifying the revenue and profit-growth potential of its technology bets. "We've talked about the investments,
and we'll do that going forward," he said.
Mr. Fields, a 28-year veteran of Ford, took the helm after his predecessor, Alan Mulally, restructured the company
by selling off brands and simplifying operations.
Mr. Mulally, currently a member of Google parent Alphabet Inc.'s board, oversaw a succession race that included
members of Mr. Fields's current management team. He also helped the No. 2 U.S. auto maker avoid bankruptcy,
unlike its Detroit rivals.
Mr. Fields has focused on accelerating growth in Asia, jump-starting the company's Lincoln brand and placing
bets on future technologies.
Ford is facing pressure as the U.S. auto market is leveling off after seven consecutive years of growth. The auto
maker's profits have been dented by declining sales and vehicle recalls.

The company also is shouldering higher costs as Mr. Fields seeks to venture beyond its core business of building
and selling cars. He is pushing into new areas such as ride-sharing and autonomous vehicles and investing in
new initiatives aimed at reducing Ford's exposure to the auto industry's boom-bust cycles.
However, some senior managers are concerned the company is spending too much time and energy on bets that
will take years to pay off, say people familiar with the situation.
Ford's closest rival, General Motors Co., also is investing in technology and is far ahead on electric cars. Ford
doesn't plan to launch a long-range battery-powered vehicle until 2020.
At the same time, Silicon Valley firms such as Alphabet, Apple Inc., Intel Corp. and a number of startups are
acquiring auto suppliers and spending billions on vehicle testing in a bid to unseat Detroit.
In 2016, Mr. Fields was awarded a $2.5 million stock incentive to continue broadening Ford's strategy beyond the
profitable trucks and SUVs that deliver the bulk of profits.
Under a deal laid out in the company's proxy statement, management was to focus on making progress on
autonomous vehicles, supercharging the Lincoln brand, increasing market share in China, "developing a lean
mindset" and pursuing "moonshot" ideas such as ride-sharing ventures.
Under Mr. Fields, Lincoln has gone from a tarnished afterthought in the global luxury car market to one of the
faster-growing brands in the U.S. It is also making inroads in China, a huge auto market where Ford is far behind.
But Ford's share of its core market, the U.S., is in decline. The company accounted 15.1% of U.S. car sales in the
first four months of the year, down from 15.6% in the year-earlier period.
Mr. Fields predicts eventually earning 20% margins on services ventures -- twice the margins it earns in the North
American market -- though he hasn't specified what exactly those ventures are or when they might be a
meaningful part of the business.
Some efforts are in the early stages. Ford earlier this year announced a $1 billion investment in Argo AI, a
Pittsburgh-based artificial-intelligence company that is still considered a startup.
There have been stumbles.
Ford joined with Boston-based van-shuttle service Bridj for a pilot program in Kansas City. The startup's CEO,
Matt George, announced last month that he was folding the company after it wasn't able to secure funding.
Ford, in a statement Tuesday, said it provided vehicles for the startup, but that the partnership didn't extend
beyond that.
Some top managers worry Mr. Fields's operational structure has become more complicated as the company
launches new divisions and creates new management roles, say people familiar with the matter.

Document J000000020170510ed5a0002n

Ford Spoils Tesla Chief's Name Joke
Technology
Ford Spoils Tesla Chief's Name Joke
By Tim Higgins
569 words
5 May 2017
J
B4
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Elon Musk's desire for S-E-X is causing problems for Tesla Inc.
The chief executive of the Silicon Valley auto maker thought it would be funny for the names of his vehicle models
to spell out something cool. He had the Model S sedan and Model X sport-utility vehicle. But when it came to
naming a new, cheaper car, the Model E, Ford Motor Co. blocked Tesla over trademark issues. So he
insteadwent with Model 3, which is essentially a backward "E."
It is a story he has told often, as Tesla prepares to bring out the Model 3, which will be its least expensive car,
starting at $35,000. But it seems the choice is backfiring, as many customers think the Model 3 is the next version
of a high-end Tesla car, similar to the way the Apple iPhone 6 was replaced by the improved iPhone 7.
"We have seen a belief among some that Model 3 is the newest and more advanced generation of Model S," Mr.
Musk wrote in a letter on Wednesday to shareholders. "This is not correct. Model S will always have more range,
more acceleration, more power, more passenger cargo room, more displays (two), and more customization
choices, and Model S, X and 3 will all have equivalent Autopilot functionality."
During a conference call with analysts, Mr. Musk said the naming convention was having some impact on orders
of more expensive vehicles. The Model 3 is part of Mr. Musk's plans to broadly expand the luxury brand and help
fuel production of 500,000 vehicles next year, compared with about 84,000 last year.
Auto makers traditionally want to have various models of cars with different, increasing price points to appeal to
more customers. BMW AG, for example, has a compact car called the 3 Series, a midsize car named 5 Series
and the flagship 7 Series.
Shares of Tesla fell 5% on Thursday, a day after the company reported its first-quarter loss widened despite more
than doubling revenue. The stock began sliding in after-hours trading during Wednesday's conference call while
analysts repeatedly asked executives about the product confusion.
"New product freezing sales of existing product; it's a lesson we forget," Erik Gordon, a University of Michigan
business-school professor, said. "In the pre-PC days of eight-bit computers, Adam Osborne destroyed his
company when he announced that an Osborne 2 was on its way and sales of the Osborne 1, the first luggable
computer, went to zero."
On Tuesday, Apple Inc. Chief Executive Tim Cook suggested anticipation for the coming iPhone 8 was affecting
current iPhone 7 sales. "We're seeing what we believe to be a pause in purchases on iPhone, which we believe
are due to the earlier and much more frequent reports about future iPhones," Mr. Cook said.
The confusion about where the Model 3 sits in the Tesla lineup helps explain why Mr. Musk took to Twitter in late
March with a similar message: "Am noticing that many people think Model 3 is the `next version' of a Tesla, like
iPhone 2 vs 3. This is not true."To add emphasis, he wrote, that the Model S "is the car I will keep driving even
after Model 3 arrives."
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Business News: Tesla Presses Ahead With Model 3
Business News: Tesla Presses Ahead With Model 3

By Tim Higgins
565 words
4 May 2017
J
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English
With just weeks left for Tesla Inc. to meet his tight production deadline for its first mass-market vehicle, Chief
Executive Elon Musk sounded confident the goal will be met.
Mr. Musk said Wednesday in a quarterly letter to shareholders that Tesla is on track to begin production of the
Model 3 sedan in July in what will be a critical test for the company to shift from a niche luxury brand to a
mainstream auto maker.
Buyer enthusiasm for the $35,000 electric car is mounting, and investors are pouring into Tesla as Wall Street
sours on traditional auto makers, fearing their swelling inventories are a prelude to a cyclical downturn after seven
consecutive years of robust U.S. sales. Tuesday was just another reminder, as General Motors Co. joined Ford
Motor Co. and other car companies in reporting disappointing U.S. sales results for April, the fourth consecutive
month of year-over-year declines.
Tesla, which is coming off its best quarterly sales period, is helping fuel the belief that Silicon Valley can revive
lagging interest in car buying, igniting visions of a future where vehicles drive themselves. At stake is a U.S. auto
industry that generates some $2 trillion in annual revenue.
"Model 3 vehicle development is nearly complete as we approach the start of production," Mr. Musk wrote in the
letter. "Preparations at our production facilities are on track to support the ramp of Model 3 production to 5,000
vehicles per week at some point in 2017, and to 10,000 vehicles per week at some point in 2018."
Shares of Tesla have risen this year by 50%, pushing its market value to greater heights than both GM and Ford,
the two largest U.S. auto makers by sales. Tesla currently owns the market-value crown despite the fact the
company sells a fraction of the 10 million vehicles GM sold last year, is deeply in debt and has never turned an
annual profit.
Shares fell 2.6% to $303 in after-hours trading Wednesday.
"We don't think earnings matters," Brian Johnson, an analyst with Barclays, advised clients in a note Wednesday
ahead of Tesla reporting. "...The stock seems so disconnected from any form of fundamentals, and right now is
purely driven by momentum -- making earnings less relevant."
Tesla continued its unprofitable ways during the first three months of the year despite more than doubling
revenue to $2.7 billion. The company said Wednesday its loss attributable to common shareholders widened to
$330 million from $283 million a year earlier as it moves toward Model 3 production.
On an adjusted basis, the company's per-share loss of $1.33 missed the 81-cent-a-share loss predicted by a
consensus estimate of analysts surveyed by Thomson Reuters.
Tesla's automotive business was helped by a 69% increase in the sale of Model S sedans and Model X
sport-utility vehicles during the quarter compared with a year earlier. The company delivered about 25,000
vehicles in the January-March period, its best ever and a remarkable change of fortune from a year earlier when
Mr. Musk was struggling to work out the kinks in the new Model X SUV, which had been plagued with production
and quality issues.

Document J000000020170504ed540002j

Small cars suffer as auto sales slump in April
MONEY
Small cars suffer as auto sales slump in April
Nathan Bomey
Nathan Bomey, @NathanBomey, USA TODAY
334 words
3 May 2017
USA Today
USAT
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English
Disappointing U.S. new vehicle sales in April suggests the auto industry is receding from its breakneck pace,
reducing the chances of a third consecutive record year.
Overall, the industry reported a 4.7% sales decline to 1.43 million units, according to industry tracker Autodata.
Edmunds and Kelley Blue Book analysts had projected industry sales declines of 4% and 3.1%, respectively.
General Motors, Ford, Fiat Chrysler and Nissan each reported deeper-than-expected sales declines for the
month. Toyota narrowly edged expectations, but it still recorded a 4.4% decline compared to a year earlier.
The worse-than-expected performance "could in fact point to a slowing auto market," Kelley Blue Book analyst
Alec Gutierrez said.
GM, Ford and Fiat Chrysler vehicle sales fell 5.9%, 7.1% and 6.9%, respectively, according to Autodata. Nissan
was down 1.5%.
GM's stock fell 2.9% to $33.20 Tuesday, Ford Motor was down 4.4% to $10.92 and Fiat Chrysler shares reversed
4.3% to also hit $10.92.
The industry's pace of sales was slower than expected throughout the month, said Mark LaNeve, Ford's vice
president of sales and marketing. "We have to let the year play out," he said. "All the underlying fundamental
indicators that drive our business are very positive. Some of the big months are still in front of us."
One factor undermining profits is rising discounts, which automakers adopt to maintain market share and keep
cars moving off dealers' lots. Average incentives as a percentage of vehicle price rose to 10.5% in April, up from
9.3% in the same month a year before, according to TrueCar subsidiary ALG.
Small cars such as the Chevrolet Sonic and Ford Fiesta reported crushing sales declines. But compact
crossovers, including the Chevy Trax, Buick Encore and Toyota C-HR, were hot.
Contributing: Brent Snavely, Detroit Free Press
Document USAT000020170503ed530000m

Auto Sales Shrink, Inventories Grow
Auto Sales Shrink, Inventories Grow

By Adrienne Roberts and Mike Colias
678 words
3 May 2017
J
B1
English
Auto makers signaled their hot streak in the U.S. is rapidly cooling, as demand last month turned surprisingly
sluggish for the trucks and SUVs that have fueled record profits for domestic players.
General Motors Co. and Ford Motor Co. on Tuesday reported declines in April of 5.8% and 7.1%, respectively,
compared with the same month last year. Fiat Chrysler Automobiles NV reported a 7% decline, as sales at its
Jeep brand continued to tumble.
Another troubling sign: It is taking dealers far longer to sell off inventory, resulting in a glut of unsold cars and
trucks. GM, the No. 1 U.S. auto maker, has nearly 1 million vehicles sitting on dealer lots.
Overall, auto makers sold 1.43 million vehicles in the U.S. in April, down 4.7% from a year earlier, according to
Autodata Corp.
Detroit is hoping its traditionally strong summer sales season will get it out of the rut. Car makers plan to offer
plenty of discounts, and rely on low gasoline prices and broad economic strength.
The U.S. auto industry has been on a winning streak since bailouts rescued GM and Chrysler in 2009. After
seven straight years of sales gains, including two consecutive record performances, demand has cooled in 2017's
first four months despite soaring discounts.
Discounts are nearing an average of $4,000 per car or truck sold, according to J.D. Power, denting the favorable
impact that selling a richer mix of pricier Ford F-150s or Cadillac Escalades can deliver.
GM will be shutting down some factories later this year to ready assembly lines for new models. Executives say a
lack of new supply in the second half, along with the prospect of job growth, wage increases and cheap gasoline
will help ease GM's bloated inventory. GM, which has 17% market share, is carrying more than one-fifth of the
industry's inventory.
Working down high inventories can take a deep financial toll. Ford., the No. 2 seller in the U.S., faced a glut last
spring and took tough actions to work it down. The company, however, has reported four consecutive quarterly
earnings declines, and its share price has suffered.
GM already has relatively low utilization of its North American factories, according to WardsAuto.com. It has laid
off thousands of hourly employees due to a collapse of demand for fuel-sipping passenger cars. Now, its core
truck business is also showing fatigue.
Fred Rentschler, a dealer in Slatington, Pa., said his family's Chevrolet store has 120 models on the lot and
another 50 being delivered, nearly 20% more than the same time last year. "They're coming through with
inventory," he said. "We're just not selling them as quickly."
Ford officials echo GM's optimism, with the company's sales chief, Mark Laneve, saying "our big seasonal selling
months are still in front of us."
Mr. Rentschler said the current expectation for 2017 sales -- pegged at more than 17 million -- remains solid
compared with the industry's last downturn. "Coming out of bankruptcy, we were happy when the industry did 10
or 11 million," the Chevrolet dealer said.
A record 17.55 million vehicles were sold in 2016.

Mark Wakefield, global co-head of consultancy Alix Partners' automotive practice, said he was encouraged that
some auto makers have pulled back on passenger-car production, such as Chevrolet Malibu sedans or Ford's
Focus compacts.
"You may start to see truck production cut and even more on the car side," Mr. Wakefield said. Industrywide
inventory is "climbing and it needs to be managed," he said.
The largest Japanese auto maker, Toyota Motor Corp., reported a 4.4% drop in April sales. Honda Motor Co.'s
U.S. sales decreased 7% for the month. Nissan Motor Co. -- among the only mass-market players posting growth
for 2017 -- reported its first sales decline of the year, with April sales dropping 1.5%.
Document J000000020170503ed530001k

Management -- Your Executive Career: How Millennial Bosses Can Gain Trust --- For young executives, the challenge is admitting what they don...
Management -- Your Executive Career: How Millennial Bosses Can Gain Trust --- For young executives,
the challenge is admitting what they don't know and seeking advice from elders
By Joann S. Lublin
745 words
3 May 2017
J
B5
English
Sometimes, youth is wasted on young executives. Companies such as Ford Motor Co. are recruiting young
bosses to jump-start or reinvent businesses. But those leaders often struggle to gain acceptance and trust from
skeptical older colleagues.
Caterpillar Inc., American International Group Inc. and SAP SE have tapped executives in their 30s for senior
spots since 2016. And in late January, Ford hired 34-year-old Musa Tariq as its first chief brand officer.
Mr. Tariq, who was most recently global marketing and communications director for Apple Inc.'s retail division, is
helping the No. 2 U.S. auto maker shake up its 113-year-old business model and shift into new transportation
services. Ford chose Mr. Tariq based on his reputation "for challenging convention," says Chief Executive Mark
Fields. Being young "was OK, too."
Mr. Tariq is the youngest of his 44 fellow corporate officers. Ford's top ranks previously had been largely
populated with lifers who worked their way up, Mr. Fields says. The CEO adds that he has tried to stem possible
resentment of the young newcomer by ensuring members of top management interviewed and helped integrate
Mr. Tariq.
Demand for young executives is growing, especially in areas like digital commerce and artificial intelligence,
executive coaches and recruiters say. As a result, more workers find themselves reporting to younger bosses.
Nearly four in 10 U.S. employees worked for someone younger in 2014, up from 31% in 2010, concluded surveys
conducted for CareerBuilder, a job site.
A young star's appointment to upper management can be unsettling for older managers whose career trajectories
have been less meteoric. Individuals with younger supervisors must demonstrate their relevance in the
workplace.
For youthful bosses, leadership specialists say the challenge is admitting what they don't know and humbly
seeking advice from their elders.
Young executives struggle to win acceptance from older associates, who expect them to be arrogant and make
mistakes, says Peter Cappelli, a management professor at the University of Pennsylvania's Wharton School. He
co-wrote the book, "Managing the Older Worker."
Anyone with a younger boss should say, "I know a lot of stuff and I'd like to be your partner in execution," Mr.
Cappelli recommends.
Jessica Bigazzi Foster, head of the executive development global practice for RHR International LLP, a
leadership advisory firm, says her employer is getting more assignments to coach young executives, especially
those hired from outside a firm.
"We see a lot of organ rejection," she says, and the executives who don't work out typically are less experienced
in large corporate settings.
At Ford, Mr. Fields encouraged senior executives to teach Mr. Tariq how to navigate the bureaucracy. Mr. Fields
says he meets with Mr. Tariq regularly for informal coaching about issues such as finding key internal allies.

Among his early tips for the new branding chief: Travel the world and "get to know [Ford] people on a personal
level." Ford said Mr. Tariq was unavailable for interviews.
Matt Anderson was 35 when he joined Arrow Electronics Inc. as its first chief digital officer in 2014, charged with
accelerating the electronics distributor's transformation into digital products and services.
Mr. Anderson says he worked hard to forge a strong bond with Andy King, a then 51-year-old Arrow executive
whom the company's CEO respected for his successful command of its biggest unit's operations in Europe, the
Middle East and Africa. Mr. Anderson proposed that he and Mr. King "work together and help each other
succeed."
When Mr. Anderson became the youngest-ever partner of management consultancy Booz & Co. at age 30, older
colleagues were resentful, he says. One co-worker privately griped that the new partner "impressed one or two
people, but he won't be able to achieve the revenue needed," Mr. Anderson says.
Mr. King, now president of Arrow's global components business, says he has advocated on behalf of Mr.
Anderson and his team because the younger man offered a fresh perspective and went out of his way to
collaborate.
"Working together, we've found new ways to invest in and grow Arrow's online design and sales capabilities," Mr.
King says. At Arrow, he adds, results count more than age.
Document J000000020170503ed530000n

Business News: Detroit Is Upbeat as Car Sales Slow Down
Business News: Detroit Is Upbeat as Car Sales Slow Down

By Mike Colias and Chester Dawson
459 words
1 May 2017
J
B3
English
DETROIT -- U.S. car sales may be slowing, but the profit engines of Detroit's Big Three auto makers are in high
gear.
General Motors Co., Ford Motor Co. and Fiat Chrysler Automobiles all beat Wall Street's expectations last week
when they reported first-quarter earnings, mostly because of strength in the North American market. All three kept
their full-year earnings forecasts intact, a signal they don't expect the wheels to fall off.
That comes despite clear signs overall demand for passenger vehicles is weakening. April is expected to mark
the fourth straight monthly decline in U.S. vehicle sales when the industry reports volumes Tuesday, raising the
likelihood that 2017 will end a seven-year run of increases.
Industry observers don't expect a collapse in sales, even if demand drifts below record levels hit last year. "Total
sales are still strong from a historical perspective and the decline is very gradual," said Jessica Caldwell, an
analyst at Edmunds.com, an auto-research firm and car-shopping website. "It shouldn't really be seen as
alarming."
Auto makers say they will trim production levels to reflect weaker demand instead of cutting prices to keep their
factories humming.
GM, Ford and Fiat Chrysler are in a relatively stronger position than some of their foreign-based rivals because
they rely less on sales of sedans, which are in free fall as buyers switch to crossover wagons, SUVs and pickup
trucks. U.S. brands specialize in those vehicles, which tend to offer high profit margins.
"The industry shift that we're seeing around the world from cars and [into] SUVs plays to our strengths," said Mark
Fields, Ford's chief executive officer, on a conference call with analysts on Thursday.
The shift toward light trucks -- a category that includes pickups, SUVs and crossover wagons -- is helping auto
makers keep prices high overall, even as they dole out bigger discounts on cars. In recent months, light trucks
have accounted for more than 60% of total sales volume. J.D. Power, a market-data provider, says the average
price paid by buyers from the start of the year through mid-April was a record $31,380.
For two years now, auto-industry insiders have been girding for the end of an upward sales cycle that began in
2010 as the U.S. was emerging from the 2007-09 recession. Concern spread when March sales fell to a
seasonally adjusted annual rate of 16.6 million, the slowest in two years.
"The competitive intensity is increasing," Fiat Chrysler CEO Sergio Marchionne said on a call with analysts.
Document J000000020170501ed510002j

Ford's profit tumbles as vehicle costs jump
MONEY
137 words
28 April 2017
USA Today
USAT
FINAL
B.1
English
Ford's profits sank 35% during the first quarter to $1.6 billion as higher costs for warranties, recalls and materials
eroded the bottom line. The company had earned a best-ever profit of $2.4 billion in the first quarter of 2016. On a
per-share basis Ford earned 39 cents compared with the 36 cents per share Wall Street analysts had expected.
Toyota recalls 228,000 Tacoma pickups
The Japanese automaker said Thursday it would recall 228,000 U.S. units of the 2016 and 2017 model-year
Toyota Tacoma. The recently redesigned Tacoma, a midsize pickup crucial to Toyota's lineup, could leak oil,
possibly damaging the rear differential and increasing the risk of a crash, Toyota said.
Document USAT000020170428ed4s0003i

Business News: Ford's Pace Eases After Long, Hot Run --- Demand for trucks remains solid, but U.S. auto market as a whole is downshifting
Business News: Ford's Pace Eases After Long, Hot Run --- Demand for trucks remains solid, but U.S.
auto market as a whole is downshifting
By Adrienne Roberts and Christina Rogers
642 words
28 April 2017
J
B3
English
Ford Motor Co.'s first-quarter profit fell 35% from a year earlier amid higher costs and weaker U.S. sales.
The No. 2 U.S. auto maker on Thursday reported profit of $1.6 billion, down from $2.5 billion in 2016's first period,
when strong demand for a redesigned F-150 pickup truck helped Ford post its best quarterly operating profit in
history.
Adjusted earnings per share were 39 cents in the latest quarter, beating analysts' consensus of 36 cents.
Analysts cited stronger-than-expected earnings in North America and at financing arm Ford Credit.
"The results were solid, but it was a tough comparison" to last year's first quarter, Ford Chief Financial Officer Bob
Shanks said on Thursday.
The Dearborn, Mich., auto maker faced headwinds at home and abroad with lower sales in China, an unfavorable
exchange-rate impact in Europe because of Brexit and a tougher market in the U.S., where new-car demand is
cooling after seven years of uninterrupted growth.
Mr. Shanks described the just-ended quarter as likely Ford's "toughest" for this year with results expected to be
flat to better "in aggregate" over the remaining three quarters.
Revenue for the first quarter rose 4% to $39.1 billion, driven by a favorable mix of pickup trucks and sport-utility
vehicles.
Ford is coming off one of its most profitable periods in history with its North American business benefiting from
two years of record sales growth for the U.S. auto industry and surging demand for its highly lucrative trucks and
SUVs amid low gasoline prices.
Ford earned $10.4 billion in operating profit last year, down slightly from 2015's record of $10.8 billion.
Company executives forecast a leaner profit this year, confirming on Thursday full-year guidance for $9 billion in
operating profit.
Ford plans to cut $3 billion in costs this year and expects profit to rebound in 2018, driven by strength in the U.S.
pickup-truck market, the rollout of two full-size SUVs and improving results at Ford Credit.
Ford's first-quarter adjusted pretax profit fell 42% to $2.2 billion, dinged by a $295 million recall expense disclosed
in March covering nearly a half-million vehicles with fire risks and faulty door latches. This was the second time in
less than a year that safety concerns hurt the bottom line.
Operating profit for Ford's North American business was $2 billion, down 35% from the same period a year
earlier.
Margins slipped in the first quarter to 8.3% in the company's core North American business, from a lofty 12.9% a
year earlier. While transaction prices were up $1,971 per vehicle on strong demand for Ford's heavy-duty trucks,
U.S. sales fell 4% in the quarter and market share shrank.
Higher interest rates and a decline in used-car values are also hurting vehicle affordability among U.S. consumers
and making it more difficult for auto makers to continue offering the cheap leases that helped drive U.S. sales.
In Europe, Ford posted a pretax profit of $176 million compared with $434 million a year earlier, with
exchange-rate and Brexit headwinds offsetting higher sales volumes.
In Asia Pacific, Ford recorded a $124 million operating profit, down from $220 million, as it contended with cooling
new-car demand and the expiration of a tax subsidy on small-engine vehicles last year.
Ford's operating losses in South America continued, with the auto maker reporting $244 million in red ink,
compared with $256 million in last year's first quarter.
Document J000000020170428ed4s0002v

Tesla Must Aim High To Justify Its Valuation
Heard on the Street

Tesla Must Aim High To Justify Its Valuation
By Charley Grant
577 words
17 April 2017
J
B1
English
Tesla Inc. is valued as though it will soon conquer the U.S. auto market. Now, it has the small task of actually
doing so.
Tesla shares have been unstoppable ahead of the Model 3 launch, having gained 40% this year. The upstart auto
maker is more valuable than Ford Motor and slightly less valuable than General Motors on a market-cap basis.
The crux of the excitement is the all-electric Model 3 sedan that Tesla says will start at $35,000. Production is
scheduled to begin this summer.
Tesla now trades at 271 times projected 2018 adjusted earnings, according to FactSet.
Ford and GM, in contrast, trade at less than seven and six times the 2018 estimate, respectively.
Tesla gets that valuation because it is expected to upend the auto industry while earning big profits that would
bring down the multiple. But to actually earn enough profits to reduce Tesla's multiple to something within the
realm of reason would require almost heroic assumptions.
First, the basics: Say Tesla's valuation should be 10 times higher than GM's and Ford's, and say Tesla's share
price stays constant at about $300.
That means Tesla would need to earn $4.29 a share in 2018, which equals $700 million in total net income,
assuming the current share count doesn't change.
For perspective, Tesla sold about 76,000 cars in 2016 and lost $675 million on sales of $7 billion.
Now the assumptions: Chief Executive Officer Elon Musk forecasts Tesla can produce 500,000 cars in 2018,
while analysts, a bullish lot, peg the number of deliveries at 302,000. Let's say the delivery number is 380,000.
Pencil in an average selling price of $50,000 -- Tesla will still be selling high-priced Model S and Model X vehicles
along with the Model 3.
That scenario yields just under $21 billion in automotive revenue. Add another $2 billion in sales from its
residential solar and energy businesses.
Tesla has never generated a positive operating margin for a full year, but assume it gets savings on battery costs
and realizes economies of scale.
If Tesla gets the same 5.4% operating margin that GM and Ford averaged last year, it would generate operating
income of $1.1 billion. Subtract $200 million for interest expense and tax the remainder at 25%: The result is $700
million in net income, giving Tesla a multiple roughly 10 times bigger than GM and Ford.
To get there, the company would have to quintuple the number of cars it sells, earn margins equivalent to those of
its highly efficient competitors and not sell new shares.
Tweak any of these variables -- lower sales, lower margin, lower selling price -- and Tesla doesn't come close to
earning enough to get to 10 times the multiple of its bigger rivals by the end of 2018.

Valuation has never mattered before for Tesla's investors and it may not matter at the end of next year.
Shareholders may be willing to wait five years instead of two for Tesla to generate big profits, or they may
continue to figure that valuation doesn't matter for a game changer like Tesla.
Tesla's cars have always outshone its financials. That needs to change soon for its valuation to make sense.
Document J000000020170417ed4h0001v

Musk bickers with Tesla investors over board
MONEY
Musk bickers with Tesla investors over board
Nathan Bomey
272 words
14 April 2017
USA Today
USAT
B.2
ISSN:07347456
English
Says disgruntled shareholders 'should buy Ford stock'
Tesla CEO Elon Musk sparred this week with a group of investors who called on the company to appoint more
independent members to its board of directors.
The billionaire entrepreneur said on Twitter the investors "should buy Ford stock" because "their governance is
amazing," in a coy reference to the fact the Dearborn, Mich.-based automaker remains controlled by heirs of
founder Henry Ford.
Musk's remarks came after the investors issued a public letter Monday praising Tesla's "phenomenal growth" but
assailing the Palo Alto, Calif.-based company for "the conflicts of interest that permeate this board."
"Five of six current non-executive directors have professional or personal ties to Mr. Musk that could put at risk
their ability to exercise independent judgment," the investors wrote. "A thoroughly independent board would
provide a critical check on possible dysfunctional group dynamics, such as groupthink."
The investors who signed the letter include New York City's asset managers, public pension plans in Connecticut
and California and private firm CtW Investment Group.
In separate tweets, Musk suggested he has already recognized the need to bring two more independent voices
on the company's board, which currently includes his brother, Kimbal, and other close supporters.
The investment group cited several looming challenges, including Tesla's consistent losses, the start of battery
production at a plant in Nevada, the integration of SolarCity and the task of launching production of its Model 3
mass-market electric vehicle.
photo Ringo H.W. Chiu, AP
Document USAT000020190208ed4e0005m

Business News: Tesla Vies to Top GM Value
Business News: Tesla Vies to Top GM Value

By Tim Higgins
724 words
11 April 2017
J
B3
English
Silicon Valley overtook the Motor City on Monday.
A surge in Tesla Inc. stock during morning trading gave the company the title of largest U.S. auto maker by
market value -- a feat that would have seemed highly improbable 13 years ago when the electric-car maker based
in Palo Alto, Calif., first began tinkering with the idea of making a sports car.
Shares in Tesla rose as high as $313.73 Monday, helped by an upgrade by Piper Jaffray, pushing the company's
market capitalization to $51.17 billion. That high-water mark exceeded Detroit-based General Motors Co., which
at its lowest point Monday was worth $50.93 billion. By the market's close in New York, however, Tesla's gains
had faded, leaving its market value at $50.95 billion, compared with GM's $51.18 billion. Ford Motor Co. closed
the day at $44.8 billion.
Market values are calculated using data provided by FactSet, which draws information from public filings.
Still, that Tesla was valued higher than GM underscores the profound change occurring in the automotive industry
as Silicon Valley pursues a vision for transportation -- including self-driving cars and vehicles on demand -- that
could upend century-old competitors. Last week's disappointing monthly sales results by traditional auto makers
served as a further example to investors concerned that the profitable U.S. new-car market is plateauing.
"We've built a track record of strong financial performance," a GM spokeswoman said in an email. "We'll stay
focused on delivering outstanding results and making decisions to deploy capital where it will generate the
strongest returns, to enhance shareholder value."
Tesla declined to comment.
GM is the largest auto maker in the U.S. by market share, making up 17.3% of the sales last year, according to
Autodata Corp. Tesla held a 0.2% share, to beat Ferrari and Maserati.
"What's fun about following this company now is that anything can happen," Chaim Siegel, an analyst for
Investing.com, said in an email about Tesla that aligns with investor sentiment even as the auto maker remains
unprofitable and deeply in debt. "The potential is huge. The hopes are huge."
Even some of Tesla's most optimistic followers didn't expect the extent of the recent surge in value. "We're pretty
surprised by the recent run in Tesla's share price to over $300 so quickly," Adam Jonas, an analyst for Morgan
Stanley, wrote in a note to investors as Tesla's market cap neared GM's. He had been targeting a $305 price for
Tesla. "Such is the power of technical factors over fundamental drivers," he said.
Tesla shares are up more than 40% this year, a move that last week led Chief Executive Elon Musk's company to
surpass Ford as the second-largest auto maker. The exuberance comes even as Mr. Musk faces huge
challenges in accomplishing all he is claiming to do, including making 500,000 vehicles next year after building
just 84,000 last year and creating software that would enable a vehicle to drive itself.
"It's indicative of the market wanting to pay for potential, including into markets that don't exist yet in any large
size such as [electric vehicles], home energy generation and storage, rather than profits and cash flow today that
the large auto makers generate," said David Whiston, an analyst for Morningstar Research.

Mr. Musk, who has struggled to bring out new products before, faces the daunting challenge of later this year
rolling out the $35,000 Model 3 sedan, the linchpin in his plans to take the company into the mainstream from the
rarefied air of selling luxury vehicles.
His acquisition of SolarCity Corp. late last year and removal of the word "Motors" from the company's official
name are part of a vision of being able to offer solar panels to generate energy and batteries to store that power
at home or the office -- all for the benefit of the vehicles being sold. He has begun shipping vehicles equipped
with the hardware he says is needed to make them fully self-driving once the software is completed, aiming to
demonstrate the prowess by year-end.
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Streetwise: High Debt Levels Are A Cause Of Concern
Streetwise: High Debt Levels Are A Cause Of Concern

By James Mackintosh
758 words
7 April 2017
J
B1
English
When the market value of money-losing Tesla Inc. passed that of Ford Motor Co. this week, it was a perfect
illustration of investors' love affair with disruptive technologies. Investors seem to have forgotten another valuation
comparison they should think about more often: In October 2008, the market value of Mattel Inc., maker of
Matchbox toy cars, passed that of heavily indebted Ford.
Old hands in the markets like to say that one year in seven, investors worry about balance sheets, rather than
profit. It has been eight years since that last applied, but as the Federal Reserve starts to discuss running down
its own balance sheet, it is a good time to think about corporate indebtedness again.
Companies have been loading up on debt based on two assumptions, shared by investors: that economic growth
will be slow and it will be steady. This is the perfect environment for leverage, as low growth keeps interest rates
low relative to inflation, while the expectation of steady growth means few worry about a bad year interrupting
repayments.
The danger is that either assumption proves wrong, and the focus shifts back from profit to balance sheet. Such a
shift could be ugly, because there is so much more debt than usual being piled up by companies outside the
finance sector. The ratio of debt to operating cash flow of the highest-quality U.S. companies is just slightly down
from a record reached last year, Morgan Stanley calculates. Given leverage has in the past jumped in recessions,
this is particularly unusual.
Rather than expanding overall profit, companies have been boosting the return to shareholders by replacing
equity with debt -- a zero-sum transfer that can't be repeated indefinitely.
"You've got high returns on equity in the U.S., but they're supported by radically higher levels of leverage so to
some extent they're a mirage," says Andrew Lapthorne, head of quantitative equity research at Societe Generale
SA.
Consider the bubbles of 2000 and 2007: In 2000, share prices were very (very!) high but debt was relatively
expensive. The assumption was that new technology would lead to rapid earnings growth, but it would be volatile
and uncertain, so needed to be financed with equity.
The rash of initial public offerings was a natural supply response to the demand for shares, and established
companies took advantage, too, financing takeovers far more than usual with new equity. The bust that followed
was painful, but share prices bore the brunt of the adjustment and the recession was so shallow it barely shows
up in economic data.
Tesla is in some ways a repeat of the dot-com era. A sky-high valuation is justified by the hope that an untested
product -- mass-market electric cars -- will generate big profits.
In 2007, debt was cheap compared with equity, so companies chose to issue debt to buy back shares and to
finance the takeover boom with loans. Worse, the finance bubble boosted earnings to unsustainable levels and
left the banks vulnerable. When the bust came, the assumption that earnings growth was sustainable proved
wrong, and the sudden focus on the balance sheet forced companies to replace debt with equity.
Ford was doubly caught out by the 2008 crash, with earnings plunging and debt too high (although unlike rivals
General Motors and Chrysler, it didn't go bankrupt). Ford has learned a lesson, with more cash than debt on its

automotive balance sheet today, although its finance arm, a separate source of trouble amid the banking
collapse, is big again.
Today's market is different from both 2000 and 2007. Equities are expensive, but still look relatively cheaper
compared with debt on widely used models that compare bond yields to the "earnings yield," forecast earnings as
a percentage of share price. Finance chiefs like to issue whatever investors will pay the most for, and at the
moment that is debt.
If and when there is a nasty surprise from the economy or the Fed, highly valued shares in companies with a lot
of debt and a mistaken assumption of solid earnings will be the most vulnerable.
The market isn't -- yet -- repeating the 2000 equity bubble or the 2007 debt bubble, but it has some of the worst
features of both. If investors turn out to be mistaken in thinking the economic cycle won't turn down for years yet,
it is going to hurt.
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Ford Plans Electric Vehicles In China
Ford Plans Electric Vehicles In China

By Trefor Moss
387 words
7 April 2017
J
B1
English
SHANGHAI -- Ford Motor Co. said it would start building electric cars in China to tap into a state-sponsored boom
in green-energy vehicles.
In doing so, the Detroit-based company signaled that it had swallowed industry concerns about bringing
proprietary electric-car technology to China, despite misgivings among foreign auto makers about
intellectual-property protection in the world's largest auto market.
"It's manifest destiny" for foreign car makers to get past those fears and start building electric cars in China, said
Bill Russo, managing director of Gao Feng Advisory, a Shanghai consulting firm.
Mass uptake of electric vehicles is set to happen in China first, he said, "and none of those companies can afford
not to be relevant to the future of their industry."
Ford's local joint venture, Changan Ford Automobile Co., will start building the Mondeo Energi plug-in hybrid
vehicle in China next year, with a new all-electric sport-utility vehicle set to follow within five years, the company
said Thursday.
Electric powertrains will be manufactured in China by 2020, and by 2025 all of Changan Ford's vehicles will come
in electrified versions, it said.
"The time is right for Ford to expand our EV lineup and investments in China," said Ford Chief Executive Mark
Fields.
China is already the world's largest market for electric vehicles, with over half a million electric or hybrid cars sold
there last year, according to the China Association of Automobile Manufacturers.
The government is encouraging them by heavily subsidizing electric cars.
Local authorities have also set ambitious targets for electrifying bus and taxi fleets over the next few years, and
for the rollout of electric-vehicle charging facilities.
There could be as many as 32 million new-energy vehicles in China by 2025, according to Gao Feng Advisory, a
total that is likely to be a substantial share of the global fleet, with the increase in electric vehicles in the U.S. and
Europe happening more slowly.
While most gasoline-powered cars sold in China are built by foreign auto makers operating through joint ventures,
almost all of the electric cars sold in China last year were made by Chinese companies operating without foreign
involvement.
Document J000000020170407ed470002b

Ford Takes a Chance on China Plan
Heard on the Street

Ford Takes a Chance on China Plan
By Anjani Trivedi
286 words
7 April 2017
J
B12
English
When demand for cars starts fading, auto makers turn to the world's largest car market for growth. That reflexive
move is unlikely to work so well for Ford Motor.
On Thursday, it announced its China-focused electric-car strategy, including new vehicles. Ford Chief Executive
Mark Fields said the "time is right" for his company to beef up in China. It is playing catch-up, though.
Meanwhile, Ford is having trouble at home, where its vehicle sales fell 7% in March. But in China, its retail-car
sales fell more than 30% in the first two months of this year and total vehicle sales were down more than 20%.
Chinese consumers' preference for Ford cars over the next 12 months is also lower, according to a survey by
UBS Group. To entice customers, Ford's credit arm has become more aggressive. But at its joint venture in
China, margins are shrinking as price pressures rise. With no new launches expected this year, navigating the
Chinese market will be challenging.
So Ford is betting on an "ambitious electrification strategy" in the world's largest electric-vehicle market and has
committed to bringing cutting-edge technology to its Chinese joint venture, a sharp reversal from foreign car
makers' wariness around sharing intellectual property with their local partners. It is also capitulating to Beijing's
electric-vehicle production targets to draw in foreign car makers.
The trouble is, all this comes as electric-vehicle sales in China have slowed and Beijing withdraws subsidies. An
aggressive strategy in China, timed incorrectly, could prove to be a bumpy ride.
Document J000000020170407ed470000i

Ford cruises to head of self-driving car pack ; Study: Tech trails in plans to commercialize autonomous vehicles
MONEY
Ford cruises to head of self-driving car pack ; Study: Tech trails in plans to commercialize autonomous
vehicles
Marco della Cava
Marco della Cava, @marcodellacava, USA TODAY
670 words
4 April 2017
USA Today
USAT
FIRST
B.3
English
Ford Motor is in pole position when it comes to benefiting from the coming age of autonomous vehicles.
That's the conclusion of a study released Monday by Navigant Research, which sells its in-depth surveys of
energy and transportation markets to suppliers, policymakers and other industry stakeholders.
The Dearborn, Mich.-based automaker took the top spot by demonstrating it has the strategic vision and
execution capabilities to both develop automated driving systems as well as deploy them across a range of
platforms.
Many automakers are targeting 2021 for a roll-out of autonomous vehicles that likely will be part of a ride-sharing
network. Widespread personal ownership of autonomous vehicles is considered far off due to high purchase and
maintenance costs.
"Many traditional OEMs were initially skeptical about the commercial prospects for automated driving," Navigant's
study says. "Most notable was Ford under its previous CEO Alan Mulally, who frequently spoke publicly about
how people actually enjoy driving. However, through a combination of strategic investments and development of
supporting business models, Ford and other OEMs have begun to move to the forefront."
In close second was General Motors, followed by Renault-Nissan Alliance and Daimler. Navigant's previous
survey, in 2015, did not include technology companies, who in the past few years have made big strides not only
on the tech front but also in forging ties with automakers.
Waymo, Alphabet's new name for its long-running Google car project, came in seventh in the most recent study,
Tesla was 12th and Uber 16th. Apple was not included because it has never publicly acknowledged having an
autonomous car research team.
Although Waymo's project started nearly eight years ago, Navigant's focus on both strategy and execution of
self-driving tech assigned low scores for its production strategy and its sales and marketing plans. Waymo
currently has a partnership with Fiat Chrysler for the production of 100 Chrysler Pacifica minivans, which will help
speed up Waymo's tech development cycle.
Uber, meanwhile, was docked for not having a good production strategy or technology. The company currently is
battling in-house culture issues as well as fending off a lawsuit from Waymo charging that its LiDAR tech is built
off stolen Waymo data. Uber also scored low on staying power.
"It's not clear there's a clear path to profitability for ride- hailing companies," says Sam Abuelsamid, one of the
authors of Navigant's study. "They may lose money because they have to pay drivers, but remember they have
no capital expenditures. What happens to their business model if they have to spend tens of billions on
autonomous vehicles?"
Ford Motor, outside of the top five in the 2015 survey, raced to the fore based partly on a range of partnerships
forged in the past year. Those include a $150 million co-investment with Baidu in Velodyne, makers of light
detection and ranging systems (LiDAR); an undisclosed investment in 3D mapmakers Civil Maps; and a $1 billion

bet on self-driving tech start-up Argo AI. Ford also has invested in Chariot, a ride-sharing van network that
conceivably could go autonomous.
"I'd call this an 11-year overnight success story," Raj Nair, Ford Motor's chief technology officer, last week told
USA TODAY, citing as a starting point Ford's entry into the early DARPA Grand Challenge for robotic cars.
Nair acknowledged that ride-hailing as a business looks very attractive "if you automate the driver, because then
the value proposition looks very different."
Ford has been testing a fleet of Fusions in real-world situations, including night-testing in Arizona as well as snow
testing in Michigan. Nair says the company still plans to roll out autonomous vehicles in 2021, but they would be
SAE Level 4 vehicles, one level down from full autonomy.
photo Ford Motor

Document USAT000020170404ed4400067

Ford Aims To Pivot In Raising CEO's Pay
Ford Aims To Pivot In Raising CEO's Pay

By John D. Stoll
665 words
1 April 2017
J
B1
English
Ford Motor Co.'s board is looking to steer the boss's attention beyond the company's cash cows, handing the
executive a $2.5 million "strategic incentive" grant for hastening the 114-year-old auto giant's transformation.
The equity grant, vesting in 2018, lifted Chief Executive Mark Fields's awarded compensation to $18.9 million last
year, up $1.5 million from 2015. The boost came in a period when Ford posted a modest profit decline and the
company's share price continued to languish.
One-time awards aren't new for Ford's brass. Former CEO Alan Mulally once earned a considerable amount of
stock for simplifying the company's product portfolio.
The details behind this new incentive grant reflect a board eager to change the profit equation at the Dearborn,
Mich., auto maker.
In March 2016, Mr. Fields struck a deal with the board, according to Ford's proxy statement published Friday.
Management would zero in on a list of growth opportunities that included supercharging the company's Lincoln
brand and models for the Chinese market; cultivating a new unit pursuing so-called moonshot ideas, such as car
sharing; and "developing a lean mindset."
The proposed award had a payout range of zero to $3.75 million. Mr. Fields earned two-thirds of the maximum,
and the resulting $2.5 million payout helped offset the reduced performance bonus he earned last year. More
broadly, the auto maker underperformed on certain metrics, such as revenue and quality.
Ford's share price has slumped during Mr. Fields's tenure, falling from about $17 when he took over in 2014 to
$11.62 on Friday afternoon.
The darling of automotive stocks while Mr. Mulally was in charge, Ford shares now trade well behind those of
General Motors Co. And Ford's $46.1 billion market capitalization is virtually equal to the value assigned to Tesla
Inc., a 13-year-old electric-car company that is unprofitable and selling a fraction of the volume delivered by major
players.
Mr. Fields's strategic incentive award comes as Ford's reliance on the North American light-truck market and its
Ford Credit arm remains substantial. While Ford's China operation is growing and the company's iconic Lincoln
brand is showing signs of rebirth, both businesses are far behind many rivals. Meanwhile, the development of
electric cars, self-driving vehicles and mobility experiments doesn't contribute to the bottom line.
The auto maker has delivered a sharp improvement in Europe, a cutthroat market that GM is abandoning after
being unprofitable there for nearly two decades. Jim Farley, Ford's Europe chief, was awarded a top-performer
bonus in 2016 after the unit earned $1.2 billion.
Still, nearly 90% of Ford's $10.4 billion profit last year came from North American operations.
This means Ford hasn't really changed its business model since earlier times when Ford executives were
chastised for the company's overdependence on trucks, sport-utility vehicles and its auto-loan business.
Bill Ford, now chairman, was chief executive during the prior decade, when those criticisms began to emerge. Mr.
Ford responded by turning over company leadership to Mr. Mullaly in 2006, ushering in an era of heightened
focus on fuel-efficient small cars.

Sales of sedans and compact cars have fallen amid the gas-price swoon. In their place, Ford is selling
significantly more of its profitable F-Series trucks and SUVs. It will launch a remake of the iconic Bronco in 2020.
In the proxy, Ford cited several initiatives under Mr. Fields that led to his $2.5 million payout. Establishing a new
subsidiary, Ford Smart Mobility LLC, is one of the more recognizable moves.
Ford Smart Mobility recently acquired a ride-sharing firm. Ford is also investing in companies that develop
technology needed to program and pilot autonomous vehicles.
Document J000000020170401ed410002n

Ford Taps BlackBerry In Hiring Engineers
Technology
Ford Taps BlackBerry In Hiring Engineers
By Christina Rogers and David George-Cosh
253 words
31 March 2017
J
B4
English
Ford Motor Co. is hiring 400 engineers from BlackBerry Ltd.'s mobility solutions unit to help develop
internet-connected vehicles, giving a boost to the auto maker's software development efforts as it races to keep
up with traditional rivals and tech companies.
About 100 of the BlackBerry engineers will come from the smartphone maker's office in Florida and another 300
will join from its Canadian operations in Ontario, according to representatives of Ford and BlackBerry.
At an event with Canadian Prime Minister Justin Trudeau, Ford said Thursday that it would establish a new
research and development center in Ottawa investing 500 million Canadian dollars ($375 million) for the new
facility and expanded workforce.
The hiring of BlackBerry's engineers will double Ford's mobile-connectivity team, the company said, helping the
auto maker build its computing expertise as it pivots to new ventures that rely more on vehicle connectivity. Like
other auto makers, Ford is rushing to bolster its ranks of software programmers and computer engineers, often
battling other car makers and tech startups for talent.
Ford also reaffirmed plans to upgrade the company's engine plants in Windsor, Ontario, under C$700 million in
investments committed by the auto maker last year.
Ford has already forged close ties with BlackBerry, announcing in 2014 that it would use the smartphone maker's
QNX car software for its SYNC infotainment systems.
Document J000000020170331ed3v0000k

Business News: Ford Raises Spending in Michigan
Business News: Ford Raises Spending in Michigan

526 words
29 March 2017
J
B3
English
Ford Motor Co. outlined investments in three Michigan factories that include $200 million to build a data-storage
center and an extra $150 million to retool a small-car plant to build pickup trucks and sport-utility vehicles.
President Donald Trump early Tuesday heralded the commitments on Twitter, spotlighting U.S. manufacturing
and jobs investments as he faces a historically low approval rating, probes of alleged ties between his campaign
and Moscow, and a major legislative defeat on health care last week.
While Mr. Trump portrayed Ford's moves as supporting U.S. jobs, much of the Dearborn, Mich., auto maker's
commitments had been previously disclosed as part of a 2015 labor agreement with the United Auto Workers
union. Ford on Tuesday highlighted a total of $1.2 billion of commitments to Michigan factories, of which $850
million had been previously outlined.
The company is seeking $30 million in tax incentives over 15 years from the state of Michigan for planned
upgrades, Ford Americas chief Joe Hinrichs said.
Ford said Tuesday it would begin retooling a factory in Wayne, Mich., next year to build Ranger pickup trucks and
Bronco sport-utility vehicles, adding a further $150 million to the $700 million that the company committed to the
project two years ago in the union contract. Ford also reaffirmed $150 million in spending it had outlined in that
contract to expand another local engine plant.
The auto maker plans to begin building the pickup trucks at the 3,600-worker Wayne factory in late 2018, with
production rising through 2020 as the company adds the SUV manufacturing.
In addition, Ford again highlighted $700 million pledged in January to convert another Michigan plant to build
electric and autonomous cars, creating 700 jobs.
"These announcements encapsulate all that is going on with our business now and in the future," Mr. Hinrichs
said in an interview.
Ford's new $200 million investment is for the second of two data-storage centers that aim to prepare for
increasingly connected and computerized cars. The company is investing billions of dollars to develop electric
vehicles and self-driving cars.
Ford said the previously announced expansion of the engine plant would create or retain 130 jobs without
specifying how many of those were new. The auto maker didn't say whether the new investments announced
Tuesday would create any jobs.
The planned investments come as Ford's U.S. sales growth has stalled amid a broader industry slowdown after
seven years of uninterrupted growth. Ford, coming off a string of record profits, is predicting a tougher road
ahead.
The company expects full-year adjusted operating profit to fall 14% this year to $9 billion because of higher costs
and continued investment in new technologies.
Ford also warned last week that first-quarter earnings per share would be between 30 cents and 35 cents, lower
than the prior-year period and far below analysts' expectations of 47 cents. The company is facing numerous
headwinds, including a strong dollar and commodity-price increases.

Document J000000020170329ed3t0001b

Business News: Ford Offers Guarded View On Affordability of Leases
Business News: Ford Offers Guarded View On Affordability of Leases

671 words
24 March 2017
J
B3
English
Ford Motor Co. raised a caution flag for the auto industry, saying higher interest rates and a steady decline in
used-car values will hurt the most important factor in the recent U.S. sales boom: affordability.
Ford forecast leaner results for the first quarter. The outlook comes amid a broader view that car sales in the
world's two largest markets have peaked after a string of record profits and sales for the U.S. auto industry. Ford
estimates volumes will fall in the U.S. and China in 2017 and again in 2018.
The U.S. market has been buoyed by customer access to cheap leases and long-term loans that come with low
interest rates. The Federal Reserve is pushing interest rates higher, potentially crimping retailers' appetites to
dole out the 0% loans that have fueled demand.
A flood of preowned vehicles going on sale -- a product of a leasing boom that has accelerated in recent years --
is heightening concern. Leasing has become a popular way to finance vehicle purchases, allowing buyers to
borrow a car for two or three years at a subsidized rate and return it at the end of the term.
As more preowned cars become available, the price of a gently used vehicle is falling. While that could force auto
makers to ramp up sales incentives, it also could make leasing less attractive because leases are often cheaper
on vehicles that are expected to have strong resale values.
"We do think there will be people who fall out and they won't be able to afford a new vehicle," Ford Chief Financial
Officer Bob Shanks said, speaking to analysts Thursday. Rising interest rates and tightening credit will further
inflate car prices, and some may find better value in online classifieds or on used-car lots.
A clutch of Ford's rivals, including Toyota Motor Co. and BMW AG, have voiced concern about the impact the
used market is having on car prices and the performance of their internal credit arms. About 25% of Ford Credit's
balance sheet, for instance, is made up of leasing assets. At General Motors Co.'s GM Financial, that number
exceeds 40%.
Cheap leases are possible because car makers pay a subsidy that is based on the forecast value of the car at the
end of the lease. Mr. Shanks said Thursday the auto maker has had to change those residual-value calculations
recently based on data furnished by the National Automobile Dealers Association and other third parties.
Car buyers tend to make buying decisions based on monthly payments instead of sticker price. Edmunds.com
estimates the average monthly car payment for a vehicle purchased in February was $515, up only 6% from the
$487 buyers paid in February 2007.
Over the same period, the amount financed by new car buyers has skyrocketed 23%, from $25,003 to $30,753,
the firm said. In addition to subsidized leases, the disparity between car payments and purchase prices over the
period has been low borrowing costs. The average loan was written with a 4.9% interest rate, more than 2
percentage points less than the 2007 loans.
Ford also said Thursday it expects full-year adjusted operating profit of $9 billion this year, a 14% decline over
2016, due to higher costs and continued investment in autonomous cars and other advanced technologies. The
company also estimated first-quarter earnings per share of between 30 cents and 35 cents, lower than the same
period a year earlier and far below analysts' expectations of 47 cents.
Higher engineering costs, the strong dollar, rising warranty costs and commodity-price increases are reasons for
the weaker performance. Lower volumes are also expected to weigh on the performance.
Lower-than-anticipated quarterly guidance further confirms Wall Street's view that auto makers are too exposed to
cyclical swings in the car business.
Document J000000020170324ed3o0002l

Ford's Lincoln to make SUVs in China in 2019 ; Automaker says sales of luxury vehicle in country tripled last year over 2015
MONEY
Ford's Lincoln to make SUVs in China in 2019 ; Automaker says sales of luxury vehicle in country tripled
last year over 2015
Chris Woodyard
Chris Woodyard, @ChrisWoodyard, USA TODAY
284 words
15 March 2017
USA Today
USAT
FIRST
B.6
English
Ford Motor, hoping to become a full-fledged rival to foreign luxury brands in a key world market, plans to start
making Lincolns in China starting in 2019.
Lincoln will produce an all-new SUV in China by the end of 2019, spokesman Said Deep said. Lincoln said at the
start of the year it has become the fastest-growing luxury brand in China.
The new model will be in addition to the Lincoln vehicles currently being exported from the U.S. to China, such as
the Lincoln Continental sedan that went on sale there late last year. Lincoln officials gave no details about the
new model.
Since the new Lincoln model will be sold exclusively in China, Ford shouldn't have to worry about drawing further
ire from President Trump. The president had chided automakers over new investments in foreign auto plants if it
results in them bringing new cars to the U.S. instead of making them domestically.
China is a hotly contested market where upscale consumers have a distinct fondness for foreign cars. Most of the
major luxury brands are there. It has also been one of the fastest growing markets for Lincoln.
While Lincoln reported 10% growth in the U.S. last year compared to the year before -- the brand's best showing
in nine years -- the Chinese market growth was explosive. Lincoln says it sold 32,559 vehicles in China last year,
about triple the number of sales in 2015, the brand reported in January.
photo Lincoln
Document USAT000020170315ed3f00003

For GM, Opel Deal Ends Fund Source
For GM, Opel Deal Ends Fund Source

By Mike Colias and John D. Stoll
679 words
6 March 2017
J
B1
English
General Motors Co.'s sale of Adam Opel AG likely eliminates a source of low-cost funding for the Detroit auto
giant's car-lending business, potentially pressuring profit in lending operations the company has been trying to
rebuild since bankruptcy.
GM, expected to outline termsMondayof its agreement to sell its money-losing Opel to France's Peugeot, has
collected nearly $2 billion from retail customer deposits since late 2015 for use in global lending. The catch: those
funds were deposited in the so-called Opel Bank, an online bank that operates only for residents of Germany.
The auto maker is relying on GM Financial, which has access to Opel Bank funds, as a growing source of profit in
coming years. A relative newcomer to auto finance after being created in the years after GM's 2009 bankruptcy,
access to lower-cost funding is important to helping GM Financial catch up to Ford Motor Co.'s Ford Credit, which
makes far more money than GM's lending unit.
The retail banking operation, likely to remain a part of Opel due to the way it operates, has given GM access to
less-expensive financing than traditional methods. Opel Bank advertises rates that are relatively attractive for
prospective customers, but the interest it pays on retail deposits can be less than what it can borrow on an
unsecured basis in the wider market.
"It's an attractive source of funding partly because it's sticky -- once a retail customer deposits in a bank account,
they're usually not in a hurry to pull that money out," Amiyatosh Purnanandam, a finance professor at the
University of Michigan, said.
Peugeot, officially known as Group PSA SA and holding about 10% of the European market, operates a finance
arm as well. PSA Finance also runs a bank in Germany.
Selling Opel represents a surrender flag for GM after nearly two-decades of trying to turn a profit in European
operations.
Analysts say GM's ridding itself of a division that hasn't posted a profit since before 2000 -- and lost nearly $20
billion since then -- will improve free cash flow and allow GM to focus more on the U.S. and China, where it
generates all of its profit. It also could funnel the more than $1 billion in capital spent in Europe on self-driving
vehicles and other innovation.
Still, the divestiture carries risk.
GM would be the only one of the top five global auto makers without a presence in Western Europe, the world's
third-largest automobile market. GM risks missing out on steadily improving conditions in Europe at a time when
the U.S. and Chinese markets are thought to be at or near their peaks, RBC Capital analyst Joseph Spak wrote in
an investor noteFriday.
The $1.9 billion in Opel Bank only represents less than 10% of the debt GM Financial secures annually. GM
Financial lends money to car buyers and dealers. But retail bank assets generally are prized as a low-cost and
relatively stable funding source, Mr. Purnanandam said.
Opel Bank has grown rapidly since GM began taking deposits in the third quarter of 2015, with the bank's assets
tripling its size over the course of about 18 months. "We actively monitor the capital markets and seek to optimize
our mix of funding sources to minimize our cost of funds," GM Financial said in a regulatory filing last month.

GM exited the auto and home-lending business ahead of its bankruptcy restructuring by unloading the former
GMAC, which was renamed Ally Financial Inc. In 2010, GM spent $3.5 billion to acquire subprime lender
AmeriCredit Corp., and has gradually cut ties with Ally.
Dealers have said GM has been at a disadvantage in recent years without a powerful in-house lender that can
meet most customers' finance needs. But executives believe GM Financial's expanded offerings are helping the
auto maker retain more customers.
Document J000000020170306ed360002i

Four Carmakers Knew of Hazard, Suit Says

Four Carmakers Knew of Hazard, Suit Says
By HIROKO TABUCHI and NEAL E. BOUDETTE
1,334 words
28 February 2017
The New York Times
NYTF
1
English
At least four automakers knew for years that Takata's airbags were dangerous and could rupture violently but
continued to use those airbags in their vehicles to save on costs, lawyers representing victims of the defect
asserted in a court document filed on Monday.
The Justice Department's criminal investigation into Takata's rupture-prone airbags has so far painted
automakers as unwitting victims duped by a rogue supplier that manipulated safety data to hide a deadly defect,
linked to at least 11 deaths and over 100 injuries in the United States.
But the fresh allegations against Ford, Honda, Nissan and Toyota, made as part of a class-action lawsuit in
Florida and based on company documents, point to a far deeper involvement by automakers that used Takata's
defective airbags for years.
Honda vehemently denied the new allegations on Monday. The three other automakers either declined to
comment or said a response would come through legal channels.
Last summer, The New York Times reported indications that automakers, rather than being the victims of
Takata's missteps, had pressed their suppliers to put cost before all else. That report focused on General Motors,
which is not named in the Florida case, though plaintiff lawyers said they were preparing to take action against
the company.
The defect has prompted the nation's largest automotive recall ever, affecting nearly 70 million airbags in 42
million vehicles.
The plaintiffs' filing came hours before Takata pleaded guilty, under a deal announced last month, to charges of
wire fraud for providing the false data, a rare outcome for businesses accused of wrongdoing. Federal
prosecutors also said last month that they had charged three Takata executives with fabricating test data and
fined the Tokyo company $1 billion.
''I deeply regret the circumstances that resulted in the agreement today,'' Yoichiro Nomura, Takata's chief
executive, said at the federal court hearing in Detroit. The company's actions were ''completely unacceptable,'' he
said.
''Takata is fully committed to ensuring such conduct never happens again,'' he added.
The allegations in the Florida case came in response to a court document filed by the automakers last week that
pointed to Takata's plea deal to argue that the supplier alone was culpable.
But the plaintiffs, who could gain from suing the deep-pocketed automakers alongside Takata, argue that the
automakers were more deeply involved in the handling of the defect. The fines and costs associated with the
scandal have also taken a heavy financial toll on Takata, and it has been searching for a financial lifeline --
possibly in the form of a white knight that would effectively take it over.
One of the plaintiffs' lawyers, Kevin R. Dean, filed an objection to Takata's plea deal on Monday in Detroit,
arguing that the automakers were accomplices in the cover-up. He urged the judge to reject the agreement and
for the Justice Department to further investigate the automakers' role.

The plaintiffs have taken particular issue with the amount set aside for victims in Takata's plea -- a total of $125
million. In contrast, the automakers will have recourse to draw on an $850 million fund to offset continuing recall
costs.
Judge George Caram Steeh dismissed Mr. Dean's objections, saying that Takata's plea deal was in the best
interest of the victims. He said any further action against the automakers should be pursued in civil court, and
approved the plea deal as is.
Randi Johnston, 26, of Farmington, Utah -- who was injured in September 2015 when the airbag in her 2003
Honda Civic ruptured and metal shards struck her throat -- attended the hearing and said afterward that she was
shocked by the judge's decision. The shards severed most of her vocal cords, leaving her able to speak only in a
whisper.
''I really don't have any words right now,'' said Ms. Johnston, a plaintiff in the Florida class-action case.
The filing by the plaintiffs says emails and internal documents turned over by Honda show that in 1999 and 2000,
the automaker was intimately involved in developing a problematic propellant, or explosive, used in Takata's
airbags. The propellant is housed in a steel container called the inflater, which in the Takata case can rupture,
shooting metal fragments toward the car's driver or passengers.
That propellant, based on a volatile compound, raised concerns internally at Takata at the time, and long plagued
the company's engineers. During testing of Takata's inflaters in 1999 and 2000 at Honda's own facilities, at least
two inflaters ruptured, according to the filing. Still, Honda pushed a particularly problematic configuration of the
propellant over Takata's objections, the filing said. Honda chose Takata's airbags because of their relative
''inexpensiveness,'' the filing quoted Honda documents as saying.
The first recalls of Takata's airbags did not take place until almost a decade later, when Honda recalled 4,000
vehicles in 2008. The Times has reported that Honda and Takata became aware in 2004 of an airbag explosion in
a Honda Accord in Alabama that shot out metal fragments and injured the car's driver. But the two companies
deemed it ''an anomaly'' and did not issue a recall or seek the involvement of federal safety regulators.
On Monday, Honda strongly y denied the allegations in the plaintiffs' filing. When it installed Takata's airbags, it
said in a statement, ''Honda reasonably believed, based on extensive test results provided by Takata, that they
were safe.''
Honda said it believed it reacted ''promptly and appropriately'' in handling known airbag defects. It also said
Takata's airbags had not necessarily been cheaper than those of its competitors.
''Sometimes they were more expensive, sometimes less,'' the carmaker said.
The filing also cites internal documents from Ford, Nissan and Toyota indicating that cost considerations
influenced the automakers' decision to adopt Takata's airbags in the early 2000s, despite safety concerns.
Toyota used Takata's airbags ''primarily'' for cost reasons, even though the automaker had ''large quality
concerns'' about Takata and considered the supplier's quality performance ''unacceptable,'' the filing said. In
2003, a Takata inflater ruptured at a Toyota facility during testing, the court filing said.
In 2005, Nissan began investigating the use of adding a drying agent to Takata's airbag inflaters out of concern
that exposure to moisture made the propellant particularly unstable, the filing says. Takata engineers had long
known that its explosive was sensitive to moisture and adopted it despite internal concerns over its safety.
Although patents show that its engineers have long struggled to tame the propellant, the company still maintains
that the explosive can be stabilized to withstand moist conditions.
Ford chose Takata's inflaters over the objections of the automaker's own inflater expert, who opposed the use of
Takata's propellant because of its instability and sensitivity to moisture, the filing said. Ford overrode those
objections because it thought Takata was the only supplier that could provide the large number of inflaters Ford
needed, the filing says.
The filing says that Ford, Honda, Nissan and Toyota were also aware of instances of ruptures years before any
recalls.
It also mentions the German carmaker BMW and points to circumstantial evidence that BMW was similarly
involved in what federal prosecutors, in their criminal complaint and in announcing the Takata guilty-plea
agreement, have called a cover-up. But BMW has so far refused to submit documents in the case, the filing says.
Representatives of Nissan and BMW said the companies could not comment on active cases. A Toyota
representative also declined to comment. A Ford spokeswoman said the automaker would respond through
appropriate legal channels.
Cars traded in after a recall involving rupture-prone Takata airbags sitting last month on a dealer's lot in Florida,
where the airbags are a focus of a lawsuit. (PHOTOGRAPH BY SCOTT MCINTYRE FOR THE NEW YORK
TIMES)
Document NYTF000020170228ed2s00063

Study finds many rich folks opt for plain ol' pickups ; Economy cars and mainstream brands show broad strength
MONEY
Study finds many rich folks opt for plain ol' pickups ; Economy cars and mainstream brands show broad
strength
Chris Woodyard
Chris Woodyard, @ChrisWoodyard, USA TODAY
720 words
20 February 2017
USA Today
USAT
FIRST
B.2
English
The wealthiest among us could afford to drive just about any luxury car on the road -- Ferraris, Jaguars, Porsches
-- you name it.
But instead, a study finds the most popular cars for high-income Americans are pretty much what everyone else
drives, notably Fords, Jeeps and Hondas.
MaritzCX, which conducted the study covering the 2016 model year, found that the Ford F-150, already the most
popular vehicle in the U.S., was also tops among those earning more than $200,000 a year.
Next came the Jeep Grand Cherokee, the Honda Pilot, the Jeep Wrangler and the only compact car in the top
five, the humble Honda Civic.
The survey estimates reflect a big change over the past decade. There has been a "shift out of luxury vehicles in
a lot of cases and moving toward SUVs and trucks," even if they weren't branded as luxury vehicles, said Shawn
St. Clair, senior director of global syndication for MaritzCX. It apparently doesn't make much difference whether
those preferred trucks are mainstream brands.
It's only when annual incomes climb above $400,000 that luxury vehicles dominate. Then the top sellers are the
Lexus RX350, Tesla Model S and, once again, Honda Civic. Over $500,000 a year, the F- 150 reappears in the
top spot, followed by two Land Rover models, BMW X5 and Lexus RX 350.
St. Clair said he thinks the shift is due to three factors.
Features: Mainstream vehicles have grown more luxurious and offer many of the same technology features.
Broader range: Many models come in a broader range of versions, with the fanciest ones encroaching, both in
features and price, on what has traditionally been luxury territory.
New wealth: A new breed of high-income earners has come to the car market, many a far cry from the
stereotypical fat cats of yore. They may work as Silicon Valley software writers and not particularly care about
cars as long as they get them to work, or they might be oil-field workers who struck it rich in America's energy
revival and need a dependable pickup.
"Some people, like the actively employed wealthy, are too busy working to think about luxury cars," said Robert
Ross, auto editor for The Robb Report, a magazine for the ultra-wealthy. "For them, a car becomes an
appliance."
He said he encountered a billionaire a few years back who drove a beat-up Honda Accord. A practical fellow,
"cars did not register. Cars were like athletic socks, underwear or a toaster" -- just another commodity.
Ford officials say the F-150 carries cachet with the rich because there are few substitutes for its ability to haul and
tow. Detroit automakers, notably Ford's Lincoln division and General Motors' Cadillac, tried to market luxury
pickups more than a decade ago, but they never caught on.

Nowadays, though, the F-150 that starts at $26,700, below the average price paid for a new vehicle in recent
months, goes all the way up to $59,795 for the most deluxe, tricked-out version. That puts it, at least on price, in
solid luxury territory.
About a third of the F-150s that Ford sells fall in that luxury price realm, basically above $40,000, said Erich
Merkle, head of U.S. sales analysis at Ford.
"There's a lot of people with wealth who may have a luxury car or SUV, but they also need that truck for its towing
capacity," Merkle said. "They want all those creature comforts."
The presence of Honda Civic on the list is more baffling. Even MaritzCX's St. Clair called it a "bit of a head
scratcher."
Beyond its appeal to the skinflint wealthy or maybe as an extra car for their kids, the Civic -- the
second-highest-selling car behind the Toyota Camry last year -- does come from a brand that tries to appeal to
more upscale buyers, even though it's a mainstream brand.
"Our marketing approach is to sell on the merits of the product as opposed to selling the deal," Honda spokesman
Sage Marie said, "and we invest in the product."
photo Ford
Document USAT000020170220ed2k0000p

OFF DUTY --- Gear & Gadgets -- Rumble Seat: Ford F-350: The Country Boy's Rolls-Royce
OFF DUTY --- Gear & Gadgets -- Rumble Seat: Ford F-350: The Country Boy's Rolls-Royce
By Dan Neil
1,262 words
18 February 2017
J
D11
English
The purchase of a Ford F-350 qualifies as a tax deduction for some business owners, and the vehicle's maximum
towing capacity is 32,500 pounds, or more than 16 tons. A Feb. 18 Off Duty article about the F-350 incorrectly
stated that the purchase qualifies for a tax credit and that the maximum towing capacity is 21,000 pounds. A
photo caption incorrectly stated that the towing capacity is nearly 5 tons.
(WSJ March 2, 2017)
(END)
I wish I owned the ranch that should come with Ford's F-350 Super Duty Platinum Crew Cab 4x4 pickup. It must
be a magnificent spread, a pickup's idea of heaven, with chores finally worthy of this farmhand Hercules.
Plastic-wrapped bales of grass wait to be hauled from field to pasture. At a half-ton per, you can stack four of
them in the cargo bed (7,630 pounds capacity). There are Clydesdales to be delivered to wherever Clydesdales
are needed. With a 20,900-pound gooseneck-trailer rating, our F-350 can pull a loaded eight-horse trailer with
enough left over for each horse to have its own blacksmith and personalized anvil.
Among the F-350's talking points is the optional "adaptive cruise control with collision alert with brake support for
heavy trailers." This system allows drivers to "maintain pace" in traffic while traversing steep grades, like the
winding California I5 "Grapevine." I bet the horses love that.
Ford's Super Duty pickups (F-250 and F-350, both with gross-vehicle-weight ratings over 6,800 pounds) are fresh
off a redesign incorporating the company's aluminum-body construction, which has shaved about 250 pounds off
the total weight. Ford's aluminum body panels -- so successfully dinged, if you will, in the Chevy commercials --
are still a tender subject, I judge. The press materials emphasize with special clarity that the new truck's frame
comprises 95% high-strength steel and is "up to 24 times stiffer" than the previous frame. What were they made
of before?
Also newsy is the top-spec engine option: the 6.7-liter turbo-diesel V8, a gently chuckling giant of a powerplant, a
veritable Buddha of torque from which tranquilly emanates 925 pound-feet of can-do like it was nothing. Today I'll
relocate the fishpond.
Before singing the praises of this Ford, I should note that Chevy/GMC and Ram also offer highly competitive
heavy-duty offerings. Which one is the best? I can't say, really, since I test vehicles for only a couple of weeks,
while the proof of heavy-duty pickups lies many years down the road. Trucks like these should properly be
regarded as commercial vehicles, evaluated in cost-per-hour of operation, at least insofar as they are claimed as
such on tax forms.
And here, dear readers, I mean to make you uncomfortable, especially those who scream bloody murder over tax
credits for electric vehicles. This category of truck qualifies for an insanely generous federal tax credit to
small-business owners who claim its use is more than 50% business-related. Which in no way explains why you
see so many of these guys launching pleasure craft down at the marina. Boats didn't all of a sudden get heavier,
you know.
In the case of our test specimen, it is possible to deduct the entire $78,585 in the first year of ownership under the
Section 179 deduction privilege rules. You don't find that the least bit Keynesian?
This tax credit has created its own dynamic in truck design, effectively making vehicle size and power cheaper.
The result is a steady stream of ever larger and more fantastically able mega-pickups, all wrestling for numerical
superlatives: best-in-class towing, maximum payload and gross combined weight rating (GCWR, i.e., truck, trailer
and load, all in).
Example: With dual rear wheels, fifth-wheel hitch and chassis cab, the F-350's GCWR soars to a stupendous
41,800 pounds, which Ford points out is more than half the maximum allowable weight for semi-tractors on
federal highways. And yet operators need no more qualification than an ordinary driver's license. It would be a
shame if anything bad happened.
The F-350 touts another figure that's pretty remarkable: a 48-gallon diesel fuel tank (in Crew Cab/long-box
configuration). In my weeklong test, keeping a schedule of work and play, I averaged 14.2 mpg, giving the truck a
nominal, real-world range of 681 miles between fill-ups. I'll need my motorman's helper.
Speaking of undertaxed: I was fresh out of Clydesdales during my time with the F-350, and I couldn't find anything
properly heavy to tow with it. However, the week before, my friend Ezra Dyer, a Popular Mechanics editor, used
the same truck to tow a 13,000-pound trailer "like it wasn't there."
This is one amazing oil-burner: 6.7 liters of compression-ignition with a variable-geometry Garrett turbocharger
the size of a bull raccoon snuggled in the engine's V. The reverse-flow, four-valve cylinder heads are aluminum,
battened to a compacted-graphite iron block by way of six bolts per cylinder. Powered metal con rods, aluminum
pistons, six-bolt mains, dual water jackets per cylinder. Seems stout enough.
Also intriguing is the HD series air-to-water charge intercooler, pulling heat out of the air that the engine
consumes (cooler air is denser air, resulting in more horsepower).
At idle, the big diesel ticks slowly and softly, the rhythm of a sail-maker's sewing machine in a faraway loft. In
typical urban traffic, you may occasionally hear the rustling of diesel leaves if you need to gain pace quickly.
Otherwise, just a low, throaty hum. Out on the highway, though, if you mat the throttle and open the V8's oil
spigots completely, it will make a remarkable and uncanny sound, a sudden barometric dilation of considerable
energy, as if a door had been thrown open by a stiff wind. Did this thing just make my ears pop?
In Los Angeles the tightest ride might be an Audi R8 or . . . well, who gives a damn? In Red State America this
thing is about as aspirational as it gets, a country boy's Rolls-Royce. I took it for a drive in the deep country of
North Carolina, and the F-350 absolutely whipped heads around as people caught sight of it. Behold that hurtling
mirror of a chrome grille, a lane-filling panoptic of doom. Shrink in wonder before the F-350's enormous crew cab
(131-cubic-foot interior), looming like a skybox over life's arena. Our truck included a dual-pane panoramic roof
with power window shades and a powered rear-window hatch. Both front and rear seats are heated and cooled.
Even the tow hooks are blazed in chrome.
I have a neighbor, a 20-something mason's apprentice, who I thought was going to have a heart attack. "How
much?" he demanded.
And then I explained the tax credit to him and, lo, a young entrepreneur was born.
---
2017 F-350 SUPER DUTY PLATINUM CREW CAB 4X4
Base price: $63,285
Price, as tested: $78,585
Powertrain: Compression-ignition, 6.7-liter, overhead-valve, turbocharged diesel V8 with single-sequential

turbocharger and reverse-flow cylinder heads; six-speed automatic; two-speed transfer case with shift-on-fly
four-wheel drive.
Power/torque: 440 hp at 2,800 rpm/925 lb-ft at 1,800 rpm
Length/weight: 250.0 inches/7,494 pounds
Wheelbase: 159.8 inches
0-60 mph: 7.1 seconds

EPA fuel economy: N/A
Maximum payload: 6,540 pounds with 14,000-pound GVWR
Maximum conventional towing: up to 21,000 pounds
Cargo box capacity: 78.5 cubic feet
Document J000000020170218ed2i0000d

California Steers Agenda on Cleaner Cars --- State has power to set its own mandate for zero-emission vehicles, separate from Washington's...
California Steers Agenda on Cleaner Cars --- State has power to set its own mandate for zero-emission
vehicles, separate from Washington's rules
By Mike Spector
1,025 words
13 February 2017
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B1
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Ford Motor Co. Chief Executive Mark Fields used a recent White House breakfast with President Donald Trump
to argue for relaxing U.S. car-emissions standards.
But Mr. Fields and other auto executives need to travel 2,700 miles west of Washington to find the government
officials who are pushing them the most on environmental regulations. When it comes to forcing auto makers to
build cleaner cars, California is in the driver's seat.
Car executives, under pressure from Mr. Trump to relocate manufacturing to the U.S., have often sought relief
from national fuel-economy and emissions regulations. But California, the largest car market in the U.S., has its
own rules that mandate auto makers sell more zero-emission vehicles powered with batteries, requirements that
will endure even if federal rule makers relax other national environmental regulations.
"The conclusion is inescapable: California's vehicle future is electric," said Mary Nichols, head of California's Air
Resources Board, or CARB, upon the release of a state report supporting the mandate in January.
CARB is the state agency that polices tailpipe emissions, and nine other states follow its standards. California's
influence is a main reason auto makers are developing electric cars and plug-in hybrids even though such
vehicles are unpopular among buyers responding to low gas prices.
Ford is spending $4.5 billion on new vehicles that include a hybrid sports car and an electric SUV, despite
banking most of its profits on meaty pickup trucks and sport utilities.
At Detroit's annual auto show in January, German auto giant Volkswagen AG, rehabbing its image after a costly
emissions scandal, showed off an electric prototype resembling its classic microbus and pledged to sell a million
electric cars by 2025.
General Motors Co. in December started selling its Bolt electric car in California, and sold more than 1,000 in the
first two months on the market.
California rules dictate that zero-emission cars represent roughly 15% of sales by 2025, though the recent CARB
report suggested companies could comply with a roughly 8% share.
That's a steep order given zero-emission vehicles were less than 1% of the record 17.5 million-plus light vehicles
sold in 2016, according to data provider WardsAuto.com. Most sales of zero-emission vehicles were in California.
Nearly twice as many were sold there as in all the other states combined over the past several years.
Auto makers are seeking relief from Environmental Protection Agency rules mandating automobiles sold in the
U.S. average 54.5 miles a gallon, or 40 mpg in real-world driving, by 2025. About a week before Inauguration
Day, the EPA made a final determination that the emissions and mileage targets should remain unchanged. An
adviser to Mr. Trump previously pledged the standards would be reviewed, but changing them could take time
and face legal obstacles.
Regardless, California will still force auto makers' hand over the same time span. California environmental
regulators have a waiver from the EPA that allows the state's separate rule on zero-emission cars.

"I don't see how Mr. Trump can change the mind of California," said Mike Jackson, chief executive at AutoNation
Inc., the largest dealership chain in the U.S. "There may be a Trump revolution in America. But Sacramento has
carved out a mandated position."
California's waiver dates to 2012. The state would need another waiver to continue and toughen its current
vehicle-emissions regimen beyond 2025.
Auto-industry lobbyists contend California should look at sales results and take into account that government tax
credits play a role spurring what little demand there is. "The facts on the ground aren't anywhere close to"
suggesting people want electric cars, said John Bozzella, head of a Washington group representing foreign car
companies with U.S. operations.
"With fuel prices where they are, there isn't demand for these vehicles that matches the requirements under the
mandate," he said. "It's just math."
Auto makers have received criticism for years from environmentalists, officials and some customers for failing to
produce electric cars and other alternative-fuel vehicles in swelling numbers. But such vehicles have remained a
tiny share of overall U.S. car sales even when higher fuel prices boosted purchases. Many shoppers opted for
cheaper small cars with conventional gas engines when fuel prices rose.
Mitch Bainwol, head of another Washington lobbying group representing a dozen auto makers, estimated
complying with CARB's regulation adds an estimated $356 on average to the price of a vehicle, including
conventional gasoline-engine models, according to congressional testimony. That in part comes from increasing
prices of gasoline-powered vehicles to subsidize losses from electric cars sold at prices that can attract
customers but don't cover production costs.
A CARB spokesman said demand for zero-emission vehicles "continues to grow," and pointed to more than
250,000 on the road in California and more than a half million across the U.S. over the past five years. "We
disagree with the characterization that consumers don't want these cars," he said.
The Obama administration once targeted putting a million electric vehicles on U.S. roads by 2015.
The CARB spokesman said the zero-emission cars program is needed to buttress "modest" nationwide
regulations the agency joins the EPA in crafting.
U.S. mileage and emissions targets "will not ultimately lead to the [greenhouse gas] reductions needed to reach
our climate and our air-quality targets," he said. "That is why we need our separate and distinct policy."
California and the states that follow its vehicle-emission guidelines represent 40% of Audi AG's U.S. business,
said Scott Keogh, the luxury manufacturer's top American executive. He is hopeful electric cars will catch on as
more hit showrooms.
"There is going to be a market for people who want to drive the future," he said.
---
Adrienne Roberts contributed to this article.
Document J000000020170213ed2d0001u

Ford Invests $1 Billion for a Future of Riders

Ford Invests $1 Billion for a Future of Riders
By MIKE ISAAC and NEAL E. BOUDETTE; Mike Isaac reported from San Francisco, and Neal E. Boudette from
Ann Arbor, Mich.
724 words
11 February 2017
The New York Times
NYTF
5
English
SAN FRANCISCO -- One of the oldest automakers in the United States is making a billion-dollar bet that one day,
owning a car may not be a necessity of American life.
Ford Motor announced on Friday its plans to invest $1 billion over the next five years in Argo AI, an artificial
intelligence start-up formed in December that is focused on developing autonomous vehicle technology.
The move is Ford's biggest effort to move into self-driving car research. Argo AI will develop the technology
exclusively for Ford at first, and then plans to license its technology to others.
The investment is also a way for Ford, which is more than century old, to tap into Silicon Valley talent and make
headway in a competitive space. Former Google and Uber self-driving technologists will lead the effort out of
Pittsburgh, a hub for robotics and autonomous vehicle research, and satellite offices will be in place in the San
Francisco Bay Area and southeastern Michigan.
Argo AI will operate as a subsidiary of Ford; the automaker will be the majority shareholder. But Argo AI will also
use shares of its stock to lure robotics and engineering professionals from other companies, a challenge in a field
where companies like General Motors, Chrysler, Uber and Google are all racing to bring autonomous vehicles to
the mainstream.
''If we can combine the best of a start-up and marry that with proper equity compensation, then that's the best of
both worlds,'' Mark Fields, president and chief executive of Ford, said at an event with reporters in San Francisco
on Friday.
The move comes as Ford positions itself as not just a manufacturer of cars, but as a provider of ''mobility
services,'' enabling people to get around without owning cars. That is especially important as companies like Uber
and Lyft, ride-hailing services popular in urban areas, have reduced the need for people to have their own
vehicles.
Ford sees mobility services as potentially more profitable than its traditional business of making and selling cars.
Manufacturing vehicles requires billions of dollars in investments in plants and engineering -- costs that are often
difficult to recoup. Company executives have said mobility services could generate returns of around 20 percent,
compared with the 8 percent it earns on making vehicles today.
As part of that strategy, Ford has been racing to develop self-driving cars, put down roots in Silicon Valley and
acquire fledgling players in ride-hailing services, autonomous-driving technologies and related areas.
''There is not a strong enough pipeline of talent coming out of the universities today,'' Bryan Salesky, chief
executive and co-founder of Argo AI, said on Friday. Mr. Salesky said Argo AI was looking to hire 200 employees
across its three offices by the end of the year.
In the last several months, Ford acquired Chariot, a start-up that ferries commuters around the San Francisco
area, and invested in Civil Maps, which is developing 3-D mapping technology that can be used by self-driving
cars. In August, Ford also acquired SAIPS, an Israeli company developing machine learning and computer-vision
technology.

A year ago, Ford opened a research center in Palo Alto, Calif., a move Mr. Fields acknowledged was aimed at
making Ford ''part of the ecosystem of Silicon Valley.''
Ford is also remaking its headquarters and main development center in Dearborn, Mich., just outside Detroit, into
two sprawling, high-tech campuses of energy-efficient buildings -- similar to those that dot Silicon Valley. The
automaker envisions the new campuses, which will take 10 years to complete, as places that will showcase
autonomous shuttles as well as electric bikes and other green modes of transportation.
Other automakers are moving in the same direction. General Motors has invested $500 million in Lyft, a
ride-hailing 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.
Like Ford, G.M. also has a Silicon Valley tech center, and it is spending $1 billion to renovate its main big
development campus in Warren, Mich.
Document NYTF000020170211ed2b0004d

Business News: Ford Takes the Wheel at Startup --- Move for Argo AI is latest to extend its reach into developing self-driving technology
Business News: Ford Takes the Wheel at Startup --- Move for Argo AI is latest to extend its reach into
developing self-driving technology
By Tim Higgins
504 words
11 February 2017
J
B3
English
SAN FRANCISCO -- Ford Motor Co. has acquired majority ownership of an artificial-intelligence startup called
Argo AI and plans to invest $1 billion in the company, the latest move in an auto-industry spending spree to
develop self-driving technology.
The investment, to be made during the next five years, is part of Ford's efforts to develop a self-driving car by
2021.
Argo is now a Ford subsidiary, but the auto maker said founders Bryan Salesky, a former Alphabet Inc. executive,
and Peter Rander, formerly with Uber Technologies Inc., will keep equity in the startup, which they founded late
last year.
"We think automation is going to define the automobile in the next decade," Ford Chief Executive Mark Fields told
reporters.
Auto makers and tech companies including Alphabet, Uber and Tesla Inc. are racing to develop autonomous
technology.
General Motors Co. last year spent $1 billion to acquire Cruise Automation to expedite its self-driving program.
And Toyota Motor Corp. has said it would spend at least $1 billion on a Silicon Valley research center to study
autonomous driving and robotics.
Ford has signaled this is a transition year for the 113-year-old auto maker as it invests heavily in new
technologies and efforts to move beyond making conventional cars and trucks.
The company is working to roll out a self-driving vehicle in 2021 and has said autonomous cars could account for
20% of U.S. vehicle sales by the end of the next decade.
Ford last year acquired San Francisco-based Chariot, a private shuttle service, with plans to expand the
commuter service to additional metro areas. Mr. Salesky, Argo's chief executive, declined to say how many
employees his company has but said he aims to hire 200 by year's end.
According to his LinkedIn biography, Mr. Salesky left Alphabet last year where he was Google's director of
hardware development for self-driving cars.
Mr. Rander, according to his LinkedIn bio, was an engineering lead for Uber, helping launch the tech company's
first generation of self-driving prototypes.
The Ford deal was structured in a way that aims to keep Argo as a nimble startup while also allowing for the
technology to be integrated into vehicle development.
The company's board consists of Messrs. Salesky and Rander, two Ford executives and one independent
director.
While Ford will get exclusive access to what is developed, the company said Argo could ultimately license the
technology to other auto makers.

The deal's unique structure underscores the challenges companies such as Ford have faced in attracting the
necessary talent to develop AI systems.
"There is a dearth of talent at a certain level; these are very sought-after people," said Chris Jones, chief analyst
for Canalys.
"It will really help them recruit the talent."
Document J000000020170211ed2b0002s

Ford Bulks Up in SUVs
Ford Bulks Up in SUVs

By Christina Rogers and Mike Colias
471 words
8 February 2017
J
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English
Ford Motor Co. is reigniting a turf war in a lucrative segment dominated by General Motors Co., giving the
supersize Expedition and Lincoln Navigator lineup its first overhaul in nearly 15 years.
Ford was once a force in the market for hulking SUVs, but slowed investing in the gas guzzlers as the car maker
responded to environmental concerns by shifting to more efficient models.
GM, meanwhile, cranked out consistent redesigns of the Chevrolet Tahoe, Cadillac Escalade and other models,
and now outsells Ford by a 4-to-1 margin in the category.
That dominance feeds $2 billion to GM's bottom line annually, according to analyst estimates. Ford, looking for
ways to bolster profit, is hoping to benefit from the retooled SUVs.
"We think we're going to be able to shake up that market," Joe Hinrichs, Ford's North America president, said in a
recent interview.
Sales chief Mark LaNeve said Ford aims to "gain considerable share . . . this is a tremendously profitable
vehicle."
The new Expedition model was unveiled on Tuesday.
The Dearborn, Mich., auto maker's move comes as American vehicle buyers, influenced by cheap gas prices,
overwhelmingly prefer pickups and SUVs to sedans. At Ford, its compact Focus, Fusion sedan and sporty
Mustang have been met with tepid demand.
Auto executives have worried that overreliance on SUVs would hinder their meeting emissions targets in place
through 2025, but the Trump administration has said it might ease those rules.
The redesigned Expedition, which along with a new Navigator will arrive in dealerships this fall, represents the
first in a line of new products Ford is planning for the SUV segment through 2020.
The company also will revive its Bronco SUV and add its EcoSport small SUV sold in emerging markets and
Europe.
GM's lead in the large SUV segment stems from decisions made before the company's 2009 bankruptcy. As
former Ford chief Alan Mulally backed away from investments in the segment, GM deemed the profit margins as
too attractive to give up and approved plans to improve six SUV models even as finances were strained.
"It turned out to be a hell of a lot more than anyone else was doing," Bob Lutz, who led GM product development
at the time of that decision, said in an interview.
In its SUV initiative, Ford is taking a page from its playbook for its highly successful pickups by using aluminum
for body panels. In switching from a steel body, the new Expedition takes on added cost but is expected to
achieve better fuel economy by dropping 300 pounds in weight.
The model also features new technologies, such as a wireless charging pad for smartphones and built-in Wi-Fi
connectivity.

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Need more speed? Mustang upgrade has that and more...............................................................................................

Business News: Ford's Workhorse Trucks Haul In Solid Profit .......................................................................................6

Detroit Trims Fat to Take On Big Tech............................................................................................................................8

Ford to cut $14B, bets on electric..................................................................................................................................13

Ford to cut $14B, bets on electric..................................................................................................................................14

GM, Ford, Toyota lead September rebound in auto sales ............................................................................................15

Ford to cut $14B, bets on electric..................................................................................................................................16

GM, Ford, Toyota lead September rebound in auto sales ............................................................................................17

Business News: Detroit Rolls Ahead On Electric Vehicles............................................................................................19

Lyft adds Ford as a self-driving car ally .........................................................................................................................20

Lyft and Ford Reach Deal To Test Self-Driving Cars ....................................................................................................21

Ford creates a baby Ranger Raptor pickup ..................................................................................................................23

Business News: Ford Idles 5 Plants Amid Slowing Sales .............................................................................................24

Auto Makers in Push for Patents ...................................................................................................................................25

Ford Links Up With Indian Firm .....................................................................................................................................28

Domino's, Ford team to test driverless pizza delivery ...................................................................................................33

Business News: Ford Starts China Electrics Project .....................................................................................................35

Business News: Vehicle Sales Rally in China ...............................................................................................................36

Tesla Adds Debt In Growth Push ..................................................................................................................................45

Slump in Auto Sales Extends to 7th Month ...................................................................................................................48

Ford Logs Modest Profit But Is Facing Challenges .......................................................................................................53

Page 1 of 182 © 2020 Factiva, Inc. All rights reserved.

Financing Avenue Reopens For Ford ..........................................................................................................................64

For CEOs, High Pay, Higher Anxiety ............................................................................................................................68

Volvo Gives Tesla a Shock, As Others Plan Electric Push ...........................................................................................70

Ford CEO Presses Decision Making .............................................................................................................................73

Business News: Business Watch ..................................................................................................................................75

Economics lessons from Ford ......................................................................................................................................77

Business News: Ford Unit to Break Out Results ...........................................................................................................84

Ford's Key Deputies Expand Their Roles......................................................................................................................94

Ford's Turmoil Is Not About Tesla .................................................................................................................................95

Fields out, hackett in as patience wears thin.................................................................................................................97

U.S. News: Ford Picks Leader to Make New Inroads .................................................................................................103

Ford Taps New Boss To Close Tech Gap...................................................................................................................105

U.S. News: Head of GM Enjoys Her Board's Support.................................................................................................109

New Boss Won't Fix Ford Quickly ...............................................................................................................................111

Ford replaces its CEO in a race to take on Silicon Valley ...........................................................................................112

As Profit Dwindles, Ford Is Said to Replace Its C.E.O. ...............................................................................................114

Ford Weighs Executive Shake-Up ..............................................................................................................................116

Car Makers Must Share More Technology..................................................................................................................117

Ford confirms that it will slash workforce.....................................................................................................................118

Ford Sharpens Ax for Salaried Jobs ...........................................................................................................................119

Ford to Cut 1,400 Jobs As Market Moves On .............................................................................................................121

Car Makers Pull Back on Jobs Pledge ........................................................................................................................123

Ford Looks to Cut Jobs 10% Globally .........................................................................................................................128

Ford CEO, Chairman Feel Heat ..................................................................................................................................130

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Ford Spoils Tesla Chief's Name Joke .........................................................................................................................134

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Auto Sales Shrink, Inventories Grow...........................................................................................................................138

Business News: Detroit Is Upbeat as Car Sales Slow Down ......................................................................................142

Ford's profit tumbles as vehicle costs jump.................................................................................................................143

Tesla Must Aim High To Justify Its Valuation ..............................................................................................................146

Musk bickers with Tesla investors over board.............................................................................................................148

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Ford Plans Electric Vehicles In China .........................................................................................................................153