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Chiefs at Big Firms Often Last to Know ..........................................................................................................................
Hot auto sales surge in March ; Industry sees 5.7% increase despite icy weather; GM shines .....................................7
Corporate News: Auto Sales Return to a Lively Pace .....................................................................................................8
Corporate Watch ...........................................................................................................................................................10
Battle of the Dash: Tech Companies Try to Get Their Apps in a Row ..........................................................................12
A Breath of Fresh Air for China's Car Makers ...............................................................................................................14
Corporate News: GM, Ford Struggle to Crack India's Market --- Success Evades U.S. Auto Makers as They Rush to
Catch Up to Japanese and... .........................................................................................................................................15
Ram Pickup Makes Its Move Against GM, Ford --- Chrysler's Truck, Which Trailed Far Behind Rivals, Is Quickly
Closing Gap: 'It Has Almost...........................................................................................................................................17
Businesses Rethink Russia as New Risks Emerge ......................................................................................................19
Russian rally on Wall Street ; U.S. stocks with Russian exposure sigh with relief ........................................................21
To Change Tunes, a Nod Will Be as Good as aWink ...................................................................................................23
Congress to Investigate Recall by GM --- Auto Maker Steps Up Internal Probe Amid Questions Over Delayed
Response ......................................................................................................................................................................26
A Mixed Breed Gets a Pedigree ....................................................................................................................................29
Corporate News: Tiny Cars Are Popular, but Profits Elusive ........................................................................................30
Corporate Watch ...........................................................................................................................................................32
Incentives Drive Auto Sales ..........................................................................................................................................34
Corporate News: U.S. Auto Sales Drop at Top Sellers --- Winter Storms Again a Factor as Largest Slide; Gains at
Chrysler and Nissan Push Total to Flat Line .................................................................................................................35
Consumer Reports: Lexus Is No. 1 ...............................................................................................................................37
Lexus Ranked No. 1 on Consumer Reports' Annual Brand Report Cards....................................................................39
Ford dumps Microsoft for BlackBerry system................................................................................................................41
WSJ.D Technology: Digits / wsj.com/digits ...................................................................................................................42
Corporate News: Corporate Watch ...............................................................................................................................44
GM Locks Up Aluminum Supplies for Future Trucks ....................................................................................................46
A Luxury-Class Metal Is Asked to Do Farm Chores ......................................................................................................48
Ford Boss Tees Up for Key Releases ...........................................................................................................................50
Rising Auto Inventories Prompt a Bet On Pricing..........................................................................................................52
Corporate News: Ford Veteran Is Picked to Restart Fisker ..........................................................................................54
U.S. News: Detroit Counts On Casinos --- Crucial Gambling Revenue Threatened by Bank Dispute, Out-of-Town
Competition ...................................................................................................................................................................55
Page 1 of 192 © 2020 Factiva, Inc. All rights reserved.

Corporate News: GM Bumps Up Truck Discounts ........................................................................................................57
OFF DUTY --- Gear & Gadgets -- Rumble Seat: All's Well With Cherokee's Trailhawk but the Beak ..........................58
Corporate News: Chrysler Truck Ups the Ante --- In Fuel-Economy Face-Off, the Ram Sets a New Bar to Top.........61
'Consumer Reports' sees Subaru, Tesla rise in buyers' esteem ...................................................................................63
Corporate News: Winter Crush Hits Auto Sales --- Industry Demand Falls 3% Over Year Earlier; Fiat Chrysler Trucks,
Luxury-Car Makers Buck Decline ..................................................................................................................................64
Status update: Facebook is still a force ; Company flush with ads, users - and swagger.............................................66
Earnings: Ford Zooms but Warns of Hazards --- Profit Up 90% on Sales, Tax Gain; Auto Maker Cautions Product
Launches, Competition to Take.....................................................................................................................................69
America's Love Affair With Cars Cools Off....................................................................................................................71
4th quarter's $1.3B profit concludes a great year for Ford ............................................................................................73
Tax Gains in Europe Lift Profit 90% at Ford ..................................................................................................................74
Ahead of the Tape .........................................................................................................................................................76
Corporate Watch ...........................................................................................................................................................78
Fuel-Efficiency Rules Are Already Raising Costs in Detroit ..........................................................................................80
Upbeat Again, but Not Overconfident............................................................................................................................82
OFF DUTY --- Gear & Gadgets -- Rumble Seat: Detroit Car Makers Are Back in the Groove .....................................85
Ford Recalls Edge, Explorer and Vans; N.H.T.S.A. Upgrades Jeep Investigation .......................................................88
Ford Mustang and Volvo Concept Win Design Awards ................................................................................................90
Corporate News: AT&T Pulls Back On 'Idol' Sponsorship ............................................................................................91
Detroit Auto Show: Auto Makers Dare to Boost Output --- Buoyed by Rising Sales, Industry Courts Risk of
Overcapacity as It Adds Factories in... ..........................................................................................................................92
Feeling Steadier, Ford Remakes F-150 Pickup, the Nation's No. 1 Vehicle .................................................................94
Ford F-150 Is Now a Lighter Hauler ..............................................................................................................................96
Ford's Lightweight Pickup Can't Lift Aluminum..............................................................................................................97
Detroit Auto Show: VW Plans Investment In the U.S. ...................................................................................................98
Detroit Auto Show: Chrysler Banks on New 200 --- Updated Sedan Is Pivotal in Strategy to Regain Ground Lost in
Passenger Cars.............................................................................................................................................................99
Detroit Auto Show: General Motors Close to Reinstating Dividend ............................................................................101
Fuel Goal Tests Ford's Mettle .....................................................................................................................................103
F-150 builds future on aluminum ; Ford: 2015 truck drops 700 pounds......................................................................105
The F-150's Aluminum Diet .........................................................................................................................................106
Corporate News: Can Cars Redeem the Aluminum Industry? ....................................................................................108
Corporate News: Chinese Car Makers Skip U.S. --- GAC, Geely Pass on Detroit Auto Show, Curb Ambitions for
Developed Markets .....................................................................................................................................................110
Back-Seat Drivers at Microsoft ....................................................................................................................................112

Ford CEO Mulally not going to Microsoft this year ......................................................................................................113
Corporate News: Ford's Mulally Won't Join Microsoft .................................................................................................114
WSJ.D Technology: BMW, Audi Put Car in Control --- New Vehicles Can Find Parking Spaces, Take Over in
Stop-and-Go Traffic .....................................................................................................................................................116
Big Auto Makers Race To Take Web on the Road .....................................................................................................118
From Ford, a Plug-In That Tracks the Sun ..................................................................................................................120
Auto Makers Rebound as Buyers Go Big --- U.S. Sales Cruise Back to 2007 Levels, Driven by Fondness for Pickups,
SUVs ...........................................................................................................................................................................122
Plug-in car runs on sunlight .........................................................................................................................................124
Corporate Watch .........................................................................................................................................................126
Google, Apple Forge Auto Ties ...................................................................................................................................129
2014: A Tougher Year for Ford ...................................................................................................................................132
GM's Catalytic Converter Is Better Than Ford's ..........................................................................................................135
G.M. to Invest $1.3 Billion to Upgrade 5 Midwest Factories........................................................................................136
WEEKEND INVESTOR --- Wealth Manager: Stocks That Still Come With Perks ......................................................138
Corporate News: China's Car Market Ignites --- Foreign Entrants Win Share From Each Other; Ford, VW, Hyundai
Race Ahead.................................................................................................................................................................140
Auto biz no longer a 'boys' club' ; Female CEO was inevitable in the industry ...........................................................142
A Starter Library for Car Lovers of All Ages ................................................................................................................143
Time for an Equestrian Transformation .......................................................................................................................144
OFF DUTY --- Gear & Gadgets -- Rumble Seat: Toyota Tundra Leads Crowded Field -- by a Nose.........................146
On the World's Roads, More American Wheels ..........................................................................................................149
Ford Wants to Take Next Mustang to New Places......................................................................................................151
Mustang takes a turn at 50 ; Ford to unveil new features for 2015 .............................................................................153
Corporate News: Ford Grooms 'Pony' for China Market --- New Mustang Is Meant to Appeal Not Just to Aging
Boomers, but Global Market........................................................................................................................................155
Nov. auto sales burned rubber ; Fastest pace since 2007 ..........................................................................................156
Corporate News: Brisk Demand Lifts Car Sales --- Overall Volume Up 9% in November; U.S. Auto Makers Feeling
Heat on Sedans...........................................................................................................................................................157
In Marketing, Art's the Thing........................................................................................................................................159
Corporate News: Tires Join Holiday Sales Race ........................................................................................................161
Black Friday's a good day to car shop ; Bargains aren't found just at shopping malls ................................................163
Corporate News: Corporate Watch .............................................................................................................................164
Ford Discloses Two New Recalls for the 2013 Escape...............................................................................................166
OFF DUTY --- Gear & Gadgets -- Rumble Seat: Given Room to Grow, Range Rover Blossoms ..............................167
Corporate News: Self-Driving Cars Are Still in Park....................................................................................................170

Lincoln Joins the Crossover Party ...............................................................................................................................172
Lincoln adds a little sizzle to small SUV ; MKC part of move to 'reinvent' brand.........................................................174
Corporate News: It's Not a Car, It's a Ford 'Ka' --- Hunting for a New Class of Consumers, Auto Maker Pursues
Ultra-Cheap Vehicle ....................................................................................................................................................176
Corporate News -- The Upshot: Same Luxury Sells in U.S., China ............................................................................178
The First Mustang Sold, and Still on the Road ............................................................................................................180
Mays Era Ends At Ford Design ...................................................................................................................................181
A New Alliance: UAW and Germany ...........................................................................................................................183
Ford Truck Czar Divides to Conquer --- Building Pickups for Cash-Strapped Craftsmen, Racing Fans, Off-Road
Enthusiasts and the Affluent........................................................................................................................................186
Ford's High Price for Closing Belgian Plant.................................................................................................................188
J Mays, Noted Ford Designer, to Retire ......................................................................................................................191

Chiefs at Big Firms Often Last to Know
Chiefs at Big Firms Often Last to Know

By Adam Auriemma
1,061 words
3 April 2014
The Wall Street Journal
J
B1
English
(Copyright (c) 2014, Dow Jones & Company, Inc.)
Corrections & Amplifications
Ray Fisman is a professor of economics at Columbia University. A Marketplace article on Thursday about how
bad news travels at companies incorrectly identified his area of study as social economics
(WSJ April 4, 2014)
(END)
At big companies, bad news travels slowly.
General Motors Co. Chief Executive Mary Barra acknowledged as much in testimony on Capitol Hill this week as
congressional investigators sought to find out exactly when GM executives knew that faulty ignition switches in
some cars were linked to fatal accidents.
"I cannot tell you why it took years for a safety defect to be announced in that program," Ms. Barra said. "But I can
tell you that we will find out."
It's not just GM. The larger an organization gets, the less likely it is that bad news will travel smoothly up the
chain. At big corporations, say organizational experts and former auto-industry executives, the mantra is "go
along to get along," and doing the right thing -- which can mean stopping work on products vital to the bottom line
-- is often incompatible with pleasing the boss.
That dynamic leaves top executives insulated, protected from daily headaches and legal liabilities, perhaps, but
vulnerable to learning about problems far too late.
"You get blindsided when things deteriorate," said Martin Zimmerman, a former chief economist and group vice
president at Ford Motor Co. "You want to know about mistakes. You want to get them corrected."
The challenge for managers is creating an environment in which even negative information can find its way up the
levels of a bureaucracy, said Deborah J. Cornwall, managing director of the leadership consultancy Corlund
Group, which advises employers such as TJX Cos. and Catholic Health Initiatives on corporate governance and
organizational culture.
"There's a tendency for people in large, hierarchical organizations to tell the boss what he wants to hear," Ms.
Cornwall said, noting that individuals' career prospects are tied to their performances as perceived by their
managers, not the company's overall health.
It can take a grand gesture to prove that bad news is good. In an interview several years ago, Alan Mulally, Ford
Motor Co.'s chief executive, described one such moment during his first year on the job. At a high-level meeting,
Mr. Mulally was told by an executive vice president that a technical issue had delayed the launch of a new line of
vehicles. The room went silent, he recalled.
Then Mr. Mulally started to clap. The applause was meant to signal that the revelation, while not "warm and
fuzzy" news, was welcome.
In addition, the official who broke the news, Mark Fields, was promoted to chief operating officer in 2012, a move
analysts figured was laying the groundwork for him to succeed Mr. Mulally as CEO.
The Ford example highlights a tension in the relationship between managers and subordinates that can stanch
the flow of information: Bosses need to know what's going on to make informed decisions, but that knowledge is
dependent on what direct reports choose to tell them.
Bengt Holmstrom, an economist at the Massachusetts Institute of Technology, put it this way: A CEO needs to be
able to trust the board enough to give directors information they could ultimately use to fire him.
In her congressional testimony, Ms. Barra, who held top-level posts at GM for years before she was appointed
CEO in January, admitted to information "silos" in her own organization.
She said, for instance, that the auto maker's executives appeared not to have known about a 2006 design change
involving faulty ignition switches that the company has linked to at least 13 deaths.
Earlier congressional evidence suggested that the fix was "incompletely documented" within the company, which
prevented higher-ups from dealing with the problem once it was brought to their attention. Information "didn't
necessarily get communicated as effectively as it should have," Ms. Barra said.
Complicating matters, GM has been run by five CEOs over about as many years, and over the same period it
went through Chapter 11 bankruptcy, a government bailout and financial turmoil.
"GM has not been under normal management-operating conditions for four or five years," said Gerald C. Meyers,
the former CEO of American Motors Corp. and a professor at the University of Michigan's Ross School of
Business.
And such turmoil can make it hard to take the long view. "You're trying to fight the fire that's burning today, never
mind the big picture of what will happen to the company," said Ray Fisman, co-author of "The Org: The
Underlying Logic of the Office" and a professor of social economics at Columbia University. "It may not even be
your problem, because you'll have moved on to another job by then."
Some industries have stronger systems for raising problems than others. Ms. Cornwall is encouraged in this
respect by her work with large hospital systems. Because so many workers interact directly with patients, she
said, the risk of doing harm is obvious, and competition has forced executives to put an emphasis on both quality
and safety.
The Nuclear Regulatory Commission, the federal agency that oversees nuclear safety, has a process referred to
as "differing professional opinion," in which any member of the organization who disagrees with a planned
business action can voice that opinion, "have it considered" and even stop the process, said Eliot Brenner, head
of the office of public affairs.
Ms. Barra has vowed to place more emphasis on consumers at GM going forward.
She appointed a new vice president of global vehicle safety, announcing that her pick, Jeff Boyer, will
communicate regularly with her and senior management and have access to whatever resources he needs. And
the company continues to investigate what went wrong.
"When we have answers, we will be fully transparent with you, with our regulators and with our customers," she
said on the Hill.
Such actions are typical after a crisis, said Ben Dattner, an executive coach and consultant who has advised
companies including Bank of America and American International Group Inc. on matters of organizational change.
Absent a scandal, however, managers won't rock the boat. "Organizations can go on autopilot just as individuals
do," he said.
License this article from Dow Jones Reprint Service
Document J000000020140403ea430001x

Hot auto sales surge in March ; Industry sees 5.7% increase despite icy weather; GM shines
MONEY
Hot auto sales surge in March ; Industry sees 5.7% increase despite icy weather; GM shines
Chris Woodyard
Chris Woodyard, @chriswoodyard, USA TODAY
483 words
2 April 2014
USA Today (Newspaper)
USAT
FINAL
B.1
English
© 2014 USA Today. Provided by ProQuest Information and Learning. All Rights Reserved.
The auto industry -- even recall-beset General Motors -- shook off the winter chill in March with a vibrant sales
surge.
Despite the firestorm over recalls involving deadly ignition switches, GM saw sales rise 4.1% from a year ago,
according to Autodata. It did even better in retail sales to individuals, up 7%.
GM's increase beat Detroit rival Ford Motor, which had a 3.3% gain but fell short of Chrysler Group's impressive
13% boost.
Kurt McNeil, GM's U.S. vice president of sales operations, said the automaker's sales have steadily improved
even as it battles the negative publicity related to the switch recall. "GM's retail sales, like the weather and the
economy as a whole, have been on an improving trend since early February," he said in a statement.
Overall, the industry saw a healthy 5.7% sales increase after a slow start to the year, which automakers attributed
to the bitter winter keeping potential car buyers bundled up at home.
"We had a spring thaw," says Larry Dominique, a former Nissan executive now president of ALG, an auto leasing
service. "It implies steady growth."
In more good news for the auto industry -- and the economy -- customers paid higher average prices for vehicles
than a year ago. The average transaction price paid for a new vehicle was $31,995 in March, up 1.4% from a year
ago, Kelley Blue Book estimates.
Pickups and SUVs continued to rule, outselling cars for a seventh month, says Edmunds.com -- the longest
streak in favor of trucks since before the recession.
Chrysler attributed its growth to big gains in sales of the new Jeep Cherokee crossover SUV and Ram 1500
pickups. Ford said the sales tally of its F-Series pickups hit 70,940 for the month. And GM scored with models
such as the Cadillac SRX luxury crossover, up 23.6%, and Silverado pickup, up 6.8%.
Detroit, however, also scored with car sales. GM's Buick Regal saw a sales rise of 51%, and its Chevrolet Cruze
compact sedan was up 14%. Ford pointed to sales of its Fusion midsize sedan.
Japanese automakers saw a mixed performance. Nissan hit a sales record with an 8.3% gain. "Our product is
really resonating with consumers out there," says Fred Diaz, senior vice president of sales for Nissan in the U.S.
Toyota says its 4.9% increase took it to its best performance in March since 2008. Honda fell, down 2%. Subaru
held momentum with a 21.2% increase. Mazda rose 9%. South Korea's Hyundai fell 1.9%, but Kia was up 11.5%.
Among European makers, Volkswagen was flat. But Mercedes rose 11%, BMW, 8.1% and Jaguar Land Rover,
8.6%.
Document USAT000020140402ea4200002

Corporate News: Auto Sales Return to a Lively Pace
Corporate News: Auto Sales Return to a Lively Pace

By Christina Rogers and John Kell
670 words
2 April 2014
J
B2
English
The spring thaw helped push U.S. auto sales in March to one of the strongest rates in years, putting the industry
back on track for growth this year after two months of winter doldrums.
U.S. light-vehicle sales rose 5.7% last month to 1.54 million, exceeding many analysts' expectations, and pushing
the industry's annualized selling rate to 16.4 million, according to research firm Autodata Corp.
"Solid March sales pushed first-quarter industry results ahead of last year's pace despite one of the harshest
winters on record," said Bill Fay, Toyota division group vice president.
"Toyota dealers had their two best sales weekends of the year late in the month, and we're optimistic that
momentum will spring us in into April," Mr. Fay said.
The strong March sales were a relief to an industry worried that the sluggish start to the year was a warning sign
that demand for new cars in the U.S. could be weakening after several years of robust growth. U.S. auto industry
sales fell in January and February as harsh weather slammed many parts of the U.S.
But sales picked up again in March, particularly toward the end of the month, as the weather improved and auto
makers offered deeper discounts on cars and trucks that had stacked up earlier in the year, analysts and dealers
say.
Buyers like Carolyn Curtis, an image consultant from Morristown, N.J. were among those helping to fuel last
month's sales gains. While she started shopping for a car in January, she delayed her search because of wintery
weather.
"I didn't want to drive a new car with all the snow and potholes," she said. But last month, Ms. Curtis finally found
her new ride, a 2014 Infiniti QX60 SUV for $46,000, after a $4,000 discount. Nissan Motor Co. owns Infiniti.
Analysts forecast U.S. new-vehicle sales will reach more than 16 million this year, up from 15.6 million in 2013.
Beau Boeckmann, vice president of Galpin Motors, which operates dealerships in Southern California, described
the last weekend of March as "absolutely crazy" in terms of sales.
"It was a signal of the strength of the market and the economy," he said. "We don't have any big snow storms
holding back sales, pent-up demand or anything like that."
Even so, competition is intensifying in many segments, such as compact and midsize cars, and analysts say
pricing is likely to come under pressure.
Industry discounts climbed 7.9% in March to $2,773, while the average price paid for a vehicle rose only 1.2% to
$30,986 in March over last year and was down from February, estimates car-shopping website TrueCar.com.
"An incentive-fueled battle is on the horizon," said Larry Dominique, TrueCar.com's executive vice president.
Most major auto makers reported gains in the U.S. over a year ago. Fiat Chrysler Automobiles reported a 13%
sales jump off the strength of its trucks and sport-utility vehicles.
General Motors Co., reeling from its handling of a series of safety recalls, boosted its U.S. sales by 4%. Ford
Motor Co. said its U.S. sales were up 3.3%.
Toyota Motor Corp. said it sales grew 4.9% while Nissan's U.S. sales were up 8.3%. Honda Motor Co., however,
reported a decline of 2% as car sales slid, pushing its overall results lower for the month.
Volkswagen AG underperformed in March as it continued to struggle with an aging line up. The company sold
36,717 vehicles in the U.S. in March, down 2.6% from last year.
Hyundai Motor Co. said its U.S. sales declined 1.9% to 67,005, dragged lower by slipping Elantra compact car
sales.
---
Neal E. Boudette and Mike Ramsey contributed to this article.
Document J000000020140402ea420003h

Corporate Watch
Corporate Watch
501 words
31 March 2014
J
B4
English
FORD
CEO Alan Mulally's Pay
Boosted to $23.2 Million
Ford Motor Co. Chief Executive Alan Mulally received an 11% raise last year, to $23.2 million in total
compensation, as the second-largest U.S. auto maker by revenue delivered one of its best financial performances
ever.
Mr. Mulally, who is expected to step down by year's end, has been among the best paid auto executives since
turning the company's big losses to fat profit after joining the company as its CEO in 2006.
Over the past three years, he has earned $73.7 million in compensation, mostly in stock. Under Mr. Mulally, Ford
has rapidly expanded sales in Asia, where it is aggressively expanding production, and the company's North
American business last year generated its best pretax profit since 2000.
The auto maker has cautioned that this year will prove tougher and is expecting profits to decline on new product
launches and tougher competition.
-- Christina Rogers
---
DONGFENG
New Models Lift Chinese
Auto Maker's Profit
Dongfeng Motor Group Co.'s earnings rose 16% last year as new models boosted demand for vehicles from
China's second-biggest auto maker.
Net increased to 10.53 billion Chinese yuan ($1.69 billion) from 9.09 billion yuan in 2012.
The auto maker's sales jumped 19% to 2.57 million units.
Dongfeng, which produces passenger vehicles in China through partnerships with Nissan Motor Co. and Honda
Motor Co., said Sunday that demand for Japanese-branded vehicles gradually recovered last year from territorial
disputes between China and Japan that had quashed consumer interest a year earlier.
Dongfeng's sales performance helped increase its national market share by 0.52 percentage point to 11.7%.
Total passenger-vehicles sales in the country increased 14% last year, their fastest pace since 2010.
-- Jeffrey Ng
---
DIAGEO
Chief Executive Shakes Up
Senior Management Team
Diageo PLC Chief Executive Ivan Menezes on Friday moved to shake up his senior management team and
stamp his authority on the drinks giant, less than a year after taking the top job from longtime CEO Paul Walsh.
Mr. Menezes said Gilbert Ghostine, currently president of the Asian-Pacific region, would become president for
Greater China and India and will take on the newly created role of chief corporate development officer, focusing
on business development.
He added that Nick Blazquez would become president of Africa, Eurasia and Pacific. The role means Mr.
Blazquez will now take full responsibility for markets in North Asia, Southeast Asia and Australia, alongside his
existing oversight of Africa, Turkey, Russia and Eastern Europe.
A spokeswoman for Diageo said the changes wouldn't affect the way the company reports its results.
The focus on India is especially significant. Diageo expects India to soon become its second-biggest market
behind the U.S., after the U.K. company bought a controlling stake in India's United Spirits Ltd. for $2 billion in
2012.
-- Peter Evans
Document J000000020140331ea3v0002k

Battle of the Dash: Tech Companies Try to Get Their Apps in a Row
TECHNOLOGY
Automobiles; SECTAU
Battle of the Dash: Tech Companies Try to Get Their Apps in a Row
By JOHN R. QUAIN
1,209 words
30 March 2014
The New York Times
NYTF
Late Edition - Final
5
English
Copyright 2014 The New York Times Company. All Rights Reserved.
Will Apple's CarPlay dominate the dashboards of future cars? Is Ford planning to kick Microsoft out of its Sync
system? Are Audi and General Motors going for Google? Or does QNX, a dark horse whose software is already
in tens of millions of vehicles, have the cards to trump other high-tech companies?
A dashboard donnybrook has erupted among tech companies vying to clean up the clutter of controls --
infotainment apps, safety systems, social media, maps and the like -- in the next generation of connected cars.
While each company says it should be the one to untangle these connected services, it seems unlikely that any
single one is going to dominate the dash, at least in the near future.
Apple's recently announced CarPlay software for connecting iPhones to the dashboard will appear in vehicles
from Ferrari, Mercedes-Benz and Volvo this year, with other automakers signaling that they, too, will support the
software.
Meanwhile, rumors that Ford may abandon its seven-year relationship with Microsoft underscore that carmakers
are still wrestling with the multiple layers of software necessary to meld computers, communications and cars.
At the surface level, when drivers plug an iPhone 5 with a Lightning cable into a vehicle with CarPlay, for
example, what they will see is an Apple icon, and beneath it an iPad-style arrangement of familiar square icons
for apps like maps, messages, calling and iTunes. (There's no wireless option and the phone's screen will be
locked while it's plugged in.)
The CarPlay app will effectively take control of the dashboard screen for those tasks, and it will look identical on
all vehicles, giving Apple an almost unprecedented say in dictating what apps will appear in cars, and how they
will be displayed -- at least for those with the iPhone 5, 5c and 5s.
But while carmakers are willing to acquiesce in giving the creators of the iPad and iPhone control of the in-dash
screen, that control goes only so far. Under other tabs and menus, the cars will still have apps for Google Android
phones as well as popular apps that may not be supported by Apple, like Pandora, and car-specific apps, like the
manufacturer's remote start function.
Referring to what designers call the human-machine interface -- the controls that drivers actually touch -- Doug
Welk, the chief engineer for software and services at Delphi, said, ''CarPlay is not changing the H.M.I. that's in the
car.'' Delphi, which supplies in-dash systems for customers including General Motors, says carmakers will still
decide how drivers operate CarPlay.
Volvo, for instance, is ''going for a full touch-screen integration,'' said Thomas Müller, the automaker's vice
president for electrical and electronic systems engineering. CarPlay will first appear at Volvo in the 2015 XC90
crossover. The company, which has a carefully cultivated image as a safety-first automaker, thinks drivers have
become more familiar with touch screens, Mr. Müller said, giving them a distinct advantage over knobs and dials.
At Mercedes-Benz, on the other hand, ''what you will not see is a touch display'' version of CarPlay, according to
Kal Mos, the automaker's senior engineering director. Mercedes plans to introduce its first CarPlay-compatible
car, the C-Class, by year-end.

Mr. Müller of Volvo and Mr. Mos of Mercedes point out that Apple will not have access to any critical elements of
the car, like the vehicle diagnostics, the safety systems or even the air-conditioning.
Those tasks falls to a deeper level of software. It is at this level of coordination that operating systems like Linux,
QNX's Car Platform and Microsoft's Windows Embedded Automotive step in to coordinate the display, the
human-machine interface and communications functions. The software market at this level is also in flux, as
demonstrated by the rumors that Ford may adopt QNX's infotainment solution over Microsoft's.
Neither Ford nor QNX would comment on those reports. But Ford confirmed that its platform for developing new
services, called Applink, was not dependent on Microsoft software. Ford and QNX also confirmed that some QNX
software was already in some Fords -- for instance, in the gauge clusters on some hybrids and on some trim
levels of pickup trucks. QNX, which is based in Ottawa and owned by BlackBerry, the smartphone maker, already
has its software in BMW 6 and 7 Series cars, as well as in systems from suppliers like Delphi.
The main problem facing connected cars is the lack of standards, which can be a source of confusion for drivers.
In addition to the varieties of operating systems and hardware in dashboards, there are also several competing
standards initiatives, including Genivi, MirrorLink (originally started by Nokia) and the Google-backed Open Auto
Alliance. Each hopes to provide a common interface, primarily for connecting smartphones and their
accompanying apps to the dashboard.
But no single platform has yet gained much traction. Apple may hope that it will become a de facto standard,
while app developers and car makers are approaching CarPlay with a combination of optimism -- and fear.
''We're in over 50 car models, and every one of those implementations is different,'' says John Donham, the chief
executive of TuneIn, an app that lets listeners scan thousands of online radio stations. Mr. Donham
acknowledged that it would be simpler to write an app once or twice for Google and Apple and have it work in all
vehicles.
However, such hopes may be dashed by the fact that Apple plans to limit the apps available in CarPlay, much as
it does with Apple TV. So there will not be hundreds of thousands of Apple apps blooming on the dash.
''We were hoping there would be more consolidation around an auto-driven standard for connecting smartphones
to cars,'' said Niall Berkery, executive director for business development at TeleNav, which provides mapping and
navigation services. Indeed, without an open standard and by including free maps, Apple and Google present an
additional conundrum for navigation companies and automakers: Even more drivers might be discouraged from
buying dedicated map apps or expensive built-in navigation systems.
Nevertheless, automakers want to work with smartphone technology companies rather than compete against
them. ''Ford sells cars,'' not phones, said John Ellis, the automaker's global technologist. ''And it would not be in
our best interest to limit ourselves.'' Automakers have to appeal to iPhone and Android owners alike.
As for concerns about reliability -- Apple's initial foray into navigation proved embarrassing -- automakers seem to
think so far that the attraction of the brand is more important than control over every aspect of the dashboard.
They also suggest that today's drivers are more sophisticated about technology.
''When the phone runs out of battery power,'' Mr. Müller of Volvo said, ''I have yet to see a customer complain to
the car maker.''
SCREEN ACTORS: Top, instrument panel of QNX's Technology Concept Car, a Mercedes CLA45 AMG. Above,
Apple's CarPlay software integrated in the touch screen of a Volvo at the Geneva Motor Show. (PHOTOGRAPHS
BY QNX SOFTWARE SYSTEMS; ARND WIEGMANN/REUTERS)
Document NYTF000020140330ea3u0003n

A Breath of Fresh Air for China's Car Makers
Heard on the Street

A Breath of Fresh Air for China's Car Makers
By Abheek Bhattacharya
392 words
26 March 2014
J
C14
English
[Financial Analysis and Commentary]
China has declared war on pollution -- and taken the battle to the world's biggest car market. Premier Li Keqiang
says smog is as big a problem as poverty. One solution: new fuel-economy proposals for cars. These would
require reducing fuel consumption by 6.2% on average every year between 2016 and 2020, the fastest pace
among major markets for that period, according to the International Council on Clean Transportation.
Some auto makers will be hit harder than others. Take Tata Motors-owned JaguarLand Rover, which has profited
from selling SUVs, the fastest-selling auto segment in China. Previous targets for 2015 gave heavier cars extra
leeway. Under the new plan, they must play catch-up. A car maker that sells 2.5-ton SUVs has to cut the amount
of gas needed to travel 100 kilometers (62.1 miles) by up to 40% between 2016 and 2020, against 31% for a
maker of one-ton sedans.
Foreign luxury-car makers such as BMW face a new challenge. Currently, they calculate a combined
fuel-economy average for the big models they import and the small ones made locally. Now imports must be
compliant on their own, says Sanford C. Bernstein's Max Warburton. Another rule cuts allowances for
gas-guzzling automatics, hurting foreign brands more.
There is a good chance most of the 2020 recommendations will be implemented. The car makers with furthest to
go to lift fleet average to the proposed new target are Toyota, JLR and Daimler's local venture, according to Mr.
Warburton. Still, foreign makers can import the similar improvements they are making in other markets such as
the U.S. That leaves locals such as Great Wall and Geely with a lot of work to do.
There are winners, too. Brilliance China Automotive's joint venture with BMW and Ford Motor's local venture sport
relatively efficient fleets. Companies that help car makers save fuel, such as Hong Kong-listed auto-parts supplier
Nexteer also could gain.
The new fuel standards are ambitious, and could get even stricter if pollution worsens. Car makers that can adapt
stand to prosper the most from China's cleaner future.
Document J000000020140326ea3q0000y

Corporate News: GM, Ford Struggle to Crack India's Market --- Success Evades U.S. Auto Makers as They Rush to Catch Up to Japanese and...
Corporate News: GM, Ford Struggle to Crack India's Market --- Success Evades U.S. Auto Makers as They
Rush to Catch Up to Japanese and Korean Rivals; Recalls Dent Reputation
By Santanu Choudhury and Jeff Bennett
971 words
25 March 2014
J
B6
English
Nearly two decades after entering the Indian market, Ford Motor Co. and General Motors Co. have failed to take
much market share from their Asian rivals there.
Suzuki Motor Corp. and Hyundai Motor Co. still reign supreme, claiming 42% and 15% of the market,
respectively. Even Honda Motor Co. and Toyota Motor Corp., which landed in India after the two Detroit auto
makers, have market shares of about 5% each. Ford and GM still claim only about 3% each of the Indian market.
The South Asian nation is expected to become the third largest car market in the world in the next five years
behind China and the U.S. But U.S. auto makers have been struggling with debt and a slowdown at home, and
they haven't been as good as the Japanese and Koreans at offering the right products to India's booming middle
class, analysts and industry executives say.
"Starting with products coming into managerial focus, together with understanding the local customer
expectations, I think that is where these companies did not and still do not understand [India] completely," said
Mohit Arora, executive director for Asia-Pacific at J.D. Power & Associates.
For years the U.S. auto giants gave India relatively little attention and investment, focusing instead on the much
larger Chinese auto market and their operations in the U.S. and Europe. But with the U.S. market maturing and
European auto sales in decline, GM and Ford are rushing to catch up to Japanese and Korean rivals in India and
other developing Asian markets.
In India until recently, GM and Ford focused mainly on the pricier sedan segment and bigger sport-utility vehicles,
which haven't been as popular as inexpensive hatchbacks.
About three-fourths of India's market is small cars that cost less than $10,000. Ford still doesn't have an
entry-level small car there, and GM didn't start selling its small hatchback -- the Chevrolet Spark -- in India until
late 2007.
Meanwhile, the $4,400 Alto sold by Suzuki's Maruti Suzuki India Ltd. had more than three times the number of
vehicle sales of either GM or Ford last year.
"I think we have not understood properly what [GM] needs to turn an investment into sustainable profitability" in
India, said Stefan Jacoby, GM's head of international operations. "This is what we are intending to correct now
with our product strategy."
When Hyundai entered the Indian market in 1998, the first car it offered was the Santro hatchback. Hyundai's
hatchback range has since expanded to encompass five models there.
Analysts say Indian customers also found it more expensive and time consuming to maintain Ford and GM cars
because the car makers still haven't built extensive dealer and service networks in India.
Detroit's reputation was further damaged by huge recalls last year.
GM had to recall and repair 114,000 Tavera SUVs made in India because they failed to meet emissions
standards. An Indian government panel alleged in October that GM had falsified early emissions tests to get the
SUV on the road.

"To be honest, [the recall] has damaged some part of our image and we are working upon correcting it" through
management changes, Mr. Jacoby said.
Meanwhile, Ford had to recall close to 300,000 cars in India in the past two years to replace faulty parts.
Japanese auto makers have also had to recall some cars, but never on the same scale.
One of the reasons the U.S. companies have had trouble making the right choices in India are financial problems
at home, analysts say. Both companies were sorting out their own troubles for much of the past decade, which
kept them from focusing on India.
Now, GM and Ford are trying to jump start sales in India by making smaller, less expensive models designed with
the Indian driver in mind.
At an auto show in India last month, GM unveiled a prototype SUV called the Chevrolet Adra. Developed by
designers at GM's technical center in Bangalore, the vehicle is targeted at the growing compact SUV segment in
India.
GM introduced the $8,000 Chevrolet Sail U-VA hatchback in November 2012, following it up with a compact car
based on the same platform in February and its Enjoy van in May.
Mr. Jacoby said GM will introduce 20 new models or variants in India in the next six years.
Ford's compact SUV, the EcoSport, was launched last year and has been a surprise hit. It has a starting price tag
of about $9,000. Last month, Ford unveiled the prototype of a new Figo compact car, which is expected to be
produced in India by next year.
"Sustained growth is best achieved with a very solid foundation of dealer network and manufacturing," said Jim
Farley, Ford's global sales and marketing chief. "It has always been very clear to us that to build a strong
foundation takes some time."
Still, analysts warn it will take more than a few new products for the American companies to get ahead of their
Asian rivals in the race to sell cars in India.
"I would think it will be another three to five years when they can see some meaningful volume, provided two
things happen: We see overall industry volumes growing, and these guys get their India strategy right in terms of
correct product launches at suitable price points," said Deep Mukherjee, director, corporate ratings, at India
Ratings & Research, which is part of Fitch Ratings Inc.
Document J000000020140325ea3p0000x

Ram Pickup Makes Its Move Against GM, Ford --- Chrysler's Truck, Which Trailed Far Behind Rivals, Is Quickly Closing Gap: 'It Has Almost...
Ram Pickup Makes Its Move Against GM, Ford --- Chrysler's Truck, Which Trailed Far Behind Rivals, Is
Quickly Closing Gap: 'It Has Almost Been a Rebirth' for the Brand
By Christina Rogers
1,218 words
21 March 2014
J
B6
English
For more than a decade, Kyle Hayes of Corsicana, Texas, was a loyal Chevrolet truck buyer, owning one
Silverado after another since he was old enough to drive.
But when it came time to trade in his 2012 Silverado heavy-duty truck last fall, he had a change of heart, opting
for a Ram truck.
"The biggest thing was the quality of the interior," said Mr. Hayes, 29 years old, who works in the farm and ranch
trade and mostly uses his truck for business. "It is a whole lot nicer truck. My only complaint is that it doesn't wash
itself."
For decades, Ford Motor Co. and General Motors Co. have dominated the large pickup truck market in the U.S.,
each selling over 650,000 pickups a year, with Ram trailing as a distant third.
Now, that is starting to change. Under Italian auto maker Fiat SpA, Chrysler Group LLC's Ram brand has vastly
improved the look and performance of its truck -- while aggressively pricing and marketing it against competitors
-- and is quickly closing the gap, analysts say.
Ram's run is a headache for its larger rivals, particularly GM, which recently completed costly overhauls of its two
large pickups and is trying to get higher prices for them.
Ram's pickup truck sales shot up 21% last year to 355,700 units. Last year, sales of GM's large trucks grew 16%
to 664,800. So far this year, GM's new pickups are down compared with a year earlier, while Ram pickup sales
are up 24%.
For the Detroit auto makers, there isn't a market niche more important than large pickups, which generate huge
profits and command fierce brand loyalty. Analysts estimate that for each truck sold, auto companies earn
between $8,000 and $10,000 in profit, and ceding share could have costly repercussions on the bottom line.
"I do see it as a three-way race now," said Tom Libby, an auto analyst with IHS Automotive. "It has almost been a
rebirth of Ram."
The jump in sales of Ram pickups is good news for Fiat Chrysler Automobiles NV's Chief Executive Sergio
Marchionne, who needs the truck to keep generating big profits as Fiat Chrysler tries to overhaul its global lineup.
Fiat fully acquired Chrysler in January.
While Ram last redesigned its truck in 2009, the auto maker has continued to refine the vehicle, giving it plusher
interiors, expanding the range of price points and premium options and adding new technology that has allowed it
to leapfrog rivals on fuel economy.
Last year, for the first time, Consumer Reports named the Ram 1500 its top pick for large trucks and added the
pickup to its recommended list. The magazine cited the truck's smooth ride, comfortable interior and top-notch
fuel economy.
Jake Fisher, director of Consumer Reports' Auto Test Center, described it as "surprisingly luxurious and refined,
but still fully capable of doing hard work when needed."

In the past five years, Ram's pickup truck sales have more than doubled and the brand's share of U.S. large truck
sales has jumped 2.7 percentage points, according to Autodata Corp. In contrast, GM's share has slipped 3.4
percentage points and Ford's is up 2.9.
Last year, for every one buyer Ram lost to Chevrolet, it took nearly two back, a flip-flop from five years ago, when
it was losing more buyers to GM than it gained, according by IHS Automotive, citing new-vehicle registration data.
GM officials say the problem is that they've chosen not to offer bigger discounts to match those offered by Ford
and Chrysler.
Jim Cain, a company spokesman, said GM has done well selling more premium-priced trucks, but has struggled
on the lower end where buyers are more influenced by discounts.
"The sales are down. That much is plain, and what we're trying to do is market our way back up the league
tables," he said.
Chuck Stevens, GM's chief financial officer, told analysts at UBS AG this month that the company aims to do a
better job selling its lower-priced trucks, but won't change its pricing strategy, according to a report by the bank.
The average GM truck sold for $38,100, up $4,600, in February from a year ago, while GM spent about a $1,000
less on discounts, according to J.D. Power data provided by GM. In contrast, Ram trucks averaged $35,700 and
Ford's F-series averaged $38,600 that same month.
GM dealers were sitting on 119 days' worth of unsold Silverados as of the end of February. Ram had hefty stocks,
too, with 114 days' supply, according to Autodata figures. Ford F-series inventories were lower at 98 days' supply.
Some Chevy dealers say GM may need to soften its stand against deeper discounts.
Mike Shaw, a GM dealer with stores in Colorado, Texas and Louisiana, said the company is under pressure to
improve its large pickup sales, which were down 13% the first two months this year. "They can't end up in the
same place in March," he said adding that he sees a discount war brewing in the large truck market. "I think the
first shots have been fired."
The ingredients for the Ram's gains start with a relatively old truck that was last fully redesigned before Chrysler's
bankruptcy.
Since then, the company has added new variations that have expanded the price band on both the lower and
upper end.
In 2010, it introduced the Laramie Longhorn, an ultra-premium model starting at $46,000 with saddle-leather
seats and a Western theme, going after the luxury truck market long dominated by Ford.
Two years later, Ram rolled out a heavily updated 1500 light-duty pickup packed with new technology, including
an eight-speed transmission and V6 engine combination that put the truck's fuel economy at the top of the class
at 25 miles a gallon.
A new diesel version of its light-duty truck is arriving at dealerships now that gets an EPA-rated 28 mpg, raising
the fuel-economy bar even further.
To get buyers to give Ram a try, Reid Bigland, the Ram brand's chief executive, said marketers have hit the
ground, going to places where truck buyers congregate, like Friday night football games at local high schools.
"The key there is to get people into our trucks, so they can get behind the wheel and see what we've done," Mr.
Bigland said.
Ram also has offered some attractive deals, including up to $6,200 off on its 2014 Ram 1500 crew cab this
month. However, buyers also are paying more for the truck. The average Ram pickup sold for about $500 more in
February compared with the same month last year, according to J.D. Power.
"When it comes to Ram, we don't aspire to be the biggest but we do aspire to be the best," Mr. Bigland said.
Document J000000020140321ea3l0001g

Businesses Rethink Russia as New Risks Emerge
Businesses Rethink Russia as New Risks Emerge

By Lukas I. Alpert in Moscow and Jan Hromadko and Friedrich Geiger in Frankfurt
1,030 words
18 March 2014
J
B1
English
Ford Motor Co. is reassessing its Russian joint venture as relations sour between the West and Russia -- a sign
that foreign businesses are thinking twice about the market after Crimeans voted Sunday to secede from Ukraine
and join Russia.
Yet Pirelli & Co. on Monday announced a $695 million deal in which Russian state-owned oil company OAO
Rosneft will become the Italian tire maker's largest shareholder. And German utility RWE AG said Sunday it
would sell its oil-and-gas subsidiary to a company controlled by Russian tycoon Mikhail Fridman for more than $7
billion.
Those deals indicate how deeply the business ties between Russia and Europe run. Western companies, from
car makers to yogurt producers, have invested billions of dollars in Russia over the past 20 years and have much
at stake. Recently, though, earnings have been squeezed by Russia's slowing economy, weakening currency and
unpredictable legal system.
The landscape became riskier on Monday as U.S. and European Union officials imposed sanctions against
Russian and Ukrainian officials. The West hasn't imposed broad trade penalties.
"Tough economic sanctions would quickly weaken not only the Russian economy, but also Europe's economy,"
said Eckhard Cordes, chairman of the Eastern Committee of German Business, a trade group focused on
economic relations with the former Soviet Union.
The Ukraine crisis was only one factor affecting the Ford joint venture. Ford Sollers said it is considering
production cutbacks amid shrinking demand and a sharp drop in the ruble. And the people close to the Pirelli and
RWE deals said they had been in development for weeks.
Companies in Western Europe are getting edgy, however.
Concerns are growing among members of the German-Russian Chamber of Commerce in Moscow, said
chamber Chairman Michael Harms. Germany is one of Russia's largest foreign investors and trading partners.
Companies increasingly are seeking advice on how to handle Russia's weakening economy and ruble, he said.
"And now we have a problem of a massive lost in trust in the Russian government, which is further exacerbated
by concerns over how potential economic sanctions are going to affect business," Mr. Harms said.
Andreas Knaul, head of the Russia branch of consulting firm Rodl & Partner in Moscow, said some clients froze
new investment plans. His clients, predominantly midsize German companies, don't expect a significant impact
from the West's moves against Russian and Ukranian officials, he said. The bigger concerns would be asset
seizures by Russia or EU bans of exports to Russia, he said.
Europe's two largest oil companies, BP PLC and Royal Dutch Shell PLC, have significant assets in Russia -- and
long histories of dealing with complications in the country. BP acquired about 20% of Rosneft in exchange for
BP's exit from their increasingly politicized TNK-BP joint venture. The Rosneft stake accounted for more than 30%
of BP's oil and natural-gas production in the fourth quarter.
BP declined to comment on the situation in Russia. Jason Kenney, an analyst at Banco Santander, said that even
if sanctions are expanded, BP likely will continue to collect earnings from Rosneft.

At French dairy group Danone SA, Russia accounted for 11% of sales last year. Danone has more than 20 plants
in Russia and is the leading producer of milk and dairy products there. A Danone spokeswoman didn't respond to
requests to comment.
Societe Generale SA has made Russia the cornerstone of its international expansion. The French lender bought
a 20% stake in Rosbank OAO for $634 million in 2006 to enter the then-promising market. Societe Generale has
since spent an estimated $5.5 billion to acquire 92.4% of Rosbank, one of Russia's largest private banks. Societe
Generale reported 1.42 billion euros ($1.98 billion) in revenue from Russia for last year.
Chief Executive Frederic Oudea said Friday he expected that any EU sanctions against Russia to remain limited
as both regions have too much to lose.
"It can create, for a short period of time, less access to international markets," Mr. Oudea said on CNBC. He
pledged a long-term commitment to Russia: "The link will remain strong with Europe."
A factor strengthening that link is Russian gas, which Europe relies on for energy and as an ingredient for
chemical products. Italian oil company ENI SpA is the largest corporate client by volume for Russian
state-controlled gas company OAO Gazprom, which provides 18% of Italy's needs.
Cars from the West, which have largely replaced inefficient Soviet models, are an obvious sign of Russia's global
integration. Ford has been one of the fastest-growing foreign car makers in Russia, boosting production in the
country to seven lines from two in the past two years. But its sales dropped 18% last year as demand for compact
models plunged.
"We are reviewing our operations and are working on a major new plan," spokeswoman Elizaveta Novikova said.
"We have not committed to anything."
Auto-industry experts had predicted that Russia -- where annual sales have increased more than 30% in recent
years -- would soon pass Germany as Europe's top auto market.
The market's promise led several foreign producers to invest billions of dollars in ramping up Russian production
as sales slumped elsewhere in Europe. General Motors Co. in 2012 pledged $1 billion to bring Russian capacity
to 350,000 cars a year by 2018.
Renault SA in 2008 paid $1 billion for a 25% stake in AvtoVAZ OAO, which makes Russia's top-selling Lada car.
The French auto maker invested an additional $366 million and expects to lift the stake it shares with partner
Nissan Motor Co. to 74.5% of AvtoVAZ by the middle of this year.
"We continue to monitor the evolution of the situation closely," Renault said Monday. "The recent disruptions do
not diminish the potential of the Russian automotive market which is far from being saturated."
---
Harriet Torry, Justin Scheck, Noemie Bisserbe and Gilles Castonguay contributed to this article.
Document J000000020140318ea3i0002f

Russian rally on Wall Street ; U.S. stocks with Russian exposure sigh with relief
MONEY
Russian rally on Wall Street ; U.S. stocks with Russian exposure sigh with relief
Adam Shell
Adam Shell, @adamshell, USA TODAY
641 words
18 March 2014
USAT
FIRST
B.1
English
The USA's exposure to Russia isn't massive by any stretch, but it is increasing, thanks to a growing middle class
in Europe that is snapping up U.S. products, such as cars, fast food, soda and snacks.
That's why any U.S.-led economic sanctions against Russia, and potential backlash and retaliation from an angry
Kremlin, could squeeze the earnings of some U.S. firms that do business there, says Joe Quinlan, chief market
strategist at U.S. Trust.
Data supplied by U.S. Trust show U.S. investment in Russia totaled $14.1 billion in 2012, the latest figures
available, which accounts for just 0.3% of total U.S. global investment. U.S. sales in Russia totaled $45.8 billion in
2012, with earnings of $1.5 billion. U.S. exports to Russia account for just 0.7% of the the nation's total exports.
Still, any rift between the U.S. and Russia could spell trouble for U.S. firms doing business in Moscow and other
Russian cities. So far, neither the U.S. nor Russia has announced broad punitive economic sanctions, which gave
the broader stock market a big lift Monday, despite the controversial yet peaceful vote Sunday in Crimea to break
from Ukraine and reunify with Russia.
Here are a handful of companies that could be impacted by the Ukraine-Russia crisis:
Ford Motor. The automaker, which established its first dealership network in Russia back in 1991 and its first
manufacturing facility in 2002, upped its stake there in 2011 with a joint venture with Sollers, which includes an
assembly plant in St. Petersburg.
Ford Sollers announced last year the sale of the 1 millionth Ford car sold to a Russian customer. The 50-50
Sollers joint venture announced plans to build a $274 million engine plant elsewhere in Russia, as well as its
plans to launch the sale of the all-new "EcoSport" SUV in Russia. Last year, full Russia-based production of the
Ford Explorer began. Ford shares closed Monday up 1.3% to $15.28.
General Motors. Russia is the fifth-biggest market for GM's Chevrolet brand, according to GM. Last year, the
automaker sold 174,649 vehicles in Russia, a drop of 14.8% from the prior year. Still, Russia is a big market for
the U.S. automaker.
GM shares, which have been hampered by a massive recall, finished up 1.6% to $34.63.
PepsiCo. The seller of soda and snacks got 7.4% of its $66.4 billion in 2013 revenue from Russia, according to
S&P 500 company data supplied to USA TODAY by Deutsche Bank. PepsiCo sells well- known snack brands,
such as Lay's potato chips, Doritos and Cheetos, and soft drinks such as 7-Up and Pepsi. Pepsi-Co shares
gained 1.3% to $82.05.
U.S. Banks. Citigroup has the biggest exposure of U.S.-based banks in Russia, with $10.3 billion in assets there,
according to data supplied by RBC Capital Markets. Roughly $1.7 billion of that exposure is tied to retail loans to
Russians.
JPMorgan Chase has net Russian exposure of $5.4 billion, RBC says. The bulk of that is tied to lending, with $4.7
billion in loans outstanding.

Citigroup shares gained 1.8% to $47.73, while JPMorgan shares rose 1.4%, to $57.58.
ExxonMobil. In 2011, the U.S. energy giant formed an alliance with Russia's state-controlled petroleum giant
Rosneft to develop "offshore projects of unprecedented scale in the Russian Arctic and Black Sea regions, which
are home to the world's largest hydrocarbon resources base." Exxon shares rose 0.9% to $94.32.
Document USAT000020140318ea3i00017

To Change Tunes, a Nod Will Be as Good as aWink
TECHNOLOGY
Automobiles; SECTAU
To Change Tunes, a Nod Will Be as Good as aWink
By JIM NASH
1,401 words
16 March 2014
The New York Times
NYTF
1
English
Hand gestures from other drivers are a lot like trash talk at playground basketball games: provocative distractions
from an otherwise engaging activity.
But gestures may one day find a higher calling, making driving safer and more enjoyable, judging by the amount
of work being done to develop technology that would read hand and head motions as computer commands.
Automakers, including Mercedes-Benz and Ford, are cautiously installing gesture sensing systems. Others, like
Honda and Hyundai, have applied for gesture patents. Microsoft and Apple have long-range projects with
automakers; both companies, along with Google, have filed for related patents, have purchased gesture-systems
makers or both.
Commands initiated by hand movements are no Harry Potter fantasy, but a reality found in many homes today.
Microsoft's Kinect interface, the infrared-based system in the Xbox 360 console, enables players to control games
solely with body movements.
The most visible example of automotive gesture recognition is the foot-swipe, which will open the rear hatch of a
Ford Escape when someone carrying the key fob wags a foot under the rear bumper. Most proposed gestures
are obvious enough -- hands swiping or pointing, palms facing up or down -- but some involve pantomimes like
cupping an ear. Coming next are waves, winks and nods that are read by video or infrared cameras and
ultrasound sensors.
Gesture technology, which falls under the heading of natural user interfaces, will be more than just another
gadget. It will operate comfort and entertainment features, and even then, would always be backed up with
buttons and voice commands. Researchers say that only about a dozen signs should be used; more would be
onerous.
''It is excruciatingly crucial not to be driven by technology'' when it comes to human-machine interfaces, said
Parrish Hanna, Ford's global director for H.M.I. Gestures have to address a ''pain point,'' he said, not just create
marketing buzz.
The foot-swipe isn't as intuitive as pointing, Mr. Hanna said, but it addresses a pain point -- getting armloads of
groceries into a car. ''As a consumer, once I know about it, I really appreciate it,'' he said.
Behind the wheel, simple gestures that are instantly recognized by a car's computer would help keep drivers'
eyes on the road. Gestures also work better in noisy situations that can foil voice commands.
Computer giants like Apple, Google and Microsoft see a future here, starting with the licensing fees charged for
each vehicle running their operating systems.
Apple, which made gestures on touch screens a must-have feature when it introduced the iPhone, recently made
news when it struck deals with several automakers for the use of its CarPlay control system. Apple executives
have talked -- and talked -- about ''iOS for the Car,'' which would put the Siri personal-assistant app and other
Apple technology on four wheels. More than a dozen carmakers have signed on to the effort, but so far, Honda is
taking the lead.

Late last year, Apple bought PrimeSense, the company that licensed to Microsoft the technology behind early
Kinect Xbox 360 sensors. (Microsoft had moved on to homegrown sensor technology before the buyout.) Besides
the patents Apple got with its purchase, it has its own gesture patent and a patent application for using your gaze
to control a computer. Apple is also recruiting in this area: Last August, it placed an ad for an ''iOS Car
Experience Engineer,'' and in November it sought a gesture-recognition engineer.
Microsoft may be struggling for traction with its mobile strategy, but the company does have advantages in its
Kinect technology. The bigger story is its impressive list of industry partnerships. Besides the work with Ford on
the Sync system, it has partnered with Kia and Fiat, and its software is embedded in BMW, Nissan, Honda and
Aston Martin vehicles as well. And it has been reported to be working on gesture- and face-recognition products.
Still, it is Google that has the most to gain from putting gesture systems in cars. According to company
documents, 90 percent of Google's revenue comes from advertising. One of the best ways to increase ad
revenue is to make sure ads are seen by people most likely to click on them. That means collecting data on
people using Google's browser, Maps, Gmail and other products. Consumer behavior in cars is all but virgin
territory for marketers, and Google is positioned to cash in on it.
Google has multiple efforts underway that could lead it to an automotive future. Last fall, it bought Flutter, a maker
of software that enables people with a webcam to operate Netflix and other apps using signs.
Google seems to be comfortable pushing the limits of what a gesture should control. In a patent application, the
company proposes using gestures not only to operate media systems but windshield wipers and cruise controls
as well.
For carmakers, gestures are arguably sexier than voice systems or touch screens. Focused as designers are on
creating a unique driving experience, gestures are an attractive solution.
BMW engineers and designers are experimenting with six gestures as part of the automaker's ConnectedDrive
electronics package, expected to be available within the next two model years.
This could be part of a broader effort. The research unit of Mercedes-Benz in North America has been hiring
engineers for tasks including 3-D tracking, a necessity in reading gestures. The company's new V-Class vans,
due in Europe this year, will have a 3-D sensor that can tell the difference between a command entered on the
car's touch pad and an accidental brush.
A Mercedes design study introduced in 2011, the F125, was a more ambitious experiment in gesture technology.
That concept had, among other things, a retractable display screen and gullwing doors that were operated by
gestures.
In the United States, Ford's foot-swipe most likely will not be a goodbye wave for the company. It has a patent
application for in-cabin systems using a video camera to capture seven signs. Ford is also working with Microsoft
to outfit its cars with Kinect.
General Motors has been working on gestures with Carnegie Mellon University researchers since at least 2002.
To date, the best it has to offer domestically is a sensor in its Cadillac User Experience media package that, when
approached by a hand, reveals a slate of favorite apps on a touch screen.
G.M.'s Advanced Technical Center in Shanghai, on the other hand, has developed a gesture-and-voice feature
called DiDi Weibo to help Chinese drivers participate in social media on the road.
In South Korea, Hyundai has applied for a patent for gesture-recognition technology, and it's working with two
companies to create a two-layer gesture option.
In the first layer, you press a button behind the steering wheel and look at a feature icon in a heads-up display.
Releasing the button activates the chosen feature. The second layer is a gesture system that manipulates an
interactive screen in the brow of the dash. One demo of the feature shows someone opening video poker games
on the screen.
Hyundai has not confirmed a release date, but it is expected to see production within the next couple of model
years.
Taken together, all of these efforts might seem meek, but the real critics of gestures in cars, oddly, are those
closest to the subject: interface designers.

''It's too much work, too crude and too inaccurate'' for important tasks, said Chris Noessel, director of interaction
design at Cooper Studio, a product design firm based in San Francisco. Gesture recognition is getting attention
now because of popular movies like ''Iron Man'' and ''Minority Report,'' he said.
For the time being, at least, drivers won't look like the inflatable ''air dance'' figures outside tire stores, their
boneless arms in perpetual motion. But the vocabulary of gestures probably will grow, if less profanely.
DRAWINGS: A Google patent filing proposes this gesture as a command for the audio system to play. (AU1);
From left, drawings from a 2013 Microsoft patent application suggests gestures that would serve, from left, as
commands to lower and raise the audio volume and a request for more information. (DRAWINGS BY UNITED
STATES PATENT AND TRADEMARK OFFICE) (AU2)
Document NYTF000020140316ea3g0005v

Congress to Investigate Recall by GM --- Auto Maker Steps Up Internal Probe Amid Questions Over Delayed Response
Congress to Investigate Recall by GM --- Auto Maker Steps Up Internal Probe Amid Questions Over
Delayed Response
By Jeff Bennett and Joseph B. White
1,333 words
11 March 2014
J
A1
English
DETROIT -- General Motors Co. faced new pressure from a powerful member of Congress to explain why it took
nearly a decade to recall 1.6 million vehicles for faulty ignitions linked to 13 deaths, even as the auto maker hired
a high-profile lawyer to lead its internal investigation and stepped up warnings to customers.
Late Monday, the House Energy and Commerce Committee said it would launch an investigation into the slow
recall and hold hearings.
The committee's chairman, Michigan Republican Fred Upton, was the lead sponsor of the last comprehensive
piece of auto safety legislation enacted by Congress, the Tread Act of 2000.
That legislation was a response to a deadly series of accidents involving Ford Motor Co. Explorer sport-utility
vehicles equipped with certain Firestone tires. The Tread Act set requirements for auto makers to more quickly
report fatal accidents related to safety defects, and directed the U.S. Transportation Department to take steps to
improve its ability to analyze data.
"Did the company or regulators miss something that could have flagged these problems sooner? If the answer is
yes, we must learn how and why this happened, and then determine whether this system of reporting and
analyzing complaints that Congress created to save lives is being implemented and working as the law intended,"
Mr. Upton said in a statement Monday.
Earlier Monday, GM said it is bringing in Anton Valukas, the Chicago lawyer who led the court-ordered
investigation of the Lehman Brothers collapse in 2008, to lead the company's own inquiry into the recall. The
move is part of a broader effort by GM to persuade consumers, regulators and lawmakers that it is responding
rapidly.
GM wants to avoid the kind of costly, damaging scandal that engulfed Toyota Motor Corp. in 2010 after the
Japanese auto maker recalled millions of vehicles for problems related to unintended acceleration.
GM initiated a recall on Feb. 13, saying a faulty ignition switch could partially turn off certain vehicles while they
were being driven, disabling their air bags. Drivers have since claimed the cars could become difficult to steer
when the switch malfunctioned, resulting in accidents.
On Monday, GM launched a website to provide customers with information about the recall, warning owners of
the affected vehicles to remove extra weight off their car ignition keys. The National Highway Traffic Safety
Administration has given the auto maker until April 3 to answer 107 questions about its handling of the problem.
GM employees knew about the defect as early as 2004. The company has released a chronology sketching out in
broad terms how the faulty switch was discovered and how the issue bounced around within its engineering
division. The company's disclosures to date don't reveal who was responsible for the timing of the recall.
Meanwhile, the NHTSA hasn't said why it didn't take action after one of its own officials pointed out the potential
problem during a March 2007 meeting. NHTSA officials have declined to comment on the meeting or provide any
documentation about it.
GM is slated to file a second chronology this week detailing why it expanded the initial recall on Feb. 25, nearly
doubling the amount of vehicles affected. The recall covers the 2005-07 Chevrolet Cobalt and Pontiac G5,
2003-07 Saturn Ion, 2006-07 Chevrolet HHR, 2006-07 Pontiac Solstice and 2007 Saturn Sky.
GM has said Chief Executive Mary Barra had no knowledge of the situation in her previous jobs, most recently as
global product chief. She said in a recent letter to employees she "acted without hesitation" when the issue was
brought to her team a few weeks ago.
Even before the recall was announced, GM was facing litigation over alleged problems with the ignition switches.
Marietta, Ga., lawyer Lance Cooper has conducted depositions of GM employees in connection with a lawsuit
filed on behalf of the estate of pediatric nurse Brooke Melton, who was killed in an accident involving a Cobalt.
Mr. Cooper says he was informed during a deposition by a GM employee that the company put together a team in
2011 to investigate the ignition problem. That deposition, reviewed by The Wall Street Journal, indicates the team
was led by GM executive Jim Federico, chief engineer for global compact vehicles.
Mr. Cooper says he was preparing to depose Mr. Federico when GM agreed to settle the lawsuit last year. Mr.
Federico was later succeeded on the team by another executive. Mr. Federico didn't respond to requests for
comment, and GM declined to comment on the executive's role.
The hiring of Mr. Valukas, chairman of the law firm Jenner & Block, comes after Ms. Barra promised in a blog post
to produce an "unvarnished report" on what happened between the time the faulty switch was first discovered and
the initial recall in February.
Mr. Valukas had no comment Monday on the investigative process or timetable.
GM's troubles appear to have begun just as the 2005 Cobalt was being released in 2004. The auto maker
"learned of at least one incident" in which a Cobalt lost engine power because the key moved out of the "run"
position when the driver inadvertently made contact with the key or steering column, according to a chronology of
events submitted by GM to the NHTSA. GM employees were able to "replicate the phenomena during test
drives."
The chronology indicates that an inquiry was opened and a potential solution considered, but given the time
required to implement the changes, cost and effectiveness, the inquiry was closed. In 2005, GM employees
received new reports of Cobalts losing engine power, including in which the key moved out of the "run" position,
the chronology indicates.
The depositions taken by Mr. Cooper, the plaintiffs' lawyer, indicate that GM bought back at least several Cobalts
after consumers, including Wayne, N.J., resident Mary Civardi, complained of stalling.
Ms. Civardi said in a recent interview she began experiencing problems shortly after she purchased her Cobalt in
March 2005. "It will stop in the middle of the road for no reason, or I would turn the corner, and it would stall
without any warning," she said.
She said that after the dealership tested it and returned it, she complained to higher GM customer-service
officials. "Finally they said, 'Return the car,' which I did, and I got another Cobalt, and it has been fine."
In May 2005, a GM engineer proposed that redesigning the key from a slot to a hole which would balance any
additional weight from a key ring and help solve the problem -- a proposal was initially approved and then later
canceled, GM has said.
GM has said it issued a service bulletin in December 2005 to dealers telling them to advise customers to "remove
unessential items from their key chains." The bulletin covered certain Cobalts, HHRs Pontiac Solstices and
Saturn Ions. In October 2006 the bulletin was updated to include the 2007 model Saturn Sky.
A police report from an accident that same month in St. Croix County, Wis., indicates a faulty ignition may have
played a role in that deadly crash.
GM's first reference to fixing the problem was in 2006.
"GM believes the supplier began providing the re-designed ignition switch at some point during the 2007 model
year," according to the company's chronology.
In March 2007, GM employees met with a NHTSA representative in Washington. NHTSA officials informed GM
employees of a fatal crash that occurred in July 2005 in which a 2005 Cobalt was involved in a front-end collision
in which the air bags didn't deploy.

In February 2009 another inquiry was opened and the ignition-key head was changed for the 2010 model year
Cobalts, GM has said. Production of the Cobalts ended in 2010.
Document J000000020140311ea3b00033

A Mixed Breed Gets a Pedigree
TRUCKING
Automobiles; SECTAU
A Mixed Breed Gets a Pedigree
By TUDOR VAN HAMPTON
336 words
9 March 2014
The New York Times
NYTF
5
English
For years, buyers of large work trucks have pieced together their vehicles from a variety of suppliers, ordering
engines, transmissions and even minor components on an à la carte basis from lengthy menus. That practice is
about to fade from Ford Motor's commercial-vehicle dealerships, a result of the automaker's push to streamline
manufacturing and offer more efficient packages.
Ford will build its 2016 F-650 and F-750 medium-duty trucks, introduced Tuesday at the Work Truck Show, an
industry event in Indianapolis, with fully integrated powertrains and chassis. The arrival of the new trucks in the
spring of 2015 will end Ford's 12-year partnership with Navistar International, a joint venture called Blue Diamond
Truck, and move production to Avon Lake, Ohio, from Escobedo, Mexico.
''It's time for us to control our own destiny with this vehicle,'' Todd Kaufman, an F-Series marketing manager, said.
The move, Ford says, will help the company make refinements to performance, handling, ride and other areas by
integrating the truck's components seamlessly.
Aside from styling changes, which include a taller, bolder grille that increases airflow to the engine compartment,
the 2016 Ford F-650 and F-750 will have new powertrain choices. The company is upgrading its 6.7-liter Power
Stroke V8 turbodiesel, and the 6.8-liter V10 gasoline engine -- the only gasoline engine offered in this size of truck
-- will carry over to the 2016 models. The 6.7-liter Cummins turbodiesel will no longer be offered.
Among the benefits will be an improvement in comfort for users. At idle, the revised Power Stroke V8 will be 25
percent quieter inside the cab than the outgoing 6.7-liter Cummins diesel, Ford estimates.
''You can actually have a conversation in the cab of this truck,'' Mr. Kaufman said.
Ford's 2016 medium-duty F-Series trucks will use fewer components from outside suppliers. (PHOTOGRAPH BY
FORD MOTOR)
Document NYTF000020140309ea390003q

Corporate News: Tiny Cars Are Popular, but Profits Elusive
Corporate News: Tiny Cars Are Popular, but Profits Elusive

By Gilles Castonguay and David Pearson
853 words
8 March 2014
J
B3
English
GENEVA -- Big auto makers are taking a fresh crack at solving the problem of how to make money on the tiny
cars that European regulators, and many consumers, want them to sell.
Profit margins on what are commonly known as city or mini cars are wafer-thin. Many of them sell for less than
10,000 euros ($13,860), barely more than the cost of making them. Eric Hauser, automotive analyst at ISI in
London, reckons that margins on city cars can only be 3% at best.
Auto makers committed to the European market are under pressure to change that math if they are to avoid
losing money on this type of car, which will be required to help meet the European Union's tough new emissions
standards for 2021.
What's more, they hope city cars can attract younger buyers to their brands for future growth -- even if many
current buyers in the segment are middle-aged.
France's PSA Peugeot Citroen SA says that far and away the main buyers for its Peugeot 108 car are young,
professional women who account for more than 70% of the purchasers in the segment.
Analysts say customers are attracted by the car's tight turning circle that makes parking in small spaces easy.
City cars also attract first-time buyers on tight budgets who prefer not to buy a used car. Also, many middle-class
urban households have such a car as a second vehicle.
Anil Valsan, lead automotive analyst at Ernst & Young, expects most of the future growth in demand for city cars
to come from Eastern Europe. He projects a rise to 280,000 units in 2020, from 86,000 units in 2013, citing
industry data. "That's a 17.7% average annual compound growth rate," he said.
Overall sales in Europe could reach 1.6 million by 2020, up from 1.2 million today, Mr. Valsan said.
Executives from mass-market brands such as Renault SA, Toyota Motor Corp., PSA Peugeot Citroen and others
point to their latest city cars, which are being showcased at the Geneva motor show this week, to argue that they
can make money in this market segment, as long as certain conditions are met.
First, manufacturing has to be located outside Western Europe. That locks in lower labor costs -- a more critical
factor for low-price models than a German-built luxury sedan.
Second, the development and production costs have to be shared.
Renault developed its new rear-engine Twingo with Germany's Daimler AG, which is using the same
underpinnings for its new Smart ForFour city car. Both cars will be made on the same production line at Renault's
lower-cost plant in Slovenia.
Beneath the body shape and interior, the new version of the Toyota Aygo is essentially the same car as the
Peugeot 108 and the Citroen C1.
One plant in the Czech Republic builds all three, at production costs that are much lower than those in Western
Europe. The new generation of these cars gives each model a distinct appearance to distinguish one from the
other.

Dider Leroy, president and chief executive of Toyota in Europe, said the company wouldn't make any money on
the Aygo if it had to build it by itself.
Ford Motor Co. builds its Ka car at a plant in Tychy, Poland, where Fiat Chrysler Automobiles NV churns out its
Fiat 500 city car.
A third element is offering more customization and technology to lure buyers on a budget with the promise of a
car that is at least somewhat tailored to their style.
Car makers are offering a variety of bright color combinations for the bodies and roofs of their respective models,
as well as replaceable plastic trim parts to allow for low-cost variations in the look of the cabin, exterior and
wheels.
One recent fad is fold-back canvas roofs for drivers who like to feel the wind in their hair, without having to buy a
luxury convertible or roadster.
To avoid slowing up assembly lines, the add-on items are being installed by dealers, who welcome the newfound
source of revenue to supplement relatively low margins on the sale of the basic car. Dealers also benefit when
customers, tired of one color scheme, pay the dealer to change the look of their car.
Martin Golka, group product manager at the Opel brand of General Motors Co, which unveiled a crossover
version of the car called Adam Rocks, said the goal is to make people spend their money on personalization
options.
"We sell very few base models and a lot of richly equipped vehicles, and that's where we make the profits," he
said.
With a base price of around 11,500 euros, the sticker price for a top-end Adam model with a full toolbox of options
can be double that. Opel is particularly pleased because about 50% of Adam buyers have never owned an Opel
before.
Document J000000020140308ea380002b

Corporate Watch
Corporate Watch
713 words
7 March 2014
J
B4
English
Ford Motor Co. Chief Executive Officer Alan Mulally's existing shares and options in the auto maker, prior to the
latest grant, are valued at about $240 million. A Corporate Watch brief on Friday about Mr. Mulally's
compensation incorrectly said they were worth nearly $500 million.
(WSJ March 10, 2014)
(END)
WALT DISNEY
Interactive Unit Lays Off
A Quarter of Its Staff
Walt Disney Co.'s long-troubled interactive unit is laying off 700 workers, or about one-quarter of its staff, as it
continues to consolidate its online and videogame businesses.
The cuts have been in the works since last month, although the number of layoffs is on the high end of
expectations. Along with eliminating jobs, Disney will produce fewer games for such social networks as Facebook
and less online content for families and mothers. The media company had already pulled back from most of its
production of games for consoles like the Xbox and PlayStation.
The sole exception is "Infinity," its successful videogame franchise released in August that brings together many
of the company's characters and has sold more than three million units. Disney Interactive President Jimmy Pitaro
said "Infinity" is one of a few areas in which his division plans to accelerate its investment.
-- Ben Fritz
---
APPLE
Request for Injunction
Against Samsung Rejected
A U.S. judge denied Apple Inc.'s request for a permanent injunction against Samsung Electronics Co.'s products,
dealing a setback in the company's fight over patents used in mobile products.
But separately, U.S. District Judge Lucy Koh, who presided over the original trial between the technology
companies in their patent litigation that began in 2011, completed a $929.8 million damages award to Apple,
according to court documents filed with the U.S. district court for the North District of California on Thursday.
Samsung said it would appeal the amount of damages, noting it is "based on erroneous calculation methods."
In November, a federal jury in San Jose, Calif., ordered Samsung to pay Apple $290 million in damages for
infringing some Apple patents. That came on top of the $640 million from the original award that wasn't in dispute
in a retrial.

In December, Apple had sought a ban on Samsung's products that it claims infringe on its patents, saying that
monetary damages "are not an adequate remedy."
Last month, Apple and Samsung said they failed to agree on a settlement in their patent dispute in the U.S.,
setting the stage for the companies to face each other again in court in March.
-- Min-Jeong Lee
---
TRIBUNE
Ex-Time Inc. Chief to Lead
Newspaper Operation
Tribune Co. named former Time Inc. Chief Executive Jack Griffin as CEO of the newspaper-publishing division it
plans to spin off into a separate company later this year.
Eddy Hartenstein, who is publisher of the Los Angeles Times and led Tribune Co. through its bankruptcy process,
will become the new publishing company's chairman, Tribune said Thursday.
Mr. Griffin is the CEO of Empirical Media, a consulting firm for publishing companies that he co-founded several
years ago. Before that, he served briefly as the CEO of Time Inc. and as a longtime executive at magazine
publisher Meredith Corp.
Mr. Griffin said his top priority for Tribune lay in better monetizing the papers' websites through pay models and in
expanding readership on mobile devices.
"Getting the digital portfolio right is a continuing task and challenge," Mr. Griffin said.
-- William Launder
---
FORD MOTOR
CEO Gets Restricted Stock
Valued at $13.8 Million
Ford Motor Co. granted Chief Executive Alan Mulally 882,352 shares of restricted stock, valued at $13.8 million
based on Thursday's stock price, and another 613,747 options that currently have marginal value because of the
strike price.
The company announced stock grants in a regulatory filing, along with those of other top executives.
Mr. Mulally cannot sell the shares until March 2016 and must wait three years as well to exercise all the options if
he chooses.
Based on the company's 2013 proxy statement, Mr. Mulally's existing shares and options, before the recent grant,
are valued at nearly $500 million.
-- Mike Ramsey
Document J000000020140307ea370002y

Incentives Drive Auto Sales
Incentives Drive Auto Sales

By John Kell
370 words
5 March 2014
J
English
Are consumers paying more for their newest vehicles? The latest data suggested pricing, like the industry's
new-auto sales for February, was a bit choppy.
February is notable for two high-profile auto-industry events: the Super Bowl, when a number of auto makers
unveil big advertising campaigns, and Presidents Day weekend, the first big holiday-shopping weekend of the
year for new cars. That weekend accounts for about 12% of all February car sales, according to online
automotive-information provider Edmunds.com.
Observers TrueCar and Kelley Blue Book each reported that February transaction prices were higher than a year
ago, though incentives to entice consumers to complete a deal appeared to be keeping a lid on the prices
shoppers were paying.
TrueCar, for example, estimated the average transaction price for light vehicles in the U.S. was $32,074 in
February, up $1,110 from last year. That was the highest level for February in the past five years, TrueCar said.
But incentive spending also picked up, jumping 5.1% to $2,633 on average. Nearly all major auto makers tracked
by TrueCar spent more on incentives, which can come in the form of cash, low financing and special lease
programs.
Part of the reason incentives were high, according to some observers, could be attributed to bloated inventory.
Inventories for General Motors Co. and Fiat Chrysler Automobiles were very high in January, and remained lofty
in February.
Interestingly, Fiat Chrysler commanded higher transaction prices this February and spent less on incentives,
according to TrueCar and Kelley Blue Book data. But the auto maker was one of the strongest performers for the
month, with overall sales up 11%.
Incentive spending sharply climbed at Honda Motor Co. and Hyundai Motor Co. -- though those efforts weren't
enough to entice more sales. Honda's U.S. sales dropped 7% last month, while Hyundai's decreased 6.3%.
At Ford Motor Co., incentive spending increased about 16%, TrueCar said, but General Motors spent less. Both
reported declines in overall sales in February, signaling some auto makers are still facing some weather-related
challenges in the short term.
Document J000000020140305ea350002s

Corporate News: U.S. Auto Sales Drop at Top Sellers --- Winter Storms Again a Factor as Largest Slide; Gains at Chrysler and Nissan Push Total to Flat Line
Corporate News: U.S. Auto Sales Drop at Top Sellers --- Winter Storms Again a Factor as Largest Slide;
Gains at Chrysler and Nissan Push Total to Flat Line
By Neal E. Boudette
679 words
4 March 2014
J
B3
English
Winter storms chilled U.S. auto demand in February as overall sales were flat on big gains at Fiat Chrysler
Automobiles NV and Nissan Motor Co.
Single-digit percentage declines at General Motors Co., Ford Motor Co., Toyota Motor Corp. and several others
kept sales at 1.19 million cars and light trucks last month, off slightly from a year earlier, said researcher Autodata
Corp.
Dealers and auto makers remain optimistic and are expecting consumers to stream back into showrooms as the
weather moderates in the coming months.
"If we get anywhere near normal temperatures, sales will explode," said Wes Lutz, owner of Extreme Chrysler
Dodge Jeep in Jackson, Mich. "All dealers have inventory, so you know the manufacturers will ramp up
incentives. People are still ready to buy. It's just that they stay away if we're snowed in."
Ford's sales fell 6.5% in February compared with a year ago. Ford still sold more than 55,000 F-series pickup
trucks, up 2.6% from last year and the best February for the highly profitable model in eight years. Honda Motor
Co. said U.S. sales declined 7% to 100,405, primarily because of flagging demand for the Accord sedan and Pilot
sport-utility vehicle. Toyota's sales declined 4.3% to 159,284 vehicles.
General Motors suffered a drop of just 1%, to 222,104 cars and trucks. But sales of GM's most important new
model, the redesigned Silverado pickup, fell 12%. The truck has been losing market share in recent months to
Ford and Fiat Chrysler as GM has tried to avoid deep discounts.
Heavy snow slammed the Midwest and Northeast several times during the month, and even places as far south
as New Orleans and Atlanta had snowfalls that forced dealerships to close and kept car shoppers at home,
damping auto sales for a second month in a row.
Mike Shaw, who owns dealerships in Colorado, Texas and Louisiana, said he saw business pick up significantly
toward the end of February. "The weather really shut it down. But then it came back, which proves the underlying
strength of the market," he said. "I'm expecting a great month in March with a rebound off the weather."
The seasonally adjusted annualized selling pace for February was 15.34 million vehicles, unchanged from a year
ago but an improvement over January's 15.24 million, said Autodata.
Fiat Chrysler said its sales jumped 11% to 154,866 vehicles, driven by a 26% surge in Ram sales. Cut-rate leases
helped lift demand for the trucks.
Mr. Lutz, the Michigan dealer, said he offered 24-month leases on well-equipped Rams for under $300 a month
with no money down -- a tempting offer for a vehicle with a sticker price of about $40,000, he said.
Nissan increased sales last month by nearly 16% over a year earlier to 115,360 vehicles. According to researcher
Kelley Blue Book, the average sale price of a Nissan vehicle was $27,906, down 2.5% from a year ago, an
indication that Nissan is using discounts and other sales incentives to pump up sales. By comparison, average
prices for the Detroit Three, plus Toyota and Honda, were up last month.

While overall sales remain unchanged, the vehicle types Americans are buying are shifting away from cars and
toward sport-utility vehicles and trucks. Last month trucks and SUVs made up 51% of all light vehicles purchased,
and cars were 49%. A year ago, it was the opposite.
Volkswagen AG is feeling the pinch from that shift. Its VW brand posted a February sales drop of 13.8% to 27,112
cars. The VW brand is barely a player in SUVs, which now make up about a third of the total market.
---
Christina Rogers contributed to this article.
Document J000000020140304ea340003s

Consumer Reports: Lexus Is No. 1
MOTORING
Automobiles; SECTAU
Consumer Reports: Lexus Is No. 1
By CHERYL JENSEN
739 words
2 March 2014
The New York Times
NYTF
7
English
For the second year, Lexus has received the top overall score in the Consumer Reports' Car Brand Report Cards.
Acura took second place, and Audi was third.
Japanese automakers dominated the list, taking seven of the top 10 spots, with the remainder going to the
German marques Audi, Mercedes-Benz and BMW. Luxury brands, with the exception of Cadillac, did better than
their nonluxury siblings.
Lexus was the only brand to achieve an excellent overall reliability score. The lowest-scoring brands in the survey
were Ford and Jeep, which tied for last place.
According to Consumer Reports, the intent of the Brand Report Cards is to show which brands are producing the
best all-around vehicles. Overall scores are calculated using scores from road tests and for predicted reliability.
The reliability scores come from information provided by the magazine's 1.1 million subscribers during its annual
auto survey, about problems with their vehicles.
Scores ranged from the 79 points earned by Lexus to 50 for Jeep and Ford. Following Lexus were Acura, with a
score of 75, and Audi, with 74. The magazine's editors noted that Audi moved up to third place this year, from
eighth last year, because its cars have ''beautifully finished interiors,'' ''responsive handling'' and a ''range of
fuel-sipping engines.'' Audi's new models earned the automaker the highest average road-test score.
''We've seen Audi making really great cars for a while, and we've seen the reliability improve,'' Jake Fisher, the
automotive test director for Consumer Reports, said in a telephone interview. ''You put that together and they
come in third.''
Rounding out the top 10 were Subaru (72), Toyota (72), Mazda (71), Honda (70), Infiniti (69), Mercedes-Benz
(68) and BMW (60). This year, 260 vehicles from 23 brands were included.
For a brand to qualify for inclusion, Consumer Reports requires road-test and reliability data from at least three of
its nameplates. Fiat, Jaguar, Land Rover, Lincoln, Mini, Mitsubishi, Porsche, Ram, Scion, Smart and Tesla were
not included in the 2014 rankings.
Consumer Reports said the domestic brands' performance was a ''mixed bag.'' The top-performing American
brands were Buick (63), GMC (63) and Chrysler (62). They fell the middle of the pack. In addition to Ford and
Jeep, which tied for the lowest score (50), the bottom five slots were rounded out by Dodge (53), Cadillac (54)
and Chevrolet (56).
Consumer Reports said Jeep's problems stemmed from ''spotty reliability and mediocre road test'' scores. Last
year, Cadillac was the leading American brand; this year it was G.M.'s lowest-scoring brand, mainly because of
problems with its CUE infotainment system.
Mr. Fisher called Ford ''a sad story'' because its road-test scores were good, but it scored below average in
reliability. In 2011, Ford was fifth, but by 2013 had fallen to the bottom five because of problems with three of its
technologies: the MyFord Touch infotainment system, automatic transmissions in the Focus and Fiesta models
and its 1.6- and 2-liter EcoBoost turbocharged 4-cylinder engines.

Even though Ford has changed MyFord Touch, the problems ''haven't gone away,'' Mr. Fisher said. ''And now
they are putting these systems into different product lines, and we are seeing the whole product line being
affected. The story with Ford is just a proliferation of those problems. The disease is spreading.''
In the Annual Auto Issue, to be released in March, Consumer Reports also issues Top Picks in each of 10
categories chosen from among the more than 260 vehicles the magazine road-tested. This year, the all-electric
Tesla Model S was chosen as Best Overall based on what the magazine called its ''exceptional performance'' and
its many ''impressive technological innovations.''
The Ram 1500 took first place in the pickup-truck category and was the first Chrysler vehicle in 16 years to be a
Top Pick. The redesigned Subaru Forester replaced the Honda CR-V as the top pick among small S.U.V.s, and
the Hyundai Santa Fe replaced the Toyota Highlander as the top pick of midsize S.U.V.s. The Honda Accord was
the top pick in the midsize sedan category.
TOP PICKS: Clockwise from above left, the Subaru Forester, the Hyundai Santa Fe and the Honda Accord.
(PHOTOGRAPHS BY SUBARU OF AMERICA; HYUNDAI MOTOR AMERICA; AMERICAN HONDA)
Document NYTF000020140302ea320002w

Lexus Ranked No. 1 on Consumer Reports' Annual Brand Report Cards
Business/Financial Desk; SECT

Lexus Ranked No. 1 on Consumer Reports' Annual Brand Report Cards
By CHERYL JENSEN
827 words
26 February 2014
The New York Times
NYTF
The New York Times on the Web
English
For the second year, Lexus, Toyota's luxury brand, earned the top overall score in the Consumer Reports' Car
Brand Report Cards, the publication announced Tuesday. Honda's Acura luxury division took second place, and
Audi was third.
Japanese automakers dominated the list, taking seven of the top 10 spots, with the remainder going to the
German marques Audi, Mercedes-Benz and BMW. Luxury brands, with the exception of Cadillac, did better than
their nonluxury siblings. Lexus was the only brand to achieve an excellent average overall reliability score. The
lowest-scoring brands in the survey were Ford and Jeep, which tied for last place.
According to Consumer Reports, the intent of the Brand Report Cards is to show which brands are producing the
best all-around vehicles. Overall scores are calculated using road-test scores and scores for predicted reliability.
Reliability scores come from information provided by the magazine's 1.1 million subscribers about problems with
their vehicles during its Annual Auto Survey.
Scores ranged from the 79 points earned by Lexus to Jeep's 50. Following Lexus were Acura, with a score of 75,
and Audi, Volkswagen's upscale division, with a score of 74. The magazine's editors noted that Audi moved up
from eighth place last year to third this year because its cars have ''beautifully finished interiors,'' ''responsive
handling'' and a ''range of fuel-sipping engines.'' Audi's new models earned the automaker the highest average
road-test score.
''We've seen Audi making really great cars for a while, and we've seen the reliability improve,'' Jake Fisher,
director of Consumer Reports automotive testing, said in a telephone interview. ''You put that together and they
come in third.''
Rounding out the top 10 were Subaru (72), Toyota (72), Mazda (71), Honda (70), Infiniti (69), Mercedes-Benz
(68) and BMW (60). Lexus was the only brand to achieve an excellent average overall reliability score.
This year, 260 vehicles from 23 brands were included in the report. For a brand to qualify for inclusion, Consumer
Reports requires road-test and reliability data from at least three of its nameplates. Fiat, Jaguar, Land Rover,
Lincoln, Mini, Mitsubishi, Porsche, Ram, Scion, Smart and Tesla were not included in the 2014 rankings.
Consumer Reports said performance by domestic brands was a ''mixed bag.'' The top-performing American
brands were Buick (63), GMC (63) and Chrysler (62). They occupied the middle of the pack, and Ford and Jeep
were tied for the lowest score: 50. Rounding out the bottom five slots were Dodge (53), Cadillac (54) and
Chevrolet (56).
Consumer Reports said that Jeep's problems stemmed from ''spotty reliability and mediocre road-test'' scores.
Last year, Cadillac was the leading American brand; this year it was G.M.'s lowest-scoring brand, dropping six
places, mainly because of problems with its Cadillac User Experience infotainment system.
''The ATS and CTS are brilliant driving vehicles and competitive with the best Europe has to offer, and then they
put in this system that makes you want to gouge your eyes out just trying to find a radio station,'' Mr. Fisher said.
''Lexus is a brand that has plenty of features, plenty of electronics and plenty of technology. Lexus proves you can
put that technology in a car and make it so it's reliable, make sure it works and continues to work,'' he said.

Mr. Fisher called Ford ''a sad story'' because its road-test scores were good, but scored below average in
reliability. In 2011, Ford was fifth, but by 2013 had fallen to the bottom five because of problems with three of its
technologies: the MyFord Touch infotainment system, automatic transmissions in the Focus and Fiesta models
and its 1.6- and 2-liter EcoBoost turbocharged 4-cylinder engines.
Even though Ford made changes to MyFord Touch, the problems ''haven't gone away,'' Mr. Fisher said. ''And now
they are putting these systems into different product lines, and we are seeing the whole product line being
affected. The story with Ford is just a proliferation of those problems. The disease is spreading.''
In the Annual Auto Issue, to be released in March, Consumer Reports also issues Top Picks in each of 10
categories chosen from among the more than 260 vehicles the magazine road-tested. This year, the all-electric
Tesla Model S was chosen as Best Overall based on what the magazine called its ''exceptional performance'' and
its many ''impressive technological innovations.''
The Ram 1500 took first place in the pickup-truck category of Top Picks and was the first Chrysler vehicle in 16
years to be a Top Pick. The redesigned Subaru Forester replaced the Honda CR-V as the top pick in the small
S.U.V. category, and the Hyundai Santa Fe replaced the Toyota Highlander in the midsize S.U.V. category.
Document NYTF000020140226ea2q0005l

Ford dumps Microsoft for BlackBerry system
MONEY
Ford dumps Microsoft for BlackBerry system
Chris Woodyard
339 words
25 February 2014
USAT
FINAL
B.2
English
Ford is ditching Microsoft and going with a unit of BlackBerry for the software underlying its cars' Sync
infotainment systems, says an industry source who asked not to be identified because they are not authorized to
speak publicly about the move.
The next generation of the system, which allows people to control their smartphones and other devices by voice
in the car, likely will be based on software from BlackBerry's QNX automotive unit.
A Ford statement did not confirm or deny the changeover, saying:
"Ford works with a variety of partners and suppliers to develop and continuously improve our in-car connectivity
systems for customers. We do not discuss details of our work with others or speculate on future products for
competitive reasons."
The move to QNX could save money over Ford's costs for its Microsoft licensing agreement.
But it will also add more flexibility and speed for the next generation of Sync in the highly competitive in-car
infotainment space.
QNX provides the base code for many different automakers -- the automakers themselves then build their
infotainment on it to meet their own needs and design goals.
Sync, and the touch-screen and voice system upgrade called MyFord Touch, has run into complaints from
consumers.
Some issues have included that it didn't understand voice commands, was too complex, that the screen icons
were too small, the view options too confusing, and more.
That has led to a drop in Ford's overall quality scores in various industry surveys.
QNX would represent a major shift. Ford ballyhooed its original linkup with Microsoft when the Sync system rolled
out, with CEO Alan Mulally going to the Consumer Electronics Show -- the mega-trade show -- to show it off.
While QNX may not be a household name, the company acquired by BlackBerry several years ago is a top-level
auto supplier, with its software powering electronics systems for many major automakers.
photo Ford via Wieck

Document USAT000020140225ea2p0000f

WSJ.D Technology: Digits / wsj.com/digits
WSJ.D Technology: Digits / wsj.com/digits

614 words
25 February 2014
J
B6
English
Nokia Introduces
First Android Phone
Nokia Corp. took the wraps off its low-end Nokia X smartphone, the first in a new line of phones running Google
Inc.'s Android software designed to boost the Finnish company's eroding position in developing markets.
Priced at 89 euros ($122) excluding carrier subsidies and taxes, the smartphone hits an attractive pricing level in
places such as Indonesia and Russia, and fills a hole in Nokia's product portfolio.
Amid the rise in popularity of the Android operating system, thousands of developers are making third-party
software for the platform. The main benefit of the Nokia X range is that they are able to run these apps, said Timo
Toikkanen, the head of Nokia's mobile phones unit.
-- Sven Grundberg
A $25 Smartphone
To Make Its Debut
The developer of the Firefox Web browser may be taking smartphone pricing to a new low.
The Mozilla Foundation at Mobile World Congress on Sunday said it plans to release a new smartphone running
a Firefox operating system that will be priced around $25. The phone -- currently a prototype dubbed the SC6821
-- will come with few bells and whistles. It will be built with low-cost wireless components from Spreadtrum
Communications.
Competition in emerging markets is getting fierce, as a number of phone makers, particularly in China, bringing
the price of phones to under $100.
At Sunday's event, Mozilla also introduced seven new devices using the Firefox OS, including from handset
makers ZTE Corp., Alcatel Lucent SA and LG Electronics. Last year, these phone makers each released a
Firefox phone and have sold them in more than a dozen markets.
-- Scott Austin
Ford Plans to Dump
Microsoft From Its Cars
Ford Motor Co. will switch to software from BlackBerry Ltd. to power its Sync mobile-phone multimedia software
beginning in 2016, ending its use of Microsoft Corp.'s Windows, a Ford official said.
The move will lower Ford's costs and give it a system that hardware makers and other software developers are
more comfortable using, the official said.
Despite pioneering the move into in-car mobile technology, Ford has run into trouble with Sync in recent years as
it integrated the phone-pairing system with a touch screen called MyFord Touch. Many of the bugs in the system
weren't related to problems with Microsoft's platform, the official added.

Ford considered using a Google Android-based system and staying with Microsoft before settling on QNX
Software, which is owned by BlackBerry, according to this person.
-- Mike Ramsey
BlackBerry Messenger
To Join Windows
BlackBerry said Monday it will make its messaging service BlackBerry Messenger, or BBM, available to Windows
Phone and Nokia X smartphone customers in coming months.
The Waterloo, Ontario, company launched BBM in 2005. The service runs on Android-powered phones, Apple
Inc.'s iPhone and BlackBerry devices.
BBM will be available from the Windows Phone store this summer. BBM for Nokia X will be available from the
Nokia store when the Nokia X platform launches.
Meanwhile, the BlackBerry executive in charge of software design and one of the key drivers behind its current
operating system has left the company, the latest in a string of executive departures under new Chief Executive
John Chen.
Don Lindsay, BlackBerry's vice president of user experience since 2009, left the company in January, according
to a person familiar with the matter.
Mr. Lindsay, a longtime Apple Inc. and Microsoft designer, was instrumental in the development of BlackBerry 10,
the operating system the company debuted along with several new devices early last year.
-- Simon Zekaria
Document J000000020140225ea2p0000z

Corporate News: Corporate Watch

455 words
19 February 2014
J
B4
English
Copyright © 2014, Dow Jones & Company, Inc.
MCKESSON
Health-Services Provider
Expands Rite Aid Deal
McKesson Corp. and Rite Aid Corp. on Tuesday said they had expanded their distribution agreement to include
generic drugs.
McKesson, whose largest business focuses on distributing prescription drugs and medical products in the U.S.,
will assume the responsibility for distributing and sourcing generic drugs for Rite Aid, the companies said.
The agreement runs through March 2019, they said, although financial terms weren't disclosed.
McKesson Chief Executive John H. Hammergren said in October that his company was "open to new
partnerships and business models," brushing off speculation it could be in the market to buy a big U.S. drugstore
chain, such as Rite Aid.
-- Michael Calia
---
FORD
Auto Maker Calculates
Funding for Pensions
Ford Motor Co., after spending billions on shoring up its underfunded pensions over the past several years, says
it should be able to satisfy pension obligations with a $500 million to $700 million contribution annually from 2017
on, the company said in its annual report.
Ford spent $5 billion in 2013 bolstering its pension fund and was helped by improving discount rates. The
company managed to lower its underfunded pension obligation to just below $9 billion, down from $18.8 billion a
year earlier.
Ford said it would make a $1.5 billion payment this year and between $1 billion and $2 billion in 2015 and 2016,
after which it should be able to keep the plan funded with a much smaller contribution.
-- Mike Ramsey
---
PANAMA CANAL
Panama Notes Talks
On Canal at Impasse

Panama said Tuesday there are still "serious disagreements" in a bitter financial dispute that has halted all
construction on a historic project to expand the Panama Canal so bigger ships can fit through.
The Panama Canal Authority, a government agency that operates the 50-mile waterway, has been locked in a
budget battle for six weeks with a building consortium led by Spain's Sacyr and Italy's Salini Impregilo SpA that
was hired in 2009 to construct a third set of locks for the canal for $3.1 billion. With the project 70% complete, the
consortium, Groups United for the Canal, demanded in late December that Panama pay an additional $1.6 billion
for unforeseen cost overruns.
"Although last week the parties seem to have come to an agreement on certain components during the talks,
there were serious disagreements at the time of putting it in writing," the canal authority said in its statement
Tuesday. "Despite efforts to agree with GUPC to resume work on the new locks project, positions between the
parties remain apart."
GUPC representatives weren't immediately available to comment.
-- Dan Molinski
Document J000000020140219ea2j0002y

GM Locks Up Aluminum Supplies for Future Trucks
GM Locks Up Aluminum Supplies for Future Trucks

By Jeff Bennett, Mike Ramsey and John W. Miller
831 words
19 February 2014
J
B1
English
General Motors Co. is accelerating efforts to field a largely aluminum-bodied pickup truck by late 2018, under
pressure from federal fuel efficiency standards and archrival Ford Motor Co., according to people familiar with the
matter.
The No. 1 U.S. auto maker recently locked-in supply contracts with Alcoa Inc. and Novelis Inc., which are now
working to increase their aluminum sheet production to supply the next-generation GM pickup, the people said.
Aluminum sheet for automotive bodies is in such high demand that companies need to order it years in advance.
The push to develop what the industry calls an "aluminum intensive" large pickup marks an apparent change of
direction for GM, which has pursued smaller and lighter weight steel-bodied trucks.
Before Ford's debut last month of its 2015 F-150, with a body made almost entirely of aluminum, GM executives
questioned whether such a vehicle could be cost competitive or appealing to U.S. customers.
Instead, GM developed two small pickups, the Chevrolet Colorado and GMC Canyon, to meet rising demand for
better fuel economy. Those two vehicles are due to arrive on the market as 2015 models this year.
Chrysler Group LLC, now part of Fiat Chrysler Automobiles NV, took a third path, boosting the mileage of its
steel-bodied Ram pickups with 8-speed transmissions, high-efficiency axles and advanced gasoline and diesel
engines. This month Chrysler expects to start selling a Ram 1500 diesel that is rated at up to 28 highway miles on
a gallon, setting a new bar for pickups.
Such diverging strategies was unusual among the Detroit Three. In the past, all offered variations of the same
design: A steel body bolted to a heavy steel frame, powered by a large eight-cylinder engine. Japan's Toyota
Motor Corp. and Nissan Motor Co. also followed that formula, albeit with less success.
The shift is important because of the volume and profit from their truck sales. Last year, GM sold about 665,000
of its two trucks and Ford sold 763,000 F-series trucks. On average, analysts estimate the two collect about
$7,000 in gross profit on each truck sale.
Now, it appears that the two largest suppliers of pickup trucks are again driving in the same direction, but with
Ford nearly five years ahead.
A Ford spokesman declined to comment directly on GM's move. "Our innovation and use of advanced materials
have consistently set the direction for the American truck market," he said.
"Ford's introduction of the 2015 F-150 pickup truck was a game changer, and it's the first, not the last, conversion
of this type," said Novelis spokesman Charles Belbin.
GM's new 2014 Chevrolet Silverado and GMC Sierra trucks were completely redesigned and went on sale last
September. Out of the gate, sales have disappointed and unsold Silverados at dealerships reached a hefty 151
days' supply at the end of January, up from 98 days' supply for the old model a year earlier.
GM executives are betting they can offset Ford's lead by using more advanced welding techniques to produce a
lighter, stronger and easier to assemble truck, according to people familiar with the company's plans. GM said it
has a patented process that uses multi-ringed electrodes and eliminates lots of rivets from its assembly.

The process has already been used in the production of the hood of the Cadillac CTS-V, the lift gate of hybrid
versions of Chevrolet Tahoe and GMC Yukon and in the 2014 Chevrolet Corvette Stingray.
Ford invested hundreds of millions of dollars to overhaul its truck plants to accommodate a shift to riveted
aluminum panels from welded steel body parts.
GM executives had considered moving to a largely aluminum design for its Silverado and Sierra pickups in 2008,
but abandoned the idea over cost concerns amid the industry downturn, the people said. Those discussion
resurfaced last year before Ford displayed its aluminum truck, they added.
Mark Reuss, GM's global product development chief, last month hinted at the auto maker's potential aluminum
push, saying executives and engineers were preparing a critique of Ford's new F-150, which cuts up to 700
pounds off the current model. Ford hasn't disclosed its 2015 F-150's mileage rating. One version is light enough
to come equipped with a 2.7-liter six cylinder engine, considered tiny for a pickup truck.
"We need to see how much aluminum is in it, not what they say is in it but what is actually in it," Mr. Reuss said
the night before Ford introduced its truck. "We are going to look at what they advertise as the weight savings from
it and then we are going to go back and do some math. . . . We can play this game real easily."
Document J000000020140219ea2j00039

A Luxury-Class Metal Is Asked to Do Farm Chores
MOTORING
Automobiles; SECTAU
A Luxury-Class Metal Is Asked to Do Farm Chores
By TUDOR VAN HAMPTON
1,300 words
16 February 2014
The New York Times
NYTF
2
English
In the hotly contested part of the vehicle market where bragging rights go to the vehicle that has the engine with
the most pulling power or the cargo bed that hauls the heaviest payload, Ford is testing its owners' loyalty by
building pickup bodies from a lightweight material more commonly used for luxury cars.
''They are taking a stab at doing something that no one else has really had the guts to do, and yet they are
changing the very virtue of what the pickup is perceived to be,'' said Paul Lacy, a director at IHS Automotive in
Detroit.
Until now, steel has been the material of choice for hard-working pickups, but Ford's new half-ton truck for 2015,
which goes on sale this year, will feature an aluminum cab, front end and cargo box mounted on a high-strength
steel frame. Together, the use of these materials will help the truck shed up to 700 pounds, enabling it to burn
less fuel and do more work, the company says.
Ford sold 760,000 F-Series trucks last year, and it has been America's best-selling vehicle for 32 years running. If
the pickup meets the company's calculation of ''close to'' 30 miles per gallon on the highway with the new 2.7-liter
EcoBoost V6 engine, Ford's position of sales leadership ought to be even more secure.
While few owners would argue with the fuel-economy advantage that comes with the reduced weight of an
aluminum-intensive truck, some buyers may question the material's toughness.
''If it can hold up under the stress, that would be the deal for me,'' said Bob Renner, a farmer in Cunningham,
Kan., and owner of five Ford F-150 and Super Duty pickups. ''If a farmer got one out here, absolutely loved it and
didn't have any problems with it, I'd be really interested.''
The body, which will be formed and joined into panels at Ford's Dearborn, Mich., and Buffalo stamping plants, will
resist dings and dents more than traditional steel, Ford says, by using special aluminum alloys that are made
tougher by a heat-treating process. The company also promises that the truck will be able to haul more,
accelerate faster and stop shorter than the outgoing model, though it has not yet disclosed details, including
prices.
''You can take advantage of the lighter weight, shrink the displacement of the engines, reduce power a little bit but
still maintain the same power-to-weight ratio as you had before,'' explained Mike Levine, a Ford truck spokesman.
The panels will be thicker -- but lighter over all -- than steel, he added.
Federal fuel-economy standards call for automakers to reach a fleet average of 54.5 m.p.g. by 2025 across their
product lines, but Ford says its decision to switch to lightweight aluminum is not just about saving gas.
''If I can take 500 pounds off that truck, then I can give weight back to the trailer,'' Mr. Levine said. ''The less
weight gives you the opportunity to accelerate faster, stop sooner, haul more and tow more.'' Ford has used an
aluminum hood on the F-150 since 1997, he noted.
Not only has aluminum been used for production models by luxury brands like Audi, Jaguar, Land Rover and
Mercedes-Benz, it is also a vital material for makers of large trucks like Peterbilt and Kenworth. And producers of

toolboxes, utility bodies and other work-truck accessories have long preferred aluminum for its ability to save
weight, which increases payload capacity.
Rust also is a factor. In the 1980s, manufacturers of tire service vehicles -- essential workhorses used to change
the bulky tires on large trucks and heavy equipment -- began switching to aluminum bodies to repel the highly
corrosive calcium chloride solution used by farmers as a form of ballast in their tractor tires.
Early models of tire service trucks were riveted together almost exclusively but were later accompanied by welds,
structural adhesives and other joining methods.
''It took a little bit of a learning curve because aluminum doesn't like to be welded together,'' said Tim Davison, a
product manager for Stellar Industries, a maker of service trucks in Garner, Iowa. ''We still do a lot of rivets, but
we've kind of perfected our ability to weld them as well.''
Repairing aluminum can be a challenge for shops that work mostly with traditional materials like steel. How easily
the body panels of a 2015 Ford F-150 will be fixed in a body shop is still a question -- as are the repair costs and
insurance rates assigned to the new F-150 -- but Ford says it has redesigned the truck's connection points so
labor time will be reduced to less than what the steel-body trucks require.
''It wasn't just collision repairs,'' Mr. Levine said. ''We looked at this and said, 'How can we make all repairs and
maintenance easier?' ''
Still, body shops will need to make significant upgrades if they plan to make repair of the new F-150 part of their
income. Recognizing this, Ford is offering dealers a 20 percent rebate, up to a maximum of $10,000, on
purchases of special equipment needed to repair aluminum. According to dealers, the tools are expected to cost
from $30,000 to $50,000 per shop.
''This is a much bigger scale than anything we have ever dealt with before,'' Becky Taylor, body shop manager of
Laird Noller Automotive, a Ford and Lincoln dealer in Lawrence, Kan., said. Ford is also offering to pay for one
dealership service technician per shop to attend aluminum-repair classes.
Because fewer than half of new-vehicle dealerships have body shops, many F-150s are likely to be repaired at
independent collision centers. Only a small number of those shops are qualified to repair bodies on aluminum
cars like Audis, according to Darrell Amberson, chairman of the Automotive Service Association and vice
president for operations at LaMettry's Collision in Minneapolis.
''Assuming the Ford platform is similar to these others, it means that most shops, less than 10 percent and
probably more like 5 percent, are ready to repair them now,'' Mr. Amberson said.
Of the roughly 35,000 repair shops in the United States, fewer than 3,000 have achieved the level of certification
necessary to repair aluminum, he said. Most programs require a curtained work area and tools that do not come
into contact with steel -- doing so would increase the potential for corrosion problems, paint flaws and premature
wear.
Mr. Levine said that the majority of cosmetic repairs -- bumpers, grilles and the like -- could be fixed today in most
shops. ''For major repairs, we're recommending that they should be performed by an aluminum capable body
shop,'' he said.
Later this year, Ford plans to introduce aluminum training courses through the Inter-Industry Conference of Auto
Collision Repair.
Until then, truck owners like Jay Prybil, fleet maintenance supervisor for construction company Las Vegas Paving,
say they are preparing for a future where more auto bodies are made of aluminum and more repairs involve
replacing whole panels rather than trying to drill and pull dents, which is trickier with aluminum.
''The days of straightening something out, using a little Bondo to make it look nice and shooting it with a little paint
is out of the window,'' Mr. Prybil said.
Bob Renner, a farmer and Ford truck loyalist, said he would be interested in the 2015 F-150 if he saw that other
owners were having no problems with the aluminum body construction. (PHOTOGRAPHS BY CRAIG HACKER
FOR THE NEW YORK TIMES; PETER WILLIAMS)
Document NYTF000020140218ea2g00003

Ford Boss Tees Up for Key Releases
Ford Boss Tees Up for Key Releases

By Mike Ramsey
897 words
15 February 2014
J
B1
English
LOUISVILLE, Ky. -- Joe Hinrichs, a Ford Motor Co. executive who made his career by fixing difficult
manufacturing problems, may have the auto maker's toughest job this year: getting the vehicles critical to its
future out the door without a hiccup.
The 47-year-old president of Ford's Americas business will oversee the introductions this year of a new Lincoln
sport-utility vehicle, a Mustang sports car, and a redesigned Ford F-150 pickup with an all-aluminum body. All
must go smoothly for the company to expand profit in 2015 after an expected slowdown this year.
A series of new-product glitches over the past two years, including troubled launches of the Fusion and Lincoln
MKZ sedans and a string of recalls for the Escape SUV, helped land Mr. Hinrichs his new duties. After running
Ford manufacturing and its China business, his new perch puts him in charge of a business that generated 70%
of Ford's revenue last year.
In late January, he visited Ford's assembly plant in Louisville, Ky., where he pored over an early production
version of the Lincoln MKC sport-utility vehicle with the team responsible for its release. Mr. Hinrichs said that at
the same stage of launching the MKZ sedan, nearly a third of the parts weren't completed. For the MKC, all are
now finished.
His inspection on this day first zeroes in on the SUV's hatchback. The complex shape of the opening could make
the rear door difficult to align properly, he suggested. "We knew this was going to be hard to do going in," he said.
"But we have time to get it right." He later told the vehicle's chief engineer, John Jraiche, he would like to see a
small light put in the cubby where phone chargers can be plugged in.
"I don't think I have to tell you all how important it is that this launch goes smoothly," he told the group of
engineers and manufacturing supervisors in the room. "I hope we are using some learnings from the problems of
the MKZ launch."
The members of the MKC launch team nodded silently. "If there are problems, let us know how we can help," Mr.
Hinrichs said. "I know a guy or two."
Among the guys Mr. Hinrichs knows is Ford's global product development chief, Raj Nair, who worked closely
with Mr. Hinrichs in Asia before becoming product chief and has spent the past year with him trying to overcome
quality problems with MyFord Touch and dual-clutch transmissions.
"All of us are spending a lot more time with the teams that are in launch," said Mr. Nair, who along with Mr.
Hinrichs and several other executives has weekly Wednesday progress reports on all the vehicles being released
this year.
Of particular importance is the F-150, which will require an overhaul of two assembly plants and hundreds of
millions of dollars in new equipment, and retraining of workers on how to work with aluminum. The changeover is
one of the reasons Ford expects profit in 2014 to be below last year's $7.2 billion.
Mr. Hinrichs, a native of Ohio who wears his hair close cropped, is at ease in factories. Fresh out of University of
Dayton in 1989, with an electrical engineering degree, he landed a job at General Motors Co.
But after five months laboring mostly alone, he asked for a transfer to a plant where he would have a chance to
managing people. His supervisor was so angry that he notified him of his new job by Post-it Note.

Mr. Hinrichs said he concluded that problems at his first plant were mostly related to bad morale and poor
communication. "A lot of these guys were just told what to do, but not why they were doing it," he said.
At 29, Mr. Hinrichs became the youngest plant manager in GM history, and his management of a struggling
powertrain plant in Virginia. While workers were on strike at other GM plants, he kept his employees working with
a flexible labor agreement.
Mr. Hinrichs later got a degree from the Harvard Business School, and jumped to Ford. By 2006, he was its North
America manufacturing chief. Ford, however, was in crisis, and Mr. Hinrichs got the job of deciding which plants
to close as the company retrenched. In 2007, 32,000 plant workers left Ford. Mr. Hinrichs delivered the bad news
to many of them.
Two years later, Mr. Hinrichs was assigned to another trouble spot -- Ford China, where the company for years
lagged behind GM and Volkswagen AG. Mr. Hinrichs worked to learn Mandarin, often practicing with his driver,
met frequently with Chinese Communist Party officers and strived to boost Ford's sales.
Central to his strategy was a bet that Ford could boost sales by offering its sport-utility vehicles, which were
becoming popular with Chinese consumers.
He made the pitch in 2010 to the board that Ford should build nine plants and invest nearly $5 billion in China.
Ford Chief Executive Alan Mulally backed the proposal. Last year, sales jumped more than 50%. Ford now has
4.4% of the Chinese market and said that a target of 6% market share is within reach.
Document J000000020140215ea2f0002n

Rising Auto Inventories Prompt a Bet On Pricing
Rising Auto Inventories Prompt a Bet On Pricing

By Jeff Bennett and Christina Rogers
958 words
12 February 2014
J
B1
English
Detroit's big auto makers are trying to sweeten discounts to clear unsold vehicles from dealer lots, but not so
much to start a profit-killing price war.
It is a balancing act making Wall Street investors nervous. Analysts aren't sure whether the moves to counter a
January slowdown in sales -- particularly new discounts on large pickup trucks -- will undermine the rising prices
that have helped General Motors Co., Ford Motor Co. and Chrysler Group LLC rebuild profits during the past
three years.
On Tuesday, automotive sales tracking firm ALG Inc. warned industry inventory levels in January were the
highest since August 2009, when the recession was in full force. It took U.S. dealers in January an average of 59
days to sell a new vehicle, nine days longer than the same period a year earlier and the highest level since the
68-day peak in 2009.
None of the auto makers say they plan to reduce production to counter the inventory overhang. Paring output
would reduce pressure to discount, but auto maker's book revenue when they ship vehicles to dealers and any
slowdown would hit first-quarter revenue.
They are counting on dealers to cut the backlog -- without a wholesale change in manufacturers' incentives or
production schedules.
"We believe we can sell our way out," said GM spokesman Jim Cain. "We have worked hard to stay disciplined
on pricing, incentives and production."
So far, says IHS automotive analyst Tom Libby, GM and other car makers figure "it is cheaper to offer these
incentives than to shut the plants. The problem is once you turn it on, [discounting] it is hard to turn it off, and now
we are looking at another challenging month with February."
But there are signs that the pain threshold has been crossed in some models. GM, the nation's largest auto
maker, last week offered as much as $7,000 off some of its newest vehicles.
Its Presidents Day sale, which continues through Feb. 28, offers reductions on Chevrolet, GMC and Buick
vehicles with the largest on the six-cylinder versions of the newly-redesigned Chevrolet Silverado and GMC
Sierra large pickups.
Bill Willis, a Ford and GM dealer in Smyrna, Del., calls the moves a measured response to January's sales
slowdown. GM's latest pricing, he added, is "cranking up the market. We lost a little share, we as in GM, but we're
going to get it back."
GM executives also insist the reductions are typical for the month. Last week, Chief Executive Mary Barra said
the auto maker wouldn't cut prices to temporarily spur sales.
In response to truck pricing, she said: "We will also look and react to the market to make sure we're competitive
within the market. I'm very confident that we have a solid full sized truck. . .I have a lot of confidence in these
products."
Investor uncertainty is greater now because U.S. new-car sales growth is leveling off after four strong years.
Industry sales are expected to top 16 million this year, up from 15.6 million in 2013, but the percentage increase
is expected to be below that of recent years.
Worries over the year's outlook have pressured share prices. GM shares are down nearly 14% this year and Ford
is off 3%. Italian auto maker Fiat SpA, which owns Chrysler, is up nearly 22% because it concluded its purchase
of Chrysler shares on better-than-expected terms.
After four years of rapid growth, the U.S. new-car sales pace "appears to have stalled," Morgan Stanley analyst
Adam Jonas said in a research note earlier this week. "We really think the best of the U.S. auto replacement cycle
is over. The incremental buyer is moving from someone who needs to replace their car to one who just wants to."
GM isn't alone in dealing with oversize inventories. The number of days it took dealers to sell a Ford F-150 pickup
jumped last month by almost three weeks to 74 days. Chrysler also is coping with huge overstocks on some car
models. It had 220 days of unsold Avengers at the end of January and 129 days of unsold Darts.
Ford has said its unsold stocks normally are high in January and it prepares for higher demand in the spring. A
sales slowdown in January blamed on extreme winter weather triggered the higher figure on days' supplies, a
spokesman said.
A Chrysler spokesman said its inventory bulge was largely intentional and designed to prepare for a retooling shut
down at a factory that builds midsize sedans. Most of its February sales incentives were a continuation of what it
offered in January.
Chrysler isn't planning any production changes other than a shutdown to get ready for a new model, the
spokesman said.
"It is full steam ahead for our plants," he added.
A 22.5% jump in Ram pickup truck sales in January and strong demand for its new Jeep Cherokee sport-utility
vehicle, lifted Chrysler's U.S. sales in January by 8% over a year earlier compared with 3% year-over-year drop in
new-vehicle sales industrywide.
Overall, GM reported 114 days' worth of unsold vehicles at the start of February meaning it would take the auto
maker close to four months before it ran out of vehicles if it stopped production today. Ford had 107 days worth of
unsold vehicles while Chrysler had 105 days. U.S. auto makers generally like to keep 60 days' worth of inventory
on hand.
---
Mike Ramsey contributed to this article.
Document J000000020140212ea2c0003c

Corporate News: Ford Veteran Is Picked to Restart Fisker
Corporate News: Ford Veteran Is Picked to Restart Fisker

By Mike Ramsey
330 words
10 February 2014
J
B6
English
Hybrid Tech Holdings LLC, one of the bidders for control of failed luxury car maker Fisker Automotive Inc., has
hired a former top Ford Motor Co. executive to orchestrate the restart of operations if it wins.
The Chinese company, formed by Hong Kong billionaire Richard Li, said it retained Martin Leach to bring Fisker
out of mothballed status. Mr. Leach has worked at Ford, Mazda Motor Corp. and Maserati, and now owns
automotive consulting firm Magma Group.
Fisker once planned to build cars at a former General Motors Co. factory in Delaware using a $529 million loan
from the U.S. government, but the company ran out of money and stopped operating, owing the government
about $168 million.
Hybrid Tech is locked in a bidding war with another Chinese firm, auto-parts maker Wanxiang Group, over the
bankrupt luxury auto maker's assets, including the Delaware plant site.
Wanxiang also plans to restart Fisker's operations as soon as possible following a successful bid, said Pin Ni,
president of the American arm of the company. Final bids for Fisker were due Feb. 7, and an auction for the
company starts on Wednesday. Fisker filed for bankruptcy on Nov. 22.
Mr. Leach said in an interview that his job would be to get operations moving while new workers are hired.
"Clearly, there is an awful lot to be done with Fisker," he said. "We will assist in on-boarding all the necessary
talent that is required and starting the process of engaging the suppliers and the dealers."
All told, about 2,000 Fisker Karmas were built.
Fisker hasn't made any vehicles since July 2012, though there are a few hundred remaining on dealer lots around
the world.
Hybrid Tech has offered $55 million for Fisker, while Wanxiang has offered $35 million, plus 20% equity in the
new entity to creditors.
Document J000000020140210ea2a0002q

U.S. News: Detroit Counts On Casinos --- Crucial Gambling Revenue Threatened by Bank Dispute, Out-of-Town Competition
U.S. News: Detroit Counts On Casinos --- Crucial Gambling Revenue Threatened by Bank Dispute,
Out-of-Town Competition
By Matthew Dolan
796 words
10 February 2014
J
A3
English
DETROIT -- Long powered by the Big Three auto makers, the bankrupt Motor City today is relying on casino
cash.
Taxes drawn from Detroit's three casinos have been the subject of months of negotiations in the city's bankruptcy
case. Detroit pledged the casino revenue as collateral in a 2009 deal with two of the world's biggest banks that
was aimed at securing lower interest rates. That bet went sour, contributing to Detroit's financial woes. Now, two
potential settlements with the banks have been rejected by Detroit's bankruptcy judge, putting the casino revenue
at risk.
Casinos are considered essential to the city's revitalization plan because Detroit draws more wagering-tax
revenue from its three gambling halls and attached hotels, opened a decade ago, than from the taxable property
value of assembly lines at Ford Motor Co., Chrysler Group LLC and General Motors Co.
But local casinos could soon contribute less to the city's coffers as competition heats up from newer casinos
within driving distance. Last year, taxable revenue from casinos fell 4.7% to $1.35 billion, the biggest year-to-year
drop ever, according to the Michigan Gaming Control Board. Internal documents reviewed by The Wall Street
Journal show the city predicts casino revenue will stay essentially flat over the next 20 years, a trend that could
cause problems down the road.
This week, Detroit Emergency Manager Kevyn Orr is set to deliver his debt-cutting plan for the city. He will rely
heavily on the $170 million in gambling taxes generated annually for the city's effort to cut crime and eliminate
blight. "Every day that we don't have access to casino revenue, we cannot make the necessary reinvestment in
this city to provide for the health, safety and welfare of the city citizens," Mr. Orr said last summer in a court
deposition as part of the city's municipal bankruptcy case, the nation's largest.
According to estimates for fiscal year 2014, wagering taxes will bring about 16% of the city's revenue and the
largest stream after income tax and state aid. On a list of the city's 30 largest taxpayers, MGM Grand Detroit had
a taxable value of $210 million, more than Chrysler's $177 million. Greektown Casino had a taxable value of $75
million, more than GM's $73 million.
The auto industry's footprint in Detroit has shrunk drastically as plants closed and relocated. The city is still home
to some auto suppliers and the industry's annual North American show. Still, when the city was about to go belly
up three years ago, it used casino -- not car-related -- revenue to back its efforts to keep paying its pension
obligations.
Detroit made ill-fated interest-rate bets known as swaps with banks in the hopes of avoiding higher rates. In 2009,
to escape default on the original deal, the city pledged the casino tax revenue as collateral. When the city filed for
bankruptcy, other creditors tried to stop it from getting casino-tax revenue.
Last summer, the city reached a settlement on the deals with UBS AG and Bank of America Corp., but since then
U.S. Bankruptcy Judge Steven Rhodes twice rejected proposed deals as too generous to the banks -- most
recently late last month -- forcing the parties back into talks. The city is still in negotiations to try to come up with a
new settlement to maintain its access to casino cash, said Bill Nowling, a spokesman for Mr. Orr.
The long-term prospects for the city's gambling revenue remain unclear.

Detroit casinos opened more than a decade ago and thrived in part on persuading gamblers traveling to Windsor,
Ontario, to spend their money closer to home. Now Detroit casinos have lost visitors to Toledo, Ohio, 60 miles
away, which boasts a newer, smoke-free casino, said Alex Calderone, senior vice president at Fine Point Group,
a Las Vegas-based consulting firm.
Last year, Quicken Loans founder Dan Gilbert bought the city's Greektown Casino. Matt Cullen, chief executive at
Mr. Gilbert's Rock Gaming, said Greektown, unlike the city's other two casinos, could be poised to help revitalize
its immediate neighborhood because it sits in an established entertainment district. Representatives at MotorCity
Casino and MGM Grand declined to comment.
"I think it's been a challenging economic circumstance almost from the first day," Mr. Cullen said. "But we believe
that there is no need to take away from MotorCity or MGM. The pie can grow and the city of Detroit has some real
opportunity and growth ahead."
Document J000000020140210ea2a0001w

Corporate News: GM Bumps Up Truck Discounts
Corporate News: GM Bumps Up Truck Discounts

By Jeff Bennett
398 words
8 February 2014
J
B4
English
DETROIT -- General Motors Co. is dialing up the discounts on its new Chevrolet Silverado and GM Sierra pickup
trucks, offering as much as $7,000 off the list price after sales slumped in January.
The Presidents Day sale, which started Tuesday and runs through Feb. 28, allows all pickup-truck shoppers to
buy at dealer invoice price plus the traditional destination charge and a $150 program fee.
GM also is offering as much as a $7,000 discount on a Chevrolet double-cab, six-cylinder All Star edition and the
GMC 2014 Sierra 1500 double-cab.
GM spokesman Jim Cain said the pickup incentive was in step with the auto maker's annual Presidents Day sale
offerings and the larger discount on the V-6 was a move designed to "raise consumer awareness."
The incentives come after Silverado's year-over-year January sales dropped 18.4% to 28,926 vehicles, while
GMC Sierra's sales fell 13.5% to 11,118.
Rival Ford Motor Co., however, said sales of its F-150 remained relatively flat at 46,536 vehicles.
Research firm Autodata Corp. said the Chevrolet Silverado had 151 days of sales on dealer lots at Jan. 31, up
from 113 at the end of December.
The GMC Sierra had 131 days at Jan. 31.
U.S. auto makers generally like to have about 60 days of inventory on hand.
Meanwhile, GM is also offering a variety of other discounts such as up to $1,750 in customer cash and $500 in
Presidents Day bonus money on some of its Chevrolet and GMC cars.
For example, buyers of the 2014 Malibu can get as much as $2,250 in a cash allowance, while 2014 Equinox
consumers get $1,500.
Investors are watching the Detroit auto makers closely for signs of an escalating price war. GM's operating profit
in North America jumped to $1.89 billion from $1.14 billion in the fourth quarter, in part because the auto maker
was able to hold discounts in check.
GM needs to defend higher prices to reach its mid-decade goal of generating a North America profit margin of
10%.
The auto maker's profit margin reached 7.5% in the fourth quarter.
Automotive News first reported the incentives on Friday.
Document J000000020140208ea2800048

OFF DUTY --- Gear & Gadgets -- Rumble Seat: All's Well With Cherokee's Trailhawk but the Beak
OFF DUTY --- Gear & Gadgets -- Rumble Seat: All's Well With Cherokee's Trailhawk but the Beak
By Dan Neil
1,713 words
8 February 2014
J
D12
English
There are two interesting things about the 2014 Jeep Cherokee: The first is that the Trailhawk Edition ($36,120 as
tested) with the 3.2-liter V6, nine-speed transmission, two-speed transfer case and locking rear differential, is a
huge bargain to those buyers who know, for instance, what a locking rear differential is. When I call your name
please raise your duck call.
Vehicles in this segment -- car-based crossovers around $30,000, humps like the Toyota RAV4, Honda CR-V and
Ford Escape -- typically don't have the belly for extended heavy weather and soft-roading. I mean, they can
manage a muddy track but they don't love it. The Trailhawk, bristling with skid plates, wheel arches and auxiliary
transmission oil cooler, loves it.
My cabernet-colored test vehicle powered through a recent snowstorm with ease, and if I have ever mocked
suburbanites for their over-equipped 4x4 Jeeps, the Winter of '14 has made me a grateful hypocrite. Having a low
gear, off-road tires and rear-end locker at my disposal made all the difference, and I think the Trailhawk is unique
in having these attributes at this price point. Meanwhile, the Trailhawk's gnarliness comes at virtually no cost in
terms of on-road drivability. I'll get back to the mechanicals shortly.
The other interesting thing? The face they hung on this poor, defenseless automobile: beady-eyed, cave dwelling,
pinheaded. It is Jungian. If you hate it, you're in good company. But if you give me a minute I will attempt to
convince you that the Cherokee's front-end design is, actually, brilliant.
The Cherokee is a midsize SUV, replacing the Liberty, which itself succeeded the old Cherokee Sport in 2002. At
base, the new Cherokee is a car, a steel unit-body vehicle sharing a considerable percentage of stuff (front crash
structure, engines, transmission, instrument panel and switchgear) with the Dodge Dart and Chrysler 200. All
three use a widebody version of Fiat-Chrysler's midsize platform, but the Cherokee's roofline is about 7 inches
taller than the sedans'. As a consequence, the radiator of the Cherokee is mounted quite a bit lower in the
assembly than the hood's height would suggest.
In fact, the seven brick-like openings in the hood's over slam, the lip, are almost nonfunctional. Most of the cooling
air is directed to the radiator through the lower grille opening. The design dispenses with the framed grille
altogether in favor of a meeting of the hood and the composite bumper, midface, in a prognathic underbite.
But this is incredibly boring, you say. I invite you to think in historical terms. Year by year, internal combustion
engines are, on average, getting smaller and therefore so, too, cars' bulk cooling needs. A Duesenberg SJ
furrows the air with an enormous polished steel grille, behind which is an enormous radiator. Why? Because, just
behind that, is a supercharged, 420-cubic-inch straight-8 engine, as hot as a forge.
Modern internal-combustion engines, on the other hand, are smaller, cooler and more efficient, even as they are
gradually being supplanted by hybrid-electric componentry. Conventional automobile grilles -- and the
recognizable geometries of the brands behind them, their "down the road graphics" -- are destined to become
functionally obsolete.
This isn't some artsy-fartsy problem for car designers, who come to the problem with the burden of a visual
heritage to maintain, a heritage cultivated over decades and untold marketing millions invested. The grille is a
window to a car's soul, e.g., Prewar Lincoln, Cord, the majestic chrome temples of Packard and Rolls Royce.
And, by the way, about a billion people in China think big, flashy grilles look amazing.
But the engineers say the big grille is killing your aero. Now what? Decals?
Here's where the Jeep Cherokee sticks its overgenerous snout into the fight. The design retains only the most
abstract signifier that says "Jeep" -- that is, the familiar seven vertical slots, a graphic that goes back to flat-faced
grilles of postwar Willys -- and puts it in a contemporary, even futuristic context of smoothed, aerodynamically
friendly sheet metal.
Because, truly, where was Jeep going to go, design-wise? The rhetoric of this brand -- the Etch A Sketch body
contours, upright windshields, and cowcatcher grille -- is increasingly incompatible with segment benchmarks on
things like fuel economy, noise, vibration and harshness. Can't get there from here. And if you are starting with
the bones of a car anyway, it seems silly to go to all the trouble dressing it in Jeep drag.
Besides, Jeep still makes a square one: the Wrangler Four Door.
But let's say you have come this far and you are still interested in the Cherokee, schnozz-intensive though it is.
How does it drive? Like a champ. First, distinctively, it has the same timbre as the larger Grand Cherokee, the
same deep, supple solidity about it, with lots of isolation from the road. This was particularly notable in our test
car, in which the dull roar of the 17-inch Firestone all-terrain tires on highway speeds was attenuated to a distant
thrum. Even though the Trailhawk is lifted more than an inch (8.7-inch ground clearance) on its front-strut,
four-link independent suspension, it corners with confidence and control, without the heeling-over,
moment-of-whoa dynamics of the old Liberty.
That is the nice thing about starting with a car's chassis. The Jeep's over-the-road behavior is essentially carlike,
with a car's lowered center of gravity. Obviously everything in the realm of vehicle dynamics is managed by
intermediary software so while the Cherokee's electric steering is brisk, well weighted and accurate, for example,
there isn't much in the way of feedback on center (moreover, you can really feel the steering system change its
control algorithms in different driving modes, according to the Terrain Response selector). But the Cherokee
nonetheless dips and dives down a country road with confidence. Body roll is well damped, the suspension
recomposes itself quickly after big shocks, and generally the Jeep exhibits very agreeable, predictable road
manners.
The cabin is excellent, with comfortably sculptured heated leather seats and lots of useful cubbyholes sprinkled
around the cabin. Our test car also had the heated steering wheel, which was a godsend. Like just about
everything else in the current Chrysler lineup, the Cherokee deploys a large touch screen that handles
audio/climate/navigation and vehicles system functions (the heated seat controls are digitally soft-keyed, for
instance). I still don't love the system's Garmin-derived graphics, but compared with Ford's multifunction head,
which requires the precision of microsurgery to operate, the Chrysler system is effortless to use.
Most Cherokees will go out the door with a 2.4-liter four cylinder under the hood, the whimsically named "Multiair2
Tigershark," starring Jackie Chan, I suppose. That engine's 184 hp and 171 pound-feet of torque gets multiplied
by the Cherokee's fuel-saving, software-managed nine-speed automatic transmission. The front-drive,
four-cylinder Cherokee rates a 31 mpg on the highway. The Trailhawk's several hundred pounds of off-road gear
and all-terrain tires knock its highway mileage down to 25 mpg, which is still pretty good, considering.
The standard nine-speed transmission is particularly well matched to the optional 3.2-liter V6 (271 hp/239 lb.-ft),
the engine in our Trailhawk test car. With two super-short first and second gear ratios, and a barely perceptible
shift point between them, as well as crisp 4.08:1 final drive ratio, the Trailhawk's off the line spirit is excellent, and
the shuffling of the multitudinous gears almost seamless. Once at cruising speed, the transmission flutters among
its various overdrive ratios -- gear six through nine are overdrive -- before settling on the most efficient set of
algorithms. Jeep claims the towing capacity of the Trailhawk is a best-in-class 4,500 pounds.
The Trailhawk's calling card is, of course, its Active Drive II system, with the low-range ratio (2.92:1) rear-end
locker, all controlled through the Selec-Terrain rotary switch in the console. This effectively puts the most of the
Jeep Wrangler's off-road capacity in the hands of a cute-ute commuter. I put our little trucklet through a couple
hundred yards of boot-sucking red clay mud and it didn't even wiggle.
So, am I persuading you? At no point in the discussion did I mean to suggest the Cherokee was pretty, just
ambitious. What's troubling the Jeep front end isn't surface detailing but unresolved proportions. If you lift the
hood you see scads of underused space above and ahead of the steel body structure. The front of the car is
actually poofed out in an attempt to catch the lines from the hood and windshield, while wrapping around the
shared platform's hard points. Mark Allen, the head of Jeep exterior design, told me he could have dropped the
hood of the Cherokee "several inches" before encountering a mechanical hard point.
Translation: The bloated schnozz is an artifact of the platform sharing.

Moreover, the Cherokee violates the Pontiac Aztek rule, with up to six lighting instruments clustered in its face
(fog lamps, projector headlamps and daytime running lamps), thus leading people to think it is the work of the
Devil.
Those who forget the Aztek are destined to repeat it.
---
2014 JEEP CHEROKEE TRAILHAWK 4X4
Base price: $30,490
Price, as tested: $36,120
Powertrain: Naturally aspirated 3.2-liter, 24-valve DOHC V6 with variable valve timing; nine speed automatic
transmission; two-speed transfer case; rear wheel drive with locking rear differential.
Horsepower/torque: 271 hp at 6,500 rpm/239 lb.-ft at 4,400 rpm
Length/weight: 182.0 inches/4,106 pounds
Wheelbase: 107.0 inches
0-60 mph: 9 seconds
Cargo capacity: 24.6 cubic feet (behind second row)
EPA fuel economy: 19/27/22 mpg
Document J000000020140208ea280000d

Corporate News: Chrysler Truck Ups the Ante --- In Fuel-Economy Face-Off, the Ram Sets a New Bar to Top
Corporate News: Chrysler Truck Ups the Ante --- In Fuel-Economy Face-Off, the Ram Sets a New Bar to
Top
By Christina Rogers
685 words
5 February 2014
J
B8
English
There's a new target to beat in the large pickup truck fuel-economy wars.
Chrysler Group LLC said Tuesday its Ram 1500 EcoDiesel truck has earned a U.S. Environmental Protection
Agency-estimated rating of 28 miles a gallon in highway driving, setting a new bar to top for truck brands, and
especially Ford Motor Co.'s lightweight, aluminum-bodied F-150, due out later this year.
Chrysler, now owned by Italy's Fiat SpA, took the highway fuel-economy crown more than a year ago with the
rollout of a new gasoline-powered Ram 1500 that, when equipped with a V6 engine and eight-speed
transmission, gets 25 mpg highway.
The mileage ratings for Ram are significant as the industry's closely watched pickup truck wars heat up this year
with Ford planning to introduce a new aluminum-bodied version of its best-selling F-150 pickup.
Ford has yet to release fuel-economy numbers on the new F-150, which is 700 pounds lighter than the current
model. But at the Detroit auto show in January, Ford Chief Executive Officer Alan Mulally said he was "absolutely"
confident the redesigned pickup would deliver class-leading fuel economy.
Asked whether it would get 30 mpg highway, Mr. Mulally replied: "We're absolutely going to be the leader."
Company officials clarified Tuesday that the new F-150 would lead the class in fuel economy against other similar
gasoline engines.
"Even customers who choose a base model F-150 are going to get improved efficiency," a Ford spokesman said,
referring to the redesigned truck that will go on sale this year. "They don't have to buy a special engine to get
best-in-class efficiency or performance."
The sparring over fuel economy comes as Detroit's Big Three auto makers are profiting from a surge in demand
for large pickups, boosted by stable gasoline prices and a slowly recovering economy.
Ram's pickup sales shot up 21% last year to 355,673 vehicles. In January, Ram pickup sales rose 22.5% while
Ford F-series sales were flat, and Chevrolet Silverado sales dropped by 18%.
The new Ram diesel goes on sale this month. It will be the first light-duty diesel truck to hit the market in nearly 15
years.
Opting for the diesel over the gasoline-powered model won't come without a cost.
The new 1500 EcoDiesel V6 will cost buyers $2,850 more than the base model of the gasoline version, which
starts at $24,200. Diesel fuel also is more expensive, currently averaging about 60 cents more per gallon than
gasoline.
"To put the Ram 1500 EcoDiesel in context, it gets 6 mpg better fuel economy than the best F-150 EcoBoost,"
said Reid Bigland, chief executive for the Ram brand.
"Overall, the Ram 1500 EcoDiesel has outstanding pickup truck capability with compact-car-like fuel economy."

The turbocharged V6 EcoBoost engine that Ford offers on its current F-150 is meant to supply V8 power with
improved fuel-efficiency. It gets 22 mpg highway, but costs buyers $2,095 more than the base engine.
In the 2015 F-150, Ford will launch a 2.7-liter V6 EcoBoost engine that the company expects will best all other
"like" gasoline engines for fuel economy.
Chrysler is opting for a different strategy for improving the Ram's fuel-economy numbers than Ford's move to an
all-aluminum body. Instead, Chrysler is making changes under the hood, such as adding an eight-speed
transmission, the diesel option and a more efficient gasoline six-cylinder model. With more gears, the
transmission can keep the engine running at the most efficient level through a broader range of speeds.
Last year, General Motors Co. redesigned its full-size trucks, the Chevy Silverado and GMC Sierra, but their
fuel-economy ratings remain behind those on the Ram 1500.
---
Mike Ramsey contributed to this article.
Document J000000020140205ea2500014

'Consumer Reports' sees Subaru, Tesla rise in buyers' esteem
MONEY
'Consumer Reports' sees Subaru, Tesla rise in buyers' esteem
James R Healey
James R Healey, USATODAY
412 words
5 February 2014
USAT
FIRST
B.2
English
Car brands Subaru and Tesla have shot up in the esteem of potential car buyers, according to Consumer
Reports' annual Car- Brand Perception Survey.
Toyota, Ford, Honda and Chevrolet are the brands with the best public perception, the survey shows, but just
behind them at fifth and sixth are Tesla and Subaru, which broke into the top 10 only this year.
The survey measures people's perception of brands -- a key to shopping behavior -- which may or may not
correlate with actual reliability, road and crash tests.
People were asked to name the brands that they thought were stellar in seven categories: quality; safety;
performance; value; fuel economy; design/style; and technology/innovation. The overall score blended how each
brand did and how important people rated each of the categories.
"The key word here is 'perception,' as influenced by word-of- mouth, marketing and hands-on experience," CR
Deputy Editor Jeff Bartlett says of the Dec. 6-15 phone survey of 1,578 adults in car- owning households.
As to which perceptions matter most, people tend to make choices not on glitz and hype, but on "wallet issues,"
Bartlett says, such as value and fuel economy.
In his view, the best match of perception and reality is Toyota - - No.1 in the survey and also a high scorer in tests
for quality, gas mileage and other attributes people value most. It's also a mass- market brand with many models,
"so hits the hot buttons on a lot of people," Bartlett says.
A mismatch, he says: Ford, at No.2 in image, but "very inconsistent. A lot of their new models have been less
than stellar."
Meanwhile, survey respondents disdained some very high-end machinery, such as Land Rover and Rolls-Royce,
but their sales are growing fast.
"We're niche luxury brands, so we're not necessarily going to score highly in some of the categories with the
general public," says JLR (JaguarLand Rover) spokesman Stuart Schorr.
"A large luxury SUV isn't going to be appropriate, for instance, to people concerned about fuel economy or value."
Of the 39 brands tallied in the Consumer Reports perception survey, here are the top 10 (best first): Toyota; Ford;
Honda; Chevrolet; Tesla; Subaru; Mercedes-Benz; Volvo; Cadillac; BMW.
The bottom 10 (lowest first): Land Rover; Maserati; Jaguar; Rolls- Royce; Scion; Ram; Mini; Mitsubishi; Infiniti;
Jeep.
Document USAT000020140205ea250000b

Corporate News: Winter Crush Hits Auto Sales --- Industry Demand Falls 3% Over Year Earlier; Fiat Chrysler Trucks, Luxury-Car Makers Buck Decline
Corporate News: Winter Crush Hits Auto Sales --- Industry Demand Falls 3% Over Year Earlier; Fiat
Chrysler Trucks, Luxury-Car Makers Buck Decline
By Mike Ramsey
813 words
4 February 2014
J
B3
English
January's severe cold spell in the U.S. punished auto sales with industry volume falling for the first time since
September and most major auto makers blaming the harsh weather for temporarily depressing vehicle demand.
Industry executives said the U.S. car market remains strong and sales should pick up as the weather improves.
The three largest auto sellers in the U.S. by volume, General Motors Co., Ford and Toyota Motor Corp., all posted
declines for the month compared with a year earlier. Honda Motor Co. and Volkswagen AG also said their
namesake brands' vehicle sales fell compared with a year earlier.
Storms that dumped record snowfall in some regions followed by extremely cold temperatures throughout the
month kept people out of showrooms.
"There were a few days where no one outside of employees walked through the front doors," said George
Waikem II, who manages Nissan, Kia and Ford dealerships in Northeast Ohio. "We did see a slight spike in our
Web traffic, but it didn't seem to generate into physical visits."
Overall, sales totaled 1 million for the month, down 3.1% from a year earlier, said researcher Autodata Corp.
Demand fell significantly early in the month, picked up when the weather improved and then plummeted again
near the end of the month when bad weather struck again, said John Felice, Ford Motor Co.'s vice president of
U.S. sales and service.
The Dearborn, Mich., auto maker said retail sales in the Midwest were down at a double-digit percentage rate,
and sales in the East and Southeast were off a bit less than 10%. Sales rose more than 10% in the company's
Western region, which avoided most of the month's snowfall and cold temperatures.
"The overall performance [last month] correlated pretty closely with the weather," he said. "We expect things to
return back to trend. All the fundamentals still look really solid."
For all of 2014, auto industry executives and analysts are predicting U.S. car and light truck sales will reach at
least 16 million vehicles, up from 15.6 million in 2013.
Ford said sales of its cars and trucks fell 7%, GM posted a decline of 12%, while Toyota said its sales fell 7.2%.
Honda's sales were off 2% while Volkswagen posted a 19% drop.
Among luxury brands, BMW posted a 10.5% increase in its namesake brand in January, Daimler AG's
Mercedes-Benz brand rose 1.3% while VW's Audi gained less than 1%, all over a year earlier. At Ford, its luxury
Lincoln brand's sales jumped nearly 43% while GM's Cadillac sales fell 13.2%.
Fiat Chrysler Automobiles bucked the trend, reporting an 8% increase, as did Nissan Motor Co., which posted an
11.8% gain, both compared with a year earlier.
Fred Diaz, vice president of sales at Nissan's North American unit, said, "all things considered I think we held our
own. I think February will be a good month, not just for us but for the industry."
The slowdown in the pace of sales for January contributed to a swelling inventory of vehicles on dealer lots. GM
said its inventory ballooned to 114 days' supply. Fiat Chrysler said its inventory amounted to 105 days worth of
vehicles at January's sales pace, up from 79 days in December. Ford's inventory rose to 111 days. Inventory
expressed as days of supply is calculated by dividing the number of unsold vehicles at month's end by the daily
average selling rate.
The cold weather didn't stop the contest among Detroit's three big auto makers to sell pickup trucks, which
contribute the bulk of their U.S. profits.
Ford said sales of its F-series pickups declined by less than 1% compared with a year earlier to 46,536 vehicles.
Chrysler said its Ram pickup sales shot up 24% to 26,033, which pushed its total sales above a year earlier. Its
car sales fell nearly 23%. GM's top-selling Chevrolet Silverado pickup plummeted 18% to 28,926 vehicles. GM
sold 11,118 GMC Sierra pickups, off 14% compared with a year earlier.
A spokesman for GM said the company has restrained discounts offered on its Chevrolet Silverado and GMC
Sierra models more than $1,000 below that of the segment-leading F-150, which has contributed to market-share
losses.
Dave Winslow, chief digital strategist at technology provider Dealer.com, said he didn't see any reason for sales
to be hurt by weather. "People spend most of their time researching inside, and maybe go visit the showrooms for
a test drive or two," he said.
Document J000000020140204ea240003l

Status update: Facebook is still a force ; Company flush with ads, users - and swagger
MONEY
Status update: Facebook is still a force ; Company flush with ads, users - and swagger
Scott Martin
Scott Martin, USA TODAY
1,113 words
4 February 2014
USAT
FINAL
B.1
English
Facebook today celebrates 10 years since Mark Zuckerberg's Harvard dorm room launch of the social network, a
business now worth more than corporate centenarians General Motors and Ford Motor combined.
Whiz kid-turned-CEO Zuckerberg's social juggernaut, now the de facto water cooler gathering for 1.23 billion
worldwide, commands the world's largest network and a coveted advertising position.
Facebook's journey into the fabric of people's lives, marketer's playbooks and as a formidable company with
staying power wasn't always a guarantee. Blunting hype for its promise of social ad dollars, a steady meme still
runs of privacy concerns, advertising angst and fickle users.
Concerns over Facebook's prospects, magnified when Facebook's May 2012 IPO flopped, have eased on Wall
Street as the social giant continues to report massive ad growth and maneuver into mobile. Facebook shares
soared to record levels Thursday -- $62 per share -- after the company reported on Wednesday that 2013
revenue surged 55% to $7.9 billion from the year before.
"Over the coming months and years, you'll see us continue focusing on many of the same themes but now with
greater scale, ambition and resources," Zuckerberg said during the company's earnings conference call.
Zuckerberg's once-uncertain odyssey a decade later cements the persona of an iconic Silicon Valley leader. His
aggressive drive to innovate and court top talent remains matched by Chief Operating Officer Sheryl Sandberg on
the business side, says David Sze, a partner with Greylock Partners and Facebook investor. "I certainly wouldn't
bet against them," he says.
"We're the largest; we get more mobile time than the next seven or eight combined, including Twitter," said
Sandberg in an interview with USA TODAY.
Zuckerberg's steady drumbeat of features added to photos, videos, news media and mobile phone apps has
Google on the defensive, with its rival Google+ bidding for a piece of social advertising. Yet few seem sold on it,
several years in.
At war for talent, Facebook has hired 3.5 former Google employees for every one former Facebook employee
who has gone to Google, according to professional network LinkedIn, signaling Facebook is more desirable.
"Facebook has as talented a team as any tech company," says Gina Bianchini, CEO of Mightybell, a start-up that
creates highly specialized online communities.
SOCIAL RIVALS
Facebook has always had rivals. One concern plaguing the social network has been its waning teen audience
exiting for the next new social party. Such concerns led it to buy photo-sharing app Instagram for $1 billion and
bid $3 billion in an unsuccessful attempt to acquire disappearing photo-messaging service Snapchat.
"People are really eager to spread out their usage of social tools as innovations emerge to try them," says David
Kirkpatrick, author of The Facebook Effect. "But the evidence doesn't really show that people are quitting
Facebook in order to do that."

Facebook has also made no secret of ambitions to connect the world. But mobile social apps with giant
audiences are already all over the world, posing growth challenges. In Japan, messaging giant Line commands
more than 300 million users. In China, where U.S. Internet companies struggle to enter, messaging giant WeChat
has more than 500 million users.
"WeChat has already started to move into the U.S., and they clearly have an eye on this market," says Marcos
Sanchez, spokesman for App Annie, an app research firm.
"The next decade for Facebook will be about mobile," says Jeremy Liew, a partner with Lightspeed Venture
Partners and investor in Snapchat and Whisper. "With Facebook Messenger and Instagram, we see the future of
Facebook; multiple single-purpose vertical mobile apps."
Twitter has its aim on TV-like video advertising that would compete for television ad budgets and Facebook's own
video advertising tests, aligning the two for future skirmishes over social television.
Facebook's "second-screen play - that will be a companion to television similar (to) what Twitter is doing,"
Wedbush Securities analyst Shyam Patil says. "They are going directly after TV ads with video ads."
PRIVACY AND DATA
Privacy has long dogged Facebook. Facebook has made privacy changes that befuddle users worried about
broadcasting too widely. Facebook has turned some people into advertisements for products based on their
"likes," a move that can turn friends into unknowing product shills.
Also, concerns persist as to how Facebook will allow third parties to use its enormous trove of personal
information to target its audience and whether such data could wind up in the wrong hands. "They certainly have
every incentive in the world to not destroy the huge opportunity that they have created," Sze says.
Photo sharing and messages on niche, sometimes more private networks have grown in popularity as Facebook
has become too enormous for some. That's helped anonymous sharing sites such as Whisper gain traction with
the promise of a more authentic conversations in a smaller, private setting.
FACEBOOK MEDIA MOGUL?
While Facebook has firmly established real identity-based sharing, its next chapter will be about personalization.
The company has launched an effort called Creative Labs to pump out new apps as it moves forward.
"The main thing Facebook has done is open the possibilities for deep social interaction over all types of content,
be it messaging, status updates, photo tagging," former Facebook Chief Technology Officer Bret Taylor says.
A media distribution powerhouse could be the next big area. Zuckerberg made those ambition clear with the
unveiling last week of a new app called Paper, focused on photo news sharing and lengthy story updates from
people in a magazine-like format.
And who knew that Facebook, which is worth about $157 billion, would one day eclipse the value of media giants
Time Warner and Disney?
"The astonishing thing about Facebook is that it is the biggest media platform in the history of the universe,"
Altimeter Group analyst Rebecca Lieb says. "No other print or broadcast platform has ever achieved a
1-billion-plus audience."
Adds Ezra Callahan, Facebook's No. 6 employee: "We knew (in 2004) we had something. To see what it is today,
is just amazing to have been a part of it."
Contributing: Jon Swartz
---
Facebook by the numbers
201.6 billion friend connections
1.23 billion monthly active users

945 million monthly active users who used Facebook mobile products
6 billion likes per day
400 billion photos shared
7.8 trillion number of messages sent
6,337 employees worldwide
photo Mark Zuckerberg by Justin Sullivan, Getty Images

Document USAT000020140204ea240000v

Earnings: Ford Zooms but Warns of Hazards --- Profit Up 90% on Sales, Tax Gain; Auto Maker Cautions Product Launches, Competition to Take...
Earnings: Ford Zooms but Warns of Hazards --- Profit Up 90% on Sales, Tax Gain; Auto Maker Cautions
Product Launches, Competition to Take Toll
By Christina Rogers and Mike Ramsey
922 words
29 January 2014
J
B7
English
Ford Motor Co.'s fourth-quarter profit jumped on strong results from North America and Asia even as it warned
this year's profit will decline on new product launches and tougher competition.
The Dearborn, Mich., auto maker said fourth-quarter net income rose 90% to $3.04 billion, including a tax-related
gain of $2.2 billion. Pretax operating profit fell $402 million to $1.28 billion, reflecting in part a pretax charge of
$1.6 billion also related to tax issues. Both the net and pretax profit figures were better than analysts had
expected.
Revenue for the final quarter rose 4% to $37.6 billion.
The quarter's results underline improving performance in Europe, where its operating loss narrowed, though it
swung to a loss in South America for the period. Ford expects "escalating risk" in South America, particularly in
Argentina and Venezuela this year.
For the full year, Ford reported its net rose 26% to $7.16 billion on revenue of $146.9 billion. It delivered 6.3
million vehicles last year, 662,000 more than in the prior year. Its shares gained a penny at $15.72 in 4 p.m. New
York trading Tuesday.
The auto maker reaffirmed an earlier forecast for 2014 of pretax operating profit falling to between $7 billion and
$8 billion, from $8.6 billion in 2013. The auto maker cited higher outlays for new model development and tougher
price competition for the projected decline.
One of the bigger expenses this year will be launching an aluminum-bodied version of its best-selling F-150
pickup truck. Ford has scheduled 13 weeks of plant downtime to prepare for the F-150 model year changeover.
The longer-than-usual shutdown is expected to cut into revenue and profit. Auto makers book revenue when they
ship vehicles to dealers.
"When you look at the decline year over year we are looking at in North America, it's largely attributable to the
F-series," Bob Shanks, Ford's chief financial officer, said in a call on Tuesday with analysts.
Mr. Shanks cautioned that it could be difficult for Ford to raise prices in an increasingly competitive North
American market. In the fourth quarter, Ford gained roughly $200 million in pretax profit because of higher sales
volumes and market share, but it gave up about $100 million in profit to lower pricing compared with a year
earlier. The company at the same time increased spending on engineering, manufacturing and other overhead by
$300 million compared with last year.
"What we are seeing is a more competitive environment in pricing," Mr. Shanks said. "The yen has given the
Japanese as a whole a more competitive base. In our case, we've got so many launches this year so that will
have some impact."
Ford ended 2013 with $24.8 billion in cash, reflecting record cash flow of $6.1 billion for the year. The company
will need the cushion, however, as it ramps up global spending to develop and launch 23 new vehicles and open
three new factories this year.
Capital spending for Ford will be $7.5 billion in 2014, up from $6.6 billion in 2013, and operating cash flow will be
positive, but "substantially lower" than last year, Ford said. Mr. Shanks said he expects spending to remain at the
$7 billion a year level for the next several years, but cash flow should improve after 2014.
Ford's North American operation was bolstered by sales of its full-size pickups and by a gain in market share. The
region has carried the auto maker for the past several years, but is facing more competition and higher
investment costs in 2014.
North American pretax operating profit fell 9% to $1.7 billion from a year earlier in the fourth quarter, partly due to
a $300 million increase in warranty costs largely associated with a recall of the Ford Escape. But for the year, the
region produced $8.8 billion in pretax profit, its best profit since 2000.
The earnings in North America means Ford's United Auto Workers union members will get a profit-sharing check
of $8,800. Workers agreed to take profit-sharing checks in exchange for giving up cost-of-living adjustment raises
in their hourly pay.
"Fourth-quarter results were good enough to draw a line under 2014, allowing the 2015 story to begin," wrote
Morgan Stanley analyst Adam Jonas in a research report on Tuesday.
In Asia, it had a quarterly pretax profit of $106 million, compared with $39 million a year earlier. Sales in China
rose more than 50% in 2013 on new model sales, including several sport-utility vehicles.
Losses in Europe narrowed to $571 million in the quarter, as the market perked up. Ford has gained market share
with new products, including its B-Max. Ford is cutting production capacity 18% by closing three plants. Two of
the plants already have been closed, and the third will close this year in Belgium.
In South America, Ford swung to a loss of $126 million in the quarter from a gain a year-earlier under pressure
from currency devaluation in Venezuela. Exchange gyrations and economic instability in Venezuela and
Argentina are becoming an increasing challenge for all auto makers in South America.
Document J000000020140129ea1t0003h

America's Love Affair With Cars Cools Off
Heard on the Street

America's Love Affair With Cars Cools Off
By Justin Lahart
689 words
29 January 2014
J
C12
English
Objects in the American auto industry's windshield may be smaller than they appear.
The U.S. featured as one of the world's brighter spots for auto makers last year, with Commerce Department
figures showing 15.5 million light vehicles sold, up about 8% from the year before. And Ford Motor on Tuesday
reported fourth-quarter results that showed a 90%, year-over-year increase in net income to $3.04 billion, while
revenue rose 4% to $37.6 billion.
Analysts expect the auto business will improve further this year, with U.S. sales topping 16 million for the first time
since 2007. Given the large number of consumers who postponed buying a new vehicle in the wake of the
recession, this seems doable.
The challenge, though, will be maintaining that level with a confluence of demographic headwinds hitting. The
population is significantly older, and growing much more slowly, than it did during the auto industry's heyday. In
1970, the U.S. median age was 28 and the population aged 16 and over -- broadly, those of driving age -- had
grown at 1.7% annually over the prior five years. Today, the median age is 38, with the driving-age population
growing 1% annually.
Meanwhile, young people's interest in cars seems to be waning. In 1995, 87% of the population aged 20 to 24
had a driver's license, according to the Federal Highway Administration. By 2011 that had fallen to 80%. A recent
analysis by industry watcher IHS and French think tank Futuribles suggests a likely culprit: a trend toward more
urban living. Cities offer alternatives to driving for getting around and owning a car there can be an expensive
outright nuisance.
For car companies, the factors behind the drop in young drivers are less important than the mere fact that it is
happening. It portends a waning engagement with cars that could make it harder to sell more expensive,
higher-margin vehicles. If people aren't getting excited about cars when they are young and impressionable, will
they ever?
There has been a marked decline in the time Americans spend behind the wheel. And the further the recession
slips into the past, the more this change looks driven by demographics rather than just economic distress.
In 2012, according to an analysis of census data by the University of Michigan's Transportation Research
Institute, 9.2% of U.S. households didn't have a car, against 8.7% in 2007. In the 12-month period ended in
November, vehicles logged 2.97 trillion miles on American roads, according to the Federal Highway
Administration. That comes to 12,045 miles a person aged 16 and over -- nearly a 20-year low.
Domestic auto makers appear to recognize that the sales environment has changed. They have been reluctant to
build new manufacturing facilities, worried that they could run back into the problems of excess capacity that
contributed to Detroit's recession debacle. In reporting its results, Ford said that in the current quarter it would
produce 14,000 fewer vehicles in North America than in the same period a year ago.
But domestic auto makers aren't the only ones fishing in America's lake. With Europe's car market moribund, the
appeal of expansion in U.S. has grown for foreign auto makers. Even though its U.S. sales have slumped,
Volkswagen said earlier this month that it plans to build a new North American plant, in addition to one already

under construction in Mexico. Honda Motor and Mazda also are building new plants, while Daimler is considering
one of its own.
Changing demographics may make it difficult for auto sales to absorb these capacity increases. Indeed, a recent
decline in transaction prices and increase in customer incentives suggests competitive pressure is being felt
already. Having largely enjoyed the road to recovery, investors in the U.S. car industry may not find the next leg
of the journey so rewarding.
Document J000000020140129ea1t0001i

4th quarter's $1.3B profit concludes a great year for Ford
MONEY
4th quarter's $1.3B profit concludes a great year for Ford
James R Healey
James R. Healey, USA TODAY
437 words
29 January 2014
USAT
FINAL
B.2
English
Ford Motor made good money the fourth quarter, $1.3 billion in operating profit, capping what the automaker said
was "one of the company's best years ever," with a full-year operating profit of $8.6 billion, up from $8 billion the
year before.
Fourth-quarter net income was $3 billion, padded by a one-time special tax benefit of $2.1 billion, which
outweighed a one-time charge of $311 million. Net income for the year was $7.2 billion.
The quarter's results came out to the same 31 cents per share as a year earlier, which was several cents higher
than analysts had forecast.
North American operations generated a full-year profit of $8.8 billion, which will be worth bonuses averaging a
record $8,800 to 47,000 union workers.
Ford's revenue was up 4% for the quarter to about $36 billion and 10% for the year to about $150 billion. It also
slightly raised its share of the U.S. market, lost less in Europe and made inroads selling its cars in coastal areas
that favor imports.
The stock was basically flat, rising 1 cent to close at $15.72.
Analysts seemed to have factored in the 2013 results and were waiting to see if Ford again cut its profit forecast
for this year and cited costs to launch the redesigned F-150 pickup.
It didn't, affirming the Dec. 18 earnings guidance that shocked analysts at the time: Earnings of $7 billion to $8
billion this year, Ford said then and now, held down by costly new-model launches, including the F-150.
Ford is making the radical shift to lighter-weight aluminum for the F-150 body and cargo box, and investing in
high-strength steel for the frame, which is lighter than regular steel. The changes will cut some 700 pounds from
the full-size F-150.
Cutting weight improves fuel economy and performance and allows the use of lighter components elsewhere. The
truck's chief engineer, Pete Reyes, insists the aluminum truck will carry more, tow more, and be more resistant to
dents in the bed and on body panels than the steel F-150 Ford currently sells.
"This is a gutsy move, as Ford will either leapfrog ahead of the competition on light-weighting vehicles to improve
fuel economy, or they could mess up what is arguably one of their most profitable products," says Christian
Mayes, analyst at Edward Jones Equity Research.
photo Ford
Document USAT000020140129ea1t0000p

Tax Gains in Europe Lift Profit 90% at Ford
Business/Financial Desk; SECTB

Tax Gains in Europe Lift Profit 90% at Ford
By BILL VLASIC
750 words
29 January 2014
The New York Times
NYTF
2
English
DETROIT -- Ford Motor, the nation's No. 2 automaker, said on Tuesday that its fourth-quarter earnings rose 90
percent, to $3 billion, mostly because of favorable tax benefits related to investments in its European operations.
Ford said that its pretax profit fell to $1.28 billion, from $1.68 billion in the period a year earlier. But the company
said it benefited from $2.1 billion in special tax gains during the quarter, including an increase in deferred tax
assets in Europe.
The lower pretax earnings reflected slimmer operating margins in the intensely competitive North American
vehicle market and losses in its European and South American operations.
For the full year of 2013, Ford reported net income of $7.16 billion, about a 26 percent increase from the previous
year.
Ford's chief executive, Alan R. Mulally, called the yearly performance outstanding, and said Ford expected ''solid''
results in 2014 as it adds several new products.
''We are well positioned for another solid year in 2014, as we continue to serve our customers in all markets
around the world with a full family of vehicles,'' Mr. Mulally said in a statement.
Ford is second in size among domestic carmakers, behind General Motors. Chrysler, No. 3, reports its earnings
on Wednesday, and G.M. is scheduled to report on Feb. 6.
The fourth quarter was Ford's 18th consecutive profitable quarter, and it reflected the benefits of its steady
transition to global vehicle platforms used in multiple models in different markets.
But the company expects tighter margins and higher capital spending in 2014, as it introduces nearly two dozen
new vehicles worldwide, including a revamped version of its top-selling F-150 pickup truck.
''We think of it as a building-block kind of year,'' Robert Shanks, Ford's chief financial officer, said in an interview.
''It is preparing the company for the next stage of growth.''
The company has consistently posted strong results in its core North American business, particularly in the
surging market for new vehicles in the United States.
But increased competition and costs associated with new vehicles, including recalls, curtailed its fourth-quarter
performance in its home market.
Ford reported fourth-quarter pretax profit in North America of $1.7 billion, down from $1.87 billion in the same
period in 2012.
For the full year, Ford achieved pretax profit of $8.78 billion in North America, a 5 percent improvement over the
previous year.
The North American results will directly benefit Ford's 47,000 union workers in the United States. The company
said that under its contract with the United Automobile Workers, each of its hourly workers would receive about
$8,800 in profit-sharing payments.
Ford's international operations had their difficulties in the fourth quarter. In Europe, Ford reported a pretax loss of
$571 million, which was an improvement over the $732 million loss the year before.
The company is reducing employment and factory production in Europe, mostly because of slower industrywide
sales on the Continent. Ford on Tuesday reiterated its goal of being profitable in Europe by 2015.
In South America, Ford said it had a pretax loss of $126 million during the quarter, compared with a $145 million
profit in the period a year earlier. Its revenue fell, mostly because of lower volumes in Brazil and Venezuela.
The bright spot in international operations was the Asia-Pacific region, where Ford has been investing heavily in
new plants to catch up to rival carmakers.
Ford reported pretax profit of $106 million in the region for the fourth quarter, compared with a $39 million profit in
the fourth quarter in 2012.
While Ford's quarterly numbers were slightly better than the expectations of analysts, investors will be watching
closely how the automaker manages its expansion efforts in Asia, production shifts in Europe, and manufacturing
changes for the new F-150, which features body panels made of aluminum rather than steel.
''It's not just the quantity of launches that will impact Ford in 2014, but also which vehicle lines are affected,'' said
David Kudla, an analyst with the investment firm Mainstay Capital Management. He noted that the radical
changes to the F-150 would create a ''significant amount of risk'' during the coming year.
The Ford Fiesta assembly line at a plant in Cologne, Germany. Ford posted $3 billion in earnings.
(PHOTOGRAPH BY WOLFGANG RATTAY/REUTERS)
Document NYTF000020140129ea1t00050

Ahead of the Tape
Ahead of the Tape

Ahead of the Tape
By Spencer Jakab
408 words
28 January 2014
J
C1
English
Mulally Tries to Boost Ford's Sticker Price
Shareholders of Ford Motor Co. got a shock in December when the company warned that 2014 would be more
challenging than expected. But they received some good news just weeks later as fears that chief Alan Mulally
would decamp to fill the vacancy atop Microsoft Corp. were quashed.
The relative performances of Ford's widely lauded boss and Microsoft's oft-criticized one speak volumes about
the two industries. The software giant has lost 14% of its value, including dividends, since Steve Ballmer took
over in January 2000. Ford's shareholders have lost twice as much since then.
But of course Ford is the only Detroit auto maker that didn't see its shareholders wiped out entirely, due in no
small measure to Mr. Mulally's bold leadership. Heading into 2014, though, his momentum seems to have been
broken.
Fourth-quarter earnings due Tuesday are seen at 28 cents a share, down from 40 cents a year ago, according to
FactSet. Analysts expect earnings to fall 8% in 2014.
Don't blame the global car market. Analysts at Deutsche Bank see unit sales rising about 4% with China
continuing its surge and even Europe reversing a multiyear slide. Instead, blame a brutally competitive industry.
To stay ahead of competitors, Ford is launching 23 models in 2014, helping make the average age of its lineup
the lowest of all major manufacturers. Meanwhile, it is well on its way to basing its vehicles on just nine global
platforms, down from 27 back in 2007 -- a vital cost-saving measure.
Ford said in December that its goal of raising its operating margin to 8% to 9% by 2015 is "at risk" -- a message
analysts immediately interpreted as "won't happen." In addition to costly new-vehicle launches, such as the
aluminum F-150, there is the issue of emerging-market currency and economic weakness.
That cyclicality and capital intensity is why Ford's seemingly modest multiple of 11.1 times forward earnings isn't
the mark of a value stock; it is par for the course.
With its balance sheet now greatly repaired and major car markets either in recovery or boom mode, justifying a
much loftier figure would be quite a feat, even for an executive miracle worker nearly entrusted with resurrecting
Windows.

Document J000000020140128ea1s00012

Corporate Watch
Corporate Watch
810 words
27 January 2014
J
B6
English
FORD
Auto Maker to Subsidize
Certification on New F-150
Ford Motor Co. is working to certify dealers and independent repair shops to perform body work on its new and
largely aluminum F-150 pickup ahead of the truck's launch later this year, executives said Sunday.
The new F-150 represents a new challenge for auto-repair businesses, which until now haven't had to service
vehicles with such a generous amount of aluminum. Most vehicles on the road today are largely made of steel.
At the National Automobile Dealers Association annual convention in New Orleans, Jim Farley, Ford's global
marketing chief, said company engineers designed the truck with modular parts that can be easily taken on and
off, helping to reduce the service time.
Ford executives say they expect most dealers with body shops will make the $30,000 to $50,000 investment to
attain certification to repair the trucks. The company will help dealers with the costs, subsidizing as much as
$10,000 for tools and training.
-- Christina Rogers
---
UPS
Union Members Reject
Part of Shipper's Contract
Teamsters union members at a Western Pennsylvania bargaining unit again rejected part of a contract with
United Parcel Service Inc., prolonging labor headaches for the shipping company.
In a vote counted Friday, Teamsters-represented workers rejected the Western Pennsylvania supplement to the
national contract for the second time, 1,230 to 430, according to the International Brotherhood of Teamsters.
Splinter group Teamsters for a Democratic Union said employees rejected the contract in part over health-care
benefit issues.
Health care has been a sticking point in these labor talks, in part because UPS is moving most of its unionized
employees to TeamCare, a multiemployer trust fund that offers group health insurance. Critics, including the TDU,
say the move results in benefit cuts -- such as introducing a $100 deductible after four years. The national
Teamsters group says the new plan maintains strong and similar benefits to the employees' current plan.
-- Laura Stevens
---
DISH NETWORK

Court Won't Rehear
Ad-Skipping Decision
Dish Network Corp. won another legal victory in its dispute with Fox Broadcasting Co. over Dish's "Hopper" digital
video recorder's ad-skipping and automatic-recording features.
The Court of Appeals for the Ninth Circuit unanimously denied Fox Broadcasting's petition to rehear a federal
appeals court's July decision that also ruled in favor of Dish. That appeals-court ruling upheld a lower court's
ruling that denied a request by Fox for the features of the Hopper to be shut down.
Fox is a unit of 21st Century Fox Inc., which, until late June, was part of the same company as News Corp, the
parent of The Wall Street Journal.
The features of the Hopper, released by Dish in 2012, allow customers to enable automatic recording of
broadcast network programming and automatic ad skipping on those recorded shows. Several broadcasters
ended up suing Dish, claiming copyright infringement.
"We are disappointed in the decision but recognize that preliminary injunctions are rarely overturned on appeal,"
Fox Broadcasting said, in a statement.
For its part, Dish called the ruling "a victory" for consumers.
-- John Kell
---
SAMSUNG
Patent-Licensing Deal Is Reached With Google
Samsung Electronics Co. and Google Inc. have signed a long-term cross-licensing deal on technology patents
that cover a broad range of areas, the South Korean company said Monday in a statement.
Without going into specifics, Samsung said the agreement will cover both the two companies' existing patents and
those that will potentially be filed over the next 10 years.
"By working together on agreements like this, companies can reduce the potential for litigation and focus instead
on innovation," Allen Lo, deputy general counsel for patents at Google, was quoted as saying in the statement.
Samsung, the world's largest maker of mobile phones by shipments, powers most of its smartphones with
Google's Android operating system, as it competes fiercely with Apple Inc.'s iOS phones.
Apple and Samsung, meanwhile, have been locked in a number of legal disputes over mobile technology patent
in various countries including the U.S. and South Korea. Samsung currently owes Apple $930 million in damages
for patent infringement, according to a federal jury ruling from a high-profile U.S. case.
Cross-licensing patents reduce the likelihood that Google and Samsung might face each other in future court
battles over intellectual property. That seems an unlikely prospect today considering how closely the two
companies cooperate, Samsung being the market leader in selling devices based on Google's Android mobile
operating system. Still, Google has become a more direct competitor since it bought Motorola Mobility and started
making its own handsets. And technology markets may shift drastically over the 10-year life of this agreement.
-- Min-Jeong Lee
Document J000000020140127ea1r0002x

Fuel-Efficiency Rules Are Already Raising Costs in Detroit
Fuel-Efficiency Rules Are Already Raising Costs in Detroit

By Henry Payne
1,097 words
23 January 2014
J
A13
English
Detroit -- At the dawn of 2014 the federal government has exited General Motors and Chrysler. Both companies
have repaid their auto-bailout loans and Fiat is purchasing Chrysler outright. But federal carbon limits imposed on
the auto industry in the depths of the Great Recession -- when it was powerless to resist -- will haunt
manufacturers for years to come. The re-election of Barack Obama has cemented EPA fuel-efficiency regulations
requiring that, by 2025, auto makers' products average 54.5 miles per gallon.
On the floor of the 2014 Detroit Auto Show, which is open to the public until Jan. 26, there is ample evidence that
the regulations are starting to bite. Detroit temperatures have hovered in the single digits after hitting a record low,
minus-14 degrees, in the first week of January -- temperatures consistent with a planet that hasn't warmed in
more than a decade. Yet the gods of global warming must be satisfied, and the sacrifices to the EPA's climate
ideology come with a big price.
While auto makers are once again parading cars and trucks their customers want to own, company strategies are
nevertheless being driven by government fuel-economy rules. Behind the glitzy displays, gorgeous vehicle
introductions and relief that vehicle sales are almost back to 2007 prerecession levels, there is worry about the
costs the fuel-efficiency rules impose.
Take the radical, expensive redesign of the Ford F150 pickup, America's best-selling vehicle. The F150 is the talk
of the show because it is the first truck -- and the first large-volume vehicle -- to have its body made entirely of
aluminum to save weight and reduce fuel consumption.
The driving force behind Ford's decision was the EPA standards that will force full-size trucks to get upward of 30
mpg in 10 years -- up from 20 today. Ford had already made significant gains in efficiency by redesigning its
powertrains to add less-thirsty turbo V-6s to its lineup, but the step to aluminum is an indication that the EPA rules
will require much more than squeezing engines. The switch to costlier, lighter aluminum means a massive capital
investment that involves the retooling of factories and the remaking of Ford's material supply stream as it shifts
away from steel sheet for body panels. Ford won't disclose the investment, but it runs into the billions.
Ford sells 700,000 F150 trucks a year, so industry experts say it could overnight become the second-biggest
aluminum customer outside of the U.S. military. The change brings significant risk to a truck class where buyers
put a premium on durability and toughness. While Ford is confident that its aluminum alloy will match steel for
strength, its move is also a gamble given the higher cost of aluminum to repair and the subsequent insurance
cost to customers.
What is the hardest thing about launching a new car today?
"The new government regulations -- whether it be fuel economy, safety or whatever -- are very difficult and pose a
significant challenge to the development of any new vehicle," Ford Mustang engineer Dave Pericak tells Car &
Driver. The mighty muscle car will offer a turbocharged four-cylinder engine for the first time in a bow to federal
regulations.
Ford's strategy is not to criticize the regulations, calculating that they are here to stay and it's a marketing
nightmare to fight government and media campaigns for better fuel efficiency. So Ford is trying to turn the rules to
its advantage, playing to its marketing strengths in selling vehicles like the Mustang and the best-selling F150 as
the most innovative products in their segment. The F150, for example, will be 700 pounds lighter, 3-4 mpg more
efficient, and therefore save customers -- especially companies with truck fleets -- millions in fuel costs.

Aluminum's costs are significantly higher than steel, and Ford won't disclose how much the changeover will erode
its profit margins. Those F150 margins are significant, with each truck sale adding $10,000 to the company's
bottom line. In the highly competitive truck segment, however, Ford will likely swallow those costs to maintain a
competitive sticker price and hope that increased sales will bring more cash.
GM, by contrast, is banking on a different path that it thinks is less disruptive and less costly. Less costly is a
relative term, of course. The company plans to introduce an entirely new vehicle for the midsize truck segment
that Detroit auto makers had abandoned. GM hopes that the sales gains of the Chevy Colorado and GMC
Canyon will mitigate the costs of regulatory compliance -- and fill its coffers so it can invest in any changes
necessary (an aluminum body perhaps?) to keep the steel-skinned, full-size Chevy Silverado compliant with EPA
rules.
Chrysler, meanwhile, has invested heavily in nine-speed transmissions and diesel engines. Its RAM pickup diesel
competes against the Ford F150 and gets an impressive 25 mpg. One of Ford's Great Recession advantages,
reports Karl Henkel of the Detroit News, is that by avoiding bankruptcy it could invest in aluminum. GM insiders
say the government penalties of not meeting the regulations are too steep not to make new product investments.
Bob Lutz, former product guru of General Motors, once predicted that the 54.5-by-2025 EPA regulations would
cost consumers an additional $5,000 per vehicle -- essentially the cost of making every car a hybrid. Auto makers
have spent billions on Washington lobbyists, as well as engineering research and development, to help carve
loopholes in the EPA rules.
Significantly, auto makers receive mpg credits for producing so-called zero-emission vehicles -- that is,
coal-burning electric cars. Barack Obama once predicted that there would be one million EVs on the road by 2015
in the quixotic hope that if auto makers just built electrics, buyers would come. This year's show is confirmation
that battery-powered vehicles are a niche vehicle -- like sports cars -- not a mainstream choice. With a 3% market
share, hybrids and EVs, like sports cars, are pricey, with Cadillac and Tesla showing new offerings beginning at
$70,000 while BMW is marketing its new i-Series of electric cars at anywhere from $40,000 to $105,000.
These cars will be costly to taxpayers as well, as each of their well-heeled buyers will get a $7,500 government
tax credit.
---
Mr. Payne is the auto critic for the Detroit News.
Document J000000020140123ea1n0000d

Upbeat Again, but Not Overconfident
DETROIT AUTO SHOW

Automobiles; SECTAU
Upbeat Again, but Not Overconfident
By LAWRENCE ULRICH
2,040 words
19 January 2014
The New York Times
NYTF
1
English
DETROIT -- Twenty-five years ago, the Detroit Lions' biblical trials of football futility coincided with a familiar
economic slump -- the kind that often seemed to save its worst for Detroit.
Auto sales in 1989 were plummeting after an extended boom, helping to push the country toward recession. But
the Lions hit upon a catchy comeback slogan: Restore the Roar. Defying logic and history, the team indeed
turned things around, winning their division in 1991 and their first-ever playoff game under the three-decade
ownership of William Clay Ford.
A new slogan -- Restored -- was bestowed upon the Lions, which took on special bathos with their inevitable
collapse the next season.
At this year's North American International Auto Show, Restored might well blaze from banners in Cobo Center, a
chest-puffing pep talk for Detroit's automakers, rebounding from recession or bankruptcy quicker than most
anyone dared to dream, luring new fans and drafting stars for their lineups.
But in this city, the question always flutters in the air: Are General Motors, Ford and Chrysler truly, enduringly
restored? Or will an ingrained losing behavior -- hubris, mismanagement, more nimble competitors -- drag the
hometown team back to the cellar, the bust that has historically followed every boom?
The answer is an emphatic ''no,'' said Mark Reuss, G.M.'s head of global product development.
''Things are fundamentally different,'' Mr. Reuss said, flanked by one of his babies that colorfully (specifically,
yellow) amplified his point: the Chevrolet Corvette Z06, the roughly 625-horsepower offshoot of the standard
Stingray, with the latter named 2014 North American Car of the Year at the show. The Chevy Silverado was
honored as Truck/Utility of the year, giving G.M. a sweep of prestigious awards chosen by a panel of auto
journalists.
And even as the industry roared back to post 15.6 million sales in 2013, the leaner, meaner G.M. could break
even financially with industry sales as low as 10.5 or 11 million, Mr. Reuss said.
''Our footprint is very responsible now,'' Mr. Reuss said. We're running factories at about 105 percent capacity on
two shifts, we're also selling about 50 percent cars, 50 percent trucks. If we have a downturn again, we're in a
very different place.''
While Detroit has steadily diversified its product portfolio, a traditional truck, the 2015 Ford F-150, dominated this
show the way that Ford has dominated pickup sales for 37 straight years. And the F-150's calling card, a
weight-slashing aluminum body that may represent a revolution in affordable vehicles, led the show's big trend:
the breathtaking transfer of technology, in materials, alternative fuels, safety and digital gadgets, to mainstream
models.
The Mercedes-Benz C-Class, which will most likely start around $36,000, is replete with features from the
$100,000 S-Class flagship, including air suspension, pedestrian-spotting collision prevention system and
semiautonomous driving functions. The Chrysler 200, a thoroughly reimagined version of a formerly forgettable

car, offers a 9-speed automatic transmission in a car that starts at $22,695. That's more gears than you'll find in a
$250,000 Bentley.
The Audi Allroad Shooting Brake plug-in hybrid spotlights technology that will quickly make its way to production:
A new form of Audi's quattro all-wheel drive uses an electric motor to power the rear wheels and a gas engine to
drive the front wheels.
Car fans trekking to Motown to see it all for themselves can attend the show through Jan 26, where they will see
showroom models and forward-looking concepts, including these:
ACURA TLX Acura's TLX concept aims to inject some adrenaline into the brand's unremarkable sedan lineup.
Replacing today's TSX and V6-only TL, a production TLX will go on sale in the second half of 2014, offering a
2.4-liter 4-cylinder or an optional 3.5-liter V6 backed by a 9-speed automatic and all-wheel drive.
AUDI ALLROAD SHOOTING BRAKE Yet another effortlessly stylish Audi, the Shooting Brake design study -- a
finely proportioned two-door wagon -- spotlights design cues that will turn up on the next-generation TT sports
car. The Shooting Brake carries Audi's newest technology, including a ''virtual cockpit'' that replaces traditional
gauges with a graphics-driven screen.
BMW 2 SERIES Replacing the stubbier 1 Series, the 2 Series coupe will be the least painful entry point to BMW's
car lineup: $33,025 for the 4-cylinder 240-horse 228i. Choosing the M235i, with roughly 315-horsepower, yields
0-to-60 m.p.h. excursions in well under five seconds, at $44,025 to start. A wider, longer body translates into
more rear-seat and cargo space. Sales begin in the spring.
BMW M3 AND M4 Say goodbye to the current M3's fever-pitch V8 and hello to a twin-turbo 3-liter in-line
6-cylinder with 431 horsepower (preliminary rating) in the M3 sedan and newly named M4 coupe. With cars like
the Cadillac ATS breathing down its neck, the new M models look to reaffirm BMW's Ultimate Driving Machine
credential. The cars arrive in June, with the M3 at $62,925 and the M4 at $65,125.
CADILLAC ATS COUPE Looking demure compared with the sci-fi angles of the CTS coupe, the smaller ATS
goes on sale this summer. The two-door adopts the ATS sedan's 272-horse 2-liter turbo 4 and optional 321-horse
V6. A 6-speed manual is offered only with the 4; a 6-speed automatic is available with either engine.
CHRYSLER 200 Today's 200, kept on life support while Chrysler struggled through bankruptcy, is mercifully laid
to rest. In its place comes a sleekly modern 200, based on the Alfa Romeo Giulietta. The 200 rolls out of a
suburban Detroit factory this spring, at $22,695 to start with a 184-horsepower 2.4-liter 4. The 200 C model gets
the 295-horsepower Pentastar V6.
CHEVROLET CORVETTE Z06 The Stingray is not fast enough for you? Strap on the Z06 and prepare for launch,
thanks to roughly 625 horsepower from Chevy's new supercharged 6.2-liter V8. Dressed-for-battle body contours
generate prodigious aerodynamic downforce to pin the Z06 to the pavement. The 7-speed manual transmission
gets a useful rev-matching feature, and the Z06 will introduce, finally, G.M.'s 8-speed automatic.
FORD F-150 This Ford's burly pickup visage may look familiar, but it masks a groundbreaking structure: The body
is aluminum, a lightweight material once reserved for exotic luxury and sports cars. Up to 700 pounds lighter than
its predecessor, the 2015 F-150 may brush 30 highway m.p.g. with a new 2.7-liter EcoBoost turbo V6. Buyers
also get the choice of a naturally aspirated 3.5-liter V6, a 3.5-liter EcoBoost V6 or a 5-liter V8.
GMC CANYON With truck-stop styling and a smaller, more economical footprint than G.M.'s full-size pickups, the
midsize Canyon hits showrooms this fall. Buyers can choose a 193-horsepower 4 or a 306-horse V6, with a diesel
coming for 2016.
HONDA FIT Already magically roomy inside, the latest Fit subcompact hatch adds five inches of rear legroom. On
sale this spring, the made-in-Mexico Fit gets a bump to 130 horses with a new 1.5-liter 4.
HYUNDAI GENESIS Combining gadgetry with a grab bag of design cues and a smart new cabin, the redesigned
Genesis, available this spring, will still undercut big-name luxury sedans, most likely starting around $37,000 with
a 3.8-liter V6. There's also a 429-horse V8 and a new all-wheel-drive system.
KIA GT4 STINGER Kia could fill a hole in its line by bringing this Lotus-like sport coupe concept to market -- and
possibly blow away competitors like the Scion FR-S with a 315-horsepower turbo 4. The GT4 Stinger's old-school
approach includes minimalist styling and no audio system.

LEXUS RC F The RC F confirms that Lexus is continuing to rejuvenate its conservative designs and take a few
risks. The sinuous sport coupe with a monstrous chain-mail maw goes on sale late this year, along with a less
powerful RC 350. (Both are offshoots of the IS sedan.) The RC F will move, swiftly, with a 450 horsepower V8.
MERCEDES-BENZ C-CLASS With the smaller CLA serving budget-constrained customers, the C-Class moves
up to midsize proportions, yet an infusion of aluminum reduces weight by up to 220 pounds. Laden with
technology from pricier Benz models, the C300 will cruise with a 208-horse turbo 4 or fly with the C400's
329-horse turbo V6. Both models arrive in September.
MERCEDES-BENZ GLA45 AMG One of several vehicles here that defied classification as a crossover,
hatchback or wagon, the all-wheel-drive GLA45 will be the angry young man of the once-staid Mercedes lineup.
The GLA's 355-horsepower 2-liter turbo was first seen in the CLA45 sedan.
MINI COOPER JOHN COOPER WORKS With stainless-steel mimicking paint that made it look like, well, a Mini
fridge, the spicy JCW Concept -- based on the all-new 2015 Mini -- will inspire a production model later this year.
NISSAN SPORT SEDAN CONCEPT By next year, Nissan will pour much of this concept's styling into a new large
sedan that may or may not be called Maxima. The concept's potentially polarizing design -- a so-called floating
roof, daring shapes and a sweeping fastback profile -- offer hope for a more distinctive Nissan.
PORSCHE 911 TARGA If Rube Goldberg struck it rich, he would drive this Porsche, whose wildly complex,
bubble-glassed Targa convertible roof was the talk of the show. In a nod to Targa models of old, the Porsche
flaunts a hooplike roof bar executed in brushed aluminum. It arrives in June, itching for open-air pleasure.
SUBARU WRX STI The high-grade version of Subaru's trusty WRX, all grown up now, punches out 305
horsepower from a turbocharged 2.5-liter boxer 4. Hatchback fans are out of luck, with the rally-replica Subie
offered only as a sedan.
TOYOTA FT-1 Toyota rolled out one wild-looking speed machine in the FT-1, which stands for Future Toyota. An
adolescent's rippling dream, with gills and bulges, spoilers and splitters, the FT-1 concept -- if that dream came
true -- might spawn a modern take on the dearly missed Supra.
VW PASSAT BLUEMOTION VW already sells a fuel-sipping Passat diesel, but the BlueMotion could challenge its
mileage with a 150-horse 1.4-liter turbo 4 that cuts back to two cylinders at cruising speeds. VW pegs highway
economy at 43 m.p.g. in a car that could reach production.
VW GOLF R Volkswagen's on-again, off-again Golf R is back for its most blazing run yet: 290 horsepower from a
2-liter turbo 4 distributed by all-wheel drive. This may be the market's ultimate hot hatch.
VOLVO CONCEPT XC COUPÉ Volvo's Chinese owner, Geely, might be taking notes on Volvo's sophisticated
styling ideas -- or Xeroxing them in full. The shapely XC will guide the design of future Volvos, including the XC90
crossover coming to showrooms this year.
VARIETY: The Detroit auto show delivered treats for a diversity of customers with, clockwise from top, the Toyota
FT-1 sports car design study, a redesigned Honda Fit hatchback and Ford's F-150 pickup, which dropped up to
700 pounds from the 2015 model. (PHOTOGRAPHS BY LARRY W. SMITH/EUROPEAN PRESS AGENCY;
FABRIZIO COSTANTINI FOR THE NEW YORK TIMES; CARLOS OSORIO/ASSOCIATED PRESS) (AU1);
FLASH POINT: Clockwise from top, among the introductions in Detroit were the Lexus RC F, Acura TLX design
study, Audi Allroad Shooting Brake concept, Chrysler 200 and Porsche 911 Targa, whose roof puts on its own
show. (PHOTOGRAPHS BY CARLOS OSORIO/ASSOCIATED PRESS; FABRIZIO COSTANTINI FOR THE
NEW YORK TIMES; GEOFF ROBINS/AGENCE FRANCE-PRESSE -- GETTY IMAGES) (AU5)
Document NYTF000020140119ea1j0003j

OFF DUTY --- Gear & Gadgets -- Rumble Seat: Detroit Car Makers Are Back in the Groove
OFF DUTY --- Gear & Gadgets -- Rumble Seat: Detroit Car Makers Are Back in the Groove
By Dan Neil
1,482 words
18 January 2014
J
D12
English
Detroit is getting the band back together.
Five years after the biggest decline in U.S. auto sales since the Great Depression and mere weeks after the U.S.
Treasury sold the last of its GM stock and Fiat finagled the last of Chrysler from the United Auto Workers, the
American giants were once again striding the aisles of Cobo Center (formerly Cobo Hall), the riverside address of
the North American International Auto Show in downtown Detroit. The Corvette ZO6 is so sharp you could open
an artery on it. The 2015 Ford Mustang -- with an independent rear suspension, if that means anything to you -- is
even more wonderfully voracious and bratty, a horse that bites. Love it.
For U.S. sales and American car makers, 2013 was a huge year. The U.S. market tallied a total of 15.6 million
light-vehicle sales in 2013, up a healthy 7.6%.
For the Big Three they had a healthy share of those sales:
-- GM sold 2.8 million units, up 7.3%
-- Ford, 2.5 million, up 11%
-- Chrysler, 1.8 million
But now, without further eloquence, the news: Ford changed the game this week when it unveiled its
aluminum-intensive pickup truck, the 2015 F-150, that is as much as 700 pounds lighter than a comparable
steel-bodied vehicle. In an industry that celebrates the power of small numbers and incremental weight savings,
700 pounds is a staggering figure, and it is weight savings that directly and proportionally improves hauling and
towing capacity and fuel economy, which are prime metrics in the truck segment.
Wait, Upper West Sider, don't rush off to the wine column. To the casual observer, the anticipated 3 mpg (20%)
increase gained by Ford's high-tech "light weighting" (a term of art) may seem marginal, but I assure you it is a
figure of immediate and national consequence.
Let's do some arithmetic.
For example: If the Toyota Prius, which averages 50 mpg, gained an additional 21% fuel economy, it would
average 60 mpg or thereabouts. Over 1,000 miles, that gain in efficiency would net a fuel savings of 3.4 gallons.
But in low-mpg vehicles like pickups, the fuel-saving effect of percentages is magnified. The same 1,000 miles in
a 2015 F-150 would save 13 gallons as compared with the 2014 model (this is assuming F-150's numbers come
in where expected), nearly four times as much as the Prius.
Now reckon with the Big Multiplier: 763,000. That is the number of F-series trucks Ford sold last year, a figure
that on its own would make the F-series the seventh largest vehicle company in the U.S. market. By virtue of the
hundreds of millions of miles rolled up by the F-series annually, you are looking at the single biggest real-world
advance in fuel economy in any vehicle since the Arab oil embargo.
As innovative as they are, the Tesla Model S (also built of aluminum) and the Chevy Volt just don't log that many
miles. The new F-150 is absolutely strategic in terms of America's gasoline consumption.
And so, protocol notwithstanding, I propose that Ford Chief Executive Alan Mulally receive the Presidential Medal
of Freedom. I couldn't be more serious. Ford's investment in aluminum construction on such titanic scales is
costly and risky. Ford claims repairability and dent resistance in the aluminum panels is even better than steel,
but only time will tell if the legacy-minded pickup audience embraces the idea.
Yet, inevitably, as one rival car executive told me near the Ford stand, most vehicles, and certainly large vehicles,
will have to be lighter. "We're all getting pushed by 54.5 [miles per gallon, the EPA's fleet fuel economy target for
2025], he said. "To get there we're all going to have to go to aluminum."
Numbers like the F-150's create their own weather, in terms of material cost and procurement. Simply put, Ford's
move will likely make it cheaper for other companies to follow suit. Mr. Mulally, and his likely successor, Chief
Operating Officer Mark Fields, made the hard and right choice for their company and embraced the future. It also
happened to be right for the country.
---
Best and Worst In Show
MOST HEARTFELT YAWN // CHRYSLER 200
The unveiled Chrysler 200 should be nicknamed The Shovel, because it is obliged to dig Chrysler out of a pretty
deep hole in the midsize sedan segment. Honestly, the 200's forebears deserved nothing less than to be crushed
at a monster truck rally.
This, the second-generation 200, is based on adapted front-engine, front-drive Alfa Romeo platform (the same
platform serving under the Dodge Dart and Jeep Cherokee). With a choice of two thrifty engines (a 2.4-liter in-line
four or 3.6-liter V6), paired with a 9-speed transmission unique in its chronograph-like mechanical density, the
200 offers up to 35 mpg on the highway. There is also an all-wheel drive option, with an electromechanical
system able to decouple large parts of the drivetrain when it's not needed, to reduce parasitic losses and improve
fuel economy.
But at a Detroit show when many cars enjoy a sin of excess, the 200 has the most underdrawn, neutered exterior
this side of the Oscar statuette. Man, put some flames on this thing, quick.
BEST CONCEPT CAR // CADILLAC ELMIRAJ
Breathing a louche, incorrigible air all its own was the Cadillac Elmiraj, a superbly rendered vision of a pillarless
hardtop coupe that appears to be 80 yards long. This car was at the Pebble Beach Concours d'Elegance last
year, but I failed to notice it. On the stand in Detroit, it was captivating, American exceptionalism on four wheels,
every bit the aesthetic rival of the Mercedes-Benz's lurid S-class coupe. Alas, the latter is headed for production
and the Cadillac Elmiraj isn't.
The Elmiraj (did the Shriners name it?) served to illustrate the future Cadillac design but not in entirely expected
ways. Also on the stand was the new ATS Coupe -- the two-door version of its hot-selling luxury compact -- and
the styling fires have suddenly gone cool, and Cadillac's recent form language of nervy futurism turned way down,
in the interests of casting a wider net. The ATS Coupe fairly wilted under the same lights as Elmiraj. This
capitulation to the ordinary isn't in Cadillac's long-term interest.
WORST CONCEPT CAR // TOYOTA FT-1
There are many contenders here, including Nissan's sport-sedan concept prefiguring the next Maxima, which
comprised a collection of trumped up and exaggerated details and Constructivist geometry obviously draped over
the profile of the coming production car.
But the most fraudulent was the Toyota FT-1, designed at Toyota's Calty Design Research in California and
anticipated to be the emotional template for a new Supra sports coupe. This car is blasting around in virtual reality
in the driving game Gran Turismo 6 (game creator Polyphony Digital was a partner on the project). Looking like a
ballistic blood clot, the FT-1 (Future Toyota One) has something of the dizzy, aero-polished extravagance of one
of Alfa Romeo's glorious BAT cars, not entirely a bad thing. The car also has a passing resemblance to an old
Panoz Esperante (remember those?), which is a more debatable thing.
But the concept is much too big to be even a starting point for a new Supra, which would have to clock in at
around $50,000 to start. If the goal is a tidy, lightweight sport coupe, an heir to cars like the 2000GT, Celica and
Supra, you can't start with a concept the size of a Dodge Viper. The backroom intelligence has it that the FT-1 is
rather more like an audition piece for the benefit of BMW, which Toyota is courting as a partner on a future
sport-coupe project, much as it joined with Subaru on the Scion FR-S/Toyota GT86/Subaru BRZ coupe.
BEST NEW PRODUCTION CAR // PORSCHE 911 TARGA
The Porsche 911 Targa 4 and 4S. The great 991-generation sports coupe has been fitted with a handsome,
historically resonant targa roof, a la the 1960s-era targa, complete with a band of brushed aluminum across the
roof arch. The roof mechanism is itself a gadgety pleasure, as the whole of the car's rear deck and wraparound
rear window motor smoothly rearward on scissor arms, exposing the compartment into which the roof panel
dives. The Carrera Targa beautifully underscores the message from Detroit: Aluminum rules.
Document J000000020140118ea1i0000h

Ford Recalls Edge, Explorer and Vans; N.H.T.S.A. Upgrades Jeep Investigation

Ford Recalls Edge, Explorer and Vans; N.H.T.S.A. Upgrades Jeep Investigation
By CHRISTOPHER JENSEN
647 words
18 January 2014
The New York Times
NYTF
English
Ford recalled about 28,000 of its 2012-13 Edge crossover utility vehicles for possible fuel leaks on models
equipped with the 2-liter 4-cylinder EcoBoost engine, according to a report posted on the National Highway Traffic
Safety Administration website. The automaker said the fuel line pulse damper was not manufactured properly by
a Michigan supplier, which could allow ''fuel odor, seepage or a small fuel leak.''
While that could cause a fire, Ford said it was not aware of any fires, accidents or injuries related to the issue.
The action includes about 5,500 Edges from the 2012 model year that were recalled that year for the same
problem. Ford said it was concerned that replacement fuel pulse dampers put on those engines were also
defective and might develop leaks, although it had received no such reports.
Ford's solution to the problem is to use a fuel line without the dampers. While such dampers can be used to make
fuel flow more predictable, the soon-to-be-removed dampers are in a ''low-pressure'' location where their role was
solely to help reduce noise, Kelli Felker, a spokeswoman for Ford, said in an interview. Consequently, she said,
there will be no impact on the engine's function.
While most major automakers, including General Motors, Chrysler, Honda and Toyota, announce recalls, Ford
typically does not unless it deems a problem is so severe that owners should stop driving.
In other actions:
â– Ford recalled about 300 Explorer sport utility vehicles from the 2011-12 model years in the United States
because a replacement steering gear might be defective, according to a report posted on the N.H.T.S.A. website.
Ford said the system had a software fault that could result in the steering locking up, making the vehicle
impossible to turn. However, the automaker said, it was not aware of such a problem occurring. The replacement
gears were installed after Sept. 13.
Ford described its recall as voluntary, but once a manufacturer is aware of a safety problem it must -- within five
business days -- inform the safety agency of its plan for a recall or face civil penalties.
â– After resisting a recall for two years, Ford says it will recall about 4,500 of its 2011 full-size vans because
bubbles may form inside the windshield, reducing forward visibility. The models covered by the recall are the
E-150, the E-250, the E-350 and the E-450, according to a report posted on the agency's website.
Ford had asked the agency to be excused from the recall, saying the bubbles occurred only in hot weather and it
had no reports of the driver's vision being completely obscured. The agency recently ruled that the automaker
must issue a recall.
â– N.H.T.S.A. said it upgraded an investigation into a possible fire hazard involving the vanity mirrors on as many
as 593,000 Jeep Grand Cherokees from the 2011-13 model years. The investigation into the fires began in
August, prompted by three complaints from owners about fires near the vehicle's sun visors. In a new report,
agency investigators say they have 52 reports about fires and are concerned about a possible electrical short
involving the light in the vanity mirrors.
The agency said there were also three reports of injuries, although the seriousness of those injuries was not
detailed. Consequently, the agency says, it is upgrading its investigation from a preliminary evaluation to an
engineering analysis. The latter is more likely -- but not certain -- to result in a recall.
Chrysler engineers are conducting their own investigation as well as working N.H.T.S.A., Eric Mayne, a Chrysler
spokesman, wrote in an email.
Document NYTF000020140118ea1i0005m

Ford Mustang and Volvo Concept Win Design Awards
DETROIT AUTO SHOW

Automobiles; SECT
Ford Mustang and Volvo Concept Win Design Awards
By PHIL PATTON
231 words
17 January 2014
The New York Times
NYTF
English
DETROIT -- The Ford Mustang and Volvo Concept XC Coupe won the annual Eyes on Design awards presented
at the Detroit auto show on Tuesday.
The Ford Mustang was named best production vehicle, while Volvo won for best concept vehicle and won another
award, new for this year, for innovative use of color, graphics and materials.
The concept represents a reboot of Volvo style by the company's design chief, Thomas Ingenlath.
The Design Catalyst Award for lifetime work was presented to Hartmut Warkuss, the former design head of
Volkswagen. Mr. Warkuss supervised Audi and VW during a career that ran from 1973 to 2003.
His tenure saw the introduction of the landmark Audi 80 and 100 and the fourth-generation Volkswagen Golf and
Polo. He was a mentor to the designers J Mays, Freeman Thomas and Peter Schreyer, who together produced
the VW Concept One that became the New Beetle and the Audi TT Concept.
In a media release from the group, Mr. Schreyer, president and chief design officer of Hyundai, said that Mr.
Warkuss had guided his career.
''I learned a lot from him about car design and how to get a feeling for a brand,'' Mr. Schreyer said. ''He knew how
to develop talent, and many successful designers came out of his era.''
Document NYTF000020140117ea1h0002u

Corporate News: AT&T Pulls Back On 'Idol' Sponsorship
Corporate News: AT&T Pulls Back On 'Idol' Sponsorship

By Suzanne Vranica and Amol Sharma
340 words
16 January 2014
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Copyright © 2014, Dow Jones & Company, Inc.
AT&T Inc. withdrew as one of the main sponsors of Fox's "American Idol," the TV network said, a sign that the
singing-competition show, which once towered over the television landscape, is losing some shine with
advertisers as its audience shrinks and gets older.
AT&T's decision to stop sponsoring "Idol" was disclosed ahead of Wednesday's premiere episode for the show's
13th season. The show's decline as a cultural phenomenon was part of the reason, a person familiar with the
situation said. Another factor was that one of AT&T's original motives for sponsoring the shows -- to help promote
text messaging to the masses -- had been accomplished.
Fox said Ford Motor Co. and Coca-Cola Co. would stay on as the other main sponsors. But Coca-Cola, which
has been a high-profile sponsor of the show since it launched -- Coke-branded cups have been on judges' tables,
for example -- has "significantly" reduced its spending on the program, according to a person familiar with the
matter. A few years ago, the beverage giant was shelling out roughly $30 million on the show and now is
spending under $10 million, the person added.
News of AT&T's decision was reported earlier by Variety.com.
Starting in the early 2000s, "American Idol" became a major cultural force in the U.S. as its brand of reality
competition caught on with TV viewers. At its peak in 2006, the show reached over 30 million viewers, according
to Nielsen data provided by Horizon Media. Its success helped Fox finished first in the ratings among 18- to
49-year-olds -- the demographic most coveted by advertisers -- for eight of out the past nine seasons.
Fox's parent company, 21st Century Fox, until last June was part of the same company as The Wall Street
Journal's owner. News Corp.
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Detroit Auto Show: Auto Makers Dare to Boost Output --- Buoyed by Rising Sales, Industry Courts Risk of Overcapacity as It Adds Factories in...
Detroit Auto Show: Auto Makers Dare to Boost Output --- Buoyed by Rising Sales, Industry Courts Risk of
Overcapacity as It Adds Factories in North America
By Neal E. Boudette
927 words
15 January 2014
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DETROIT -- The auto industry's recent fat profits from rising demand for new cars in North America is about to
confront the law of supply and demand: A string of new factories in the region will start cranking out a million or
more cars over the next several years.
A large increase in production capacity poses a serious risk for auto makers. They reap strong profits if their
factories are running near 100% of capacity, but their losses mount rapidly if the utilization rate falls below 80%.
And when manufacturers build more cars than they sell, they often resort to price wars to boost sales.
At the North American International Auto Show in Detroit on Monday, Volkswagen AG said it would build a new
North American plant as part of a plan to invest $7 billion in the region over the next five years. That will be in
addition to a factory already under construction in Mexico and its two-year-old plant in Chattanooga, Tenn., which
is currently operating at about half of its full potential.
Honda Motor Co. and Mazda Motor Corp. also are building new plants in Mexico. Nissan Motor Co. began
making cars at a new Mexican plant in November. On top of that, Honda, Ford Motor Co., Toyota Motor Corp.
and General Motors Co. are all expanding capacity at their existing plants in the U.S. and Canada.
Some auto makers are already concerned about industry overcapacity.
"The last thing we need is to get bricks-and-mortar capacity increased," Sergio Marchionne, chief executive of
Chrysler Group LLC and Fiat SpA, said this week. Building new plants isn't the only trend to watch, he added,
because increasing the use of automated production lines can boost output at existing factories.
Mr. Marchionne knows the trouble that idle factories can cause. Excess production capacity and the use of heavy
price discounting were two of the problems that contributed to Chrysler's slide into bankruptcy in 2009. In Europe,
where auto sales have fallen amid the continent's prolonged economic slump, Fiat, France's Peugeot Citroen SA
and GM's Opel all have underused plants and are struggling to stem losses. In the first nine months of 2013,
Fiat's European operations lost 420 million euros ($574.2 million), and the company doesn't expect to break even
there until 2015.
Nissan's Infiniti luxury brand will decide whether to build cars in the U.S. or Mexico at a new plant, possibly in
partnership with Daimler AG, by late March, the unit's president, Johan de Nysschen, said.
For now, though, car sales are rising steadily in the U.S., and auto makers need more plants to meet future
demand, said John Hoffecker, a managing partner at consultants Alix Partners. "We should be in pretty good
shape the way sales are growing," he said.
Steven Cannon, CEO of Daimler's U.S. Mercedes-Benz unit, added: "The U.S. is very much a growth market."
U.S. auto sales rose 7.6% in 2013 to 15.6 million cars and light trucks. Forecasts see them topping 16 million
vehicles this year and then pushing on to 17 million within a few years if the U.S. economy continues to improve.
Scott Keogh, head of U.S. sales for Audi, a luxury-car division of Volkswagen, said the U.S.'s favorable energy
situation is a plus for auto sales. Increased oil and gas production from hydraulic fracturing, or fracking, is turning
the U.S. into a major energy exporter.
"That changes the balance of trade, it puts big jobs out there [and] lowers fuel prices," Mr. Keogh said.
Joe Langley, an analyst at consultants IHS Automotive, noted auto makers expect to export a portion of the
vehicles they will make in the new North American plants. "Manufacturers are also planning to leverage their new
facilities, particularly in Mexico, to serve as export hubs, further reducing the overcapacity risk," he said.
In some cases, auto makers will use new plants to shift production to North America from existing plants
elsewhere. Honda and Toyota have recently started using U.S. plants to make models that were previously
imported from Japan. Mazda currently makes most of its cars in Japan and has no production site in North
America.
So far, pricing in the U.S. market has been trending upward, not falling. Ford CEO Alan Mulally praised the
"discipline" of major competitors in the U.S. market so far in matching production to demand. "Clearly, people
remember what they went through. They also want absolutely to hold the value of these great vehicles, and you
don't do that by discounting them," he said.
Mr. Marchionne added that executives running the major auto makers remember the pain caused by
overproduction ahead of 2008-2009 market collapse, adding that he watches inventories of unsold vehicles "like a
hawk." So far, he says, "we have not seen undisciplined pricing activity in the U.S. market."
At the end of 2013, auto dealers had 3.45 million cars and trucks in stock, according to Autodata Corp. That is
enough to last 63 days at the current sales rate, a level the industry considers optimal. At the end of 2012, it had
a 76-day supply.
---
Joseph B. White contributed to this article.
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Feeling Steadier, Ford Remakes F-150 Pickup, the Nation's No. 1 Vehicle

Feeling Steadier, Ford Remakes F-150 Pickup, the Nation's No. 1 Vehicle
By BILL VLASIC
1,007 words
14 January 2014
The New York Times
NYTF
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English
DETROIT -- The heady combination of growing sales and big profits has spurred automakers to reinvest heavily
in new models and make major changes to some of their most prominent vehicles.
No company has stretched further than Ford Motor, the second-largest American automaker after General Motors,
which on Monday took the wraps off a radically redesigned pickup truck at the annual Detroit auto show.
Instead of playing it safe with its best-selling F-150 truck, Ford will replace its traditional steel body panels with
aluminum parts, which saves weight and improves fuel economy.
Such a wholesale change would have been unheard-of a few years ago, when Ford and other carmakers were
under intense pressure to cut costs and save money.
But now Ford has invested heavily to significantly make over the truck, even though it finished 2013 as the
nation's top-selling vehicle of any kind for the 32nd consecutive year.
''It's all about maintaining leadership,'' said Alan R. Mulally, Ford's chief executive. ''We don't take risks we can't
deliver on.''
Ford is hardly alone in its efforts to significantly upgrade high-volume products and seek to gain an edge in a
competitive marketplace.
The aggressive approach is made possible, in part, by drastic improvements in the financial conditions of the
Detroit carmakers and their foreign rivals.
Ford, like their hometown competitors General Motors and Chrysler, has transferred costly retiree health care
obligations to employee trusts.
The companies have also reduced the number of workers and factories to better align production with market
demand.
In addition to cutting costs, the companies are enjoying the fruits of a steadily expanding market for new vehicles
in the United States, as well as higher sticker prices for new models.
Industry analysts said the companies are intent on building on their recent success with better products loaded
with new technology and features
''These turnarounds always take place because of new product,'' said Michelle Krebs, an independent auto
analyst in Detroit. ''In this case, Ford is rolling the dice on the aluminum truck to improve what is already a
dominant position.''
Chrysler, the smallest of the three Detroit car companies, is also pushing hard to capture a bigger chunk of the
American market, which last year grew by 7.6 percent, to 15.6 million vehicles.
The company has methodically revamped several of its most important models since it was forced to seek a
government bailout and file for bankruptcy five years ago.

On Monday, it showed off a new version of its Chrysler 200 midsize sedan -- which has lagged the company's
overall growth in the United States.
''We needed a credible competitor in the midsize market,'' said Sergio Marchionne, the chief executive of Chrysler
and its Italian parent company, Fiat.
Chrysler spent more than $1 billion to overhaul an assembly plant in Sterling Heights, Mich., to produce the new
model, which features a fuel-saving nine-speed transmission and a sleek new body style.
Since its bankruptcy and bailout, Chrysler has focused mainly on improving its most successful models, like the
Jeep Grand Cherokee and Ram pickup truck.
But Mr. Marchionne said that Chrysler was now financially healthy enough to expend resources on products that,
in the past, might have been neglected.
''Do we have the resources to do whatever we want to do?'' he said. ''The answer is yes.''
General Motors, the biggest American automaker, is also revving up product programs that were delayed or
hampered by its bankruptcy and bailout in 2009.
The company is showing off variations on two hot models, the Chevrolet Corvette sports car and Cadillac ATS
sedan, at the Detroit show.
G.M. also revealed a redesigned version of its GMC midsize pickup -- a niche vehicle that it could not afford to
update when the company was under financial stress.
''We might not have done this before,'' said Mark Reuss, who this week takes over as G.M.'s global product chief.
''But we see a lot of open space in the market where we can make gains with a midsize pickup.''
Other automakers are also loading up with new models being introduced in Detroit, like a new version of the Fit
subcompact from Honda.
The star of the show so far, however, has been the Ford pickup.
Analysts and executives from competing automakers have expressed mixed views on Ford's bold strategy to trim
700 pounds of weight in the F-150 with aluminum parts.
The question asked repeatedly was why would Ford risk such a broad change of a perennially popular vehicle?
''We couldn't be happier about our recent success, but we cannot afford to be complacent for one second,'' said
William C. Ford Jr., Ford's executive chairman.
Redesigning the truck and updating factories to produce it could cost Ford more than $2 billion, according to
estimates by analysts, an enormous commitment, even for the capital-intensive auto industry.
''This is a huge deal,'' said Alec Gutierrez, an analyst with the auto-research firm Kelley Blue Book. ''It's a
game-changer for Ford in so many ways.''
But Ford has made several large bets on new technology under the leadership of Mr. Mulally, who said recently
that he would remain at the automaker at least through this year rather than continue to be considered as a chief
executive candidate at the software giant Microsoft.
''We had one of our most fantastic years ever in 2013, but we cannot back off,'' he said. ''You have to take
chances if you want to stay the leader.''
Ford's revamped F-150 is 700 pounds lighter for better fuel economy. Alan R. Mulally, in the center left, Ford's
chief, said the carmaker had a great 2013, but added: ''It's all about maintaining leadership. We don't take risks
we can't deliver on.'' (PHOTOGRAPHS BY JOSHUA LOTT/REUTERS; TANNEN MAURY/EUROPEAN PRESS
AGENCY)
Document NYTF000020140114ea1e0007x

Ford F-150 Is Now a Lighter Hauler
DETROIT AUTO SHOW

Automobiles; SECT
Ford F-150 Is Now a Lighter Hauler
By PAUL STENQUIST
388 words
14 January 2014
The New York Times
NYTF
English
Introduced on Monday, Jan. 13: 2015 Ford F-150
What is it? Ford's new F-150 light-duty full-size pickup. This full reworking of Ford's top-selling vehicle is new from
the frame up. High-strength aluminum alloys are used throughout the F-150 body and bed. Ford says the truck is
up to 700 pounds lighter than the vehicle it replaces.
Is it real? As real as the blue oval on its nose.
What they said: ''I believe we do trucks better than anyone,'' said Bill Ford, the company chairman, in an interview
following the presentation, ''but this was a very big step for us.''
Pete Reyes, chief engineer of the F-150, added specifics: ''The biggest challenge from my perspective was the
sheer scope of the project,'' Mr. Reyes said in a media release. ''We have all-new cabs and boxes, five interior
trim choices, a host of technologies new to the full-size pickup truck segment, an all-new engine and upgrades to
existing powertrains. We also have an all-new chassis.''
What they didn't say: Whether auto body repair shops are prepared to meet the challenge of working in
aluminum. There are, of course, a number of aluminum-bodied passenger cars available, but special skills and
tools are required to form and weld aluminum.
What makes it tick: A new 2.7-liter EcoBoost V6 incorporates start-stop technology to shut the engine off when
the vehicle is at a stop. A composite aluminum-compacted graphite iron block is said to save weight while
providing strength. Also new is a naturally aspirated 3.5-liter V6. Returning F-150 power plant offerings include
the 3.5-liter EcoBoost V6 and the 5-liter V8
How much, how soon: The truck will be arriving in dealerships this year. Pricing has not yet been announced.
How's it look? A bit like the current F-250. While the body may be unique in materials, it's fairly standard in terms
of appearance. The C-shape headlight arrays are somewhat odd to my eye, but the truck's styling is certainly not
as extreme as the Atlas Concept that Ford showed at last year's Detroit show.
Document NYTF000020140114ea1e00030

Ford's Lightweight Pickup Can't Lift Aluminum
Heard on the Street

Ford's Lightweight Pickup Can't Lift Aluminum
By Liam Denning
356 words
14 January 2014
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Ford Motor Co.'s new F-150 truck, unveiled Monday in Detroit, uses a lot more aluminum than it used to. That is
welcome for aluminum producers and investors since the price has been falling fairly steadily for almost three
years.
But demand isn't the issue for aluminum; supply is. Global demand growth has been running at about 6% a year,
according to Grant Sporre at Deutsche Bank.
That should mean big price increases. Yet there is simply too much of the metal lying around and too much
capacity to make more of it. There are 5.4 million metric tons of aluminum sitting in London Metal Exchange
warehouses alone, representing almost six weeks of global consumption. There is an extra, unknown quantity
sitting off exchange. Alcoa recently put this at 2.1 million metric tons, but others see it far higher, possibly greater
than the LME inventory itself.
And while closures of smelters have helped push the world outside China into a slight deficit in terms of supply
versus consumption, it isn't enough. China, half the global market, still makes more than it needs, fueling exports.
And RBC Capital Markets forecasts global net capacity to grow by 10.6 million metric tons this year -- and more in
each of the next three years.
On that basis, the F-150 isn't enough. Ford sold about 765,000 last year. Richard Schultz, a managing director at
Ducker Worldwide, says each truck has an extra 1,000 pounds of aluminum. Even then, this equates to only
about an extra 350,000 metric tons -- 0.7% of the market.
The F-150 shouldn't be seen in isolation, though. If successful, it will boost existing efforts to substitute aluminum
for steel across vehicles. Over the long term, that is a game changer. Just don't expect that to clear aluminum's
glut fast -- especially as auto makers are more willing to use the metal because it has gotten cheaper.
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Detroit Auto Show: VW Plans Investment In the U.S.
Detroit Auto Show: VW Plans Investment In the U.S.

By Neal E. Boudette
370 words
13 January 2014
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DETROIT -- Volkswagen AG plans to invest $7 billion in North America over the next five years, in a bid to
accelerate its growth in the region and catch up to key competitors like General Motors Co., Ford Motor Co. and
Toyota Motor Corp.
The German auto maker said it intends to use the money to build a new plant in the region although a location
hasn't been chosen.
"We have not made that decision in the supervisory board," Volkswagen's chief executive, Martin Winterkorn,
said.
The company also reiterated its goal of boosting it sales of VW-branded vehicles in the U.S. market to 1 million
cars a year by 2018. Its VW brand had been growing rapidly in the U.S., but it stumbled in 2013, when sales
declined despite a rise in the overall U.S. market.
Despite the decline, VW still sold more than 400,000 vehicles in the U.S. in 2013. Volkswagen's Audi unit also
sold more than 150,000 cars in the U.S. last year.
"The U.S. is a cornerstone of our 2018 strategy," said Mr. Winterkorn.
Part of the Volkswagen investment will go toward producing a midsize sport--utility vehicle, a model now absent
from the VW brand lineup.
"We really need that vehicle," said Jeff Williams, owner of Williams auto world, a Volkswagen -- Audi -- Subaru
dealership in East Lansing, Mich. "That is a big, big segment, and we have to be competitive there."
Mr. Williams noted that the Q5 midsize SUV is a top-selling model for his Audi franchise, and the Forester and
Outback SUVs are top sellers for his Subaru store.
Volkswagen opened a plant in Chattanooga, Tenn., in 2011, but hasn't yet been able to use all of the plant's
capacity, in part because of its sales slump in 2013.
In the past, the company has said it has space at the Chattanooga location to build a second plant. In the past
five years,Volkswagen has tried to increase its share of the U.S. market and expand production here.
Document J000000020140113ea1d00034

Detroit Auto Show: Chrysler Banks on New 200 --- Updated Sedan Is Pivotal in Strategy to Regain Ground Lost in Passenger Cars
Detroit Auto Show: Chrysler Banks on New 200 --- Updated Sedan Is Pivotal in Strategy to Regain Ground
Lost in Passenger Cars
By Christina Rogers
769 words
13 January 2014
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Chrysler Group LLC is set to introduce a new version of its best-selling sedan, replacing a model that was last
fully redesigned when George W. Bush was still in the White House.
The 2015 Chrysler 200, which will be unveiled at the Detroit auto show Monday, will be the company's most
important new-car launch this year and its best hope for increasing sales in the market for family sedans.
The current 200 sedan has struggled to gain ground against rivals such Ford Motor Co.'s Fusion. Its total sales
last year were less than half those of comparable vehicles from Toyota Motor Corp., Honda Motor Co. and Nissan
Motor Co.
As Chrysler heads toward being fully absorbed by its majority owner, Fiat SpA, the auto maker needs new models
such as the 200 to play catch-up in the passenger-car market, where the company is now a marginal competitor.
Chrysler has roared back to profitability since emerging from bankruptcy protection in 2009, largely on the
strength of demand for its Jeep sport-utility vehicles and Ram pickup trucks.
The 200's aging design contributed to a 2.4% decline in sales for the vehicle last year, at the same time that auto
sales overall rose 7.6%. In part, rivals redesigned their cars with new technology such as more fuel-efficient
engines. Many shoppers have passed by the older 200 despite its star turn in a popular 2011 Super Bowl ad that
showed Detroit rapper Eminem behind the wheel.
The new Chrysler 200's debut underscores the challenges the auto maker faces as it strives to redo an aging
lineup in an industry where models in highly competitive segments get face-lifts as often as every two years, and
aging products lose ground rapidly. The last full redesign for the 200 occurred in 2006, when the car was still
known as the Sebring.
"Chrysler needs something that moves the needle for them," said Dave Sullivan, an analyst for research firm
AutoPacific Inc. "It is like water. You have to have this to live."
The new car's arrival comes at a crucial time for Chrysler, which has slowed the rollout of several other new-car
models and is in the midst of revising its long-term business strategy. Chrysler's most recent new car, the
compact Dodge Dart, hasn't sold up to expectations, and the company is working on improvements to the car.
A company spokeswoman declined to comment on the status of future vehicles.
While Chrysler's overall U.S. sales rose 9% to 1.8 million vehicles last year, sales of its namesake brand -- which
is heavy on sedans and minivans but doesn't include trucks -- fell 2% to 302,492 vehicles. The 200 accounted for
about 40% of the brand's sales.
The new 200, which rides on modified underpinnings first developed by Fiat, offers a sleeker, more modern
design than its predecessor. It will offer wood interior trim and optional four-wheel drive.
One of the most noticeable changes will be the disappearance of the bold, chrome grille that adorned the old car.
In its place will be a much smaller grille opening with little chrome to distract from the new light-emitting-diode
headlights.

"We're trying to create a design that you will behold hopefully 10, 15 years from now and say, 'That team had their
mojo going,' " said Ralph Gilles, Chrysler's senior vice president of design.
The four-door sedan is expected to get 35 miles per gallon on the highway, up from 31 mpg for the previous car.
The new 200 will start at $21,700, about $95 less than the model it is replacing, the company said.
Breaking into the top ranks of the market won't be easy. For more than a decade, Toyota and Honda have
dominated the midsize market in the U.S., each selling more than 350,000 family sedans a year. However, in
recent years, some rivals have made inroads with newer, more stylish versions of their midsize cars.
Chrysler also will be challenged by its own history. The 200's predecessor, the Sebring, was bashed by critics for
cheap materials and a poor ride.
"It's got some ghosts in its past," said AutoPacific's Mr. Sullivan. "They're going to have to chase those away in
order to get consumers to warm up to it."
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Detroit Auto Show: General Motors Close to Reinstating Dividend
Detroit Auto Show: General Motors Close to Reinstating Dividend

By Jeff Bennett
549 words
13 January 2014
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General Motors Co.'s chief financial officer said the auto maker is "the closest it has ever been" to reinstating a
dividend.
CFO Dan Ammann made the comments Sunday as he also said the European economy appears to have
bottomed out. "It is at the bottom but I am unsure how quickly we will come off the bottom," he said. "We will see
how the year unfolds."
The comments inject more enthusiasm in the auto maker which has been showing signs of financial strength
since its exit from bankruptcy in 2009. The auto maker reports its 2013 financial results next month.
Meanwhile, GM unveiled the second part of the one-two punch it plans to throw at Toyota Motor Corp. this year,
as the U.S. company looks to unseat the Japanese auto maker as king of the midsize pickup truck.
The 2015 GMC Canyon, which is slated to roll into showrooms in the third quarter, will be paired with the
Chevrolet Colorado, as GM returns to a segment it, along with Ford Motors Co. and Chrysler Group LLC,
abandoned two years ago. The Canyon was officially unveiled Sunday, on the eve of the North American
International Auto Show in Detroit.
GM Chief Executive-elect Mary Barra introduced the Canyon, saying the midsized segment had been overlooked.
"Other manufacturers have either ignored or abandoned it, meaning customers have had to compromise," she
said. "That is no way to treat the customer, and it is an opportunity knocking."
For the first time, GM is diverging from rival Ford by building and selling two midsize trucks, while Ford markets its
F-150 model across all segments of the pickup market. But Ford is likely to up the game on Monday, when it
finally unveils an F-150 built mostly from aluminum, reducing its weight and improving fuel economy.
Midsize pickups, which traditionally provide less towing capacity but more fuel efficiency, accounted for less than
1.7% of overall U.S. automotive sales last year.
In the midsize market, GM squares off against Toyota and its Tacoma model, which has grown to dominate the
segment, pulling down almost 70% of truck sales. Toyota sold 159,485 of its Tacoma pickups last year, while rival
Nissan Motor Co. sold 62,837 of its Frontier pickup trucks.
"The question is do consumers determine the size of the market or selection of vehicles," said Kelley Blue Book
analyst Eric Ibara. "That will be put to the test on whether the Canyon and Colorado can bring consumers back
into the segment and if they can then over take Tacoma."
To attract new customers, GM will aim the Colorado, which it introduced last year, at active people who like using
their truck for work and play.
The GMC Canyon, meantime, will lean a little more toward luxury, offering more interior headroom, halo lighting
on key controls for easier viewing and a center console big enough to store a tablet computer.
The Canyon will be assembled at the auto maker's Wentzville, Mo., plant.
Toyota also is promising to take the fight to GM. In 2012, it gave the Tacoma a restyled exterior look and an
upgraded interior.

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Fuel Goal Tests Ford's Mettle
Fuel Goal Tests Ford's Mettle

By Mike Ramsey
1,275 words
13 January 2014
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When Ford Motor Co. unveils its new, aluminum F-150 pickup truck on Monday, it will do more than reveal a
critical new product. It will mark a new era for the auto industry in which successfully managing big technological
risks will separate winners from losers.
Six years after the financial crisis, oil prices have stabilized and the U.S. auto industry has rebounded from depths
not seen since the Great Depression. Short-term survival is no longer a question.
But car makers still face challenges as consumers and policy makers pressure the industry to throw off its
conservative approach to innovation. The new F-150 shows how auto makers will need to take dramatic steps to
meet demands to more than double gas mileage in the world's major markets by the middle of the next decade.
"I've looked back at other periods where we have come off periods of success and then we stagnate and stumble,
and I think it's because we stopped making big bets," says Ford Chairman Bill Ford Jr. "If anything, I've learned
you have to go faster and bet bigger when you are doing well."
The F-150 being unveiled in Detroit and due to hit showrooms this year, will have a body and load bed made
almost entirely of aluminum -- a first for a high-volume vehicle. Today only a few, high-price vehicles, such as the
Tesla Model S, the Audi A8 and the Jaguar lineup, have been made with largely aluminum bodies. Ford produces
as many F-150s in a month as all other aluminum-bodied vehicles combined sell annually in the U.S.
Ford says its new truck will weigh 700 pounds less than its old one, suggesting a significant improvement in fuel
efficiency, although the company hasn't given specifics.
"We certainly expect leadership," says Raj Nair, Ford's global chief of product development. That would mean
highway mileage that beats 25 miles per gallon and 21 mpg highway and city combined, the current rating for a
version of Chrysler Group LLC's Ram large pickup.
One reason that aluminum hasn't caught on is that it is more expensive by weight than steel and is harder to
stamp and weld. Aluminum is stronger than steel pound-for-pound, though, allowing vehicle weight to drop,
reducing fuel consumption. The Tesla Model S, at $70,000, is the least expensive aluminum vehicle in the U.S.
F-150s will sell for as little as $24,000, although some versions could sell for more than $50,000.
The aluminum F-series may not be a bet-the-company decision, but if it fails, it would inflict major damage on
Ford. F-series trucks account for about 12% of the company's global sales and about 40% of profit, according to
estimates from Goldman Sachs. The F-series has been the best-selling vehicle in the U.S. for 32 years straight
and generated revenue of about $22 billion last year.
Ford's decision to roll the dice on aluminum illustrates a new risk calculus when it comes to meeting the U.S.
government's target of a fleet averaging 54.5 mpg by 2025.
In the past, auto engineers were willing to spend just $1 more a pound to reduce a vehicle's weight, says former
General Motors Co. Vice Chairman Bob Lutz. Now, "that rule is out the window."
Nevertheless, GM rejected making its new Chevrolet Silverado pickup largely out of aluminum in part because of
the high cost and concerns about durability, he says. GM instead will answer the demand for higher mileage with
a line of smaller models that will debut in Detroit.

For its part, Chrysler commissioned a team of engineers starting in 2005 to evaluate technologies to boost fuel
efficiency in Ram trucks. Based on their findings, the company focused first on items that offered a relatively high
return for low cost, such as axles, new engines and transmissions with more speeds, says Bob Lee, vice
president for engine and electrified propulsion engineering.
Chrysler this year will introduce a new diesel engine adapted from sister company Fiat SpA for a light-duty Ram.
Mated with an eight-speed transmission the engine should deliver up to 27 mpg on the highway, the company
says.
"As we are changing these vehicles dramatically, it's not so clear consumers will pay for it," Mr. Lee says.
Ford began thinking about steps to substantially improve the F-series fuel efficiency in 2009 as the industry was
reeling from the financial crisis and a surge in gasoline prices that pummeled sales of large trucks and sport-utility
vehicles.
Engineers analyzed 100,000 combinations of materials, engines and transmissions to build an F-150 that could
deliver more power and towing while substantial increasing fuel economy over the 17 mpg rating for the truck's
most popular version. The team considered hybrid powertrains, diesel engines, high-strength steel and shrinking
the truck.
"When we put it all together, to have the truck do what we wanted it to do, there was only one answer: aluminum,"
says Mr. Nair, who was the vice president of engineering at the time.
Engineer Pete Friedman took the specifications for the 2009 F-150 and make prototypes out of aluminum instead
of steel. He made seven such trucks. "That's when I knew we could do it," he says.
Still, the risks were high. Aluminum can't be processed with magnets as steel can and the difficulty in welding
requires big investments in tools to glue and rivet body parts.
The truck would also have to endure the punishment dished out by the miners, contractors and farmers who are
the F-150's core buyers. Advancements in high-strength alloys, some used by the military, quelled some of those
fears.
The company did field tests by putting aluminum beds on mining-company trucks. The first gauge tested was too
thin to handle a 100-pound hitch being dropped into it without being pierced, says Pete Reyes, the truck's chief
engineer.
After settling on a thickness, the truck's lower weight allowed Ford to forgo its largest engine, a 6.2-liter V8. On
the new truck, the most powerful engine will be a 3.5-liter turbocharged V6. The smallest will be a new 2.7-liter
turbocharged V6. The smaller engine still is powerful enough to pull 8,000 pounds.
Chief Operating Officer Mark Fields says he remembers when Ford reached the "point of safe return" and had to
lock in aluminum contracts. "I went around the room and said, 'We will all remember this day,' " he recalls. "We
had a lot of confidence."
Ford didn't get risky in terms of styling. Gordon Platto, chief designer for the truck, experimented with a futuristic
design that he dubbed the "bullet train." Would-be truck buyers hated it.
Ford won't say what it spent developing the aluminum pickup, but one insider says it was a multibillion-dollar
investment, among the largest ever for a single model.
If Ford can make the aluminum F-150 without a long-term dent to profit, the move could lead a shift to aluminum
from steel as the dominant material for vehicle construction.
"Some people might say, 'Aren't you taking a chance with your best-selling vehicle?' But that's what you have to
do," Mr. Ford says. "I would have had much more anxiety if they had come in with business-as-usual."
Document J000000020140113ea1d00030

F-150 builds future on aluminum ; Ford: 2015 truck drops 700 pounds
MONEY
F-150 builds future on aluminum ; Ford: 2015 truck drops 700 pounds
James R Healey
James R. Healey, USA TODAY
492 words
13 January 2014
USAT
FINAL
B.1
English
Ford Motor's most important model, the F-150 pickup truck, finally gets a public showing here today, becoming
the first big pickup made of aluminum, body and frame, as Ford sheds 700 pounds from a typical F-150 in the
quest to save fuel.
The 2015 F-150, on sale this fall, also gets two new engines, major styling revisions, a plateful of technical
updates and a marketing message that this isn't beer-can aluminum; it's military Humvee aluminum.
It'll be harder for a heavy load to dent the bed than in the steel predecessor and harder for a shopping cart to ding
the door, Ford swears.
"All-new from the ground up," says Pete Reyes, chief engineer. "High-strength aluminum alloy for the front end,
all the cab, the box, tailgate and the frame, which is bigger, wider, stronger, but 70 pounds lighter."
Ford won't say how much more it costs to build the aluminum 2015 F-150 than a similar steel model, nor will it
telegraph prices.
"We'll maintain a level of (price) competitiveness that we need to," Joe Hinrichs, Ford Motor executive vice
president, said in an interview.
Cutting the truck's weight means it can be powered by smaller, less-thirsty engines, and to that end, the two new
engines are relatively small. Plus, the top-of-the-line 6.2-liter V-8 is discontinued, at least temporarily.
Lightening the truck also "lets the customer put the weight back in" with accessories and higher payload and
towing ratings, all without overwhelming the truck, Reyes notes.
When the vehicle that accounts for most of Ford's profits hits showrooms in the fourth quarter, the automaker's
marketing will hammer home the message that this is the most capable F-150 ever: It carries and tows more than
the outgoing version while getting better mileage, potential buyers will be told.
The 2015 F-150 has more of note:
New engine lineup. Base is a new-design, 3.5-liter V-6, down from 3.7-liter in the current truck, but expected to be
more powerful. A step up is 2.7-liter EcoBoost turbocharged V-6, from an entirely new engine family that Ford has
developed. The automaker promises it will have the torque and horsepower of a midlevel V-8. The 5-liter V- 8
3.5-liter EcoBoost V-6 from the current generation trucks will continue to be offered.
Functional styling. Front door window "drop-down" is two inches lower, and mirrors are 3.5 inches farther forward
to open more viewing area just outside the door.
Fancy and useful options. Cleat system on the cargo box walls can hold telescoping ramps that can be used to
load garden tractors, ATVs and the like.
photo Ford Motor

Document USAT000020140113ea1d0000e

The F-150's Aluminum Diet
DETROIT AUTO SHOW

Automobiles; SECTAU
The F-150's Aluminum Diet
By LINDSAY BROOKE
1,290 words
12 January 2014
The New York Times
NYTF
1
English
DETROIT -- When Ford rolls out its redesigned F-150 pickup truck here on Monday morning to kick off two days
of press previews for the 2014 North American International Auto Show, the automaker will be making one of the
boldest product gambles in its 111-year history.
The calculated risk Ford is taking -- casting aside the traditional and long proven welded steel construction of the
truck's cab and cargo bed and switching to a body that is largely lightweight aluminum -- is sure to rank among
the most important news items coming from the automakers' displays at the show.
In most years, the star attraction of this annual industry showcase is something like the lustworthy Chevrolet
Corvette Stingray of last January. That the headline-grabber of the 2014 show might turn out to be a vehicle as
utilitarian and practical as the F-150 says a lot about what a great leap this pickup is.
The much-anticipated switch in materials -- an investment of billions of dollars by Ford in factory updates,
production tooling and engineering expertise -- is a breakthrough in scale and a first for pickups. It is aimed at
drastically reducing the F-150's weight to improve fuel economy.
According to engineers involved in its development, the new truck is expected to be some 15 percent lighter over
all than the steel 2014 version, with the aluminum body and bed alone shaving more than 450 pounds. Including
engine and suspension components, aluminum is expected to account for as much 1,000 pounds of the truck's
weight.
Cutting weight is widely regarded as the most cost-effective way to reduce fuel consumption and greenhouse
gases. Industry experts say that trimming weight by 10 percent results, on average, in a fuel-economy
improvement of 6 to 7 percent.
By Ford's calculations, the 2015 truck, equipped with a new 2.7-liter EcoBoost V6 and a 6-speed automatic
transmission, will be capable of achieving ''close to'' 30 miles a gallon in the Environmental Protection Agency's
highway test when it goes on sale this year, according to engineers who spoke on the condition of anonymity
because the ratings have not been formally announced.
A 30 m.p.g. rating would catapult the F-150 well beyond its competitors, led by the 2014 Ram 1500 HFE at 25
m.p.g. highway, and would handily top the thriftiest (23 m.p.g. highway) 2014 F-150. And -- this is the payoff -- it
would bring Ford's most profitable vehicle line closer to meeting the government's future fleet mileage standards,
which call for vehicles with a footprint as large as a full-size pickup to average 30.2 m.p.g. by 2025.
The new F-150 arrives after a giddy 2013 for automakers, in which vehicle sales in the United States rose 7.6
percent, to 15.6 million. Now entering its 13th generation, the F-150 has been America's best-selling vehicle for
32 consecutive years -- 763,402 were sold last year -- and the top-selling truck for 37 years. The F-Series
accounts for 35 percent of Ford's North American revenue, according to IHS Automotive, a market analysis firm.
The new F-150 is Ford's first step in a broad strategy to shift all of its full-size truck bodies, including the F-250
and F-350 Super Duty pickups and the Ford Expedition and Lincoln Navigator S.U.V.'s, to primarily aluminum
construction over the next three years, Ford engineers said. The plan will create common manufacturing
processes and tooling in Ford's three United States truck plants.
''Ford is stepping out ahead of the other truck makers with the aluminum strategy,'' said Richard Schultz of
Ducker Worldwide, which tracks industrial materials usage.
Engineers involved with the program credit Alan Mulally, Ford's chief executive, with supporting the lightweight
F-Series plan throughout the financial crisis, when Ford was forced to drop some vehicle programs and mortgage
assets to avoid the financial hardships that hit General Motors and Chrysler.
Despite aluminum's widespread use in heavy-truck cabs and in military vehicles, aircraft and warships -- where its
combination of strength, durability, weight savings and corrosion resistance is paramount -- there are still critics
among pickup customers who equate the light metal with beer-can flimsiness.
But engineers say that a stamped-aluminum body can equal or even outperform steel in overall strength, dent
resistance and crash protection, depending on the material used, its thickness and how the structure is designed
and assembled. There are challenges: While it will probably be months before the 2015 prices are announced,
industry experts say that the use of aluminum will raise the cost of producing F-150s by several hundred dollars.
Ford is using 5000- and 6000-series sheet -- the numbers indicate the particular alloys -- supplied by Alcoa and
Novelis. These alloys are popular with automakers because they are easy to form, rugged and, in the case of
6000, provide the smooth ''class A'' surfaces required for visible panels like fenders.
About half of the truck's stampings will use the more expensive 6000-series sheet, heat-treated to a T4 condition,
a manufacturing step that significantly toughens the material by heating it to 750 degrees Fahrenheit for two
hours, followed by immediate quenching in water. The material hardens further when the body goes through the
paint-drying oven.
Ford engineers said the F-150's body and box strength also comes from the combination of structural adhesive --
basically industrial glue -- and some 4,000 rivets used to join much of the aluminum, replacing about 7,000 spot
welds of a steel truck.
While the bodies will shift to aluminum, F-Series models will continue to use separate steel ladder-type frames,
which are the foundation of the trucks' towing and payload capabilities. The frame of the F-150 is a new design
that is stronger, yet 80 pounds lighter, than the 2014 version. Its front section is made using a process called roll
forming, which results in an exceptionally robust yet lighter structure, Ron Krupitzer, head of automotive
applications at the Steel Market Development Institute, said. Other parts remaining in steel include side-impact
door beams and the front and rear bumpers.
While Ford has experimented with various aluminum-intensive concepts since the 1980s, the focus was mainly on
unibody designs, which do not have separate frames. The automaker came close to producing an all-aluminum
sedan in the mid-1990s, according to Mr. Schultz, who at the time was an executive at Alcoa. Instead, company
leaders decided to invest in aluminum bodies for Jaguar, which Ford owned in 1990-2007, and from that
relationship Ford is said to have retained intellectual-property rights to much of the aluminum forming and
assembly technologies. Ford's only production vehicle with an aluminum-intensive body was the Ford GT
supercar, built in small numbers in 2004-6.
As global fuel-economy laws have become more stringent, aluminum's use in automotive applications has
steadily grown. But volume production of all-aluminum bodies had been limited to luxury makes like Audi, Jaguar
Land Rover and Mercedes. With the 2015 F-150, Ford changes everything.
A 2015 Ford F-150 camouflaged to conceal the new design ahead of its introduction this week. (PHOTOGRAPH
BY GERRY SUTHERLAND/BRENDA PRIDDY & COMPANY) (AU1); FUTURES: Top, the Ford Atlas concept,
shown in Detroit last year, was said to hint at the styling of the 2015 F-150. Center and above, adhesive is applied
to panels in an Audi plant. (PHOTOGRAPHS BY FORD MOTOR; MICHAELA REHLE/REUTERS) (AU4)
Document NYTF000020140112ea1c0002z

Corporate News: Can Cars Redeem the Aluminum Industry?
Corporate News: Can Cars Redeem the Aluminum Industry?

By John W. Miller and Mike Ramsey
1,107 words
11 January 2014
J
B3
English
Ingots at the Novelis aluminum plant in Oswego, N.Y., are heated to almost 1,000 degrees Fahrenheit before
rolling. A Corporate News article on Saturday about production of Ford Motor Co.'s new pickup incorrectly gave
the temperature as almost 1,000 degrees Celsius.
(WSJ Jan. 14, 2014)
(END)
OSWEGO, N.Y. -- Ford Motor Co.'s new F-150 pickup, the first high-volume vehicle to be built with an
all-aluminum body, is becoming the best news for a troubled metals industry since beer cans were converted from
steel in the 1970s.
Alcoa Inc. and Novelis, the top two U.S. aluminum sheet producers, invested about $1 billion last year in U.S.
factories producing metal for autos.
Here on the shores of Lake Ontario, a gleaming new Novelis factory buzzes with the sound of almost mile-long
strips of aluminum being yanked through a furnace, then cooled, part of a process to make a metal sturdy enough
to build the next F-150, the nation's top selling vehicle.
Novelis, a unit of India's Hindalco Industries Ltd., is spending $550 million to upgrade plants in Germany and
China, as well as Oswego, to produce aluminum for cars. Alcoa is expanding plants in Iowa and Tennessee,
making investments totaling $575 million. Both say other car makers are following Ford's lead, which would boost
their fortunes -- raw aluminum prices have fallen by over a third since their 2011 peak.
It is a gamble. Aluminum may be lighter than the more dominant steel but it is about three times more expensive.
Making entire cars out of aluminum, instead of merely a selection of parts, requires major investments in new
machines that stamp car parts and in assembly lines. For example, aluminum, which isn't magnetized, can't be
pulled by huge magnets through auto plants and instead must be pulled by vacuum pumps.
Ford and other car makers regularly send engineers to aluminum companies to troubleshoot any problems. It is
expected to publicly disclose the truck in Detroit next week, said people familiar with the matter.
So far, the only vehicles made entirely from aluminum have been pricey luxury cars like the Audi A8 and the
Jaguar XJR, although components including engine blocks and wheels have long been made from aluminum. To
meet fuel economy targets, Ford is opting for a truck body made entirely out of the metal.
Auto industry experts say a 10% reduction in a vehicle's weight allows for smaller powertrains and leads to a 7%
improvement in fuel economy. Ford aims to shave 700 pounds off its existing about 5,000-pound truck. A 2014
Ford F-150 four-wheel drive with a 3.5 liter eco-boost engine is rated at 17 miles a gallon in combined city and
highway driving.
Alcoa Chief Executive Klaus Kleinfeld said in October that the expansion of the body sheet market "from luxury
vehicles into the mass production, and to higher volume vehicles" will generate "enormous opportunities."
An estimated 900 pounds of aluminum would be used to build the body of a full-size truck, compared with 1,500
pounds of steel, according to an analysis by Lloyd O'Carroll, a prominent metals analyst.
"This is a game changer," said Mr. O'Carroll. The market for body sheet aluminum is currently worth around $300
million a year. He said if other cars go all aluminum, by 2025 it could be over $7.5 billion, a godsend for an
industry that has been dogged by oversupply and low raw aluminum prices.
It is a big if. Lakshmi Mittal, chief executive of the world's biggest steelmaker, ArcelorMittal, joined with Japan's
Nippon Steel & Sumitomo Metal Corp., to buy a state-of-the-art plant in Alabama, saying it was "ideally suited to
the production of advanced high-strength steels" which can compete with aluminum for the automotive market.
Former Alcoa executive Mario Longhi was named CEO Of U.S. Steel, in large part because of his knowledge of
the rival metal.
Steelmakers point to their relative advantage. Along with being more expensive than steel, aluminum is difficult to
weld. Aluminum vehicles today are put together with adhesives and rivets, requiring big changes to assembly.
Steel industry officials say that is a cumbersome process compared with welding high-strength steel pieces
together.
"It's not as simple as just switching from one material to another," said Ron Krupitzer, vice president of the Steel
Market Development Institute, an industry-funded research group.
Novelis, which declined to discuss specific customers, said it sells metal used in 180 models of vehicles to all the
major U.S. auto makers. The Oswego plant, which makes sheets of aluminum and once sent 80% of its
production to can factories, will provide the metal to make the F-150's hood and doors, said people familiar with
the matter. Aluminum for engines, wheels and other parts will be made by other aluminum makers.
Tom Boney, Novelis vice president for automotive and a former Oswego plant manager, said he is prepared to
make any changes needed by the auto industry. "We expect, as they scale up the production of certain models,
there will be some problems, and we have to be receptive to whatever they need us to adjust," he said. Mr. Boney
said engineers from Detroit visit Oswego almost every day.
Inside, ingots weighing 45,000 pounds -- enough to make one million beer cans or seven cars -- are heated to
almost 1,000 degrees Celsius and then rolled between two giant pins into almost mile-long, 6-foot-wide strips.
The rolling process is the same no matter whether the end product is car, can or computer, said Peter Losurdo,
the operating technician overseeing the rolling process on a recent day. Only the chemistry changes. An
all-aluminum car is expected to contain 15 different kinds of aluminum alloys. Automotive aluminum sheets
usually contain more copper and silicon, which makes it stronger and more pliable.
Car makers are pushing all the aluminum companies to invest, which they are doing to gain future orders, and are
divvying up contracts among them to avoid having one dominant supplier that could control prices. Relying on
one producer could also leave them vulnerable in case of production snafus. Aluminum makers think there is
enough business to go around. A single contract to produce aluminum for a part on a mass-produced vehicle can
be worth over $50 million.
Document J000000020140111ea1b00023

Corporate News: Chinese Car Makers Skip U.S. --- GAC, Geely Pass on Detroit Auto Show, Curb Ambitions for Developed Markets
Corporate News: Chinese Car Makers Skip U.S. --- GAC, Geely Pass on Detroit Auto Show, Curb
Ambitions for Developed Markets
By Colum Murphy
659 words
10 January 2014
J
B3
English
SHANGHAI -- When top executives from the world's major auto makers descend on Detroit for the U.S.'s largest
auto show next week, Chinese auto executive Wang Shunsheng will be attending a table-tennis tournament in
Dubai sponsored by his company.
"We're not going to Detroit this year," said Mr. Wang, head of international business at Guangzhou Automobile
Group Motor Co., China's sixth-largest auto maker. Entering the U.S. market "requires a lot of study and
investigation and we're still in the process," he said.
GAC Motor isn't the only Chinese auto company shunning this year's U.S. show. For the first time since Chinese
auto maker Geely Automobile Holdings Ltd. made its debut at the show in 2006, no Chinese car company will
hold an exhibit this year.
Five years ago, many Chinese auto makers were hatching ambitious plans for going global. While some have
been stepping up efforts to build their presence in emerging markets, for the most part they have fallen silent on
their ambitions tapping demand in developed economies.
Stephen Dyer, partner at management consulting firm A.T. Kearney's Shanghai office, said North American and
European auto markets still represent the "Holy Grail of validation" for Chinese auto makers.
"After initial strides into mature markets, several auto makers learned firsthand how difficult it is to penetrate from
a regulatory standpoint, let alone having a competitive product," he said.
One company that may next tackle the U.S. market is Chinese car maker BYD Co., in which billionaire Warren
Buffett is a minority investor. Earlier this month, it outlined plans to bring several models to the U.S. by the end of
next year.
BYD has made similar claims before. In 2010, the company said it would bring a pure electric model to America
but later abandoned the idea due to the lack of a viable business case, Stella Li, senior vice president of BYD,
said in an interview on Thursday.
BYD won't attend this year's Detroit show. A spokesman for BYD America said the timing and the focus of the
show made attendance inconvenient for the company.
China's Qoros Automotive Co., a joint venture between China's Chery Automobile Co. and investment group
Israel Corp., last year received a five-star score from Euro NCAP, a prominent European crash test, for its Qoros
Sedan 3. It also won't attend the show. A spokesman said Qoros has no immediate plans to launch in the U.S.
Cracking the U.S. market requires robust dealership networks as well as products and brands that entice
American consumers to buy. Generating volume sales in North America typically requires strong local production
nurtured by a mature supplier base.
Bill Russo, president of auto-consulting firm Synergistics Ltd., said establishing a U.S. market presence demands
deep pockets -- something few privately owned Chinese companies have.
Until the number of "subscale" Chinese auto companies is narrowed down it will be difficult for the Chinese to go
truly international, he said.

And while China's state-owned automotive companies have capital and tend to be profitable because of their
lucrative joint ventures with global auto makers, they lack the drive of privately owned companies, he said.
Great Wall Motor Co., one of China's most successful car companies, said it won't display at the show due to its
company strategy. And Geely said the company is focusing on existing markets, but said it might someday
consider the U.S. market again.
State-owned car makers also are staying away. A spokeswoman for General Motors Co.'s Chinese partner, SAIC
Motor Corp., said the company won't exhibit at the show because its marketing plan doesn't include North
America.
Document J000000020140110ea1a0001t

Back-Seat Drivers at Microsoft
Heard on the Street

Back-Seat Drivers at Microsoft
By Dan Gallagher
331 words
9 January 2014
J
C8
English
Microsoft investors may be disappointed that Ford Motor chief Alan Mulally won't be riding to their rescue. More
worrying is how the long search for Microsoft's next boss has exposed what seem to be divisions at the top about
who should be running things.
News that Mr. Mulally would stay at Ford sent Microsoft's stock down 1.8% on Wednesday. There was a similar
reaction on Dec. 13, when it became clear Qualcomm President Steve Mollenkopf, another rumored contender,
wouldn't be going to Microsoft.
Mr. Mulally's move is especially noteworthy. Many on Wall Street and in technology media had essentially
anointed him as the favored candidate. The drumbeat of preapproval suggests some on Microsoft's board held
this view. But co-founder and Chairman Bill Gates hinted strongly at November's annual meeting that he was
seeking a leader with a strong technical background, seeming to nix the idea of someone such as Mr. Mulally.
Any new chief likely will need Mr. Gates's blessing. And whoever it is will report to a board that includes Mr. Gates
and Steve Ballmer, two ex-CEOs with strong personalities and visions of their own.
That makes it even harder to find the perfect pilot to turn the supertanker that is Microsoft, which while very
profitable faces big challenges. Insiders know the firm but have come up in an insular culture. Outsiders may offer
a fresh vision, but might lack the know-how to manage the core Windows and Office businesses.
A seasoned chief with a strong turnaround record, Mr. Mulally was still an outsider to the technology business and
so perhaps not the best fit. Still, with the stock down 7.6% over the past month, it may be time for Microsoft to
stop cutting bait and decide exactly what it is fishing for.
Document J000000020140109ea1900019

Ford CEO Mulally not going to Microsoft this year
MONEY
Ford CEO Mulally not going to Microsoft this year
Chris Woodyard
407 words
8 January 2014
USAT
FINAL
B.1
English
Ford Motor CEO Alan Mulally said on Tuesday that he will not leave his job this year.
Numerous reports have speculated he was in the running to succeed retiring CEO Steve Ballmer at Microsoft,
and Mulally told the Associated Press in an interview, "I would like to end the Microsoft speculation, because I
have no other plans to do anything other than serve Ford."
Mulally would not disclose to the AP whether he had talked about the CEO job with Microsoft, but did say that the
speculation had become distracting for Ford.
He wanted to end that, confirmed Ford spokesman Jay Cooney. "Alan made it perfectly clear that he wanted to
end all speculation. He has no plans to do anything else other than continue serving Ford."
Mulally, 68, had said previously that he would stay at Ford through 2014. The company has a transition plan in
place that created a chief operation officer position for Mark Fields, making him the heir apparent. As COO, Fields
is overseeing day-to-day operations.
Mulally came to Ford in 2006 at the behest of then CEO and now Executive Chairman Bill Ford. He is credited
with turning Ford around and avoiding the bankruptcy restructuring other U.S. makers underwent in the financial
crisis. He has reorganized operations worldwide, streamlined the product line and dramatically increased
profitability.
Adding to the Microsoft speculation was that his revival of Ford had some analysts predicting he'd be picked to
lead the tech giant. Also, Mulally has a ties to the Seattle area, where he ran Boeing's commercial aircraft
business before coming to Ford, and where Microsoft is based.
But the speculation dragged on for months without a definitive statement from Mulally. The Ford board, which had
said it would let him decide, reportedly had become impatient.
Mulally's announcement was a step he had to take, especially against a backdrop of General Motors last month
naming Mary Barra to succeed CEO Dan Akerson and Fiat last week announcing a deal to acquire all remaining
shares of Chrysler, says Karl Brauer, senior analyst for Kelley Blue Book.
"We see the other players in the space settling down for an important year," Brauer says. "If Mulally hadn't done
it, they would have continued (with) misdirection and questions about who is running Ford."
photo AP
Document USAT000020140108ea180000w

Corporate News: Ford's Mulally Won't Join Microsoft
Corporate News: Ford's Mulally Won't Join Microsoft

By Shira Ovide and Mike Ramsey
608 words
8 January 2014
J
B2
English
One of the most intriguing candidates to be the next head of Microsoft Corp. said he isn't taking the job.
Ford Motor Co. Chief Executive Alan Mulally said on Tuesday he won't leave the auto maker for Microsoft, which
had considered him for the chief executive spot being vacated by Steve Ballmer. The Microsoft CEO said in
August he planned to retire within 12 months, several years ahead of schedule.
The announcement ends months of speculation about Mr. Mulally, who has won praise in the auto industry for
leading a turnaround at Ford, shedding assets to conserve money and steering clear of the bankruptcy
restructurings that swept rivals General Motors Co. and Chrysler Group LLC.
But it only adds to the uncertainty at Microsoft. More than four months after Mr. Ballmer's retirement
announcement, the software giant is still searching for the third CEO in its 38-year history.
Microsoft directors had hoped to have a new CEO by the end of 2013. The board met over the Dec. 14 weekend
to discuss candidates, according to people familiar with the matter. Days later, Microsoft released a blog post
from director John W. Thompson, the head of the search committee, who said the board wouldn't pick a new CEO
until this year.
Besides Mr. Mulally, others who at one time discussed the CEO job with Microsoft directors have included Nokia
Corp. executive Stephen Elop, Oracle Corp. President Mark Hurd, Pivotal Software Inc. CEO Paul Maritz and
Microsoft executives Satya Nadella and Tony Bates.
Several of those people, and others whose names surfaced as potential CEO candidates, have either said
publicly they won't take the job, or effectively removed themselves from the running by taking other posts.
"Out of respect for the process and the potential candidates we don't comment on individual names" for the CEO
post, a Microsoft spokesman said Tuesday.
The candidate churn spotlights the difficulties of finding the right person to manage 100,000 employees and
shepherd innovation at a technology stalwart playing catch-up in several important areas. Because of Microsoft's
prominence, much of the search drama is playing out in public.
The search is affecting life at Microsoft. Some current and former Microsoft employees say the unresolved CEO
search has wracked nerves among rank-and-file workers and slowed work at the company.
The news that Mr. Mulally is staying at Ford through this year sent Microsoft shares lower in after-hours trading.
Shares slid 1.1% to $36.02. Ford shares were higher in after-hours trading, up 1.3% to $15.59.
Mr. Mulally was a popular choice among some Microsoft investors, who believed he could bring a fresh eye and
financial discipline to the sprawling software giant. But Wall Street analysts recently have been discounting the
possibility of Mr. Mulally taking over as Microsoft's CEO, and the company's shares already have softened in
recent weeks as a result.
Critics of Mr. Mulally's candidacy said they were concerned about how long the 68-year-old executive would stay
on the job, and about his lack of experience in the technology industry. Microsoft's top ranks are stacked with
veterans who have logged years at the company, and some former employees say Microsoft can be inhospitable
to executives who are hired from outside the company.

It wasn't immediately clear whether Mr. Mulally removed himself from contention, or whether the Microsoft board
wasn't interested in him taking over for Mr. Ballmer.
Document J000000020140108ea1800037

WSJ.D Technology: BMW, Audi Put Car in Control --- New Vehicles Can Find Parking Spaces, Take Over in Stop-and-Go Traffic
WSJ.D Technology: BMW, Audi Put Car in Control --- New Vehicles Can Find Parking Spaces, Take Over
in Stop-and-Go Traffic
By Neal E. Boudette
739 words
8 January 2014
J
B4
English
LAS VEGAS -- The auto industry is still years away from selling vehicles that drive themselves, but that isn't
stopping auto makers from offering technology that puts the car in control for some of the more aggravating
aspects of driving -- like parallel parking.
At the Consumer Electronics Show this week, BMW AG is showing its i3 electric car, which is due in showrooms
in a few months. One feature: the car can find an available parking space along a roadway, and back in
automatically, with no more effort from the driver than the push of a button.
Automated parallel parking has been offered for years in some models by Ford Motor Co. and Toyota Motor
Corp.'s Lexus unit, but their systems required the driver to take care of certain steps, such as stopping at the right
spot for the car to back in.
BMW's new technology can shift gears, accelerate and brake at low speeds during the parking maneuver. It can
sense if someone steps in the path of the car and stop. It also requires a driver be in the car and maintain control
by keeping a finger on a button during the entire process, leaving liability with the driver. Existing parking assist
systems offered by BMW and others handle only the steering required to park the vehicle, a BMW spokesman
said.
German luxury-car maker Audi AG also is demonstrating technology that takes over for the driver in stop-and-go
traffic. While creeping along I-15 just off the Las Vegas Strip on Monday, Audi engineer Bjorn Giesler switched a
specially equipped A6 sedan into "piloted driving" mode, and the car took total control of steering, braking and
accelerating.
The car uses a series of radar, laser and ultrasonic sensors "to become aware of its surroundings," Mr. Giesler
said. Audi officials said its traffic jam assist technology will be available as an option on actual models within four
or five years.
Cars that drive themselves to destinations while drivers sit back and read or even sleep have gotten plenty of
attention lately in part because of Silicon Valley powerhouse Google Inc.'s well-publicized experiments with
self-driving vehicles.
But fully autonomous cars aren't likely to go into production for years. The technology required for such vehicle is
too expensive and untested for commercial use. "We don't feel the fully automated vehicle is reliable enough,"
said Jim Farley, vice president of global marketing at Ford, which unveiled its first fully-autonomous prototype last
month. "We need to bring costs down, too," he added.
Moreover, legal and safety regulations don't allow for drivers to hand off control, and possibly liability for a crash,
to their cars and the vehicles' computer systems. "The exact legal situation varies in different countries and there
are a lot of questions to be answered," Audi's Mr. Giesler said.
Still, auto makers said they plan to begin rolling out as soon as this year technology that takes control of cars in
for brief periods. Armin Graeter, a driving assistance engineer at BMW, said automated driving features will first
appear to relieve drivers of tedious tasks -- like keeping a car in lane while rolling down a highway at a steady
speed.

Making constant, small steering adjustments in highway driving is actually taxing on most drivers, and can cause
people to become drowsy. Other times when automated driving systems could kick in are when drivers have little
to do, like when they are sitting in traffic, Mr. Graeter said. Then, they become easily distracted and can end up in
an accident, even if the car is moving at slow speeds.
Automated driving features also make sense for handling complex maneuvers, like parallel parking, that many
drivers would rather not take on themselves, if they could avoid it.
In a demonstration of an i3 with the Parking Assistant feature, Mr. Graeter simply pulled up in front of an available
space. Once the system was activated, an electric motor angled the wheels, the steering wheel spun on its own
and the car settled between two larger sedans. While the steering wheel spun around on its own, Mr. Graeter sat
with his hands in the air, touching nothing.
Document J000000020140108ea180002n

Big Auto Makers Race To Take Web on the Road
Big Auto Makers Race To Take Web on the Road

By Jeff Bennett and Joseph B. White
960 words
6 January 2014
J
A1
English
LAS VEGAS -- Auto makers aim to make 2014 the year that cars connect to the Web in a big way, and they are
stepping up their land rush with Silicon Valley to compete for customers who go online on the road.
General Motors Co. and Audi AG said they plan to use this week's International Consumer Electronics Show here
to roll out strategies for equipping cars with built-in 4G high-speed broadband -- the mobile technology now
common on smartphones and tablets.
The car makers said these data pipelines will let them provide a variety of services, ranging from streaming video
to remote troubleshooting of auto systems. GM, for example, plans to offer a Weather Channel app that drivers
can see on in-dash screens, GM executives said.
Ford Motor Co. said last week it will add 3.4 million vehicles to the one million that already use its Ford Sync
AppLink product, which lets drivers and passengers control smartphone apps using voice commands through
onboard software and systems.
The flurry of activity at CES highlights intensified efforts by auto makers and Silicon Valley companies to
overcome long-standing cultural, technical and safety obstacles to mine profit from the hours that consumers
spend behind the wheel.
Consumers will pay for services that make their lives easier, said Chevrolet global chief Alan Batey, who will take
over as the auto maker's North America chief next week. "Consumers will want it because when they get into the
car it's already there."
Many questions remain unanswered. It isn't clear how much customers are willing to pay for in-car Web
connections when they already get many services from their current mobile devices.
And safety will be a big issue. Federal highway safety regulators recently published guidelines they want auto
makers to follow when designing mobile "infotainment" systems, and have signaled they'll take stronger steps if
necessary to minimize the risk that Web connections will distract drivers.
"To take mobile technology and give the driver distractions that don't even relate to driving is just not the right
direction," said Dave Teater, senior director at the nonprofit Chicago-based National Safety Council.
"I don't blame the auto makers," said Mr. Teater, "but they are now in an arms race to be more connected and I
think that sends a message that it is normal and not dangerous."
That automotive arms race was apparent at the Las Vegas show. GM said it would begin offering 4G LTE
high-speed connectivity later this year on 2015 versions of its Chevrolet Corvette, Impala, Malibu and Volt. GM
said its 4G connections will also function as mobile Wi-Fi hot spots, allowing consumers to connect seven devices
such as phones or tablets.
GM said it plans eventually to offer 4G broadband in the rest of its vehicles. GM is also developing a Chevy app
store that would let car owners download applications to the center screen of a vehicle dashboard.
GM said it has 10 applications for download, including a music app called Slacker Radio that provides more than
13 million songs and an app called Glympse that lets a driver to share real-time movement with friends.

Separately, GM said it has a team of about 50 programmers developing exclusive apps. One of these, Vehicle
Health, will provide more details when a problem crops up in the car.
"We want to try and demystify the check engine light," GM Chief Technology Officer Tim Nixon said.
Audi, Volkswagen AG's high-volume luxury brand, said it plans to offer 4G connections on its 2015 A3 compact
sedan, which goes on sale during the first half of the year. Drivers will have access to Internet radio stations,
real-time navigation and the ability to connect eight mobile devices.
Audi officials said they plan to use the Las Vegas show to outline details of a new alliance with Google Inc. to
develop new in-car entertainment and information products using Google's Android mobile operating system.
The Google-Audi initiative follows an earlier move by rival Apple Inc. to forge alliances with several auto makers,
including BMW AG, Daimler AG and Honda Motor Co., to make it easier for consumers with Apple devices to pipe
information from their apps into the dashboard.
Detroit and Silicon Valley remain wary of each other when it comes to control of the relationship with the
customer. Car makers want a healthy cut of any revenue made possible by offering more-robust connections to
services offered by Apple, Google or app makers.
Many consumers can get access to 4G connections in their cars today by carrying their mobile devices with them
while they drive. GM and other auto makers pursuing plans to embed broadband connections in vehicles will first
have to persuade those customers to pay extra for the onboard portal. GM said it would wrap the new broadband
connectivity into the hardware for its OnStar concierge service, but that the 4G connection will be provided by
AT&T Inc.
To address safety issues, auto makers and technology companies are working to make in-car displays and
controls "glanceable," to reduce distraction and eliminate the need to look at a smartphone.
"Holding a phone and interacting with a phone while driving is just not safe," said Danny Shapiro, senior director
for automotive applications at Nvidia Corp., which makes chips used for automotive displays. "While driving, the
last thing you want to do is pull a phone out of your pocket and open an app," he said.
---
Neal E. Boudette contributed to this article.
Document J000000020140106ea160002y

From Ford, a Plug-In That Tracks the Sun
Automobiles; SECTAU
From Ford, a Plug-In That Tracks the Sun
By MATTHEW L. WALD
1,390 words
5 January 2014
The New York Times
NYTF
1
English
If Stonehenge had been built with a visitor's parking lot, the spaces might have looked something like what Ford
proposes for its C-Max Solar Energi, a plug-in hybrid with a rooftop solar panel.
Stonehenge, scientists tell us, took account of the sun's changing path across the sky, using giant stone
monoliths as seasonal alignment markers. Likewise, the C-Max Solar, a technology concept vehicle that Ford will
display in Las Vegas, tracks the sun, though not for astronomical observation.
Rather, the car is intended to spend its days parked under a Fresnel lens, a kind of giant magnifying glass, and it
is programmed to use its self-parking feature to maneuver as needed, staying aligned with the most concentrated
area of sunlight. The car creeps a few feet over the course of the day to keep the solar panel under the lens's
focus point. And to compensate for the change of seasons, it lines itself up at a slightly different north-south
positions from day to day when it is parked under the lens.
This is a bit like a youngster with a magnifying glass on a sunny afternoon trying to fry ants on the sidewalk, but in
this case, the hand with the magnifying glass is stationary from sunup to sundown, and the ant, controlled by a
computer, is seeking the warmth.
As a concept vehicle, there are no immediate plans for Ford to sell the C-Max Solar Energi, nor has there been
any public announcement of what it would cost. Ford will introduce it at the gadget mecca formerly known as the
Consumer Electronics Show. The show is now officially International CES and is increasingly car-centric; besides
Ford, other car exhibitors will include Audi, BMW, Chrysler, General Motors, Kia, Mazda, Mercedes and Toyota.
There will also be displays from some 125 makers of automotive technology, including Delphi, JVC Kenwood and
Pioneer.
Ford's tech showcase is a version of its small hybrid crossover that has had 1.5 square meters (about 16 square
feet) of photovoltaic cells added to its roof, squeezed between the luggage-rack rails. On the road or parked at
the curb, these cells, manufactured by Sunpower and already in wide commercial use, produce from 300 to 350
watts. So over an hour, they add about one mile of range.
That ratio, an hour of charging in sunlight for a mile of driving, illustrates why the surface area of the car's body is
too small to power the vehicle by solar power alone. Ford is using photovoltaic cells that are slightly more efficient
than the average in use today, capturing the sun's energy and converting it into electric current with an efficiency
level of 21 percent.
But even if the cells were twice as efficient, and even if the hood and fenders were also covered with solar cells,
they could not produce nearly enough energy to keep the car moving continuously.
Some cars can do that, but they are specialized competition vehicles and not likely to arrive at dealerships any
time soon. The World Solar Challenge, an annual race from Darwin to Adelaide, Australia, draws entries from
around the world that run at an average of about 50 miles per hour over an 1,864-mile course. But those cars
each carry over 1,000 watts of cells, spread over six square meters or so, and last year's winner, a Dutch entry
called the Nuna 7, weighed a mere 350 pounds. It had a payload of one, and he was sweaty.
In fact, the entire electrical output of the C-Max is 300 to 350 watts, about the same as a single solar panel used
in home installations. The typical home rooftop installation has about a dozen panels.
But there are ways to increase the output of a solar cell, including taking steps to compensate for the movement
of the sun across the sky. Panels mounted on a roof or on the ground are often set up to pivot on a single axis, so
they follow the sun across the sky. A few work on two axes, varying their angle by season of the year.
Ford's idea, developed with the Georgia Institute of Technology, a frequent collaborator, is simpler. The lens is
completely passive, standing in the same spot, supported by a framework, all year long. It creates a focus that
traces a slightly different path from day to day. The trick is finding a cheap way to keep the solar panel under the
focus.
Ford's answer is to piggyback on existing abilities. The concept vehicle is a variant of the C-Max Energi plug-in
hybrid, which is already on the market. In standard form, this crossover is almost smart enough to do the job,
because it is available with blind-spot protection, adaptive cruise control and parking assist. In the concept vehicle
version, the car moves itself.
It parks itself under a simple structure, 4 meters by 5 meters (about 13 feet by 16 feet), with a plexiglass lens for a
roof. The car picks the north-south coordinate according to the season of the year, and it adjusts the east-west
location over the course of the day. If the car is in the right spot, the lens concentrates the sun's rays by a factor
of eight.
The best place to put the magnifying lens, said Mike Tinskey, director for global vehicle electrification and
infrastructure at Ford, is in the parking lot of a workplace. ''Your vehicle recharges while you're there,'' he said. In
six hours, the solar cells would pick up eight kilowatt-hours, enough to go about 21 miles, Ford said.
''A car is generally parked 95 percent of the time,'' Mr. Tinskey said. ''Knowing that type of statistic, it's very likely
this solar panel will be exposed to sun whether it's under the concentrator or by itself.''
One drawback to the system is that if the car is not parked under the lens, the lens is not doing any useful work.
The same problem applies to carports covered with solar cells: These are generally connected to the grid, so they
are in use every moment when there is sunlight, and the idea that they are actually fueling up a plug-in hybrid or a
pure electric car is more of an accounting notion than a physical reality.
The Ford cells, however, will produce some current whether they are under the lens or not. And if they displace
gasoline, that is better than connecting them to the grid, where they would most likely displace natural gas. The
reason is that at $3.25 a gallon, unleaded gasoline costs roughly eight times as much as natural gas per unit of
energy. Reducing gasoline consumption also cuts carbon dioxide emissions more than reducing natural gas
consumption.
The price benefit of taking electricity from the solar cells instead of from the grid depends on how grid electricity is
priced. Mr. Tinskey pointed out that in some places, electricity costs more during daylight hours, which is when a
driver at work would want to recharge for the drive home.
Ford recommends the system for places with a weak power grid. It would also be of some help to people who
want a plug-in hybrid but have no place to easily hook up to the grid. (The Solar Energi can also be plugged in if
grid current is available.)
If the appeal seems more to gadget addicts than to car enthusiasts, Ford is at least in line with the industry.
Collectively, the automakers will occupy 140,000 square feet at the Las Vegas show this year, up 25 percent from
last year, according to the organizers.
The roof of the Ford C-Max Solar Energi Concept is covered with photovoltaic cells. (PHOTOGRAPH BY FORD
MOTOR) GRAPHIC: To maximize the energy from the rooftop solar cells of its C-Max Solar Energi, Ford
programmed the car to reposition itself under a magnifying lens that concentrates the sun's rays. As the sun
moves across the sky, the car inches forward or back to keep the lens focused on the cells. (SOURCE: FORD
MOTOR) (AU2)
Document NYTF000020140106ea150003b

Auto Makers Rebound as Buyers Go Big --- U.S. Sales Cruise Back to 2007 Levels, Driven by Fondness for Pickups, SUVs
Auto Makers Rebound as Buyers Go Big --- U.S. Sales Cruise Back to 2007 Levels, Driven by Fondness
for Pickups, SUVs
By Mike Ramsey
980 words
4 January 2014
J
A1
English
Five years after skyrocketing fuel prices and turmoil in financial markets knocked auto makers into a tailspin, the
U.S. market has recovered to its former size and character, dominated by larger, more powerful and more
profitable vehicles.
U.S. car and light truck sales rose less than 1% in December, reflecting in part a hangover from a surge the
month before. But overall, the U.S. auto industry in 2013 had its best sales year since 2007, and industry
executives said on Friday they expect gains to continue in 2014, though at a slower pace.
For the year, U.S. consumers bought 15.6 million vehicles, up 7.6% from 2012, according to market researcher
Autodata Corp., the strongest volume since 2007. Purchases of light trucks including sport-utility vehicles
exceeded cars, a reversal from the year earlier.
December results were mixed. Auto makers including Ford Motor Co., Honda Motor Co. and Chrysler Group LLC
posted single-digit percentage gains over the year-earlier month while sales fell at the nation's largest auto maker,
General Motors Co., and at Toyota Motor Corp.
U.S. sales averaged 16 million units a year between 1998 and 2007 then bottomed out at 10.4 million vehicles in
2009. Analysts and industry executives expect sales this year to reach about 16 million vehicles.
While December sales gains were tempered by strong year-ago results and by November price incentives, car
makers' profits shouldn't be hurt. They aren't selling as many cars or as many low-margin fleet vehicles as in the
past. Detroit's auto makers restructured during the recession to sharply lower the sales volumes required to turn a
profit in North America.
"December frankly was better than I thought it was going to be," said Scott Fink, who owns Hyundai, Mazda and
Chevrolet dealerships in Florida. He said bigger sales incentives are lifting sales.
The Obama administration, as part of its publicly funded rescues of GM and Chrysler, now majority owned by
Italy's Fiat SpA, pushed Detroit to focus on smaller, more efficient vehicles and plug-in electric cars that use little
or no petroleum.
But as gas prices drifted lower last year, U.S. consumers trading old vehicles for new favored pricey pickup
trucks, SUVs and luxury cars. Ford, for example, boosted sales of its F-150 pickup by 8.4% in December over a
year ago, while sales of its subcompact Fiesta and compact Focus cars plunged by 20% and 31% respectively.
For the 32nd year in a row, Ford's F-series was the best-selling model line in the U.S., delivering 763,403
vehicles. By comparison, Ford sold just 35,210 of its C-Max hybrid models last year, while GM sold just 23,094
plug-in hybrid Chevrolet Volts.
Consumers also are springing for more luxurious models, driving average new-car selling price to $32,077 in
2013, up 1.4% from a year earlier and up 10% from 2005, according to auto-price researcher KBB.com.
Michael Silver recently bought a 2014 Mercedes-Benz CLS 550 after the dealership offered to knock $10,000 off
the $82,000 sticker price. The Coconut Creek, Fla., resident said he wasn't looking for a car at the time but "they
made me a deal I couldn't refuse."
The brands likely to grow fastest in 2014 may be luxury nameplates, executives said.
"The overall market, we do see it growing, but more important for us what we see is the percent of luxury is
getting larger," said Scott Keogh, president of luxury car maker Audi of America. "We see the economy for the
most part heading in the right direction. We are more optimistic than pessimistic."
In part, surging stock markets generated a wealth effect in 2013 that benefited Audi, BMW and other luxury
brands. Premium vehicle sales are projected to reach 12% of the U.S. market this year from 10% in 2013 as Audi
and Daimler AG's Mercedes-Benz offer new entry-level cars priced under $30,000.
December points to slower growth ahead as auto makers found gains harder to achieve against year-earlier
results.
GM said its December sales fell 6.3% compared with the same month last year because of what executives said
were aggressive pickup truck promotions by Ford and tougher competition from Asian auto makers.
December also marked the first monthly year-over-year decline in car sales at GM, Ford and Chrysler for 2013.
Gains in pickups and SUVs offset weaker car sales at Ford and Chrysler.
Japan's biggest auto makers reported mixed U.S. results for December. Toyota said its sales fell by 1.7% from a
year ago. Honda's sales were up 1.9% from a year ago while Nissan Motor Co. posted a 10.5% gain after
weakness earlier in the year.
Ford said large pickup trucks accounted for 13% of total industry sales in December, up from 12% in 2012.
Ford said it offered bigger discounts on its F-series pickups, but also managed to sell them at an average price of
$38,000, up $500 from a year ago.
Similarly, Chrysler said sales of its Ram pickups rose 11% to 33,405. For the year, its truck sales jumped 21% to
355,673.
GM, meanwhile, stumbled in December, as sales of its recently-redesigned Chevrolet Silverado pickup fell by
16%.
"The month did start a little slow on the retail side of the business. Some of this might have been payback from
our well executed Black Friday sales campaign," said Kurt McNeil, vice president U.S. sales operations.
---
Christina Rogers contributed to this article.
Document J000000020140104ea140002z

Plug-in car runs on sunlight
MONEY
Plug-in car runs on sunlight
Chris Woodyard
Chris Woodyard, @chriswoodyward, USA TODAY
481 words
3 January 2014
USAT
FINAL
B.4
English
Ford will show a concept of its plug-in hybrid C-Max crossover at the Consumer Electronics Show in Las Vegas
that has a giant solar panel on the roof for charging.
As a result, Ford says the C-Max Solar Energi Concept can get the same energy from collecting a day of sunlight
as the regular C-Max Energi gets from a plug. Ford estimates that the sun could power 75% of a typical driver's
trips in the concept.
The current plug-in on sale, the Ford C-Max Energi, is rated at 108 miles per gallon equivalent, or MPGe, in the
city and 92 MPGe highway, for a combined 100 MPGe.
Ford doesn't estimate what kind of ratings numbers that its solar concept could post.
The concept is not the first car with a solar panel on the roof, but has by far the most performance from one.
Other automakers have put solar cells on the roofs of their cars, but more as a symbol than much of a power
source.
Fisker, the defunct automaker, put an array on the roof of its Karma sedan, but officials estimated it would be
good only for about five extra miles of driving a week. Toyota offers a solar option on its Prius, but its usefulness
is limited to powering an interior fan.
Ford says the concept has a "special solar concentrator lens similar to a magnifying glass" that makes its solar
panel more effective.
Since it's only a concept car, it's hard to know how practical, or expensive, this solar collector might be. But if it
worked as billed and could be fitted commercially, it would be a huge benefit for motorists who want to unplug
from the electrical grid entirely.
Two electric vehicle subsidies die -- again
Two government subsidies aimed at spurring sales of plug-in electric cars and motorcycles were switched off on
Wednesday with the start of the new year.
The credits already expired once, but were reinstated by Congress last January, and electric vehicle advocates
would like to see that again.
One offered a 30% tax credit up to $1,000 for individuals buying home high-speed electric car charging units, up
to $1,000. The other pays 10% of the price of an electric motorcycle, up to $2,500, says Jay Fried-land, legislative
director for Plug In America.
High-speed 220-volt chargers typically cut electric car recharge times by more than half. With the electric-vehicle
market still developing, "these incentives are really, really key," Friedland says.
Brian Wynne, executive director of the Electric Drive Transportation Association, said the charger credit has been
effective. "It's a good incentive for folks," he says. "We worked hard to get them and get them extended."

photo AP
Document USAT000020140103ea1300034

Corporate Watch
Corporate Watch
1,041 words
31 December 2013
J
B5
English
HEWLETT-PACKARD
Computer Giant in Talks
To Settle Bribery Claims
Hewlett-Packard Co. on Monday said it is in advanced talks with two U.S. regulators to settle investigations
concerning allegations of bribery.
In a filing with the Securities and Exchange Commission, the computer giant said it is under investigation by the
SEC and the Justice Department for allegations that some former and current employees paid millions of dollars
to win an information technology contract with a Russian government agency.
The investigation centers on a roughly 35 million euro ($48.3 million) transaction that spanned 2001 to 2006 and
was for the delivery and installation of an IT network.
In the filing, H-P also said U.S. regulators, as well as those in Mexico and Poland, are investigating other bribery
allegations related to deals with some public sector agencies in those countries.
-- John Kell
---
BOB'S DISCOUNT FURNITURE
Bain to Acquire Retailer
As Chain Seeks to Expand
Bob's Discount Furniture agreed to be acquired by investment firm Bain Capital for an undisclosed amount, a deal
that comes as the retailer continues its expansion push.
The Wall Street Journal reported in October that current owner Apax Partners was looking to sell the furniture
chain and suggested a sale could fetch more than $350 million.
Founded in 1991 by Bob Kaufman and his cousin, the company is largely known for its television ads. They often
run during sports broadcasts and feature Mr. Kaufman, sometimes as a clay figure.
The deal is expected to close in the first quarter. Bob's management team will continue to own a "significant
stake" after the deal and will remain involved in operations, the company said.
The home furniture seller has grown from having 30 stores in 2005 to 47 stores across the Northeast and
mid-Atlantic. Based in Manchester, Conn., Bob's plans to expand to Philadelphia in February.
-- Everdeen Mason
---
ACER

Three Executives Exit
Personal-Computer Maker
Acer Inc. said three senior executives had left the company and some of them won't be replaced as the
personal-computer maker tries to keep costs low.
The management changes are the latest of Acer's efforts to pull itself out of a crisis as sales of tablets and
smartphones eclipse those of PCs.
Walter Deppeler, head of commercial-business global operations, Chief Technology Officer Arif Maskatia and
Dave Chen, general manager of China's smartphone operations, resigned this month because "they had other
career plans," Acer spokesman Henry Wang said Monday.
Mr. Deppeler's position has been assumed by the operation's associate vice president, Evis Lin, while Mr.
Maskatia's and Mr. Chen's positions won't be filled, Mr. Wang said.
-- Aries Poon
---
OLEO E GAS PARTICIPACOES
Eike Batista's Oil Company
Seeks Cash for Payment
Troubled Brazilian oil company Oleo e Gas Participacoes SA, founded by entrepreneur Eike Batista, said Monday
that it was seeking cash to pay for the firm's share of work at an offshore oil field before regulators revoke the
concession.
Oleo e Gas Participacoes -- formerly known as OGX Petroleo e Gas Participacoes SA -- said that it had
maintained "friendly talks" with partners and creditors to restructure the company's finances and continue
operations. Last week, Oleo e Gas reached a preliminary deal with creditors to exchange some $5.8 billion in
debt for shares that could also include an injection of fresh capital for investments at several oil fields.
Investments in the BS-4 block, which sits in Brazil's offshore Santos Basin that is home to several
multibillion-barrel oil discoveries, was part of the restructuring plan, the company said.
The oil company has 15 days to pay the 73 million Brazilian reais ($31 million) the firm owes two partners for work
done at the BS-4 offshore exploration block, which includes the Atlanta and Oliva oil fields, according to QGEP
Participacoes. Oleo e Gas holds a 40% stake in the block. QGEP operates the block with a 30% share.
-- Jeff Fick
---
FORD MOTOR
Namesake Brand's Sales
Up 15% Through November
Ford Motor Co. on Monday said its namesake brand's retail sales have risen 15% this year through November
and it expects to retain the title of top-selling brand in North America.
Ford has posted double-digit sales growth in trucks, cars and utility vehicles, said John Felice, vice president of
U.S. marketing, sales and service.
"The Ford brand has had more retail share growth than any other brand in the country, with our most significant
gains coming from import-dominated coastal markets," he said.
The auto maker said it expects the Ford brand to have its best retail sales performance in six years, surpassing
1.7 million vehicles sold.

-- Michael Calia
---
NETFLIX
CEO to Get 50% Raise
Following a Strong Year
Netflix Inc. said Chief Executive Reed Hastings would get a 50% raise in 2014, following a year in which the
streaming-video company's shares were a top Wall Street performer and its TV programming won critical acclaim.
In a securities filing, Netflix said Mr. Hastings will get a salary of $3 million in 2014 and another $3 million in stock
option allowances, up from a $2 million salary and $2 million in stock option allowances this year. Netflix
employees can elect to receive up to 50% of their total annual compensation in stock options.
Other top executives, including Chief Financial Officer David Wells and Chief Content Officer Ted Sarandos, also
will get raises in 2014.
Netflix on Monday also said it terminated a stockholder rights plan that it had adopted in 2012 after activist
investor Carl Icahn had built a large stake and was pushing for the company to pursue a sale. The so-called
poison pill plan effectively made it undesirable for an investor to acquire 10% of the company. Mr. Icahn had just
under a 10% holding at the time.
In October, Mr. Icahn sold more than half of his Netflix stake for nearly $1 billion. He is no longer agitating for
changes at the company. A Netflix representative said the company decided it was no longer necessary to have
the poison pill in place.
-- Amol Sharma
Document J000000020131231e9cv0002r

Google, Apple Forge Auto Ties
Google, Apple Forge Auto Ties

By Neal E. Boudette and Daisuke Wakabayashi
1,204 words
30 December 2013
J
B1
English
Technology giants Google Inc. and Apple Inc. are about to expand their battle for digital supremacy to a new
front: the automobile.
Next week at the Consumer Electronics Show in Las Vegas, Google and German auto maker Audi AG plan to
announce that they are working together to develop in-car entertainment and information systems that are based
on Google's Android software, people familiar with the matter said.
They also plan to disclose collaborative efforts with other automotive and tech companies, including chip maker
Nvidia Corp., to establish Android as an important technology for future vehicles, these people said. The aim is to
allow drivers and passengers to access music, navigation, apps and services that are similar to those widely
available now on Android-powered smartphones, these people added.
The coming announcements signal Google's response to an initiative launched last June by Apple to integrate
iPhones and other devices running its iOS operating system with car makers' dashboard control panels. Apple so
far has the support of BMW AG, Daimler AG's Mercedes-Benz division, General Motors Co. and Honda Motor Co.
Apple and Google already compete fiercely in an array of digital businesses, ranging from smartphones and tablet
computers to mobile apps and Web browsers. With 80 million new cars and light trucks sold each year, autos
represent a significant new opportunity for Internet-based software and services.
"The car is becoming the ultimate mobile device," said Thilo Koslowski, an analyst at the research firm Gartner
Inc. who specializes in advanced in-car electronics. "Apple and Google see that and are trying to line up allies to
bring their technology into the vehicle."
The annual event known as CES has in recent years become an important showcase for advances in automotive
electronics, including the kind of autonomous driving technologies that Google has helped pioneer.
Besides its partnership with the Internet company, Audi is expected to demonstrate new technologies that allow
cars to drive themselves in certain situations and for short periods, and to lay out a timetable to offer them on new
models due to arrive over the next four or five years, people familiar with the matter said.
A year ago, Audi used the trade show to demonstrate a car that could navigate through a parking garage and pull
into a parking space without a driver at the wheel.
Ford Motor Co. is expected to demonstrate an autonomous vehicle it has developed at CES next week. BMW,
based in Germany, has also invited reporters to a demonstration of related technology.
The developments, some of which were discussed in an article in electronics trade publication EE Times earlier
this month, come as car makers keep adding more computer chips to their new models. Some, such as GM and
Audi, have announced plans to equip cars with fourth-generation cellular chips to connect to the Web without
requiring a smartphone.
GM, for example, plans to equip almost all of the company's 2015 models with the technology to provide a
constant wireless broadband connection, said Phil Abram, the auto maker's chief technology officer, during a
recent conference call with analysts.

Car makers also are adding powerful processors based on technology that ARM Holdings PLC of Britain licenses
to smartphone chip makers. Such processors require operating systems, and Google's free Android software is
an emerging option.
"We are starting to see an uptick of Android use in car makers, starting in Asia and working its way across the
world," said Rajeev Kumar, a world-wide director of business development for Freescale Semiconductor Inc., a
large supplier of chips used in cars.
As they approach the auto market, technology providers are compelled to create offerings that don't require
drivers to take their eyes off the road or their hands off the steering wheel. Apple has some key technology in that
field.
The Silicon Valley company's voice-based Siri technology, for example, can read out incoming text messages and
emails, and let the driver dictate a reply.
Japan's Honda is now starting to roll out models that allow the driver to activate Siri from a button on the steering
wheel and to talk to Siri using the car's hands-free audio system. That enables a driver to use Siri to read out
newly arrived email or text messages, check weather, set the navigation system or enter appointments on the
iPhone's calendar -- all while keeping both hands on the wheel.
With its "iOS in the Car" initiative announced last June, Apple hopes to turn the iPhone into a kind of brain for
operating dashboard electronics, using the car's built-in display to interact with services such as maps and traffic
information.
Apple has said that it expects a dozen car brands to adopt the technology in 2014. An Apple spokeswoman
declined to comment for this article.
Google and the company's partners, by contrast, hope to have Android and related applications running on the
car's own built-in hardware, people familiar with the matter said. The company has provided its map technology to
a range of auto makers since 2006, including Audi, Toyota Motor Corp. of Japan and Tesla Motors Inc. A
spokesman for Google said that it doesn't comment on rumors or speculation.
Filip Brabec, Audi's head of product strategy, declined to discuss the auto maker's coming announcements at
CES. But he acknowledged that future vehicles will need computer operating systems to support the kind of apps
and functions that consumers want to access while driving.
"Cars are becoming more complex, and with the computing power that is going into vehicles, you need that type
of system in the car," he said.
The increased focus on in-car electronics underscores a significant challenge for auto makers. Where earlier
buyers based purchase decisions on characteristics such as horsepower or fuel economy, consumers now have
grown up with the Web and mobile devices and expect to remain connected while on the go.
"When they get to the dealership, the first thing they may ask is what does this thing do and point to the
dashboard," said Charles Koch, a manager of new-business development at Honda's U.S. unit.
Ford attributes rising sales in the U.S. in part to the voice-activated Sync system it started offering in 2007,
developed with help from Microsoft Corp. The complex electronics has at times become a double-edged sword,
however; a follow-up version called MyFord has proved confusing to some customers, hurting Ford's scores in
some automotive-quality studies.
The push toward smarter cars, meanwhile, has caused big-name chip makers such as Intel Corp. and Qualcomm
Inc. to step up efforts to penetrate the car business. Rival Nvidia says 4.5 million cars on the road are already
equipped with its processors, and predicts an additional 25 million cars in four or five years will be using its
technology.
"Right now, we are just scratching the surface," said Danny Shapiro, Nvidia's senior director for automotive
applications.
---
Don Clark contributed to this article.

Document J000000020131230e9cu00023

2014: A Tougher Year for Ford
2014: A Tougher Year for Ford

By Mike Ramsey
1,258 words
19 December 2013
J
B1
English
The rapid growth and robust profit gains for U.S. auto makers since the industry's near collapse in 2009 is giving
way to a new era of margin pressures and market share wars.
Ford Motor Co. warned on Wednesday its 2014 profits won't match this year's results because of higher costs
and a currency devaluation. And it said it likely won't meet operating profit projections of between 8% and 9% of
sales by 2015 or 2016. That goal is "at risk" because of the recession in Europe and weaker results in South
America.
The warnings sent Ford investors fleeing its shares, which fell 6.3% to $15.65 on the New York Stock Exchange
and weighed on other auto-related stocks. Parts supplier Johnson Controls Inc. Wednesday also forecast 2014
profit below Wall Street expectations.
The selloff highlighted U.S. auto-executive and investor beliefs that record earnings in 2012 and 2013 owed much
to low borrowing costs, a strong yen that hurt Japanese exports, stable gasoline prices and pent-up demand from
consumers emerging from recession.
But next year promises a cheaper yen, rising costs for technology and factory expansions that will pour new cars
into a market facing slower volume growth. Potential risks from higher consumer loan rates are also ahead as the
Federal Reserve pulls back on some of its stimulus.
Ford said a currency devaluation in Venezuela would take a $350 million bite out of next year's projected
earnings. The auto maker has a large plant in Venezuela that builds cars and trucks and has had difficulty getting
cash out of the country.
In the U.S., it blamed competition from Japanese rivals for a decision earlier this month to temporarily idle U.S.
factories that build the midsize Fusion and the compact Focus to reduce inventories. The shutdowns came less
than four months after Ford expanded Fusion output, citing a shortage of the cars. It also was hurt by warranty
costs for Escape engine repairs.
The move by investors to dump Ford shares came just nine days after rival General Motors Co. celebrated the
U.S. government's sale of the last remaining shares acquired as part of that company's taxpayer-financed bailout
-- a moment that capped an extraordinary period of government intervention in the U.S. auto sector.
GM also named a new CEO, Mary Barra, to lead the company into the post-bailout era, and Ford next year is
expected to formally bid farewell to CEO Alan Mulally, who led it through its self-funded restructuring. Mr. Mulally
and outgoing GM CEO Dan Akerson were industry outsiders, brought in to cope with companies in crisis.
Bob Shanks, Ford's chief financial officer, made it clear he expects Mr. Mulally to be at Ford when the new year
begins. "Alan is fully engaged," he said.
Going forward, Detroit's auto makers will have to drive product innovation harder, which can be costly, or risk
repeating a cycle in which a rapid recovery is followed by complacency and eventually a financial crisis.
"We're starting to push out of recovery into more stabilized growth," said Jeff Schuster, senior vice president of
forecasting at LMC Automotive.

Ford isn't the first U.S. auto maker to caution investors. Chrysler trimmed its 2013 profit forecast in July after
delays delivering two of its most profitable models, the Jeep Grand Cherokee and Ram 1500, sunk sales in the
first half of the year.
Part of Ford's outlook stems from its plan to introduce 23 new vehicles next year, more than double what it did in
2013. The cost of those launches could hurt sales volume and pricing, it said. One of those launches is expected
to be a new generation of the F-150 pickup, a backbone of Ford's automotive profits. The company is working on
a dramatic overhaul of the vehicle, making extensive use of aluminum in the body to cut weight and boost fuel
efficiency.
"The payoff for North America for the 2014 launches and investments we incur for future periods will be a stronger
product lineup and volume and revenue opportunities into 2015 and beyond," said Mr. Shanks, in a presentation
to analysts on Wednesday.
GM executives also say ambitious new product programs will be vital to sustaining profitability in the next few
years. "You've got to protect your product and you got to protect your cash flow and you have got to invest in the
future," GM CEO Akerson said earlier this week. "That may mean short-term disruptions in other priorities."
Detroit's auto makers are far better equipped today to handle the upshift in competitive pressure than they were
headed into the financial crisis. Thanks to the government-funded restructurings at GM and Chrysler and Ford's
self-financed overhaul, Detroit's auto giants exited the financial crisis with more competitive union agreements
and fewer factories, which allowed them to pile up profits as U.S. sales volume grew by roughly 50% from the
2009 trough to this year.
Profits from North America, and particularly from resurgent sales of pickup trucks and sport-utility vehicles in the
U.S., helped Ford and GM offset losses in Europe and mixed results in Asia and South America.
However, the recent decline in the value of the Japanese yen against the dollar gives Toyota, Honda and Nissan
more latitude to cut prices. All three have aggressive holiday promotions, a sign they want to regain market share
lost after the 2011 tsunami and a period of yen strength.
Earlier this month Honda told its U.S. dealers they could receive bonuses of $3,000 for every vehicle they sell this
month above their December 2012 sales total. Retailers can use the extra money to drop prices on new vehicles
or finance other incentives to get customers to buy. Honda historically has offered much less in sales incentives
than its competitors.
"The Japanese are certainly a big part of that [incentives] game whereas they weren't several years ago," Don
Johnson, GM's U.S. vice president of Chevrolet sales and service, said earlier this month. "Obviously, we're trying
to stay as disciplined as possible."
At the same time, Europe's Volkswagen AG and luxury auto makers Daimler AG and BMW AG are pushing new
models such as the $29,900 Mercedes-Benz CLA against Detroit luxury brands such as GM's Cadillac.
On Wednesday, Daimler said its Mercedes-Benz brand plans to expand production in China, the U.S. and
Eastern Europe -- moves that would pressure sales of luxury-car rivals, including Ford's Lincoln brand.
Jeff Williams, owner of Volkswagen, Audi and Subaru franchises in Lansing, Mich., said competition in the auto
industry has become as fierce as he has ever seen it. "Everybody has their production back. Everybody is
healthy. Everybody's got good quality. So it's a really tough market," he said.
Of course, the auto industry globally is still a growth business, not just because of growing demand in emerging
economies but because demand in the U.S. is likely to keep rising, albeit more slowly.
World-wide auto sales are expected to grow in 2014 to 85 million vehicles from 82 million this year, according to a
forecast by IHS Automotive earlier this week. By 2018 global sales are forecast to break 100 million.
---
Joseph B. White contributed to this article.

Document J000000020131219e9cj0002z

GM's Catalytic Converter Is Better Than Ford's
Heard on the Street

GM's Catalytic Converter Is Better Than Ford's
By Justin Lahart
344 words
18 December 2013
J
C12
English
Investors have started to think General Motors is a different kind of car company.
Ever since GM went public again three years ago, its shares and those of Ford Motor have tended to zig and zag
together. This can be measured using the correlation coefficient for the two stocks' daily performance, where one
represents perfect correlation and zero no relationship whatsoever. As of two months ago, the trailing two-month
coefficient was 0.84.
But that linkage has since broken down, with GM's stock rising 17% and Ford's falling 4.4%. This reflects a string
of positive developments at GM. These include stabilization in industry-wide European car sales, the U.S.
government selling off the last of its shares in the company, and the announcement that product development
head Mary Barra will become chief executive next year. There is even talk of a renewed dividend.
The stage seems set for GM to take more of the steps to improve operations that Ford, under CEO Alan Mulally,
has taken already. But it is less clear where Ford, following its successful efforts over the past several years, goes
next.
Indeed, questions about how much longer the well-regarded Mr. Mulally -- rumored to be in the running to be
Microsoft's next CEO -- will be at Ford have raised concerns over how well the company will handle the transition.
Ford's management bench is said to be deep. But so was Apple's when Steve Jobs stepped down.
Investors may have gone a bit too far imagining how much GM will improve under Ms. Barra. After all, Ford has
proved its ability to change for the better while GM has much to do. Still, both stocks now trade at roughly equal
forward price/earnings multiples of nine times.
With more catalysts for improvement, GM's stock could continue to pull away as we head into 2014.
Document J000000020131218e9ci0001b

G.M. to Invest $1.3 Billion to Upgrade 5 Midwest Factories

G.M. to Invest $1.3 Billion to Upgrade 5 Midwest Factories
By BILL VLASIC
963 words
17 December 2013
The New York Times
NYTF
3
English
DETROIT -- After a year of big profits and surging sales in the United States, the American automakers are
investing heavily in their domestic operations in anticipation of more good times to come.
General Motors, the nation's largest auto company, said Monday it would spend about $1.3 billion to upgrade five
factories in the Midwest, including a major overhaul of one of its highly profitable truck plants.
The news followed Ford Motor's announcement last week that it was hiring 5,000 new workers next year and
introducing 16 new vehicles in North America.
The investments show confidence in the continued growth in 2014 of the automotive sector -- one of the
economy's bright spots this year.
''Today's announced plant upgrades continue the momentum of a resurgent auto industry,'' Mark Reuss, head of
G.M.'s North American division, said on Monday at the company's pickup truck plant in Flint, Mich.
G.M. said it would invest $600 million in the Flint facility, including building a new paint shop that would make its
trucks more competitive in the expanding pickup segment.
The company is also spending $493 million at another Michigan factory to produce a new transmission that
increases fuel economy and to expand capacity for a high-tech V-6 engine. The rest of the new spending will be
at plants in Michigan, Ohio and Indiana.
G.M. said the investments would create or preserve about 1,000 manufacturing jobs, and position the company to
take advantage of more growth in the critical American market.
''Today's announcement is a win for American workers,'' said Joe Ashton, an official of the United Auto Workers,
which represents 7,500 employees at the five affected plants.
The new investments are being made after the strong performance of the American auto market this year.
Manufacturers sold 14.24 million new cars and trucks through November, an 8.4 percent rise from a year ago.
The industry is on pace for its best annual sales since 2007. And analysts are predicting that the year could close
out with exceptionally healthy results in December.
''Floor traffic surged during the opening half of the month, nearly 18 percent higher than a year ago,'' said a report
issued Monday by the marketing firm CNW Research.
For G.M., the investment announcement helps it end the year on yet another high note.
Last week, the Treasury Department said it had sold the last of the G.M. stock it took in exchange for the
government's $49.5 billion bailout of General Motors in 2009.
And the company also made history by naming Mary T. Barra to take over as chief executive in January,
becoming the first woman to rise to the top of a major automaker.

G.M.'s departing chief executive, Daniel Akerson, said on Monday that Ms. Barra's promotion was an important
step in the company's reinvention since its bailout and bankruptcy four years ago.
''On that day, for the first time in decades, all eyes at General Motors pointed toward the future,'' Mr. Akerson said
in a wide-ranging speech at the National Press Club in Washington.
Industry analysts expect sales in the United States to be even better next year and automakers -- particularly
G.M., Ford and Chrysler, the third Detroit manufacturer -- are introducing new products to keep pace.
G.M. is expected to show its new midsize pickup truck, the GMC Canyon, at the Detroit auto show in January.
Chrysler, for its part, will take the wraps off a new Chrysler 200 sedan.
And while it will not confirm its plans, analysts predict that Ford will show off the latest version of the top-selling
vehicle in America, the F-150 pickup.
Ford executives said last week that despite the steady growth in overall sales, it was still difficult to gain even the
smallest amount of market share.
''The most important thing for us is to have vehicle choices for all these consumers,'' said Mark Fields, Ford's
chief operating officer.
The company is adding capacity at a number of plants, including its big truck factory in Kansas City, Mo. All
automakers are stretching the limits of their existing plants rather than building expensive new ones as sales
surge.
Ford said it would add about 5,000 jobs in the United States, most of which will be engineers and salaried
employees working on fuel-efficient engines and new technologies. The automaker is also building two new
factories in China and one in Brazil.
''This is the fastest and most aggressive manufacturing expansion the company has undergone in 50 years,'' said
John Fleming, Ford's global manufacturing chief.
The Detroit companies and their Japanese and German rivals gain a sizable portion of their corporate profits from
sales in the United States, where the market appears to be healthier than it has been in decades.
By drastically downsizing in recent years, the industry is matching its production to demand far better than in the
past. It is avoiding building large inventories of unsold cars, which can prompt sales discounts that eat away at
profits.
G.M. has reported 15 consecutive profitable quarters, which allows it the financial latitude to spend more money
on new products and plant improvements.
''We are in a capital-intensive business that demands steady and significant investment,'' Mr. Akerson said.
An assembly line at a G.M. plant in Michigan, above. G.M. said it would spend about $1.3 billion to upgrade five
factories in the Midwest. Daniel Akerson, left, is the departing chief of G.M. (PHOTOGRAPHS BY BILL
PUGLIANO/GETTY IMAGES; WIN MCNAMEE/GETTY IMAGES)
Document NYTF000020131217e9ch000ak

WEEKEND INVESTOR --- Wealth Manager: Stocks That Still Come With Perks
WEEKEND INVESTOR --- Wealth Manager: Stocks That Still Come With Perks
By Liz Moyer
895 words
14 December 2013
J
B9
English
Investors have to search a little harder these days to find shareholder freebies and discounts.
Several household-name companies such as Walt Disney, Wm. Wrigley Jr., and Starbucks stopped giving their
investors discounts and perks a while ago. Wrigley, for example, used to send a box of holiday cheer to its
shareholders at the end of each year: seven to 10 packs of assorted chewing gum.
That tradition died after Wrigley's $23 billion takeover by the closely held Mars in 2008.
Disney used to give shareholders discounts to its U.S. theme parks through a membership club that no longer
exists, while Starbucks no longer slips gift cards into annual-meeting materials since making the reports available
electronically.
Some companies still offer investor perks, however. Ford Motor offers discounts on the purchase of Ford and
Lincoln vehicles, while International Business Machines lets investors shop in an online store for refurbished
computer equipment.
Lopo Rego, an associate professor of marketing at Indiana University's Kelley School of Business, says the
programs create a virtuous cycle of goodwill between investors, consumers and companies.
They are essentially brand loyalty boosters, he says, since the assumption is a consumer who loves a certain
product will also get satisfaction out of investing in the company that makes it.
Shareholder-perk programs "perpetuate the strong favorable and positive associations the consumer makes with
the brand," Mr. Rego says. "If you can enhance the association with the brand, the result is long-term shareholder
wealth creation."
In addition to a year-round 8% discount on auto insurance through its Geico unit, Berkshire Hathaway
shareholders get a variety of breaks on items ranging from electronics and furniture to jewelry and artwork during
the company's annual meeting weekend in Omaha, Neb., each May.
Most of the retailers offering discounts and special promotions, such as Borsheims and See's Candies, are
Berkshire-owned companies. Trick is, the shareholders have to spend money to travel to Omaha that weekend to
get the deals.
Kimberly-Clark shareholders can pay $24.49 for a gift box from the company filled with Kleenex tissues, diaper
wipes and $25.50 worth of coupons for other products. The retail value of the items in the gift box is $45.
The perks aren't necessarily easy to get. Many companies require proof of ownership, and that means investors
who hold shares in their brokerage firm's name could have a tough time qualifying. Shareholders often have to go
through elaborate procedures to apply for the discounts.
Ford shareholders who have held at least 100 shares for at least six months get discounts on the purchase of a
Ford or Lincoln vehicle under its "friends and neighbors" program.
To qualify, they need to fill out a form and send proof of stock ownership to the company, which in turn sends the
shareholder a personal identification number to give to the dealer.

The actual dollar amount of the discount varies by model and dealer availability, but a letter sent to shareholders
describing the program says the price is approximately 4% above the employee price, "saving hundreds or even
thousands of dollars on the purchase price."
Ford has about 3.8 billion shares outstanding, 43% of them held by individual shareholders, though fewer than
1,000 or so cars a year are sold to shareholders using the special pricing, a spokesman says.
IBM gives its investors a code they can use to access the online IBM shareholder store, where refurbished
desktop and laptop computers, monitors and accessories are on sale for discounts up to 25%.
Since IBM got out of the personal computer business in 2005, the refurbished equipment it offers is from other
manufacturers, including Lenovo Group, Hewlett-Packard, Dell and Apple. IBM tosses in free shipping and
extended warranties.
The program is a way to connect with consumers and is "very popular," an IBM spokesman says.
Royal Caribbean Cruises and Carnival each offer shareholders who hold 100 or more shares onboard credit for
use during trips on one of their cruise ships. The credits range in value from $50 to $250, depending on the length
of the trip.
Horse-race track operator Churchill Downs gives shareholders two season passes for general admission to any of
its tracks, including Churchill Downs (Kentucky Derby day included), Arlington Park in Illinois, Fair Grounds Race
Course in New Orleans and Calder Racecourse Miami.
The passes get holders access to the infield and paddock, but not the seating areas in the grandstand. Since the
different tracks operate on different seasonal schedules, it's possible to use the two free passes to access
Churchill-owned facilities all year.
What's the benefit in dollar terms? A general-admission adult pass to the namesake Churchill Downs racetrack is
$3 a day, adding up to $1,095 a year if the holder visited the track every single day.
Though shareholder discounts aren't available from Disney in the U.S., Paris-based Euro Disney offers investors
who own at least 100 shares a program called the "shareholders club." Club members can get up to five tickets to
the Euro Disney theme park in France for 15% off, and 10% to 25% discounts on lodging, entertainment, food
and souvenirs.
Document J000000020131214e9ce00019

Corporate News: China's Car Market Ignites --- Foreign Entrants Win Share From Each Other; Ford, VW, Hyundai Race Ahead
Corporate News: China's Car Market Ignites --- Foreign Entrants Win Share From Each Other; Ford, VW,
Hyundai Race Ahead
895 words
11 December 2013
J
B4
English
SHANGHAI -- After three years of seizing market share from Chinese rivals, foreign auto makers are starting to
take it from each other.
Ford Motor Co., Volkswagen AG and Hyundai Motor Co. are poised to end the year with significant market-share
gains in the world's No. 1 auto market, having been quick to meet demand for sport-utility vehicles and new
models tailored to Chinese tastes.
At least some of those gains are at the expense of other foreign competitors. The market shares in China for
General Motors Co., Toyota Motor Corp. and Nissan Motor Co. have all dropped this year.
Foreign companies are chasing drivers such as Qian Jin. After months of wavering among Ford's Kuga,
Volkswagen's Tiguan and Nissan's X-Trail compact SUVs, he decided on a deluxe-edition Kuga to replace his
eight-year-old Volkswagen Golf sedan.
The Beijing-based freelance photographer cited the Kuga's interior features, such as motion sensors that let him
open the back hatch by stretching his legs. "You don't need to push a button," he said. "It is a very considerate
design."
China's passenger-vehicle sales rose 15% from January to November, with the market share of foreign auto
makers rising to 60% from 58.7% a year earlier, according to data released Tuesday. Most foreign auto makers,
even those with flat or declining market share, posted sales gains as Chinese drivers continued to favor foreign
brands.
But the companies say competitive pressure is increasing.
GM China President Bob Socia in October called this year "a little bit of an off-year" in China as the company
released fewer new models than in previous years. GM plans to introduce nine new or refreshed SUVs in China
within the next five years and to release a new Cadillac every year through 2016.
"It is totally about having the right product," he said. Mr. Socia is retiring in January and will be succeeded by GM
China executive Matthew Tsien.
There are 524 car models offered by 96 brands in China, compared with 294 models sold by 45 brands in the
U.S., according to J.D. Power & Associates. Car makers plan to release at least 238 new and upgraded models in
China next year, according to market-research firm Ways Consulting Co.
Most foreign auto makers are maintaining and even increasing earnings in China, analysts say, in part by putting
pressure on parts makers and dealers. The auto makers don't disclose profit data from China.
Meanwhile, they are increasing spending on marketing to reach Chinese consumers. The five biggest joint
ventures between Chinese and foreign auto makers -- including arms of VW, GM, Nissan and BMW AG -- spent
9.5 billion yuan ($1.6 billion) on advertising in the first 10 months of this year, up 8% from a year earlier, according
to Nielsen-CCData.
U.S. auto makers GM and Ford this year sponsored popular television singing competitions.
Ford's China sales surged to about 840,000 vehicles in the first 11 months of this year, up more than 50% from a
year earlier amid an effort to double production capacity in the country by 2015. The car maker has said it would
will have introduced 15 new models in China between 2011 and 2015, including for the luxury brand Lincoln and
the classic Mustang muscle car.
"The Chinese like a little bit more room in the back seat, they like a little bit more chrome on the front," said David
Schoch, president of Ford's Asian-Pacific region. "So we are taking into consideration the Chinese wants."
Hyundai has focused on midsize and compact vehicles and China-exclusive models, such as the Yuedong,
Langdong and Mistra sedans. Analysts said Hyundai's adoption of European-style designs has catered to the
taste of Chinese consumers. The South Korean company had 7.4% of China's auto market in the first 11 months
of this year, up from 7.1% last year.
Japanese auto makers Toyota and Nissan are still grappling with the fallout of a territorial dispute between Tokyo
and Beijing that led Chinese consumers last year to scorn Japanese brands. Nissan has said that it aims to raise
its share of China's auto market to 10% over the medium to long term from less than 6% now.
Toyota is on track to meet its goal of selling 900,000 vehicles in China this year and plans to reach more than one
million next year, said spokesman Niu Yu. "In the future we will focus on low-cost cars and hybrid vehicles," he
said.
Honda has increased its market share to 3.3% in the first 11 months of the year from 3.1% last year as it
accelerated efforts to incorporate Chinese tastes into the Japanese company's models. In September, it
introduced the Jade, a multipurpose vehicle with a three-row version for China to cater to local preferences for
additional space.
While market leaders such as GM and Germany's VW have won brand recognition in China after more than a
decade of operations, Chinese consumers remain less loyal to auto brands than in the West.
-- Rose Yu
Document J000000020131211e9cb00010

Auto biz no longer a 'boys' club' ; Female CEO was inevitable in the industry
MONEY
Auto biz no longer a 'boys' club' ; Female CEO was inevitable in the industry
James R Healey
376 words
11 December 2013
USAT
FINAL
B.1
English
Mary Barra's elevation to General Motors CEO next Jan. 15 will make her the first female CEO of a major car
company, but there are enough women in high places in the industry that having one become CEO was
inevitable.
In fact, GM CEO Dan Akerson used that very word -- "inevitable" - - in September at a conference when
describing the likelihood of a female CEO.
Didn't seem so when she joined GM as an intern in 1980.
That year, Detroit hosted the Republican National Convention that nominated Ronald Reagan, a man's man, for
president.
The Detroit Three CEOs were the embodiment of male traditionalism.
At Ford Motor, the CEO was Phillip Caldwell, the first non- family member to run the company, following Henry
Fords I and II.
Chrysler had Lee Iaccoca, who was a cigar-waving, blue-talking authoritarian.
GM was Roger Smith, an accountant by trade and gadget-freak by avocation.
Ford had named its first woman plant manager only in 1969, and the next year, the first women joined Ford as
salaried professionals.
The auto industry remains predominantly male.
Women account for 24.2% of the jobs in the industry, if it's defined to include equipment and component
suppliers, according to Catalyst.org.
But the jobs women hold are key, as Barra's appointment to the top job shows.
She's been running General Motor's global product development -- a job at the core of an auto company's move
to cut costs and boost efficiencies and profits by making as many different products as possible from the same, or
similar components.
Women also hold great sway in emerging parts of the car business - - alternative power and environmental
operations -- that are destined to become key because of changing social values and tightening government
regulations.
And women now frequently hold jobs as factory managers, engineers and global coordinators. Ford and Chrysler
don't have female executives as close to the corner office as Barra was, but a number aren't too far away.
In Akerson's view, progress for women has been rapid, if not overwhelming, and the boys' club "perception is
quite dated."
Document USAT000020131211e9cb00004

A Starter Library for Car Lovers of All Ages
BOOKS
Automobiles; SECTAU
A Starter Library for Car Lovers of All Ages
By JERRY GARRETT
270 words
8 December 2013
The New York Times
NYTF
1
English
''Mustang Fifty Years'' is a voluminous book that tracks the life of a Ford that's as famous as the Model T. While
the book is presented as an Official Licensed Product, a spokesman for Ford said the automaker had no editorial
control.
Donald Farr, a longtime writer and editor at Mustang-centric publications, provides a comprehensive recounting of
the car's gestation as a design study in the early 1960s, its splashy debut at the 1964 New York World's Fair and
its tumultuous life up through the fifth-generation model that is entering its final model year. The book concludes
with sections on Mustangs for racing, in pop culture and for hobbyists and collectors.
The book takes a straightforward, generally noncritical approach in presenting each significant Mustang. If there
are faults in any of the models, features or production decisions, they are usually presented in retrospect, with a
recounting of how the new version addressed the shortcomings of the old. Even some universally scorned
models, like the Mustang II of 1974-78, are presented with a faithful recitation of the company's list of its
supposed virtues.
While not exactly a beach read, the book is more digestible, even for general audiences, than its dauntingly
encyclopedic appearance might suggest. The captions for the many interesting photos are even more compelling.
JERRY GARRETT
Mustang Fifty Years Celebrating America's Only True Pony Car: By Donald Farr. Foreword by Edsel B. Ford II.
200 color and 200 black-and-white images. 256 pages. Motorbooks. $50.
Document NYTF000020131209e9c80001h

Time for an Equestrian Transformation
FIRST GLANCE 2015 FORD MUSTANG

Automobiles; SECTAU
Time for an Equestrian Transformation
By LAWRENCE ULRICH
1,259 words
8 December 2013
The New York Times
NYTF
1
English
For the Ford Mustang and its loyal fans, there's only one question: Where has the time gone? A 22-year-old
college graduate wowed by the first, illustrious Mustang would be roughly 72 today -- and, as Ford surely hopes,
may still be excited by the latest model, whether to drive it or to recommend it to a grandchild.
Taking advantage of its global footprint, Ford unveiled the 2015 Mustang simultaneously Thursday in six cities,
including New York, on four continents. Sales are to start in the fourth quarter of 2014.
The anniversary of America's original pony car will be celebrated on April 17. On that date 50 years earlier, not
long after the Beatles made their live debut on American television, the Mustang -- introduced at the midpoint of
the 1964 model year -- caused its own sensation at the New York World's Fair in Queens. A run on showrooms
began the same day, and by the end of the 1965 model year Ford had sold some 686,000 of the cars.
Lee A. Iacocca, then the head of the Ford division, had conceived the Mustang. Introducing the two-door $2,368
charmer (nearly $18,000 today) to the press on April 13, 1964, Mr. Iacocca noted that 40 percent of Americans
would soon be under 20 years old -- the postwar baby boomers. The Mustang, he said, ''was designed with young
America in mind'': a small, economical, easy-to-individualize car with the flair of an expensive European model
and high-performance potential.
More than nine million sales later, the Mustang continues to hew to that prophetic description. But with aging
boomers remaining an important part of the Mustang's customer base, Ford looked to shake things up, in part to
reclaim the sales lead from its longtime nemesis, the Chevrolet Camaro.
The first all-new Mustang in a decade has been restyled and rampantly modernized to attract new buyers,
including fans of European and Asian performance cars, while still satisfying traditionalists. Built in Flat Rock,
Mich., the Mustang, which is currently offered in 30 markets, will expand its reach to more than 100 countries
around the world, including China, said Jacques Brent, marketing manager for the Ford brand. That includes a
right-hand-drive model for such markets as Australia, Britain and Japan.
A coupe will come first, followed shortly by a convertible. The styling is recognizably ''Mustang,'' yet also speaks
the company's current design language. There is a Fusionlike streamlined hood and fuselage and a grille that
nods to Aston Martin without seeming like a pure knockoff. Some purists, no doubt, will complain that the
Mustang looks soft and slippery, rather than mean and burly.
Joel Piaskowski, the chief exterior designer, acknowledged that reworking such an iconic car was a balancing act.
''You have to tiptoe through that one,'' Mr. Piaskowski said. ''There are a lot of opinions on what the car should
be.''
The design, he said, plays up the sweeping fastback body style that people most associate with Mustangs,
including the 1968 GT 390 in which Steve McQueen famously chased a Dodge Charger through San Francisco in
''Bullitt.''
Compared with today's blocky, tall-riding model, the next Mustang will be wider and more hunkered down, with a
roofline that has dropped 1.3 inches and a rear track nearly three inches wider. LED markers on slender

horizontal headlamps pay homage to the sheet-metal gills of the original Mustang. The rear end's signature tribar
taillamps, which light up in sequence to signal turns, are rendered in eye-catching LED panels.
Ford promises the best-finished, best-fitted cabin yet in a Mustang; despite the car's relative affordability, its
interior often seemed subpar. The new car will offer a revised version of the widely derided MyFord Touch
infotainment system, along with available safety features like adaptive cruise control, blind spot monitors and
cross-traffic alert, which warns the driver if vehicles are approaching from either side when the car is backing up.
For the first time, the Mustang will offer driver-adjustable settings for steering effort, stability control and engine
and transmission response. An automated launch control is another first for the Mustang. Convertible drivers get
a quieter, more thickly insulated top that opens quicker.
Yet the biggest revolution takes place below the skin, beginning with an independent rear suspension, the kind
that top sports cars -- like the Chevrolet Corvette and Porsche 911 -- adopted a half-century ago, before the first
Mustang was born. (That more sophisticated suspension appeared briefly on a limited-production Mustang SVT
Cobra in 1999-2004).
The independent rear end will deliver a smoother ride, more precise handling and a roomier trunk with folding rear
seats, said Dave Pericak, the Mustang's chief engineer.
''We took the solid rear axle farther than anyone thought we could,'' Mr. Pericak said. ''But it's time to go the next
level of performance.''
Originally, Ford intended the new car to evolve from the current Mustang's platform. But big improvements at the
rear required changes up front to keep pace -- including a stiff steel subframe and a double-ball-joint MacPherson
strut layout that also cleared room for larger brakes. Even the floor pan is different, making this an all-new vehicle
architecture for Ford.
Add up the changes, Mr. Pericak said, and the basic GT V8 will outhandle the acclaimed limited-production Boss
302. ''It's a car that will reward the novice, but allow the expert to exploit the performance,'' he said. ''And when
you drive it on rough roads, you'll say 'Wow, this is really nice.' ''
Fans of old-school V8s may not recognize the Mustang's other daring feature: an available turbocharged,
direct-injected, 2.3-liter 4-cylinder. It will exceed 305 horsepower and 290 pound-feet of torque -- more than the
current 3.7-liter V6. This will be the first 4-cylinder engine in a Mustang since the special-edition SVO of the
mid-1980s.
The Mustang will continue to be offered with the familiar V6 and the GT's lusty 5-liter V8, with both engines
tweaked to improve their respective current output of 305 and 420 horsepower. Fans can eventually expect
successors to muscled-up models like the 662-horsepower Shelby GT500.
The Mustang is also girding for battle with the Camaro, its adversary since the '60s in street races and barroom
debates. The Mustang created the pony car category -- loosely defined as sporty two-door, rear-drive coupes --
and the recently revived grudge match of Detroit's offerings extends to the Dodge Challenger.
Although Ford has usually found more pony car customers than its rivals, the Camaro has outsold the Mustang
since the Chevy's return from a long hiatus in 2009 and has continued to do so this year, by a 4,093 margin
through November.
Yet Ford is confident that the Mustang's newness and goodness will help it reclaim the sales title.
''People want the Mustang, but they want something fresh,'' Mr. Pericak said. ''We think we've got the right
recipe.''
THOROUGHBRED FOAL: The 2015 Ford Mustang goes on sale late next year. The new design is wider, lower
and more hunkered down. (AU1); BLAZING SADDLES: Counterclockwise from top: Coupe design is a homage to
the classic fastback; right-drive version will go to some foreign markets; the original at the 1964 World's Fair.
(PHOTOGRAPHS BY FORD MOTOR) (AU5)
Document NYTF000020131208e9c80003g

OFF DUTY --- Gear & Gadgets -- Rumble Seat: Toyota Tundra Leads Crowded Field -- by a Nose
OFF DUTY --- Gear & Gadgets -- Rumble Seat: Toyota Tundra Leads Crowded Field -- by a Nose
By Dan Neil
1,440 words
7 December 2013
J
D9
English
In 100 words or less? The 2014 Tundra is lightly and agreeably refreshed inside and out. It is ruggedly built and
handsome in a giant-faced, hypermasculine way, sort of like a hot Neanderthal dude. Toyota suggests the
aesthetic is industrial and "tool like."
However, Tundra's carry-over powertrains leave it disadvantaged in comparative fuel economy (a mildly alarming
13/17 mpg, city/highway, with the 5.7-liter V8 and part-time four-wheel drive, the lowest in its class).
The Tundra remains among the most powerful, refined, secure-handling and over-engineered pickups -- nine
structural cross members as opposed to the Ford F-150's six, for instance -- and lots of residual value and
warranty coverage downstream. It is a Camry in which you can place a half-ton of mulch.
The trouble with the full-size pickup segment is that it is an irrational market. Which truck would be right for me?
Chevy, Ford, Ram, GMC, Toyota or, remotely, Nissan? Each has its narrative, each its partisans. The fact is, all
the contenders are damnably close on on-paper performance, and when you consider the iterative, benchmarking
process of vehicle development it is easy to see why. Just to tick off some examples: a mere 27 pound-feet of
torque separate the top and bottom of the class (410 for the Ram with the 5.7-liter V8, 383 for the V8-powered
Chevy and GMC twins). You can throw a blanket over these vehicles' dimensions, inside and out, as well their
ratings for towing, cargo capacity and gross vehicle-weight rating. A drag race among the five of them would be
five times as dull as racing any one of them.
Walk into any dealership: The crazy-fancy pickup in the corner, the one with the Roy Rogers saddle stitching and
campy cowboy floor mats? It is 50 grand.
The prevailing parity among pickup products is one reason why consumers fall back on intangibles, like brand
and messaging. Pickup truck buyers are loyal and conquest sales are hard, because pickup choice is a kind of
identity politics.
Let's say you've got $50,000 to spend on a new truck -- and for the purposes of this discussion, let's assume that
when I say "you," I mean "me," as I attempt to talk myself into buying a $50,000 pickup.
That is more than anyone would ever lay out for a light-duty commercial, fleet or farm vehicle; so we are talking
specifically about a personal/professional-use pickup with high-end trim and/or tow package, a Texas limousine,
driven for the most part like a car but pressed into service on the weekends.
I'm building a house and I need a pickup truck about a billion times more often than I need the next twin-turbo
license loser.
In other words, I'm committed to the form: a pickup truck. Box frame, half-ton, a full-size double cab with four
doors (kids, dogs, secure storage). Toyota calls theirs the CrewMax cab. I am not sure if I want a short cargo bed
or a long one. Four-wheel drive with a dual-speed transfer case would be niiiice, but I don't really need it, if I'm
honest. What about a V6 engine like Ford's ridiculously V8-like EcoBoost? If my T-levels are really running low,
there is the Ram with the raspy and disputatious 5.7-liter Hemi V8 hooked up to new fuel-saving eight-speed
transmission, as seamless as a stocking.
But I want it to be nice, too, which is where that 50 thou comes in. In fact, all the key full-size pickup players offer
multiple big-sky themed luxury packages: the Ford F-150 King Ranch, for example, the Ram Longhorn and, new

for 2014, Toyota's Tundra Platinum and the "1794 Edition." I'm told it refers to the date of the founding of the
ranch in San Antonio where today stands the gigantic production plant.
If that last bit seems a stretch, Toyota has always been preoccupied with its authenticity, reflecting the lingering
anxiety of an Asian import brand. The media materials repeatedly invoke the Tundra's all-American spirit, design
and construction. The Tundra's newly huge, soul-chilling chrome grille was designed by Toyota's Calty Studios in
California; the engines (a 4.0-liter, 270-hp V6; a 4.6-liter, 310-hp V8; and a 5.7-liter, 381-hp V8) made in Alabama;
the transmissions built in North Carolina.
It is a fair point: The Tundra is by percentages of content among the most American-made of full-size trucks. And
I do buy American if I can. At this point I'm sort of grasping for reasons to prefer one over the other.
My father drove a 1963 powder-blue Ford F-100 pickup truck, into which he had dropped a pursuit-package
Mercury V8 that barked like the very dogs of hell, and a heavy-duty four-speed automatic transmission. That truck
is my earliest automotive memory, from when I was three or four. Dad had hired a sign painter to letter, in
elaborate script, the words "Lady Bug" on the transom of our little boat. For good measure he had him paint the
words on the doors as well. Lady Bug.
And that is how pickup loyalties are made: They are familial, regional, tribal. We knew people who drove Chevys
and Dodges and even some International Harvesters. But we drove Fords. (Dad eventually pulled that Mercury
engine out of Lady Bug and stuck it in a later-model Ford pickup. He loved that engine.)
So as a matter of family legacy, I should want the Ford. But that is irrational. What I'm looking for is a clear,
objective, decisive factor. With the Tundra, I think I've found it.
May I preamble by saying the following is both arcane and out of my depth.
It has to do with truck towing capacity and how manufacturers derive such numbers. Apparently, they make them
up, according to some internal regime that they are happy to discuss under subpoena.
In 2011, Toyota alone adopted the Society of Automotive Engineers' SAE J2807 towing standard; which is to say,
it uses an independently verifiable, repeatable series of tests to derive its towing capacity.
Among other things, the standard requires laden trucks to be able to climb Colorado's Davis Dam grade, an
11-mile slog that rises 3,000 feet in elevation, at speeds above 40 mph and with the air conditioning going full
blast.
I wish I could say, with authority, that Toyota's move was groundbreaking. For all anyone knows outside the few
validation engineers at the OEMs, the auto makers' internal standards might be even more strenuous.
I do find it curious, however, that the baseline Tundra 4x2 regular cab with the tow package is rated at 10,400
pounds using the SAE standard, while Chevy claims the Silverado -- which is, as I say, mechanically and
dimensionally within fractions of the Toyota -- is rated at 12,000 pounds towing capacity.
That is a difference of 1,600 pounds, or 15%. The disparity suggests it is an artifact of the testing method, and not
vehicle merit.
Toyota has been on a campaign in the past three years to rebuild trust after a series of embarrassing recalls; it is
tempting to take the SAE standard as a thread in that tapestry.
In any event, towing capacity is the marquee number in the half-ton truck segment and having automakers gin up
those numbers on their own only invites mischief.
Thanks to the Tundra, there is at least one number in the pickup market that you can hang your cowboy hat on.
---
TOYOTA TUNDRA CREWMAX LIMITED 4X4
Base price: $42,890

Powertrain: Naturally aspirated 5.7-liter DOHC V8 with variable valve timing; six-speed automatic transmission
with tow/haul logic (with towing package); part-time on-demand four-wheel drive with two-speed transfer case;
limited-slip rear differential
Horsepower/torque: 381 hp at 5,600 rpm/401 pound-feet at 3,600 rpm
Length/weight: 228.7 inches/5,860 pounds
0-60 mph: 9.5 seconds (est.)
EPA fuel economy: 13/17 mpg, city/highway
Towing capacity: 9,000 pounds
Cargo: 5 1/2- ft truck bed
Document J000000020131207e9c700009

On the World's Roads, More American Wheels

On the World's Roads, More American Wheels
By BILL VLASIC; Jaclyn Trop contributed reporting.
1,150 words
6 December 2013
The New York Times
NYTF
1
English
DETROIT -- The resurgence of the American auto industry has been driven primarily by pent-up demand for new
cars and trucks by consumers in the United States.
But a big part of the comeback has also come from an unlikely source: rising exports of vehicles made in the
United States for sale in international markets.
Annual exports of American-made vehicles have increased nearly 80 percent from 2009 through 2012. And this
year exports are up about 9 percent from last year through the month of October, according to the Commerce
Department.
And it is not only the Detroit carmakers that are benefiting from the international appeal of American-made
models. Factories owned by Japanese and European auto companies in the United States are also steadily
expanding their export business, adding jobs and investment to keep pace with overseas demand.
''It's becoming a more important part of our business every year,'' said Robert S. Carter, senior vice president of
Toyota's United States division. ''It is a very robust area of growth.''
Indeed, automakers are adding more new models to their roster of export-ready vehicles.
On Thursday, the Ford Motor Company unveiled the latest version of its iconic Mustang muscle car, and it
announced that for the first time it would begin exporting it to global markets in 2015.
The introduction of the new Mustang was a global event, with simultaneous presentations in New York; Los
Angeles; Barcelona, Spain; Sydney, Australia; and Shanghai -- as well as in Ford's hometown, Dearborn, Mich.
''We think this car has universal appeal,'' said Mark Fields, Ford's chief operating officer. ''We're really excited to
ship it to Europe and China and the Asia-Pacific countries.''
Last year, American factories shipped 1.8 million cars, sport utility vehicles and light trucks for sale in international
markets, including Canada and Mexico. That figure should reach two million this year.
While that is still a fraction of the estimated 15.5 million vehicles expected to be sold in the United States this
year, the growth of exports underscores how competitive American-made models have become worldwide on
manufacturing costs and overall quality.
Since emerging from the recession, automakers are benefiting from lower labor and energy costs, along with
slimmed-down, more efficient plants. ''We are likely to see a continued growth of exports, as the U.S. has a more
competitive cost structure than before, better products and more global platforms that can be shipped elsewhere,''
said Xavier Mosquet, an auto specialist with the Boston Consulting Group.
At the same time Ford was showing off the new Mustang, Toyota was starting production of its new Highlander
sport utility vehicle in Princeton, Ind. Toyota officials said that key markets for the Highlander were Russia and
Australia.
While Ford is looking to broaden its Mustang sales in overseas markets, foreign automakers like Toyota view
exporting from the United States as an alternative to higher manufacturing costs in their home countries.
''It's a hedge against currency fluctuations, but it also shows how attractive our products are in places like China,
Russia and the Middle East,'' said Mr. Carter of Toyota.
Other automakers are following suit. Nissan expects to export about 14 percent of its United States production
overseas this year. And Honda predicts that by next year it will export more vehicles from North America -- the
bulk of them from American plants -- than it will bring into the region from Japan.
Last year, Canada and Mexico accounted for about half of exports of American-made vehicles. A decade ago, the
vast majority of exports were limited to Canada and Mexico, but demand for American models in is expanding
rapidly in other countries.
Exports to Saudi Arabia, for example, have tripled since 2009. And sales to Chinese customers have increased
fivefold over the same period.
Last year, Ford exported more than 370,000 vehicles from the United States to foreign markets, an increase of
nearly 14 percent from the previous year. The roster of models headed overseas includes the company's popular
Focus and Fusion sedans, as well as sport utility vehicles like the Escape and Explorer.
The new Mustang will be built in Flat Rock, Mich., about 20 miles from Ford's world headquarters. Ford
executives stressed that the car was designed mostly for American buyers, but that its history and appeal had
gained admirers in every region of the world.
''More than 50 percent of Mustang fans on Facebook are outside the U.S.,'' Mr. Fields said. ''And there are 300
Mustang clubs on five continents.''
Like its domestic rivals, General Motors and Chrysler, Ford has drastically trimmed its manufacturing capacity in
the United States since the industry tumbled into financial crisis in 2008.
Now Ford's American plants operate at higher productivity levels, often on three shifts operating nearly around the
clock. A growing number of its hourly workers are also receiving lower, entry-level wages that have cut overall
manufacturing costs.
Ford has also introduced smaller, more fuel-efficient engines that are attractive to buyers in Europe and other
regions where gas prices are high. Mr. Fields said product planners in the United States were attuned to the
needs of consumers abroad.
''We've changed the heating and air conditioning systems to accommodate very high heat levels in the Middle
East,'' he said.
Some American brands are proving better suited for export markets than others. G.M., for example, is pushing
hard to expand sales of its Cadillac luxury brand outside the United States. But the company said Thursday that it
was dropping plans for broad growth of its Chevrolet brand in Europe, where it competes for customers with its
Opel division.
One of the biggest success stories in exports has been Chrysler's rugged line of Jeep sport utility vehicles.
On any given day, the assembly line at Chrysler's Jefferson North assembly plant in Detroit churns out Jeep
Grand Cherokees destined for sale in more than 120 countries.
Global sales of Jeep vehicles increased 19 percent in 2012 over the year earlier, according to Commerce
Department statistics. And Chrysler is investing $500 million in its Toledo, Ohio, plant for the new Jeep Cherokee
-- partly to accommodate the expected demand for the vehicles outside the United States.
Ford unveiled its new Mustang in six cities, including Shanghai, above, and New York, below, with Ford's chief,
Alan R. Mulally, reflecting its global fan base. (PHOTOGRAPHS BY ALY SONG/REUTERS; ANDREW
GOMBERT/EUROPEAN PRESS AGENCY) (B1); Henry Ford II introducing the first Mustang in 1964. The line
has fan clubs on five continents. (PHOTOGRAPH BY FORD MOTOR) (B7) CHART: Selling More Abroad: An
increase in domestically manufactured cars has been less dependent on the North American Free Trade
Agreement. (Source: International Trade Administration)
Document NYTF000020131206e9c60003h

Ford Wants to Take Next Mustang to New Places

Ford Wants to Take Next Mustang to New Places
By BENJAMIN PRESTON
637 words
6 December 2013
The New York Times
NYTF
English
Online media leaks aside, the 2015 Ford Mustang is, officially, no longer a secret after its unveiling Thursday
morning in New York City and five other sites around the world. Alan R. Mulally, Ford's chief executive, spoke at
the New York opening, noting that it was here, at the 1964 World's Fair, that the Mustang was first introduced to
an enthusiastic public.
''It's so fun to be back here 50 years later to introduce the completely new, sleek-styled Ford Mustang,'' he said at
the news conference, next to a 2015 Mustang convertible. A turbocharged fastback model sat outside.
The difference this time is that the Mustang -- a long-established automotive nameplate and pop culture icon
symbol in the United States -- will for the first time be explicity marketed on a global scale.
''Not only is this a world-class sports car that's been in production for 50 years, it's going to be available to
everyone around the world,'' Mr. Mulally said in an interview before the unveiling.
Lower and wider than the current, retro-styled generation, which made its debut for the 2005 model year, Ford's
new car still has the long snout, blunt nose and short rear deck that has come to define the pony car genre over
five decades. Ford's engineers were able to squeeze more interior space into the car -- adding hip and shoulder
room to the new model, as well as a trunk large enough to accommodate two golf bags.
Aside from sheet-metal changes, the new model has been the recipient of striking suspension and power plant
revisions. For the first time, the Mustang will have a modern independent rear suspension instead of the
old-fashioned live axle that has been a mainstay of past models. Ford said the improved rear suspension led to
refinement of the front suspension, too. It now features a double-ball-joint MacPherson strut design that the
automaker says improves stability over previous models and allows for the installation of larger front brakes.
Along with engine choices that include a 300-horsepower 3.7-liter V6 and a 420-horsepower 5-liter V8, Ford has
added a 305-horsepower 2.3-liter EcoBoost 4-cylinder, a turbocharged engine that it says will be more appealing
in overseas markets where gasoline costs more than in the United States.
All three engines will come standard with a 6-speed manual transmission, which Ford says has been modified for
smoother shifting. A 6-speed automatic with racing-style paddle shifters will be optional.
MyFord Touch, the heart of Ford's in-car infotainment system, had come under fire in recent years over its
reliability and ease of use, notably by J.D. Power and Consumer Reports. But Mr. Mulally said Ford had simplified
the system, adding knobs where customers said they preferred a tactile interface.
There's no word on whether the new Mustang will get all-wheel drive and other upgrades, but Mr. Mulally
suggested that such features remained possible.
''Everyone who knows the Mustang knows that there will be a lot of fabulous derivatives,'' he said.
He said that the car's distinctiveness, powertrain options and utility would make it an attractive option for
consumers around the world. One of its major features, he added, will be affordability.
''On Jan. 24, 1925, Henry Ford laid out his plan, in an ad, to open the highways to all mankind,'' Mr. Mulally said.
''We are accelerating Henry Ford's vision, and the next proof point of that is the new Mustang. Fifty years after

Lee Iacocca introduced the Mustang, it has world-class performance, but will continue to be one of the most
affordable sports cars.''
Document NYTF000020131206e9c60002u

Mustang takes a turn at 50 ; Ford to unveil new features for 2015
MONEY
Mustang takes a turn at 50 ; Ford to unveil new features for 2015
James R Healey
James R. Healey, USA TODAY,
574 words
5 December 2013
USAT
FINAL
B.1
English
A 1964 copy of the Saturday Evening Post magazine at Ford Motor's archives here has the Beatles on the cover,
a two-page ad for Kodak photo film inside and another ad for the new Ford Mustang.
"The Mustang's the only one still around, intact," says archivist Dean Weber.
Still around, but hardly the same, and today, Ford will unveil an all-new version for 2015, the sixth-generation
Mustang, by Ford's count, since the car launched on April 17, 1964.
The Mustang "is important because it has been a symbol of Ford for 50 years," says Jack Nerad, market analyst
at Kelley Blue Book.
Though Mustang was the original of what came to be called "pony cars," rival Chevrolet Camaro now outsells it.
"I'm certain that Chevy's sales success in the segment sticks in the craw of many high- ranking Ford executives.
They believe they should own the pony-car segment," Nerad says.
To try to remedy that, Ford thoroughly overhauled Mustang for 2015, due on sale next fall.
It's easily recognizable as a Mustang, but there are dramatic chassis, body, interior and drivetrain changes.
Planners decided on evolutionary styling to appeal to traditionalists, but adventuresome enough to draw new
buyers.
That could include more women and younger men. Jessica Caldwell, senior analyst at Edmunds.com, says
women are 26% of Mustang buyers this year, about flat for the past five years. It's 32% for rival Camaro, 27% for
Dodge Challenger.
She also notes a "big leap" in Mustang buyers 55 and older, up 12 percentage points in five years, to 36% this
year. Mustang buyers under 35 have slipped 3 points.
Potential new buyers will see a design similar to the outgoing Mustang, but with significant differences in
dimensions. The rear wheels are pushed out about 1.6 inches to be flush with the sheetmetal, which is about 2.8
inches wider than the 2014.
Taking advantage of the 2015's new chassis, designers were able to lower the roof 1.5 inches, the hood 1.3
inches and the dashboard about 2.8 inches. The result: a sleeker look, obvious when it's next to a 2014.
The 2015 Mustang's underpinnings amount to an "all-new" platform, says Raj Nair, Ford's vice president in
charge of global product development.
The original idea was to evolve the current chassis. But once Ford decided that the new car would have
independent rear suspension (IRS) -- a first for mainstream Mustang models -- "we started having some trouble
with the steering and proportion of the vehicle," Nair says.
IRS improves handling, ride and steering precision, but is more costly and complicated than the solid rear axle
Mustangs have had since 1964.
The engine selection also didn't work out as planned. The intent was an EcoBoost turbocharged four-cylinder as
the base engine and the V-8 as the up-level engine. But a less expensive V-6 was added to be the base, says
chief engineer Dave Pericak. "We added the V-6 later in development, as a value item; Mustang's always had a
value element."
How it shapes up
2015 Mustang is lower, wider than predecessor.
Roof: 1.5 in. lower
Rear fenders: 2.8 in. wider
photo Ford Motor

Document USAT000020131205e9c50000g

Corporate News: Ford Grooms 'Pony' for China Market --- New Mustang Is Meant to Appeal Not Just to Aging Boomers, but Global Market
Corporate News: Ford Grooms 'Pony' for China Market --- New Mustang Is Meant to Appeal Not Just to
Aging Boomers, but Global Market
By Mike Ramsey
514 words
5 December 2013
J
B2
English
Ford Motor Co. is counting on men like Wei Mingyao to make the latest generation of its Mustang coupe
something more than a retro car for aging U.S. baby boomers.
Mr. Wei, part of an 82-member Mustang fan club in China, has been an enthusiast for a decade, and finally
bought a special import last year for $82,000. "The car looks muscular," he said. "Whenever I drive the Mustang, I
can easily catch second glances."
Fifty years after Ford created the affordable sports car category, or pony cars for short, the company plans to
debut on Thursday a new Mustang that will attempt to spread its appeal, and become a calling card for the Ford
brand globally.
The 2015 Mustang adopts the same trapezoidal grille and thin, rectangular headlights that adorn the Fusion and
Focus sedans sold around the world. It is low to the ground, wider and with a more sweeping fastback than
existing models. Under the skin, the new Mustang has a new independent rear suspension and engine options
that make it more competitive with German sports cars.
The car will be available with a 2.3-liter, 4-cylinder twin-turbocharged engine that will produce more power and
higher fuel efficiency than the base model V6. It also will feature right-hand-drive versions, push-button start and
several adjustable driving modes that will make it sportier or more comfortable.
The new look and the upgraded technology are aimed at sustaining the relevance of a car that has passionate
fans and a rich history, but now delivers scant sales for a company that aims to produce nearly six million vehicles
globally this year.
Ford sold just 82,995 Mustangs in the U.S. last year, and sales through the first 11 months of this year are down
nearly 8% to 71,459 cars. General Motors Co.'s rival Camaro is just ahead in the Detroit pony car race, with sales
of 75,552 vehicles through Nov. 30.
The current Mustang, Camaro and Dodge Challenger to some degree are homages to the cars that symbolized
Detroit's muscle-car heyday before the 1970s oil price shocks and tougher federal fuel economy rules ended their
reign. GM's angular Camaro, launched in 2009, is the least faithful to the past of the three, and it has done better
with younger buyers. The median age of Camaro buyers is 49, compared with 52 years for the Mustang,
according to Strategic Vision, a research firm.
Even today's more fuel-efficient, safer muscle cars are too expensive and fuel-hungry for most markets outside
the U.S. In China, sporty coupes face heavy taxes levied on big engines. Wealthy buyers are more likely to be
chauffeured in the back of a sedan, while younger buyers are gravitating toward sport-utility vehicles.
---
Rose Yu in Shanghai contributed to this article.
Document J000000020131205e9c50002d

Nov. auto sales burned rubber ; Fastest pace since 2007
MONEY
Nov. auto sales burned rubber ; Fastest pace since 2007
James R Healey; Fred Meier
James R. Healey and Fred Meier, USA TODAY,
458 words
4 December 2013
USAT
FINAL
B.1
English
Powered by Black Friday sales promotions, rising incentives and new models, auto sales hit a torrid pace in
November -- an unexpectedly high annual selling rate of 16.4 million, well up from 15.3 million a year ago,
according to Autodata.
It's the fastest annualized sales pace since 16.8 million in February 2007.
Holiday shoppers apparently were looking at cars, too. "Black Friday did give us a lift," said Bill Perkins, president
of Chevrolet dealerships in Michigan. "A lot of people were out shopping over the weekend."
"Showroom traffic surged over the holiday weekend," said Bill Fay, Toyota vice president.
Industry sales overall rose 8.9% from the month a year ago, and only a few automakers failed to post robust
gains, mainly Honda, Volkswagen, Mazda and BMW.
General Motors, up 13.7%, and Chrysler, up 16.1%, drove the blistering sales month. Ford Motor gained 7.1%,
ordinarily laudable, but in November it wasn't even enough to hold the company's market share, which slipped to
15.2%.
Despite higher incentives on some models, "It's not a purely incentive-driven industry," according to Mark Reuss,
General Motors president of North American operations.
General Motors' chief economist, Mustafa Mohatarem, noted that he sees a stable labor market, stable oil prices
and record household net worth numbers, so he isn't surprised by strong new-vehicle sales.
Discounts did not drive the sales. Automakers said November incentive increases came late in the month, mainly
for Black Friday promotions, which have become as much a staple of the auto business as for other retailers.
For the entire month, according to TrueCar.com, the average incentive was $2,507, up just 0.7% from a year
earlier and down 2.1% from October.
But that camouflaged some big jumps. Ford spent an average $3,317 per vehicle on rebates, financing deals and
other lures, up 23.4% from November 2012, according to data compiled by TrueCar.com. Hyundai/Kia combined
jumped 25.9% from November a year ago, but that totaled just $1,858, well below the industry average.
Meanwhile, GM's incentive cost grew 8.4% to $3,067 per vehicle, while Chrysler's dropped 12.3% to $2,756 per
vehicle.
Sales strength showed up broadly, but not every slice of the market grew.
Fuel-sippers and small cars generally had a tricky time. Sales of Ford's C-Max hybrid were just half the year-ago
level, for example. Toyota's Prius hybrids were off slightly. But Nissan's Leaf electric and Chevrolet's Volt
extended-range plug-in did well.
Document USAT000020131204e9c400011

Corporate News: Brisk Demand Lifts Car Sales --- Overall Volume Up 9% in November; U.S. Auto Makers Feeling Heat on Sedans
Corporate News: Brisk Demand Lifts Car Sales --- Overall Volume Up 9% in November; U.S. Auto Makers
Feeling Heat on Sedans
By Christina Rogers and John Kell
840 words
4 December 2013
J
B5
English
U.S. auto sales in November ran at the strongest pace in more than six years, aided by Black Friday sales
promotions, but there were also signs that competitive pressure is ratcheting up on Detroit's auto makers.
Ford Motor Co. said it would idle two Michigan factories for an extra week during the holidays to dial back
inventories of its Fusion midsize sedan and its Focus compact. Ford also plans to cut North American production
by about 2% in the first quarter from a year ago. It cited intensified competition from Japanese auto makers,
particularly in small and midsize cars.
Meanwhile, the average price paid for a new vehicle fell in November by about $200 from the same month a year
earlier, the first such drop in nearly three years, according to car-shopping website TrueCar.com.
Overall, demand remained strong with 1.25 million light vehicles sold last month, up 9% from a year ago, lifting
the annualized sales pace to 16.4 million vehicles, from 15.3 million a year ago and the strongest pace since
February 2007, according to Autodata Corp.
"We feel good about the direction of the economy and our own momentum," GM Vice President Kurt McNeil said.
"The economy is creating jobs and household wealth. Energy costs are dropping and credit is available and
affordable."
Among Detroit auto makers, Chrysler Group LLC reported a 16% increase in sales compared with a year ago,
helped by strong sales of its Dodge Durango and new Jeep Cherokee sport-utility vehicles. General Motors Co.'s
sales rose 14% on a sharp jump in sales of its redesigned Malibu midsize sedan and big gains at its Cadillac and
Buick divisions.
Ford's sales rose 7%, led by demand for its F-150 pickup truck and the Fusion sedan.
Japanese auto makers Toyota Motor Corp. and Nissan Motor Co., posted gains of 10% and 11% respectively.
Toyota's bounce came mainly from trucks, SUVs and its Lexus brand. Nissan reported strong demand for its
passengers cars Honda Motor Co.'s U.S. sales fell less than a percentage point, reflecting softer demand for its
Civic.
Daimler AG said its Mercedes-Benz brand sales climbed 14% while BMW AG's namesake brand reported a 1.7%
increase. The two are battling for the title of top-selling luxury brand in the U.S. Volkswagen AG's Audi luxury
division boosted its sales by 13%.
The U.S. auto industry has enjoyed a steady rise in sales since the market bottomed out in 2009 at just 10 million
cars and light trucks. In 2012, U.S. auto sales rose 13% to 14.5 million light vehicles. Analysts and industry
executives expect car companies to close the year with industrywide sales well above 15 million cars and light
trucks.
Still, some analysts say the industry's growth spurt, long a bright spot for the economic recovery, could be hitting
a plateau with gains harder to come by next year.
Doug Waikem, owner of several new-car dealerships in Ohio, said discounts aren't "out of control" but car makers
are pushing retailers to buy more vehicles, a practice that boosts auto maker's revenue.

"I think we're slipping back into old habits," Mr. Waiken said. "I'm seeing dealers with inventories going up. The
banks are being very aggressive."
The Detroit Three each reported a roughly 90 days' supply of cars and light trucks in inventory at the end of
November. Auto makers generally prefer to keep between 60 days and 80 days of sales at dealers. Company
executives said the inventory levels are acceptable for this time of year.
Auto executives said they are seeing more aggressive deals to move new-car inventory, particularly in the
compact and midsize car markets.
GM and Ford said they are feeling competitive pressure from the Japanese car companies, which they said is
taking advantage of a weaker yen to try to regain market share. A weaker yen makes Japanese-made vehicles
more affordable.
Toyota's incentives on its best-selling Camry sedan are tracking higher than the industry average for midsize
cars, according to car research firm Edmunds.com.
Average discounts for Toyota, Nissan and Honda were down in November compared with a year ago, according
to Edmunds.com. But compared with October, Nissan's spending on discounts rose 45% and Honda's was up
18%. Toyota's average incentive spend was about flat compared with October, Edmunds said.
The industry spent an average $2,507 on incentives in November, TrueCar.com estimated, up less than a
percentage point from the prior year.
Those discounts were particularly prevalent late in November as car companies sought to lure shoppers with
Black Friday deals, dealers and industry executives said.
---
Neal E. Boudette and Mike Ramsey contributed to this article.
Document J000000020131204e9c40003c

In Marketing, Art's the Thing
ADVERTISING
In Marketing, Art's the Thing
By STUART ELLIOTT
828 words
3 December 2013
The New York Times
NYTF
4
English
FOR decades, the MGM lion has roared under the slogan ''Ars gratia artis,'' or ''Art for art's sake.'' On Madison
Avenue, executives are busily thumbing through their Latin dictionaries to figure out how to say ''Art for
marketing's sake.''
Artworks and artists are increasingly becoming elements of advertising campaigns, not only for products and
services aimed at the types of older, affluent consumers who have traditionally been patrons of the arts, but also
for products and services seeking to reach consumers in their 20s and 30s who are already making art part of
their lives. Among the brands and companies getting arty are American Apparel, Chanel, Condé Nast, Dom
Pérignon, Gap, Hearst Magazines, Ketel One, Jaguar, Lincoln, Maserati, Red Bull, Samsung, StyleCaster,
Vionnet, Louis Vuitton, David Webb and a number of hotels and lodging chains.
A focus on art is ''part of the reinvention of the Lincoln brand'' that began a year ago with steps that included the
introduction of the MKZ sedan, said Dave Rivers, Lincoln marketing communications manager at the Lincoln
division of the Ford Motor Company in Dearborn, Mich., which now refers to itself as the Lincoln Motor Company.
Art is a cornerstone of a campaign for Lincoln that carries the theme ''Hello, again,'' Mr. Rivers said, which asserts
that ''a classic can be reimagined into something beautiful and unexpected.''
The trend of artists and artworks playing a growing role in marketing is on display this week as South Florida gets
ready for the 12th annual Art Basel Miami Beach, which officially begins on Thursday. For instance, Lincoln is
sponsoring a campaign called The Plate, aimed at Hispanics, which involves the artist Carlos Amorales; the chef
Richard Sandoval; and the editors in chief of two Condé Nast magazines, Adam Rapoport of Bon Appétit and
Stefano Tonchi of W.
The Lincoln campaign includes a dinner at a Miami restaurant of Mr. Sandoval's, Toro Toro, and content like blog
posts, photographs and video that will be available online at a Lincoln website, hello-again.com, as well as on the
websites of Bon Appétit and W.
''Art is one of our major cornerstones from an editorial-content standpoint, along with fashion and film,'' said Lucy
Kriz, vice president and publisher of W in New York, ''and art in particular is of growing importance for us'' as ''a
differentiator in the fashion-luxury'' category of the magazine market.
''W has always had a lot of art coverage, but when Stefano came to W, he made it an even stronger part of our
editorial offering,'' she added. ''Art Basel was something he put on the calendar as soon as he got here.'' The
December issue of W, devoted to art, will make its debut at Art Basel, Ms. Kriz said.
The Lincoln campaign is the first time that W and Bon Appétit have collaborated on an advertising initiative,
according to Ms. Kriz and Pamela Drucker Mann, vice president and publisher at Bon Appétit in New York.
Ms. Drucker Mann likened her magazine's involvement with Art Basel to its annual involvement with New York
Fashion Week, centered on a series of events under the umbrella Bon Appétit Feast or Fashion.
''Our tag line is, 'Where food and culture meet, the conversation starts,' '' she said. ''For people to talk about
something, it has to be interesting.''

As other examples of ''food and art coming together'' she offered the way that restaurants are being designed to
''look like art galleries'' and ''tablescaping,'' creatively designing table arrangements or centerpieces.
Among the hotels trying to get in on the art act this week is the Standard Spa Miami Beach, one of the Standard
Hotel properties, which plans to offer in its Lido Bar and Lounge an assortment of zines, magazines and books to
be sold at a pop-up shop named The Newsstand. The temporary store -- with art notables like Ryan McGinness
scheduled to appear -- is being created by Alldayeveryday, a nontraditional New York agency, and the
photographer and zine expert Lele Saveri; they previously collaborated on a version of The Newsstand at the
Metropolitan Avenue subway stop in Williamsburg, Brooklyn.
The Newsstand ''fits the aesthetic of the Standard,'' said Kevin Kearney, managing director and partner at
Alldayeveryday, as epitomized by a website, standardculture.com.
Although bringing art and marketing together is ''becoming more widely accepted,'' Mr. Kearney said, the biggest
risk remains doing it in a manner that is deemed cheesy, tacky or too commercial by the intended audience.
''It's totally fine to do if it's done in a tasteful way,'' he said, in which case it can be ''beneficial for the artist and
beneficial for the brand.''
That would ''not come across as a selling-out thing,'' he added.
The Newsstand, above, a pop-up store in a Brooklyn subway station. Another is planned for a Miami hotel.
(PHOTOGRAPH BY CHRIS MOSIER)
Document NYTF000020131203e9c30002w

Corporate News: Tires Join Holiday Sales Race
Corporate News: Tires Join Holiday Sales Race

By Mike Ramsey
453 words
29 November 2013
J
B2
English
Black Friday may be best known for its deals on electronics, gadgets and other gifts for the holidays. But it is also
a big shopping day for one other, more practical item: car tires.
That is why shoppers, spreading out the pages of their Thanksgiving Day circulars, are likely to find deals on
Goodyears and Bridgestones as well as Apples and Samsungs.
Auto makers know it and also are trying to get a piece of the sales action. Ford Motor Co. has begun to market
Black Friday as a shopping day for service and tires as well. At its dealerships, it is the highest sales day of the
year for tires by far -- 50% higher than any other day.
"We open up a little early and offer transportation to the local mall," said Rich Savino, owner of All American Ford
in Old Bridge, N.J. "It's historically been a big day."
The combination of a day off, likely upcoming travel and wintry weather all combine to make the conditions right
to sell tires. Add in the fact that people can drop off vehicles to be serviced while they shop, and it ends up being
a huge day for tire sales.
Wal-Mart Stores Inc. is one of the biggest tire retailers in the U.S., with auto-service shops located at many of its
4,000 U.S. locations. Its 40-page Black Friday circular is offering specials on Goodyear tires.
"Black Friday is one of the biggest days of the year for tire sales at Wal-Mart," said Molly Philhours, a company
spokeswoman. "We will put tires on enough cars that we could have serviced all of the fans' cars filling Dallas
Cowboys Stadium."
Tire retailers, such as Discount Tire, Bridgestone Corp. and Goodyear Tire & Rubber Co., also have huge sales
days, though it isn't always the top-selling day of the year. And like Ford and Wal-Mart, they run specials to
compete.
"Black Friday is a big day and it's people preparing to get out of town. They are going to go see grandma and
grandpa," said Tom Williams, senior vice president of integrated experience at Discount Tire, an 860-store retail
chain.
Bridgestone America, the U.S. arm of the Japanese company, has 2,200 tire stores in the U.S. Arthur Reingold,
vice president of marketing at Bridgestone retail operations, said that the day wasn't always this big. The
increased advertising and competition force everyone to compete.
"We are creating a more competitive weekend, and there are going to be more promotions," Mr. Reingold said.

Document J000000020131129e9bt00034

Black Friday's a good day to car shop ; Bargains aren't found just at shopping malls
MONEY
Black Friday's a good day to car shop ; Bargains aren't found just at shopping malls
Chris Woodyard
Chris Woodyard, @ChrissWoodyard, USA TODAY
500 words
27 November 2013
USAT
FINAL
B.1
English
Automakers and their dealers are trying to join in the Black Friday shopping frenzy, saving some of their better
deals in hopes of luring shoppers out of malls and big-box stores and into showrooms.
General Motors, Ford Motor and Hyundai are among makers hoping to cash in on the traditional holiday shopping
kickoff. The big day comes as they are clearing the last of 2013 models. This year, Black Friday is a day before
the end of November, coinciding with end-of- month sales.
"They are really going after it aggressively," says Dave Winslow, chief digital strategist for Dealer.com, which
powers auto dealer websites.
Ford says it is pushing Black Friday this year because last year it saw a 17% lift in sales compared with a typical
Friday in November.
Alec Gutierrez, a Kelley Blue Book senior analyst, says the Black Friday deals will be good, though not quite the
"doorbuster" loss leaders other retailers promote. Some of them:
GM. Chevrolet, Cadillac, Buick and GMC all have deals for the day being promoted on TV. Cadillac is offering a
"Black Friday Cash" discount on all models. GM's GMC truck brand is taking $5,000 off an option-filled Sierra
1500 Crew Cab for Black Friday. "Rather than run a traditional holiday event, we felt specific Black Friday offers
and advertising would give our retailers a better chance to break through the (ad) clutter," says Buick spokesman
Nick Richards.
Ford. The "Black Friday Survival Guide" on Ford's website offers customers up to $1,000 on a prepaid
MasterCard that can be applied to the price of a new vehicle -- or used for holiday shopping. Ford is focusing the
Black Friday push online, says spokesman Wes Sherwood.
Hyundai. The South Korean maker's "Black Friday Week" special offers 0% financing for 72 months on four
Elantra car styles this week.
Beyond the automakers, dealers are hauling out the balloons and bunting for the day. Jim Coleman Toyota, near
a mall in Bethesda, Md., is opening at 6 a.m. with specials, plus offering a shuttle to the mall.
But for sheer creativity, it would be hard to beat the annual used-car promotion at Sterling McCall Toyota in
Houston. People show up before dawn to wait for all the used cars' doors to be unlocked at 7 a.m. Would-be
buyers then can get in the car they want. At 9 a.m., the used car manager assigns each car a Black Friday price,
which the person behind the wheel can take or leave.
The big enticement? Three will be priced at just $1.
"It's entertainment," says General Manager Jerry Bush of the tradition begun in 2008. "Everybody looks for Black
Friday going to retail, not car shopping. Let's make fun for people who want to be around cars."
Document USAT000020131127e9br0000w


525 words
27 November 2013
J
B4
English
FORD MOTOR
Escapes Recalled Again
In Black Eye for Model
Ford Motor Co. Tuesday said it would again recall certain 2013 Ford Escape sport-utility vehicles equipped with
1.6-liter engines to fix problems linked to fires, a black eye for one of the U.S. auto maker's hottest-selling models.
Ford said it is recalling 161,000 Escapes world-wide to fix two problems that could lead to engine fires. Ford
reported to the National Highway Traffic Safety Administration 13 total fires in the U.S. and Canada caused when
cylinder heads cracked because of overheating. No injuries have been reported.
In total, Ford has issued five recalls for Escapes equipped with its 1.6-liter turbocharged engine to fix problems
related to fires. Ford spokeswoman Kelli Felker said the company hasn't made a determination that there is
anything wrong with the engine design or its packaging inside the Escape that could have led to the problems.
-- Mike Ramsey
---
ADM
Company Bolsters
Bid for GrainCorp
U.S. agribusiness company Archer Daniels Midland Co. stepped up efforts to overcome political and grower
opposition to its 3 billion Australian dollar (US$2.9 billion) bid for Australian grain handler GrainCorp Ltd.,
promising extra spending on rail infrastructure and price caps on access to silos and ports.
Australia's Foreign Investment Review Board is due to decide by Dec. 17 on whether to approve the deal, impose
conditions on it, or reject it. Treasurer Joe Hockey will decide whether the deal is in Australia's national interest.
ADM said that it would offer an extra A$200 million to improve agricultural infrastructure, with specific emphasis
on rail networks, promising price caps on grain handling fees at upcountry silos and GrainCorp port facilities.
Growers have expressed concern they could be hit by higher grain-handling fees if the purchase gets the green
light.
-- Rob Taylor
---
VIVENDI
Telecom Spinoff Approved;
Top Leaders Are Named

Vivendi SA's board approved a plan to spin off its French telecommunication business next year and named top
leaders to run the assets that will remain.
French industrialist Vincent Bollore, who became a vice chairman in September after amassing a 5% stake, will
become Vivendi's chairman after the spinoff, the company said.
Vivendi also said Hearst Corp. executive Arnaud du Puyfontaine will become senior executive vice president of
media and content activities. He is expected to become CEO under Mr. Bollore once the spinoff is complete,
according to people familiar with the matter.
-- Sam Schechner
---
TAKE-TWO INTERACTIVE
Videogame Maker to Buy
Icahn's 12 Million Shares
Take-Two Interactive Software Inc. said it would buy back the 12 million shares in the videogame maker held by
investor Carl Icahn's firm.
Take-Two said the buyback, expected to be completed Tuesday, would be made at Monday's closing price of
$16.93 a share.
Icahn Group was previously the company's largest shareholder with about a 12.4% stake, according to FactSet
Research. The company said the transaction is part of its continuing repurchasing strategy.
-- Michael Calia
Document J000000020131127e9br0002q

Ford Discloses Two New Recalls for the 2013 Escape

Ford Discloses Two New Recalls for the 2013 Escape
By CHRISTOPHER JENSEN
483 words
27 November 2013
The New York Times
NYTF
4
English
Ford is recalling about 140,000 of its 2013 Escape crossovers in the United States because of a problem with the
1.6-liter EcoBoost 4-cylinder engine that has caused 13 fires, the automaker has told the National Highway Traffic
Safety Administration, according to a report from the automaker posted Tuesday on the safety agency's website.
About 21,000 additional vehicles are being recalled in Canada and other export markets, a Ford spokeswoman,
Kelli Felker, said in an interview.
Ford told the safety agency that ''localized overheating of the engine cylinder head'' could cause cracks, allowing
oil to leak and ignite should it drip onto a hot surface. The automaker said that 12 fires had occurred in the United
States and one in Canada, but that it was not aware of any injuries.
The automaker said dealers would fix the problem by making ''enhancements to the engine shielding, cooling and
control systems.''
In a second action, Ford is recalling about 9,500 of its 2013 Escapes in the United States, also with the 1.6-liter,
4-cylinder engine, because a previous repair for fuel leaks may not have been done correctly, according to a
report posted Tuesday on the agency's website.
The vehicles were among those recalled last year after the automaker determined that damaged fuel lines were
used. Now, Ford says, it has discovered that some mechanics did not install the new lines properly and they may
chafe against an engine part, resulting in a leak.
The action also covers about 2,300 more vehicles in Canada and other export markets.
The EcoBoost is a family of turbocharged engines of various displacements. It is an important engine that Ford
has heavily promoted and plans to use in most of its vehicles. But many consumers are unhappy with vehicles
using the 3.5-liter EcoBoost V6, according to Consumer Reports magazine's Annual Auto Reliability ratings.
Ford described its recalls as voluntary, but once an automaker is aware of a safety problem it has no choice but
to inform the safety agency within five business days of its plan for a recall.
Unlike major automakers including Chrysler, General Motors, Honda, Nissan and Toyota, Ford does not routinely
announce its recalls. Instead, the automaker says, it responds to inquiries about information posted on the
N.H.T.S.A. website.
In a third action, Ford is recalling about 7,300 of its 2013-14 Lincoln MKZ Hybrids because it may be possible to
shift the automatic transmission out of Park without pushing on the brake pedal, according to an email from Ms.
Felker, the Ford spokeswoman.
One recall of the Ford Escapes is related to its engine, and a second recall affects previous repairs for fuel leaks.
(PHOTOGRAPH BY FORD MOTOR, VIA ASSOCIATED PRESS)
Document NYTF000020131127e9br0002u

OFF DUTY --- Gear & Gadgets -- Rumble Seat: Given Room to Grow, Range Rover Blossoms
OFF DUTY --- Gear & Gadgets -- Rumble Seat: Given Room to Grow, Range Rover Blossoms
By Dan Neil
1,441 words
23 November 2013
J
D12
English
Tata, the Indian industrial conglomerate, bought Jaguar and Land Rover (JLR) from Ford in 2008. Since then,
both brands have soared: record sales, new global markets and a string of beguiling and glamorous products. On
the Jag side, count the new Jaguar F-type convertible and coupe, upon which I am totally crushing. The
company's department of Land Rover is doing even better. The Range Rover Evoque (two- and four-door) sold
more than 100,000 units in its first year. Together the company sold more than 357,773 cars and trucks in 2012
and is on pace to beat that mark in 2013 by a goodly margin.
So did Ford chief executive Alan Mulally blunder in selling JaguarLand Rover? One hates to gainsay the
management that steered Ford so brilliantly through the turbulent waters of the last five years. In 2012, Ford
recorded $8 billion in pretax profit for the third straight year. Ford is the best-selling brand in the U.S. and the Ford
Focus is the best-selling car in the world. So Ford is doing nicely, thank you.
The unraveling of what was once called Ford's Premier Automotive Group -- a collection of import brands
including Aston Martin, Volvo and JaguarLand Rover, gathered during Ford's expansionist period of M&A's --
made irresistible sense at the time. Ford had spent billions to modernize Jaguar to no avail.
And yet, five years later, both brands are going gangbusters. It would be like completing a divorce one day only to
have your former spouse win the Lotto the next. Meanwhile, Ford's homegrown luxury brand, Lincoln -- excuse
me, the Lincoln Motor Car company -- remains firmly in the weeds.
So, mistake or no? I say no, and here's why: Mr. Mulally's One Ford strategy amounts to a radical harmonization
of products and production, leveraging scale and seeking commonality across of a range of global products and
brands. It is hard to see how Jaguar and Land Rover -- both eccentric, finicky luxury brands in their own rights --
would have remained themselves under such an order.
Tata's rajahs have maintained a hands-off approach -- at least, that is what JLR executives tell me -- supporting
the companies financially while letting the lads and ladies in England sort out vehicle design, procurement,
production and sales. Which they have done, brilliantly.
The latest example is the new Range Rover Sport (base price, $63,495), which was developed on a tandem track
with the dreadnought-class Range Rover and shares with it the same cabin electronics and touch-screen user
interface; the same short-long arm suspension and air springs; the same top-shelf engine and transmission (a
supercharged 5.0-liter, 510-hp, 461 V8, both paired with a ZF-sourced 8-speed automatic transmission); and,
most significant, the same all-aluminum monocoque construction, a design investment that helps shave several
hundred pounds off the Sport's curb weight (5,093 pounds for the V8, as compared with the Range Rover's
official 5,137 pounds).
The base engine in the Sport is a supercharged 3.0-liter, 340 hp V6, again paired with the eight-speed
transmission.
More tale of the tape: The Sport measures 191 inches in length, 5 inches shorter than the RR proper, but sits on
the same 115.1-inch wheelbase. The wheelbase represents a whopping 7.1 inches more distance between the
axles than the previous car, while overall length has been stretched about 2 inches. This conformation gives the
Sport a more purposeful, athletic stance, even as it shortens front and rear overhangs, which improves the
approach and departure angles.

Curiously, the Sport's turning circle -- a prime metric of maneuverability, on road and off -- is actually a little wider
(41.3 feet) than that of the Range Rover (40.4). The height of the Sport is 70.1 inches, 2.2 inches lower than the
blot-out-the-sun Range Rover.
And, like its elder brother Range Rover, the Sport is a creature of ridiculous, laugh-out-loud overcapacity, both on
tarmac and off.
As is my practice -- because I like fast -- I asked for the V8 Supercharged model to test; the vehicle arrived
painted in diamond-dust white with piano-black trim (mirrors, grille, hood and fender vents), which seemed
appropriate since the thing is built like a Steinway.
Dig these nominals: 0-60 mph in about five seconds; a quarter-mile ET of around 13 seconds; and an
electronically limited top speed of 155 mph. Of course, for most owners these numbers will remain purely bench
racing. But I recommend all owners take the Sport to a drag strip at least once and stand on it. The gathering,
syncopated crumple of eight aluminum pistons as they head toward 6,000 rpm sounds like artillery practice at
Sandhurst.
The first Sport made its debut with the 2006 model, built on twin-rail steel chassis that imbued the beast with
lorry-like strength even as its weight and center of gravity tended to draw a bright line between what the vehicle
could and couldn't do. The previous-generation Sport was plenty fast in a straight line, and it was reasonably
confident in corners once it had put its shoulder down in the curve. But quick left-right transitions at speed easily
discombobulated the car, despite all the delicate chassis-tuning and the asphalt-friendly tires.
The new Sport is appreciably more agile and secure at speed. Among the coping mechanisms are the adaptive
air suspension and dampers; the roll-stability system, brake-based programming that senses critical body roll and
tries to null it out with selective braking of one or more wheels; and limited-slip differential with torque vectoring,
which helps the Sport hold a desired line when otherwise it would push wide under power. This thing stages more
interventions than Dr. Drew.
The Sport's performance quotient can't be denied, but it is the exterior and interior design that is going to move
the sheet metal. This is a tough-looking beast, with a lovely dynamic tension between the fenders, thanks to a set
of well-placed accent lines. The rising beltline -- that is the line just below the windows -- is more canted than the
previous generation, as is the windshield. The front end incorporates the narrow-eyed visage that was first seen
on the Evoque.
The interior, meanwhile, just rocks, with a broad, elegantly modern central panel that pours between the gracious
front seats. The center console hosts the car's rewarding-to-the touch pistol-grip shifter and the Terrain Response
rotary controller that dials in five separate settings (general/snow/mud/sand/rock crawl) with lustrous metal
brightwork accents. The quality of saddlery, the leather-skinned dash, doors and seats, wouldn't look out of place
on a Bentley. The Sport also features a huge, dual-panel panoramic roof with motorized shade. With the vehicle's
extended wheelbase, the designers were even able to squeeze a couple of small rear seats (optional) that deploy
from the flat cargo bed, making it effectively a 5+2 configuration. But it is super tight.
As is obligatory for any Range Rover, the Sport has peerless off-road chops, including a see-it-to-believe-it
fording depth of 33.5 inches and 21.5 inches of wheel articulation. The V8 Supercharged model gets the
dual-speed transfer case, center and rear electronically locking differentials. Look around the farm equipment
catalog. You won't find a sportier tractor anywhere.
Would the Sport be half as good if Ford still owned JLR? Maybe. But it might also have been a gloriously
reskinned Explorer, another cash cow in Dearborn's thundering herd. I like the way things turned out.
---
2014 RANGE ROVER V8 SUPERCHARGED
Base price: $79,100
Powertrain: Supercharged and intercooled 5.0-liter DOHC, 32-valve V8 with variable valve timing; eight-speed
automatic transmission; full-time all-wheel drive with locking center and rear differential (optional) and limited-slip
differential with torque vectoring
Horsepower/torque: 550 hp at 6,000-6,500 rpm; 461 pound-feet of torque at 2,500-5500 rpm

Length/weight: 191.0 inches /5,082 pounds
EPA fuel economy: 14/19/16 mpg, city/highway/combined
Cargo capacity: 27.7 cubic feet (behind 2nd row seats) 62.2 cubic feet with seats folded down
Document J000000020131123e9bn0000c

Corporate News: Self-Driving Cars Are Still in Park
Corporate News: Self-Driving Cars Are Still in Park

By Joseph B. White
658 words
20 November 2013
J
B3
English
LOS ANGELES -- Top officials of the federal agency that regulates vehicle safety said Tuesday they support
efforts by auto makers and digital technology companies to develop cars that can drive themselves, but cautioned
it will be years before regulators are comfortable allowing fully autonomous vehicles on the road.
David Strickland, the head of the National Highway Traffic Safety Administration, told a congressional
subcommittee Tuesday that right now, fully autonomous vehicles aren't ready to operate on public highways
except for testing purposes.
Kevin Vincent, NHTSA's chief counsel, said in Los Angeles that NHTSA is encouraging research on autonomous
vehicle technology because it believes systems that automatically detect impending collisions or steer a car back
into the lane could slash the number of road accidents. However, Mr. Vincent said, "it's premature for anybody
involved in the industry to be jumping ahead to fully autonomous cars."
That hasn't stopped some auto makers from promising autonomous vehicles. Nissan Motor Co. and Daimler AG
have recently said they intend to offer autonomous vehicles by 2020.
Auto and technology industry executives gathered at a conference ahead of this week's Los Angeles Auto Show
offered a mix of long-term enthusiasm and short-term caution about autonomous driving.
Ron Medford, a former deputy administrator of the NHTSA who's now director of safety for Google Inc.'s
autonomous car project, said at the Connected Car Expo conference here Tuesday that there will be accidents
with autonomous cars, and that dealing with the fallout from such incidents could be a challenge for the industry.
Mr. Medford said Google is committed to developing technology that will allow a car to operate fully on its own,
without relying on sensors in the highway or in other cars. But Google hasn't decided yet how it will bring its
system to market once it's developed, he said.
Jeff Klei, president of auto technology supplier Continental AG's North American business, said his company and
its customers are working toward rolling out autonomous vehicle technology in stages, starting with systems that
would allow a car to pilot itself in stop-and-go traffic, or on open highways as early as 2016. Fully autonomous
vehicles that could navigate through city traffic likely won't be available until about 2025, he said.
A recent study by Morgan Stanley concluded that widespread adoption of autonomous driving in the U.S. could
save $1.3 trillion a year, including $158 billion in fuel costs, productivity increases valued at $507 billion and a
$488 billion reduction in annual accident related costs.
Autonomous vehicle technology is just one of the new markets where technology companies and car companies
are still trying to determine when it makes sense to compete, and when it would be better to cooperate. Who
owns the data collected from drivers while they connect to the Internet from a car is just one point of conflict.
Jim Farley, Ford's executive vice president for sales and marketing, used a talk at the Connected Car conference
to make a direct appeal to a Google executive sitting in the audience for a closer collaboration to improve the
often vexing experience of using a car's built-in navigation system. Many consumers don't see the need to buy
expensive built-in navigation systems because their phones have better map applications, Mr. Farley said. But
using a smartphone map app while driving isn't safe.

Tarun Bhatnagar, director of Google Maps for Business, followed by admitting he'd found his way to his Los
Angeles hotel by balancing a map-enabled smartphone on his lap. "We want to fix that," he said. "We want to
work with auto companies like Ford."
Mr. Farley later declined to say whether Ford and Google have a new navigation deal in the works.
Document J000000020131120e9bk0003a

Lincoln Joins the Crossover Party
FIRST GLANCE
Automobiles; SECTAU
Lincoln Joins the Crossover Party
By PHIL PATTON
591 words
17 November 2013
The New York Times
NYTF
6
English
Ford Motor took another step toward revitalizing its moribund Lincoln division in Manhattan on Wednesday when
it unveiled a production version of a new small crossover utility, the MKC.
The MKC, which will be Lincoln's first entry in the red-hot market for upscale compact crossovers, had been
previewed in concept form at the Detroit auto show last January.
Although based on the architecture of the Ford Escape, the MKC is distinct from its sibling in look and feel, a
testament to its designers' bag of tailoring tricks.
The MKC's face shares the winglike grille pattern of the MKZ midsize sedan, with narrow raptor-style
high-intensity headlamps. Sculptured sides seem to add length. Another of Lincoln's new graphic cues is the
taillight design: a narrow, continuous strip across the back end.
Seeing the MKC makes the MKZ look better: Lincoln's new design themes are now clearer. But some of the
sculptural verve of the concept vehicle has been toned down, especially inside: The interior air vents no longer
echo the wings of the grille.
Jim Farley, Ford Motor's executive vice president for global marketing, sales and service, and for the Lincoln
brand, said the MKC would start at $33,995, which he said was some $5,000 below German competitors. The
crossover is to go on sale early next summer as a 2015 model.
In an interview, Moray Callum, chief of all American design for Ford brands -- and who will soon become the
design chief for the entire company -- said Lincoln was establishing a clear identity. ''We want a family look,'' he
said. ''The vehicles should look related, but not identical. They should vary by type.''
Lincoln plans to introduce a new model in each of the next four years.
The MKC will offer two versions of the turbocharged direct-injection EcoBoost 4-cylinder engines. It will share its
240-horsepower 2-liter engine with the Escape. A new 2.3-liter 4 will put out 275 horsepower and 300 pound-feet
-- more than some rivals' 6-cylinder engines, Mr. Farley said.
He said the MKC was aimed at younger customers and baby boomers who are downsizing from larger S.U.V.'s
but want luxury features. ''This segment has grown 200 percent since 2009,'' he said. Rivals include the Acura
RDX, Audi Q5, BMW X3 and Mercedes-Benz GLK.
One option is another Lincoln brand theme, a huge panoramic moonroof.
A technology called Approach Detection is intended to make the car seem friendly: When the driver approaches
with the keyfob, the car lights up head to tail, illuminates the door handles and deploys illuminated ''welcome
mats'' -- Lincoln's star emblem -- on the ground next to both front doors.
The vehicle also comes with a liftgate that can be activated by the motion of a foot, convenient for shoppers who
return to their vehicles with hands full. A smartphone app can be used to control many functions, like
programming the car to start at specified times.

Lincoln is also promising what might be called ''road to autonomy'' options like a smart cruise control and a
lane-departure system. In addition to the self-parking feature already found on some Fords and Lincolns, the
MKC will offer ''park out assist'': The vehicle can maneuver itself, hands-free, out of a tight spot.
BEYOND THE TOWN CAR: The MKC, based on the Ford Escape, will be Lincoln's first compact crossover.
(PHOTOGRAPH BY FORD MOTOR)
Document NYTF000020131117e9bh0003f

Lincoln adds a little sizzle to small SUV ; MKC part of move to 'reinvent' brand
MONEY
Lincoln adds a little sizzle to small SUV ; MKC part of move to 'reinvent' brand
Fred Meier; Chris Woodyard; James R Healey
Fred Meier, Chris Woodyard, James R. Healey, USA TODAY
1,067 words
14 November 2013
USAT
First
B.4
English
Ford unveiled on Wednesday Lincoln's entry for the hot small luxury SUV market -- a key product for the effort to
revive the Lincoln brand.
Ford says the MKC will go on sale next summer; pricing was not announced.
Lincoln has a good start with the redone MKZ midsize sedan this year -- the first of four new vehicles Lincoln has
promised by 2016 to "reinvent" the brand. The second, the MKC, now can give Lincoln momentum, or douse it.
Jim Farley, the Ford global marketing head who also oversees Lincoln, summed up in a statement what the MKC
needs to do for the brand: "As a challenger luxury brand, entering this (market) segment is a natural next step for
us. MKC will do more than just compete -- it will change the way people think about Lincoln."
The new Lincoln SUV gets a new engine as an option -- a 2.3- liter version of Ford's Ecoboost turbo four-cylinder
that the brand says will be rated 275 horsepower and put out a healthy 300 lb.-ft. of torque.
But the coins of the realm for premium car brands these days are high style and high technology. And Lincoln
says the MKC will deliver both to get on more premium buyers' short lists and bring new customers to Lincoln,
particularly on the coasts where European and Japanese luxury brands dominate.
Showy features include a liftgate that wraps around the curvy rear and can be had with a motion-sensing,
hands-free power opener similar to the optional feature on the Ford Escape. It also offers a panoramic glass roof.
Electronics include an optional THX-certified surround sound system and Ford's Sync/MyLincolnTouch
voice-activated and 8-inch touch-screen infotainment and control system, plus traditional buttons and knobs for
redundant control of the climate and audio system.
Smartphone integration includes an app -- MyLincolnMobile -- that lets you start, lock, unlock and locate the MKC.
It also can be used to call for help, check fluid and pressure levels and program an engine start time to warm or
cool the MKC.
MKC comes standard with a 2.0-liter EcoBoost turbo four. Gas mileage estimates were not announced.
Available automated safety systems include a collision mitigation system with automatic braking, a lane-keeper
warning system, blind- spot alert and rear cross-traffic detection. City dwellers also can order a system for parallel
parking assist.
The MKC will be built in Louisville, alongside its country cousin, the Ford Escape.
VW to offer electric Golf
Add Volkswagen to the nearly complete list of major automakers offering an electric car for at least some markets
in the U.S.
The first fully electric VW -- a version of the Golf compact -- will be unveiled next week at the Los Angeles Auto
Show and go on sale next year.
The e-Golf, as it will be known, will have a lithium-ion battery and a 115 horsepower electric motor capable of
going from zero to 60 miles per hour in 10.4 seconds. Top speed is electronically limited to 87 mph.
The 700-pound battery is good for a range of 70 to 90 miles per charge. To make owners worry less about
running out of juice, VW has an interesting roadside assistance program that will deliver the car to a nearby
charger when it is within 100 miles of home. VW will also spring for a taxi ride home or to work if the driver
decides not to stick around while the car recharges.
Jaguar E-Type stretch
Is it possible to improve what is probably the most iconic sports car that Jaguar ever built?
A customizing outfit in the United Kingdom will find out when it sees the reaction to its custom restoration of a
1968 Jaguar E-Type that includes a 4-inch stretch.
Purists may condemn the makeover as sacrilegious and are certain to be even more inflamed by the matching
trailer: It's the back end of another E-Type.
Classic Motor Cars Limited of Bridgnorth says it undertook the job on the left-hand-drive E-Type, Series 1, 4.2
roadster at the request of its American owner.
CMC says that it believes its stretched E-Type is how the car really should have been designed in the first place.
"This is the E- Type that Jaguar Cars should have built," says Nick Goldthorp, managing director of CMC, in a
statement. "The extra space makes all the difference and actually alters the whole attitude of the car."
Auto credit loosens
More people are taking out auto loans, and fewer are behind on payments.
Motorists owed $782.9 billion on auto loans in the third quarter, up $103 billion from a year ago, Experian
Automotive says in a report. That's the highest since it started keeping track seven years ago. Experian also
found that 30-day auto loan delinquencies were at 2.58% in the third quarter compared with 2.67% the year
before. That's a 3.4% drop.
"The combination of higher loan balances and relatively flat loan delinquencies is good news for everyone
connected to the automotive industry, including consumers, lenders, retailers and manufacturers," said Melinda
Zabritski, senior director of Automotive Lending for Experian Automotive, in a statement.
One trend encourages another. Experian says not only do low delinquencies encourage more lending, more
lending encourages more buying -- lifting consumers, lenders, the auto industry all at the same time.
Special Honda Ridgeline
Honda continues to tend its Ridgeline pickup, this time by adding a Special Edition.
The $38,335 model is mainly a cosmetic package -- black trim on the wheels, and around the headlights and
taillights, plus Special Edition badges. The one significant hardware item is a deluxe navigation/infotainment
setup. It has leather upholstery and comes in three dedicated colors, which have fancy names but are basically
black, white and silver.
The Ridgeline went on sale in March 2005 and differs from other pickups in its car-like construction and driving
manners.
These have given it a cult following among some Honda loyalists, but not many. The first 10 months this year,
Honda's sold just 14,807 Ridgelines, according to Autodata.
Document USAT000020131114e9be00008

Corporate News: It's Not a Car, It's a Ford 'Ka' --- Hunting for a New Class of Consumers, Auto Maker Pursues Ultra-Cheap Vehicle
Corporate News: It's Not a Car, It's a Ford 'Ka' --- Hunting for a New Class of Consumers, Auto Maker
Pursues Ultra-Cheap Vehicle
By Mike Ramsey
698 words
14 November 2013
J
B4
English
Ford Motor Co. is coming a little late to the race to design an ultra-low-cost car for emerging markets.
But company executives say they have learned a lesson from rivals that moved first: affordable, yes; cheap, no.
Ford in Brazil on Wednesday unveiled a prototype for a tiny subcompact car called the Ka that aims to attract
entry-level buyers in countries where being middle class means not being able to afford a car that costs much
more than $10,000. That is about a third the price of the average vehicle sold in the U.S.
With a car like the Ka, Ford hopes to boost its global sales to eight million vehicles a year from the just over six
million forecast for this year, tapping new customers in emerging markets.
Other auto makers have had limited success pursuing first-time buyers in emerging markets. India's Tata Motors
Ltd. has struggled to sell the Nano, which can cost as little as $2,000. The company invested $400 million to
develop the car, which originally was marketed in India as a step up from motorcycles or scooters. The car is
selling at a quarter of factory capacity.
"In the case of the Nano, one of the lessons for us is be very cognizant of how you position your brand and
product," Ford Chief Operating Officer Mark Fields said recently at a conference about conducting business in
India.
"They kind of positioned it as a step up from a motorcycle. And when people are buying vehicles, it's a big deal in
their lives, and they want to feel like they have made it."
Tata acknowledged that the Nano's design was off the mark and is giving it a makeover, adding, for example, a
stereo, hubcaps and chrome trim.
Ford isn't revealing all the details about the production version of the Ka yet, but it will likely go on sale in South
America next year before being released in China, India, North Africa and the Middle East. It will be a
tailpipe-to-headlight redesign of an older Ka that is Ford's smallest, least-expensive model sold in South America
and Europe.
The older Ka and other inexpensive models such as the Figo differ in design by market. The new vehicle is the
first Ford has developed to be essentially the same world-wide at below $10,000.
Ford hasn't announcing pricing for the new Ka, thought it likely will cost slightly more in South America, for
example, than in India, where labor is less expensive.
To avoid the Nano's curse, Ford incorporated chrome details, and gave the car a low, wide stance so it doesn't
look "tippy," said Joe Hinrichs, Ford's president for the Americas. "We spent a lot of time making sure it still had a
premium look to it, which is not true of a lot of our competitors."
The new Ka comes standard with Sync, Ford's system for pairing a mobile phone. But it is smaller than a Fiesta,
Ford's most-diminutive model for wide global release, and will likely have a less-expensive engine, lower-cost
interiors and smaller wheels.

Ford declined to say whether the car would have safety systems such as air bags, traction control or anti-lock
brakes, which add weight and cost. Without them, the car wouldn't meet safety requirements in places such as
Europe and the U.S.
Ford estimates that industrywide sales in the Ka's class will increase 35% to 6.2 million vehicles by 2017, while
sales for all cars rise around 12%.
Vehicles like the new Ka "will be the backbone of growth in new emerging markets as consumers seek to move
up the economic ladder while still staying within their means," said Suraj Krishnan, of consulting firm, AlixPartners
LLP. "However, moving down-market to these segments has been a challenge" for many global auto makers.
Document J000000020131114e9be0000m

Corporate News -- The Upshot: Same Luxury Sells in U.S., China
Corporate News -- The Upshot: Same Luxury Sells in U.S., China

By Joseph B. White
902 words
13 November 2013
J
B2
English
When it comes to luxury cars, consumers in Chicago have more in common with Shanghai than Stuttgart.
That is the bet that Ford Motor Co. is placing with a new Lincoln luxury model. And many of its rivals in the
premium car business are making the same call.
Lincoln, best known for cushy, plus-size vehicles, is expected to unveil on Wednesday a new small sport-utility
vehicle called the MKC. It will go on sale starting next year in largely identical versions for in the U.S. and China.
It won't be sold in Europe.
That is significant because for decades, auto makers struggled to design cars that could sell in the U.S. and
Europe without significant modifications, the better to spread engineering and design costs over a broader base.
The U.S. and Europe were the world's two biggest markets, so the goal made sense.
But particularly for the Detroit auto makers, the efforts to build one-size-fits-both models fell short, because
European and American consumers have different tastes. Europeans like hatchbacks and station wagons, for
example. Americans largely don't.
Now, auto makers, and particularly luxury car brands, are shifting their focus, directing more energy toward
exploiting an increasing convergence of consumer tastes among affluent drivers in the U.S. and China.
One result of this is the coming wave of small sedans and compact SUVs from luxury brands, which can now
build sales and profit projections for such models not just on Europe and the U.S., but on the enormous Chinese
market as well.
"The emergence of China, for all luxury brands, has been a game changer," said Jim Farley, Ford's head of global
sales and marketing. Ford decided to make the MKC the second of four new vehicles it is developing for Lincoln
in part because its marketers several years ago believed Chinese consumers would see SUVs as "aspirational"
purchases, much as many U.S. consumers do, he said
The exterior and interior styling of the MKC reflect a "global outlook," said Lincoln chief designer Max Wolff. When
it comes to materials and colors, he said, "the similarities are more striking than the differences." Even white,
once thought to be a taboo color in China because of its association with funeral vehicles is now the second
best-selling color, he said.
The backs of the MKC's front seats are fully covered, so the bottom of the metal frame isn't visible to rear-seat
passengers. It is a nice touch to convince a U.S. shopper the MKC should command a higher price than its small
SUV cousin, the Ford Escape. But it is vital for China, where sometimes owners ride in the back
In China, the upwardly mobile entrepreneurs that Lincoln wants to attract are in their late 20s and 30s while U.S.
customers are in their 50s, said Lisa Drake, the Lincoln MKC's chief engineer. The MKC will come with four
cylinder engines in both countries. Chinese consumers tend to be less obsessed than Americans with the size
and performance of the engine, Ms. Drake said.
Rival auto makers also see a convergence between the world's No. 1 and No. 2 auto markets.
"What is preferred in the U.S. is preferred in China," said Hakan Samuelsson, chief executive of Volvo Cars, a
unit of Chinese auto maker Zhejiang Geely Holding Group Co.

Volkswagen AG's Audi luxury brand is launching next year a new compact A3 sedan that exists in large part
because Audi's target customers in the U.S. and China share a preference for the sedan profile over the
hatchback look popular in Europe, said Filip Brabec, product planning manager for Audi AG's U.S. marketing arm.
"Without the U.S. and China, the sedan would have been a much more difficult case to make," he said.
The business case for the Lincoln MKC would also be harder to make without China. Once the No. 1 luxury brand
in the U.S., Lincoln is now No. 8 here, selling through the first 10 months of this year less than a third the vehicles
that U.S. luxury leader BMW AG has delivered. Lincoln is almost entirely a North American regional brand, with
its base in the U.S. heartland.
"We're a challenger brand," in the U.S., said Ford's Mr. Farley. In China, many consumers are aware of the
Lincoln brand and think well of it, Mr. Farley says, but they associate it with stately limousines. The brand's task
will be to link the compact MKC to that legacy.
Getting that right will require attention to detail, because U.S. and Chinese consumers may have similar tastes,
but not precisely the same tastes. One point on which Chinese and U.S. buyers differ is wheel size, Lincoln
executives say.
Americans like larger wheels, 19 or 20 inches in diameter. In China, consumers tend to prefer smaller wheels with
larger sidewalls, Ms. Drake said. Lincoln has covered its bets, designing wheels for the MKC in 18-, 19- and
20-inch sizes.
---
The Upshot is a column about business by Wall Street Journal bureau chiefs. Joseph B. White is the Journal's
global auto editor.
Document J000000020131113e9bd00027

The First Mustang Sold, and Still on the Road
Cars
The First Mustang Sold, and Still on the Road
By A.J. Baime
280 words
13 November 2013
J
D4
English
Gail Wise, retired Chicago schoolteacher, on her Mustang -- believed to be the first one ever sold -- as told to A.J.
Baime.
I bought my Mustang on April 15, 1964, for $3,447.50. I had just graduated from Chicago Teachers College and I
told a salesman at Johnson Ford on Cicero Avenue that I wanted a convertible. He had none on the floor, but he
invited me into the back room, where he had a baby blue convertible under a tarp. And there it was.
I had never heard of the Mustang. It hadn't been launched yet, but they let me drive it out of the showroom that
night. Everyone stared at me. I felt like a movie star! Two days later, Lee Iacocca unveiled the Mustang to the rest
of the world at the New York World's Fair.
In 1979, the car's battery got stolen and my husband, Tom, put the Mustang in the garage. It stayed there until
2006, when he fully restored it. A year later, Tom was reading a story about a Mustang purchased the day after I
bought mine; that owner claimed to be the first buyer. This summer we brought the Mustang to a car show in
Dearborn, Mich., where we met some Ford executives. The car was a hit, and that was the beginning of Ford
recognizing us as owners of the first Mustang ever sold. [A Ford spokesman says Ms. Wise's paperwork
convinced the company hers was the first known retail purchase of a Mustang.]
Document J000000020131113e9bd0000h

Mays Era Ends At Ford Design
Automobiles; SECTAU
Mays Era Ends At Ford Design
By PHIL PATTON
1,078 words
10 November 2013
The New York Times
NYTF
4
English
Ford Motor announced Tuesday that J Mays, who has directed the automaker's designs for 16 years and is group
vice president and chief creative officer, would retire in January. Succeeding Mr. Mays, 59, will be Moray Callum,
54, who has been responsible for the design of Ford's cars in the Americas since 2006 and will assume the title of
vice president of design.
When Mr. Mays arrived at Ford in 1997, after stints at Audi and Volkswagen, he was already famous for the
Concept One design study, which became the VW New Beetle. He took charge of the eight brands that Ford
Motor controlled at the time: Ford, Lincoln, Mercury, Mazda, Volvo, Land Rover, Jaguar and Aston Martin.
He immediately ordered designers at all the marques to create car keys that reflected the ''emotional qualities'' of
each brand.
Mr. Mays's tenure as design chief was long. He recently noted that he served under five chief executives and
oversaw many styles.
But he may be remembered most for raising the public profile of the automobile designer. And he challenged the
wall that traditionally kept the designers of automobiles separate from those who shaped buildings, furniture and
consumer products.
Mr. Mays's work was the subject of a major museum show, curated by Brooke Hodge, at the Museum of
Contemporary Art in Los Angeles in 2002, he was celebrated on television by the BBC and profiled by the
architecture critic Paul Goldberger in The New Yorker. And when John Lasseter of Pixar wanted to visit a design
studio while preparing to make the film ''Cars,'' he consulted with Mr. Mays.
In 1999, Mr. Mays commissioned a concept car from Marc Newson, a noted designer of furniture and products.
The result, shown at the Milan furniture fair, was named the 021C after the Pantone color code for its original
orange paint. The boxy, friendly looking car captured worldwide attention; repainted green, it continues to be
shown in museums.
Ms. Hodge, the director of exhibitions and publications at the Hammer Museum in Los Angeles, described Mr.
Mays's work as ''retrofuturist,'' a term that referred to a return to the optimistic, forward-looking imagery of the
1950s and 1960s. But many styles flourished under his direction.
At the same time he was directing one look for the United States market, he was presiding over the emergence of
a different style, called kinetic, in Europe. Eventually, versions of kinetic-theme cars came to America as Ford
began to standardize its product lines around the world. The latest Fiesta and Focus models, along with the
well-received Fusion midsize car, completed the process.
His design record includes hits and misses. Though it was a public sensation at its debut, the retro new
Thunderbird was something of a dud in the market, and the large Five Hundred sedan came across as a bloated
Passat. The Freestyle crossover was derided by critics as the Style-free. But the level of his work is generally
regarded as high, even though his design team sometimes had to scramble to bring new life to aging vehicle
platforms.

''J Mays made car design accessible to a broader public because he himself has such an expansive view of
design,'' Ms. Hodge said in an email. ''He looks at everything from fashion to furniture to inform the cars he
designs.''
She continued, ''His belief that innovations of the past should be used to inform future solutions led him to design
cars that inspired emotional connections.''
Mr. Mays hired and supported top designers, including Martin Smith at Ford of Europe and Peter Horbury at
Volvo.
Mr. Callum, the brother of Ian Callum, the head designer for Jaguar, is one of them. He came from Mazda in 2006
to perform often thankless work like a reskinning of the staid Taurus.
Mr. Mays's concept cars tended to come at design from surprising angles. The Forty-Nine of 2001, which paid
homage to the simple, honest 1949 Ford, and the 2007 Interceptor, a sort of latter-day Galaxie 500, were the
sorts of sedans that designers wished they could build. The 24-7 of 2000 was ahead of its time in focusing on the
integration of electronics and communications in the car. In the years when Ford was emphasizing
environmentalism, his Model U responded to the anniversary of the Model T: it was made of mostly recyclable
parts.
Mr. Mays is known for striking auto show stands, sometimes of legendary expense. In one, he sampled
architecture from Mies van der Rohe and Zaha Hadid to highlight brand attributes for Lincoln and Mercury. But
industry downturns limited his reach and curbed his ambitions.
He made his design headquarters in London for seven years and in 2002 established an ambitious studio there to
open up the imaginations of his designers: They would also work on other products, like mobile phones or shoes.
Ingeni, as it was called, was closed two years later.
Mr. Mays was born in rural Oklahoma, where, he has said, his unusual single-letter first name was simply country
practice.
After a brief stint in a college journalism program, he studied at the Art Center College of Design in Pasadena,
Calif. But his hometown, Maysville, Okla., provided the right background for evolving the look of the best-selling
Ford vehicle throughout his tenure, the F-150 pickup truck.
He appeared recently in New York boasting of that truck's popularity: bumper to bumper, a year's sales would
stretch from Los Angeles to Memphis.
In a news release announcing the retirement, Ford's chief operating officer, Mark Fields, said: ''The bold and
sophisticated design language that J Mays pioneered will be visible for years to come in Ford vehicles and the
auto industry over all. In addition to his talent as a world-class designer, J has brought together one of the most
talented design teams in the business.''
Ford also announced Tuesday that Jim Tetreault, vice president of North America manufacturing, would retire
after a 25-year career at the automaker. He will be succeeded by Bruce Hettle, currently the executive director for
global vehicle manufacturing and engineering.
Marty Mulloy, vice president of labor affairs, will also retire after 34 years at Ford.
This is a more complete version of the story than the one that appeared in print.
J Mays, left, and Moray Callum. (PHOTOGRAPH BY FORD MOTOR)

Document NYTF000020131110e9ba0002u

A New Alliance: UAW and Germany
A New Alliance: UAW and Germany

By Neal E. Boudette
1,115 words
8 November 2013
J
B1
English
Mercedes-Benz's U.S. car assembly factory is in Vance, Ala., outside Tuscaloosa. A Marketplace article on Friday
about auto workers in the South incorrectly said it had factories in Vance, Miss., and Tuscaloosa.
(WSJ November 9, 2013)
(END)
In its latest drive to organize foreign-owned auto plants in the South, the United Auto Workers union suddenly is
getting help from an unexpected source -- German workers concerned about their own jobs.
Daimler AG's union has joined the UAW's drive to organize the company's Mercedes-Benz assembly plant in
Mississippi, sending members to urge American workers to push for representation. Volkswagen AG labor
officials also are aiding the UAW's effort to represent workers at its Tennessee factory.
The Germans believe companies and their workers are better off represented by a trade union. Some also see
the nonunion plants as a threat to German jobs and are pushing for Mercedes-Benz workers in the U.S., India
and elsewhere to organize.
As Mercedes-Benz decides where to build future vehicles, German workers fear high-cost, union plants in
Germany will be bypassed in favor of Vance, Miss., which is one of the newest and most cost-competitive Daimler
plants in the world due to the weak dollar and nonunion workforce.
"When there is one plant with no union, the company can do whatever it wants," said Helmut Lense, a former
labor representative on Daimler's supervisory board, the equivalent of a U.S. board of directors. Mr. Lense now
works to foster cooperation between auto unions globally.
Recent cooperation between the UAW and Germany's IG Metall trade union is part of a broader effort by auto
unions in several countries to build ties and attempt to build alliances that reflect the global scope and
partnerships among the big auto makers. The UAW has sent delegations to meet with auto workers in Brazil,
Japan, South Africa and South Korea.
In few places are these international ties having a clearer impact than in the U.S., where the UAW says it is close
to organizing its first foreign-owned plant in the South because of the extra push from German workers and IG
Metall. A breakthrough in Tennessee or Alabama would be a historic turn for the union and manufacturing in the
union-averse South.
The southern auto plants are prized because they are expanding, sometimes at the expense of the auto maker's
home-market factories. In Vance, Miss., Mercedes-Benz next year will begin making a redesigned version of
Mercedes' C-Class sedan -- a vehicle that up to now has been exported from Germany. When the plan to move
C-Class production was announced in 2009, 12,000 Daimler workers protested in Sindelfingen, the main
production site of the current version of the car.
This year, some Vance workers spent a week in Germany, including at Sindelfingen, hearing about German-style
labor relations. Outside the Vance factory a billboard with the UAW and IG Metall logos carries the message:
Together for a Better Life in English and German.

About 200 miles away, the car maker's Tuscaloosa, Ala., factory is gearing up to produce a new Mercedes and
could get additional models in the next few years, Daimler finance chief Bodo Uebber said during a recent visit to
the U.S.
The company, he added, is "happy" with the current environment in which workers aren't unionized. "We have
open communication and a good culture of collaboration between us and the team workers," he said.
A key change came in 2009. Daimler then decided to wind down production of its top selling C-Class at its giant
Sindelfingen, Germany, plant. A new version of the car, due in 2014, was to be shifted to factories in Mississippi
and Bremen, Germany.
Workers walked out of the Sindelfingen plant. One demonstration brought 12,000 workers into the streets, some
carrying signs saying "C-Klasse -- No No Amerika!"
Charlie Haywood, an Alabama plant worker who is opposed to the union said, "When we got the C-Class, IG
Metall was very upset and they don't want it to happen again. So if we unionize, then [they think] there will be a
level playing field."
In Tennessee, the UAW is benefiting from German union support for its efforts to represent VW workers. VW's
German labor leaders are supporting efforts to bring a works council, a committee of employees who negotiate
work rules and conditions with management, to the factory.
The UAW is "ready to cede power to a works council," VW's top labor representative, Bernd Osterloh, said
recently. The UAW has said more than half the plant's workers signed cards in support of a union.
The cooperation between the UAW and IG Metall is a change from the past, when the two kept an arm's length
relationship. Now, the UAW and IG Metall see the auto industry's globalization and have become more interested
in cooperating with unions around the world. The UAW's top officials also say antagonistic relationships with auto
makers are behind them.
In 2010, the UAW elected Bob King as president and he pledged to build alliances with German, Italian, Korean,
Japanese and Brazilian unions and present a new, less confrontational approach to relations with auto makers.
IG Metall warmed to Mr. King's ideas, especially in the wake of the C-Class decision.
A year later, IG Metall members traveled to Alabama to argue for the kind of representation afforded Daimler
employees in Germany. One of them, Denise Rumpeltes, used vacation from work at the Sindelfingen plant to
revisit Vance last summer.
The focus on the foreign auto plants has been a long time coming. Those plants have changed the face of the
U.S. auto industry. Thirty years ago, all cars made in the U.S. were assembled by union workers at GM, Ford and
Chrysler. Today, 38% of the vehicles made in the U.S. are built in nonunion factories.
In these nonunion plants, labor costs are significantly lower. On average, U.S. auto workers received about $37 in
wages and benefits last year, compared with about $59 in Germany, according to the U.S.
As auto workers at these factories gain skills and productivity, foreign car makers are starting to award these
plants work that might otherwise have been done at home. Japan's three largest auto makers now are expanding
their U.S. workforces to make cars for export. In Japan they are cutting exports and scaling back production.

Document J000000020131108e9b80002k

Ford Truck Czar Divides to Conquer --- Building Pickups for Cash-Strapped Craftsmen, Racing Fans, Off-Road Enthusiasts and the Affluent
Ford Truck Czar Divides to Conquer --- Building Pickups for Cash-Strapped Craftsmen, Racing Fans,
Off-Road Enthusiasts and the Affluent
By Mike Ramsey
903 words
7 November 2013
J
B10
English
Doug Scott's title at Ford Motor Co. is a humble one, "truck group marketing manager," but the 57-year-old carries
a lot of clout, overseeing a truck business that generates $22 billion in annual revenues and outsells all its rivals.
Ford's F-series pickups have been the best-selling model line in the U.S. for the past three decades and just
recorded its best October sales since 2004, the peak year for U.S. trucks. Sales this year are on track to exceed
700,000 vehicles, the most since 2006. Though Ford is smaller than General Motors Co., its F-series trucks have
outsold its crosstown rival by 63,000 vehicles so far this year.
Now, GM and the No. 3 U.S. auto maker, Chrysler Group LLC, are in hot pursuit. In September, GM launched a
new generation of its Chevrolet Silverado and GMC Sierra large pickups, and for roughly the next year should
have the newest trucks to sell. Sales of Chrysler's Ram pickups are up 23% through September, the fastest gain
by any of the Detroit Three.
Behind Ford's dominance is Mr. Scott's decision to tailor the F-series with versions for specific buyers -- such as
cash-strapped business owners, off-road enthusiasts, affluent customers and racing fans. While GM sells two
brands and will soon have two separate lower-cost midsize trucks, Ford's one brand spans from $24,000 to
$70,000.
Mr. Scott rose through Ford sales ranks and oversaw its Explorer SUV marketing before becoming truck chief in
2002. The son of a Detroit police officer, He has forged tight bonds between designers, marketers and customers
that have given him tremendous clout within Ford.
"The depth of his knowledge seems real and genuine," said Mark Williams, editor of website pickuptrucks.com,
who has known Mr. Scott for more than a decade. "No matter what the situation, he has an answer."
Ford's truck team has its own office complex and its engineers and marketers stay for decades or longer, unlike
other areas of the company where people tend to move frequently to different products or countries. In part, Mr.
Scott built a tightknit team that knows its customers.
"We have alliances with professional bull riders and Future Farmers of America going back 63 years," he said.
"We've made it a practice to take people from design and engineering and bring them to events to they get
face-to-face contact with our customers."
So far, the market segmentation strategy has paid off big. Ford has remained atop the lucrative market since
2010 and earlier this year even collected an average of more than $4,000 for its trucks than did GM its trucks,
according to researcher Kelley Blue Book.
In 2009 as the recession was in full force, Mr. Scott championed a low-cost F-150 for struggling craftsmen and
landscapers. The STX costs just $26,345, well below the F-150's average $39,000 for a large pickup. The model
was designed for customers leery of spending top dollar during the slump. But it has remote keyless entry and
aluminum 17-inch wheels so it doesn't flash "cheap."
In recent months, the STX has garnered as much as 10% of F-series sales, up from 3% in 2012. "As that low-end
of the market comes back, we thought we'd like to have something there for them," Mr. Scott said.
Ford's truck marketers and engineers have collaborated to create niche models that collectively make up more
than 30% of the F-series lineup's annual sales. Among them, the Raptor SVT off-road truck that can climb
boulders and jump small canyons, the Limited and Platinum for affluent buyers. In addition, it offers affinity
models such as Western-themed King Ranch.
The latest brainstorming led to the Tremor, a sports truck that goes on sales this month. The two-seater can
accelerate to 60 miles an hour in 6.4 seconds using Ford's 3.5-liter, turbocharged V6.
Mr. Scott's success has competitors imitating Ford. Chrysler, for instance, created a single pickup brand and
houses its Ram engineers, designers and marketers together on a single floor at its Auburn Hills, Mich.,
headquarters. GM showed off its first sport concept truck this week in Las Vegas.
"Before the split off, Ram was one of nine or 10 children in the Dodge house," said Reid Bigland, president of the
Ram brand. "I think that has made a huge difference in the success of Ram pickup trucks after the Dodge
separation."
Ram this year through September has gained more than a point of market share to 16.3%. Ford's market share is
34.6%, while GM's combined market share with its Chevrolet Silverado and GMC Sierra, is 30.7%.
GM only recently adopted Ford's flair for customer segmentation. It is now launching a luxury version of the
Silverado to match Ford's F-150 Platinum.
"We have a different strategy," said Tom Wilkinson, a GM spokesman, referring to its multiple brands. "Right now
we have invested capital in midsize trucks, which we think will be a substantial opportunity for us."
Document J000000020131107e9b70001q

Ford's High Price for Closing Belgian Plant

Ford's High Price for Closing Belgian Plant
By JACK EWING; llvy Njiokiktjien contributed reporting.
1,696 words
6 November 2013
The New York Times
NYTF
1
English
GENK, Belgium -- Rumors of job cuts at the big Ford plant in this scruffy former coal mining town had been
circulating for months. But on a clear morning a year ago, almost nobody in Genk expected what came next.
Worker representatives, summoned to a meeting room inside the factory, started tapping out text messages even
before Ford executives had finished reading a terse statement. Ford had decided to shut down Genk for good.
The factory, which employed 4,300 people, would produce its last car at the end of 2014.
The battle of Genk had begun. And the struggle would become a case study in just how difficult it can be for an
automaker to cut its manufacturing capacity in Europe, even as the car market in this part of the world is the
weakest in two decades.
Union stewards used megaphones to spread the grim news to workers on duty at the time of the announcement.
Some people wept. Others barricaded factory gates, penning up about 6,000 newly built Mondeo cars, S-Max
minivans and Galaxy vans that had already been promised to customers -- creating a traffic jam that would
effectively shut down production for months. The workers were not going to make things easy for Ford.
''Now they had to talk,'' recalled Jean Vranken, regional head of the ACV union that represents Ford workers in
Genk.
Ford is one of the few companies to brave the fierce resistance of politicians and Europe's powerful unions as it
tries to emulate the brutal downsizing that carmakers in the United States have done -- and that subsequently
helped make possible the rebound now under way in the American car market.
But in Genk, a year after the announcement, the measure of calm that has returned has come at a high price for
the company, its workers and the community. To be sure, Ford has succeeded in reaching a labor settlement that
will allow it to close the factory, as scheduled, at the end of next year. The closure of Genk and two smaller
factories in Britain will cut Ford's capacity in Europe by 18 percent and, the company says, make it possible to
return to profitability in Europe, compared with losses this year that have already reached $1 billion.
But the accord came only after a long, bitter struggle that cost Ford $750 million merely to settle with about 4,000
blue-collar workers in Genk, or about $190,000 per worker. And the total cost of Ford's European overhaul is
likely to end up much higher because of additional payments to white-collar workers in Genk and the expense of
closing plants in Southampton and Dagenham in England. Ford has estimated the severance costs for all three
plants at $1 billion.
That cost of layoffs is substantially higher than in the United States, where Ford set aside $374 million in 2009 to
cover severance costs for 2,400 workers, or about $155,000 each. Moreover, European labor law is much more
favorable to unions than in the United States and tends to support workers in their tradition of militancy. In Genk,
workers prevented the plant from operating normally for more than four months and received unemployment
benefits for some of the time they did so.
By some estimates, factories in Western and Eastern Europe are capable of producing seven million or eight
million more cars and light trucks than the market can absorb. Many factories are operating at only 60 percent or
less. That glut is the main reason that companies including Ford, Fiat, General Motors' Opel unit and PSA
Peugeot Citroën have already lost billions of euros in Europe in recent years.
''Ford did not take this decision lightly,'' Stephen Odell, chief executive of Ford of Europe, said in a telephone
interview Monday. ''We understand that it affects people and their families.'' But, he said, ''we had to do it to
positively influence the company going forward.''
Even though the auto industry has been much slower to close plants in Europe than in the United States, wary of
the sort of struggle Ford has encountered, Ford is far from the only carmaker acutely aware of the excess
capacity issue.
''You need a plant to run at full capacity to be profitable in the volume segment,'' said Pietro Boggia, a former Fiat
executive who now works in the London office of Frost & Sullivan, a consulting firm. ''If the current level of market
demand does not improve dramatically, plant closings will have to continue, unfortunately.''
Yet for every factory that the industry might consider an albatross, there is a community that faces economic
devastation if production shuts down. Nowhere is that more true than in Genk, at the eastern end of Belgium in
the province of Limburg, the least prosperous region of the country's Dutch-speaking north.
In Genk, a city of 65,000 people, many of them descendants of Italians, Turks or Moroccans who came decades
ago to dig coal, an estimated 10,000 jobs will be lost at the end of next year when Ford closes the factory. That
number includes not only Ford workers but also the businesses that depend on the plant, from big parts suppliers
to the mom-and-pop shops.
Marianna Musolino, co-owner of a French fry restaurant in a neighborhood where many Ford workers live, said
customers had begun scrimping on orders. ''They didn't take mayonnaise, which is rare, but it saved them 50
cents,'' Ms. Musolino said. ''Weird things like that.''
Another business already feeling the pain is Bewel, a nonprofit organization in the neighboring town of
Diepenbeek that provides paid employment to mentally handicapped people. Until recently, Bewel operated a
laundry that cleaned truckloads of protective clothing used by Ford.
But, realizing the work would soon dry up, Patrick Nelissen, managing director of Bewel, gave the Ford
concession to a commercial laundry less dependent on Ford. That firm agreed to hire some of the handicapped
workers.
Last week, Mr. Nelissen showed a visitor around a deserted building containing rows of idle commercial washers
and driers. Stepping around a puddle, he wondered aloud how he was going to recover the 1 million euros, or
$1.35 million, he had invested in machines shortly before Ford announced the shutdown. ''Nobody needs this kind
of machinery,'' he said.
Mr. Nelissen said he understood Ford's predicament. But the prevailing view in Genk is that Ford reneged on
promises to build the next generation of Mondeos in the city. Residents knew there would be job cuts, but not a
closing of the plant.
''A year ago they gave their word'' that Genk would build the next Mondeo, said Wim Dries, the mayor. ''Then they
said, 'The economy has changed. We have to close it.' It was like a bomb going off.''
While Ford had indeed announced plans to build the new Mondeo in Genk, the company says it had also signaled
that cost-cutting was imminent and all options were open. The shift to a new model was, from Ford's point of view,
a logical time to move production elsewhere. And Genk was among the European factories with the most excess
capacity.
''We don't believe we could have reacted any earlier,'' Mr. Odell said.
In any case, Ford could not continue piling up the losses it has had in Europe. Even though Ford cut them by
more than half in the most recent quarter compared with a year ago, to $228 million, the year's running total was
still more than $1 billion in losses for the first nine months. In 2012, Ford lost $1.8 billion in Europe for the full
year.
Closing Genk will allow Ford to consolidate production at a factory in Valencia, Spain.
The relocation of some production to Spain has already created 1,300 new jobs in a region that is in far worse
economic shape than the area around Genk, although Ford said labor costs in Valencia are not significantly
lower.

As for the workers in Genk, the prospect of a jobless future is rapidly approaching. ''You have to find something
else, and quickly,'' said Sandro Maurina, 36, a mechanic in the Ford plant who has worked there since he was 18.
Like many in Genk, Mr. Maurina and his wife, Sabrina Gattanella, who have two young boys, are descendants of
Italians who migrated to the region decades ago to work in the coal mines. But the last mine closed in the 1980s.
Mr. Maurina is studying nights to become a nurse. But union leaders and local officials say they worry that many
Ford workers are still in shock, and unsure what to do in December 2014. City and provincial officials are working
on ways to encourage entrepreneurship and they hope the government in Brussels will situate a new prison in the
area, providing 500 jobs.
But there is no way to immediately absorb all the new jobless people.
''If you know a big company that would like to come to Limburg, please let them come,'' said Herman Reynders,
governor of Limburg Province. ''But I don't think that's going to happen.''
Top, the Ford factory in Genk will close on Dec. 31, 2014. Left, a Ford car body burning last year during a protest
at the plant. Lower left, mechanics working at the Driessen Ford dealership in Genk, next to the Ford factory. The
community faces economic devastation from ripple effects when the factory closes. (PHOTOGRAPHS BY ILVY
NJIOKIKTJIEN FOR THE NEW YORK TIMES; JULIEN WARNAND/EUROPEAN PRESS AGENCY) (B1);
Workers arriving at 6 a.m. at the plant. More than 4,000 workers will lose their jobs when it closes. Ford will pay
more than $750 million to settle with employees.; Sandro Maurina, a Ford worker, with his wife, Sabrina
Gattanella, and their children. (PHOTOGRAPHS BY ILVY NJIOKIKTJIEN FOR THE NEW YORK TIMES) (B7)
MAP: Automakers say plants in Europe can make many more vehicles than they can sell. (Source: WardsAuto
AutomotiveCompass Global Forecasts) (B7)
Document NYTF000020131106e9b60004x

J Mays, Noted Ford Designer, to Retire

J Mays, Noted Ford Designer, to Retire
By PHIL PATTON
1,103 words
6 November 2013
The New York Times
NYTF
English
CORRECTION APPENDEDFord Motor announced Tuesday that J Mays, who has directed the automaker's
designs for 16 years and is group vice president and chief creative officer, would retire in January. Succeeding
Mr. Mays, 59, will be Moray Callum, 54, who has been responsible for the design of Ford's cars in the Americas
since 2006 and will assume the title of vice president of design.
When Mr. Mays arrived at Ford in 1997, after stints at Audi and Volkswagen, he was already famous for the
Concept One design study, which became the VW New Beetle. He took charge of the eight brands that Ford
Motor controlled at the time: Ford, Lincoln, Mercury, Mazda, Volvo, Land Rover, Jaguar and Aston Martin.
He immediately ordered designers at all the marques to create car keys that reflected the ''emotional qualities'' of
each brand.
Mr. Mays's tenure as design chief was long. He recently noted that he served under five chief executives and
oversaw many styles.
But he may be remembered most for raising the public profile of the automobile designer. And he challenged the
wall that traditionally kept the designers of automobiles separate from those who shaped buildings, furniture and
consumer products.
Mr. Mays's work was the subject of a major museum show, curated by Brooke Hodge, at the Museum of
Contemporary Art in Los Angeles in 2002, he was celebrated on television by the BBC and profiled by the
architecture critic Paul Goldberger in The New Yorker. And when John Lasseter of Pixar wanted to visit a design
studio while preparing to make the film ''Cars,'' he consulted with Mr. Mays.
In 1999, Mr. Mays commissioned a concept car from Marc Newson, a noted designer of furniture and products.
The result, shown at the Milan furniture fair, was named the 021C after the Pantone color code for its original
orange paint. The boxy, friendly looking car captured worldwide attention; repainted green, it continues to be
shown in museums.
Ms. Hodge, the director of exhibitions and publications at the Hammer Museum in Los Angeles, described Mr.
Mays's work as ''retrofuturist,'' a term that referred to a return to the optimistic, forward-looking imagery of the
1950s and 1960s. But many styles flourished under his direction.
At the same time he was directing one look for the United States market, he was presiding over the emergence of
a different style, called kinetic, in Europe. Eventually, versions of kinetic-theme cars came to America as Ford
began to standardize its product lines around the world. The latest Fiesta and Focus models, along with the
well-received Fusion midsize car, completed the process.
His design record includes hits and misses. Though it was a public sensation at its debut, the retro new
Thunderbird was something of a dud in the market, and the large Five Hundred sedan came across as a bloated
Passat. The Freestyle crossover was derided by critics as the Style-free. But the level of his work is generally
regarded as high, even though his design team sometimes had to scramble to bring new life to aging vehicle
platforms.

''J Mays made car design accessible to a broader public because he himself has such an expansive view of
design,'' Ms. Hodge said in an email. ''He looks at everything from fashion to furniture to inform the cars he
designs.''
She continued, ''His belief that innovations of the past should be used to inform future solutions led him to design
cars that inspired emotional connections.''
Mr. Mays hired and supported top designers, including Martin Smith at Ford of Europe and Peter Horbury at
Volvo.
Mr. Callum, the brother of Ian Callum, the head designer for Jaguar, is one of them. He came from Mazda in 2006
to perform often thankless work like a reskinning of the staid Taurus.
Mr. Mays's concept cars tended to come at design from surprising angles. The Forty-Nine of 2001, which paid
homage to the simple, honest 1949 Ford, and the 2007 Interceptor, a sort of latter-day Galaxie 500, were the
sorts of sedans that designers wished they could build. The 24-7 of 2000 was ahead of its time in focusing on the
integration of electronics and communications in the car. In the years when Ford was emphasizing
environmentalism, his Model U responded to the anniversary of the Model T: it was made of mostly recyclable
parts.
Mr. Mays is known for striking auto show stands, sometimes of legendary expense. In one, he sampled
architecture from Mies van der Rohe and Zaha Hadid to highlight brand attributes for Lincoln and Mercury. But
industry downturns limited his reach and curbed his ambitions.
He made his design headquarters in London for seven years and in 2002 established an ambitious studio there to
open up the imaginations of his designers: They would also work on other products, like mobile phones or shoes.
Ingeni, as it was called, was closed two years later.
Mr. Mays was born in rural Oklahoma, where, he has said, his unusual single-letter first name was simply country
practice.
After a brief stint in a college journalism program, he studied at the Art Center College of Design in Pasadena,
Calif. But his hometown, Maysville, Okla., provided the right background for evolving the look of the best-selling
Ford vehicle throughout his tenure, the F-150 pickup truck.
He appeared recently in New York boasting of that truck's popularity: bumper to bumper, a year's sales would
stretch from Los Angeles to Memphis.
In a news release announcing the retirement, Ford's chief operating officer, Mark Fields, said: ''The bold and
sophisticated design language that J Mays pioneered will be visible for years to come in Ford vehicles and the
auto industry over all. In addition to his talent as a world-class designer, J has brought together one of the most
talented design teams in the business.''
Ford also announced Tuesday that Jim Tetreault, vice president of North America manufacturing, would retire
after a 25-year career at the automaker. He will be succeeded by Bruce Hettle, currently the executive director for
global vehicle manufacturing and engineering.
Marty Mulloy, vice president of labor affairs, will also retire after 34 years at Ford.
Online Correction: November 5, 2013, Tuesday
This article has been revised to reflect the following correction: An earlier version of this article misstated the
college attended by J Mays. It was the Art Center College of Design in Pasadena, Calif., not the Art Center
College of Art.
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Chiefs at Big Firms Often Last to Know ..........................................................................................................................

Corporate News: Auto Sales Return to a Lively Pace .....................................................................................................8

Corporate Watch ...........................................................................................................................................................10

A Breath of Fresh Air for China's Car Makers ...............................................................................................................14

Businesses Rethink Russia as New Risks Emerge ......................................................................................................19

To Change Tunes, a Nod Will Be as Good as aWink ...................................................................................................23

A Mixed Breed Gets a Pedigree ....................................................................................................................................29

Corporate Watch ...........................................................................................................................................................32

Incentives Drive Auto Sales ..........................................................................................................................................34

Consumer Reports: Lexus Is No. 1 ...............................................................................................................................37

Lexus Ranked No. 1 on Consumer Reports' Annual Brand Report Cards....................................................................39

Ford dumps Microsoft for BlackBerry system................................................................................................................41

WSJ.D Technology: Digits / wsj.com/digits ...................................................................................................................42

Corporate News: Corporate Watch ...............................................................................................................................44

GM Locks Up Aluminum Supplies for Future Trucks ....................................................................................................46

A Luxury-Class Metal Is Asked to Do Farm Chores ......................................................................................................48

Ford Boss Tees Up for Key Releases ...........................................................................................................................50

Rising Auto Inventories Prompt a Bet On Pricing..........................................................................................................52

Corporate News: Ford Veteran Is Picked to Restart Fisker ..........................................................................................54

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'Consumer Reports' sees Subaru, Tesla rise in buyers' esteem ...................................................................................63

America's Love Affair With Cars Cools Off....................................................................................................................71

Tax Gains in Europe Lift Profit 90% at Ford ..................................................................................................................74

Ahead of the Tape .........................................................................................................................................................76

Corporate Watch ...........................................................................................................................................................78

Fuel-Efficiency Rules Are Already Raising Costs in Detroit ..........................................................................................80

Upbeat Again, but Not Overconfident............................................................................................................................82

Ford Mustang and Volvo Concept Win Design Awards ................................................................................................90

Corporate News: AT&T Pulls Back On 'Idol' Sponsorship ............................................................................................91

Ford F-150 Is Now a Lighter Hauler ..............................................................................................................................96

Ford's Lightweight Pickup Can't Lift Aluminum..............................................................................................................97

Detroit Auto Show: VW Plans Investment In the U.S. ...................................................................................................98

Detroit Auto Show: General Motors Close to Reinstating Dividend ............................................................................101

Fuel Goal Tests Ford's Mettle .....................................................................................................................................103

The F-150's Aluminum Diet .........................................................................................................................................106

Corporate News: Can Cars Redeem the Aluminum Industry? ....................................................................................108

Back-Seat Drivers at Microsoft ....................................................................................................................................112

Corporate News: Ford's Mulally Won't Join Microsoft .................................................................................................114

Big Auto Makers Race To Take Web on the Road .....................................................................................................118

From Ford, a Plug-In That Tracks the Sun ..................................................................................................................120

Plug-in car runs on sunlight .........................................................................................................................................124

Corporate Watch .........................................................................................................................................................126

Google, Apple Forge Auto Ties ...................................................................................................................................129

2014: A Tougher Year for Ford ...................................................................................................................................132

GM's Catalytic Converter Is Better Than Ford's ..........................................................................................................135

G.M. to Invest $1.3 Billion to Upgrade 5 Midwest Factories........................................................................................136

A Starter Library for Car Lovers of All Ages ................................................................................................................143

Time for an Equestrian Transformation .......................................................................................................................144

On the World's Roads, More American Wheels ..........................................................................................................149

Ford Wants to Take Next Mustang to New Places......................................................................................................151

In Marketing, Art's the Thing........................................................................................................................................159

Corporate News: Tires Join Holiday Sales Race ........................................................................................................161

Corporate News: Corporate Watch .............................................................................................................................164

Ford Discloses Two New Recalls for the 2013 Escape...............................................................................................166

Corporate News: Self-Driving Cars Are Still in Park....................................................................................................170

The First Mustang Sold, and Still on the Road ............................................................................................................180

Mays Era Ends At Ford Design ...................................................................................................................................181

A New Alliance: UAW and Germany ...........................................................................................................................183

Ford's High Price for Closing Belgian Plant.................................................................................................................188

J Mays, Noted Ford Designer, to Retire ......................................................................................................................191

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Chiefs at Big Firms Often Last to Know

(WSJ April 4, 2014)