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Ford and GM link bonus checks to quality scores

The poor first quarter earnings of Ford and General Motors are having an effect all the way up the food chain. Both automakers struggled with recalls in the first three months of the year, and, according to The Detroit News, they have responded by increasing the percentage of bonuses tied to vehicle quality for salaried workers, including top executives.
GM announced that 25 percent of bonuses (up from 10 percent) for all salaried workers would be tied to its vehicle quality standards. The automaker revealed in its financial report that it spent $1.3 billion on recall-related repairs in the first quarter, and net income was down 86 percent.
Ford also increased the quality proportion of bonuses for about 26,000 salaried workers all the way up to CEO Alan Mulally from 10 percent to 20 percent. The company announced in its report that the amount paid out in warranty and recall claims was about $400 million higher than expected in the first quarter. Its net income fell 39 percent from the previous year. "The change reflects how critical quality is to our overall business," said spokesperson Todd Nissen speaking to Autoblog.

J Mays on the 2015 Ford Mustang

J Mays, head of design at Ford, may be retiring from the company after 16 years, but not before showing the world his swan song: the 2015 Mustang. Ford officially revealed its new coupe and convertible to the public at events around the world on Thursday, including a live unveiling on ABC's Good Morning America, and Mays was in attendance at the automaker's home event in Dearborn, MI, which is where we caught up with him for a few words about his new baby.
"It's a joy" to design the Mustang, Mays told Autoblog, adding that this sixth-generation coupe is his "favorite design so far." Of course, the 2015 model takes cues from all of the generations that came before it, but Mays said it was important to edit down the specific elements from previous models, leaving just enough off to let the customer "participate and fill in the blanks."
"If it doesn't sell itself, you probably aren't a Mustang fan."

Ford tweaking Model E dealer program to address dealer concerns

Ford's been working on its strategy and sales reorganization for a couple of years, the initiative that created the Blue (ICE), Pro (commercial), and Model E (electric) divisions. On the Model E side, part of continuous reworking of the EV arm has been in response to dealer lawsuits filed in numerous states, since Model E not only stipulated investments of anywhere from $500,000 to $1.2 million, the automaker initially wanted dealers to set no-haggle pricing, offer remote pickup and delivery for service appointments, and build chargers that would operate around-the-clock. Another big part of the tweaks to Model E is the continually unstable ground the entire electric project is built on. As part of understanding what dealers are facing and how to keep the electric wheels turning, Automotive News reports that the automaker held 11 meetings with dealers this year in six cities. Based on the feedback, more changes are coming to Model E as soon as next month.   During the roadshow, Ford told dealers to pause their investments into getting certified for Model E. This directive followed a corporate change in plans as Ford pulled investments in battery-electrics in favor of consumers' choice for hybrids. The head of Ford Blue — the internal-combustion-powered division that, with Ford Pro, has been paying the bills as Model E posts big losses — told AN, "We don't want them to make any decisions between now and the middle of June, when you can maybe have a more informed decision-making process based off what we work out with council in the next few weeks." One change has already been made public, the VP of EV programs telling an AutoNews business conference audience, “What weÂ’re finding is more dealers want to be involved in it and we donÂ’t want to be exclusive to just a handful, and so weÂ’re making a change where weÂ’re opening up that and not requiring as many certifications or investments for a dealer to participate in the EV revolution." Don't take that comment as a revelation; since the beginning, dealers complained about being excluded and needing to throw so much money at the program. Take that comment as Ford needing to find a better way in the "rapidly changing" environment. The official list of updates won't come until next month, when Ford meets its dealer council, and it should touch on topics beyond EVs.