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At meeting with automakers, Trump launches new attack on NAFTA

WASHINGTON — Ten American and foreign automakers went to the White House on Friday to push for a weakening of U.S. fuel efficiency standards through 2025, while President Donald Trump used the occasion to launch a fresh attack on the North American Free Trade Agreement that has benefited the companies. A draft proposal circulated by the U.S. Transportation Department would freeze fuel efficiency requirements at 2020 levels through 2026, rather than allowing them to increase as previously planned. Trump's administration is expected to formally unveil the proposal later this month or in June. "We're working on CAFE standards, environmental controls," Trump told reporters at the top of the meeting, referring to the Corporate Average Fuel Economy standards for cars and light trucks in the United States. Trump said he wants automakers to build more vehicles in the United States and export more vehicles. But much of the hour-long meeting focused on NAFTA. Trump blasted the pact involving the United States, Canada and Mexico as "terrible" and noted that negotiations to make changes sought by his administration were ongoing. "NAFTA has been a horrible, horrible disaster for this country and we'll see if we can make it reasonable," Trump said. Automakers have called NAFTA a success, allowing them to integrate production throughout North America and make production competitive with Asia and Europe, and have noted the increase in auto production over the past two decades with the deal in place. They have warned that changing NAFTA too much could prompt some companies to move production out of the United States. The chief executives of General Motors Co, Ford Motor Co, Fiat Chrysler, along with senior U.S. executives from Toyota Motor Corp, Volkswagen AG, Hyundai Motor Co, Nissan Motor Co, Honda Motor Co , BMW AG and Daimler AG met with Trump, as did the chief executives of two auto trade groups. Major automakers reiterated this week they do not support freezing fuel efficiency requirements but said they want new flexibility and rule changes to address lower gasoline prices and the shift in U.S. consumer preferences to bigger, less fuel-efficient vehicles.

Ford will lay off 700 employees in Michigan

Lagging sales of compact and electric cars are starting to take their toll on automakers. Ford said Thursday it intends to lay off 700 employees who work at the Michigan Assembly Plant in Wayne, MI, over the next five months. The plant makes Ford Focus and C-Max vehicles. Sales of both have stalled in recent months. The layoffs affect 675 hourly and 25 salaries employees, and will begin in late June and continue through September, according to paperwork filed with state officials. The company expects to re-hire the affected employees elsewhere and use them on temporary basis throughout the summer. Ford spokesperson Kristina Adamski said the affected employees will be "first in line" for other jobs at nearby plants, and UAW vice president Jimmy Settles said he expected all would be re-hired at other southeast Michigan factories by "early 2016." Although industry sales have remained high overall, the growth has come from SUVs and pickup trucks. Conversely, compact cars and alternate-powered vehicles like the C-Max have struggled to find customers amid cheap gasoline prices. Focus monthly sales fell 14.5 percent year over year in March, and C-Max monthly sales dropped 22.9 percent over the same period. It was less than three years ago that Ford hailed the Michigan Assembly Plant as a model for its future, one that would quickly adapt to market conditions through a more flexible assembly process. The plant was retrofitted at a cost of $550 million so that the same assembly line could install electric, plug-in hybrid or gasoline powertrains. Ford produces the Focus, Focus ST, Focus Electric, C-Max Hybrid and C-Max Energi here. At the time, company officials said the flexible line was a way to "not be trapped with dedicated one-trick-pony plants where you have under-capacity or over-capacity situations," said Jim Tetreault, Ford's vice president of North American manufacturing, in November 2012. But that's exactly where Ford finds itself as consumers have turned away from both compact and gas-sipping hybrids and electrics as gas prices have fallen to a national average of $2.49 per gallon, according to Thursday's AAA Fuel Gauge Report. One year ago, gas prices averaged $3.70 per gallon. In perhaps a melancholy twist, the Ford Expedition and Lincoln Navigator that were phased out at Michigan Assembly by the retrofit are once again the types of vehicles that are sought after by consumers.

Ford highlights new F-650 and F-750 with full-size Tonka show truck [w/videos]

Who among us hasn't been tempted by the prospect of buying a big yellow truck and painting the name Tonka along the side? Well apparently there were some folks over at Ford who were just as tempted, only they actually had the means to make that childhood fantasy a reality in the form of the truck you see here. Revealed at the NTEA Work Truck Show this week in Indianapolis, this Tonka show truck stands nearly 10 feet tall. It's painted bright yellow, just like the one you played with in the sand box (and probably still would given the opportunity and maybe no one else looking) and has a blacked-out nose treatment and special graphics. As you can see, it's also equipped with a working dump bed, and has a truly staggering 33,000-pound gross vehicle weight rating, built to showcase the Blue Oval's new line of medium duty trucks. Of course "medium duty" is a relative term, and the new F-750 is clearly a heavier piece of machinery than the company's own Super Duty pickups, but they're lighter-duty than a proper big rig. The new 2016 Ford F-650 and F-750 are just as tough as the models they replace, but they're now quieter and more comfortable to use. In fact, Ford says its 6.7-liter Power Stroke V8 diesel is now 25-percent quieter inside the cabin at highway speeds, 45-percent quieter at idle and 35-percent quieter standing outside in front of the grille. Ford notes that it's the only medium-duty truck manufacturer that makes its own engines and transmissions. That Power Stroke diesel comes with 270 horsepower and 675 pound-feet of torque as standard, but can be upgraded to 300 hp and 700 lb-ft or all the way up to 330 hp and 725 lb-ft. Commercial buyers will also be able to choose between Regular, Super and Crew Cab models with a straight-frame, dock-height or tractor-towing frames, meaning that whatever it is you've got to haul, chances are high that the new Ford F-650 and F-750 can be set up to get the job done.