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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.

More 2015 Ford Mustang pricing information leaks [UPDATE]

The big news this morning was that the 2015 Ford Mustang would start at $24,425, including its destination pricing. The big news this afternoon is, well, bigger.
Mustang6G.com has come up with what it claims is pricing info for the entire Mustang line, rather than just the V6. That means we know all about the EcoBoost and GT prices now, which, when combined with the dealer order sheets we reported on last week, gives us our clearest look yet at how the Mustang can be outfitted (we're still a bit short on pricing info for some standalone options, like paint premiums and such).
The base EcoBoost starts at $25,995, while the GT rings up at $32,925.

Ex-GM VP LaNeve takes over Lincoln ad agency

Those of you that caught yesterday's op-ed about Lincoln will have heard already, but Mark LaNeve has taken the helm at Team Detroit. Once the North American vice president of sales, service and marketing for General Motors, LaNeve will now head up the agency that handles all of Ford advertising. LaNeve will also run the account for Lincoln. While at GM from 2001 to 2009, the exec oversaw ad campaigns like Cadillac's Breakthrough and sales initiatives like "Employee Pricing for Everyone."
He left in 2009 to join Allstate as chief marketing officer, oversaw the creation of the Mayhem ad spots and was moved into the role of VP of agency operations overseeing Allstate's 10,000 agents. He resigned from the insurer in February 2012 for personal reasons and joined Team Detroit in August 2012 as chief operating officer, in charge of satellite offices in New York and internationally. He replaces ex-CEO Cameron McNaughton, and will continue to hold the title of COO.
Lincoln is trying to get its 2013 back to rights after putting big dollar commercials for the 2013 MKZ on television then having production glitches preventing cars from getting to dealerships. With rumors of a relaunch in the works, it's no surprise LaNeve has been given the reins - and from here it looks like the brand is desperate for the kind of magic he's proved he can marshal. Perhaps he can start by calling a mulligan on the renaming exercise that gave us the hoary "Lincoln Motor Company" and go back to oh, say, "Lincoln." Then he can ask the product folks to get to work on the MKC concept...