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Ford to ramp up Lincoln rollout in China in bid to catch rivals

DETROIT/BEIJING — Ford Motor Co's premium Lincoln brand plans to build as many as five new vehicles in China by 2022, according to two U.S. sources, in a move to expand sales in the world's largest vehicle market that would also blunt the impact of trade U.S.-China trade spats. Ford has said it plans to build an all-new sport utility vehicle in China by the end of 2019, however the company has not detailed future production plans for the Lincoln brand in China beyond that. "Our localization plans to support the China market are on track and will serve to further drive Lincoln's growth in China," Lincoln spokeswoman Angie Kozleski said. "Beyond that, it would be premature to discuss our future product and production plans or timing." Sources familiar with Ford's production plans told Reuters the automaker now expects to begin building the new Lincoln Aviator in China in late 2019 or early 2020, along with replacements for the MKC compact crossover and the MKZ midsize sedan, followed in 2021 by the all-new Nautilus, which replaces the Lincoln MKX crossover. A fifth model, a small coupe-like crossover, is tentatively slated for production in China in 2022, the sources said. Ford has much to lose if the war of words over trade between China and U.S. President Donald Trump escalates into a full-blown tariff war. Last year, it shipped about 80,000 vehicles to China from North America, more than half of them Lincolns to support the brand's growth. All Lincoln vehicles that Ford now sells in China are brought in from North America. Even if China does reduce its 25 percent tariff on imported vehicles - as Chinese President Xi Jinping promised on Tuesday - it is not clear that would mean a big, long-term increase in Fords and Lincolns made in U.S. factories heading to Chinese showrooms. Ford is pursuing long-range plans to build more vehicles in China to serve a market that is now roughly 60 percent larger than the U.S. market, and projected to keep growing. But it is playing catch up to hometown rival General Motors Co and German luxury brands including Audi, BMW and Mercedes-Benz, which have invested heavily in Chinese production in recent years as a form of insurance against trade, political and currency gyrations and to lower price points for their premium cars.

2016 Ford Shelby GT350 First Drive [w/video]

Red meat. America's signature protein has necessarily violent origins. Slaughter, butcher, open flames and iron – you don't need a recently lapsed vegetarian (me) to lay it out for you. Of course the blood and the cuts are all part of the appeal, a reminder with every forkful of beef that we still like to be visceral creatures in an increasingly sanitized world. There is much in the makeup of Ford's Mustang that matches these carnivorous tendencies. Not only does it offer a hint of violence with potential for speed every time the engine kicks over, it's also the motive meal we Americans salivate over more than any other. Ford's pony car is among the most popular car searches online, year in and year out, and truly special versions stress servers and storm forum spaces when they hit the streets. I'll be honest, I've been just as frothed and drooling to see and drive the 2016 Ford Shelby GT350 as the rest of you netziens, too. Engineers have hacked and carved away at the stock car, to make a wicked V8 morsel that's bloody-minded and racetrack ready. The flat-plane crank V8 revs to the moon and sounds like a supercar when spinning hard. The palpitating heart of newest Shelby is a 5.2-liter, naturally aspirated V8 engine that bucks the current, popular trends for performance cars, while also breaking new ground for Ford. Fast cars from all over the world have made impressive numbers using turbos and superchargers in recent years, but Ford wanted revs to make its racing machine go right. So the company tossed out the forced-induction formula, and created a flat-plane crank V8 that revs to the moon and sounds like a supercar when spinning hard. The light, strong crankshaft reduces inertial mass in the engine and allows for a mind-blowing redline at 8,250 rpm. Perhaps more importantly it makes for beautiful rising wave of available torque as one digs deeper into the throttle, which feels like fast magic when doing something like climbing the hill to The Corkscrew at Mazda Raceway Laguna Seca. At 526 horsepower and 429 pound-feet of torque, some 102-hp per liter, there's enough power for staggering acceleration whenever you ask for it. Providing, of course, you keep the pot boiling at three grand or more. To call the power delivery below that mark "weak" would be ludicrous, but it does feel more inert there than the cars in the turbo-quick jet set that's so popular these days.

Detroit 3 and UAW set for showdown over tiered wages

This week, thousands of United Auto Workers will converge on Cobo Center in Detroit for the Special Convention on Collective Bargaining, an every-four-year event that lets members tell UAW leaders what the negotiating priorities should be during contract negotiations. This is where a lot of sand and a lot of lines start coming together in preparation for contract negotiations between the UAW and the Detroit 3 automakers, which will happen later this year. Number one on the UAW agenda is the end of the two-tier wage system created in 2007 to help the automakers get through bankruptcy; veteran workers are paid the Tier 1 rate of around $29.00 per hour, new hires are paid the Tier 2 rate of between $15 and $20 and get about half the benefits of Tier 1. Tier 2 hiring has been an undoubted success for the automakers, allowing them to keep factories in the US and hire more workers. By agreement, it is capped at a certain percentage of each automaker's workforce, and while the union's ultimate position is to get rid of the dual-scale system entirely; one leader said Ford could easily afford the $335 million it would take to convert all its workers to Tier 1 out of its $6.9 billion in 2014 North American profit, and General Motors could do the same out of the $5 billion it is handing to investors through the (admittedly forced) share buyback. Other delegates say that at the very least they'd be happy with enforcement of the current caps in the new contract. The automakers, conversely, would welcome expansion of the Tier 2 ranks. Including benefits, import automakers pay workers "in the high $40 range" per hour, according to an analyst, while Ford and GM pay about $59 in wages and benefits per hour. More Tier 2 workers on the rolls would let those two companies get labor cost parity with the competition. Fiat-Chrysler pays wages closer to the imports because of special exceptions in its UAW contract that allow unlimited Tier 2 hiring; those exceptions will end on September 14 and bring FCA into line with the other domestics, unless the new contract maintains them. FCA CEO Sergio Marchionne is opposed to the two-tier system, having called it "almost offensive." One analyst says the UAW might win a sizable pay raise for Tier 2 and a small increase for Tier 1, but the keystone issue will be how the hiring matrix can help the automakers keep overall wages in line with the imports.