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Ford defends plan to shareholders: ‘We're simply reinventing the American car’

Ford's top executives took heat from shareholders over their plan to do away with sedans as we know them in Ford's North American lineup, as the company held its annual meeting Thursday. Critics said the plan to shelve the Fiesta, Focus and Taurus, reduce the Focus to one crossover model, and concentrate on high-margin trucks and SUVs was a shortsighted abandonment of entire market segments of affordable vehicles. "This doesn't mean we intend to lose those customers," Ford CEO Jim Hackett said. "We want to give them what they're telling us they really want. We're simply reinventing the American car." Ford has said SUVs/crossovers and pickups will constitute 90 percent of its North American lineup by 2020. And though only the Mustang and new Focus Active will remain, it plans to add new vehicles going forward that offer better fuel economy and utility, including EVs and hybrids. Hackett characterized the shift not as an abandonment of traditional cars but as a transformation of them. "We don't want anyone to think we're leaving anything," Hackett said. "We're just moving to a modern version. This is an exciting new generation of vehicles coming from Ford." It was Hackett's first annual meeting as CEO, and for the second year it was conducted online rather than in person. The change to Ford's lineup is part of Hackett's overall plan to cut $25.2 billion in costs by the year 2022. Executive Chairman Bill Ford Jr. blamed the negative reaction to the lineup plan on media coverage. "I wish the coverage had been a little different," he said. "If you got beyond the headline, you'll see we're adding to our product lineup and by 2020 we'll have the freshest showroom in the industry. The headlines look like Ford's retreating. In fact, nothing could be further from the truth." While Ford was clear about its plans for the Blue Oval, it has been less clear about the Lincoln brand. Hackett on Thursday said only that the Lincoln Continental, re-introduced just two years ago, would continue "through its life cycle" — but it has been such a slow seller that rumor has Ford killing the Continental again after that, and Hackett made no mention of a new generation. Presumably the MKZ sedan will go away when its twin the Ford Fusion does, but although Ford has outlined end dates for other models, the Fusion's departure is open-ended. The stock price has been a frustration for investors for years and has fallen 12 percent since the first of the year.

2017 Ford F-150 Raptor desert testing heats up

In case there was any doubt, Ford is taking the development of the second-generation SVT Raptor very, very seriously. The Blue Oval recently completed over 1,000 miles of testing in the boiling heat of the American southwest. Apparently, that mileage was accrued over a 66-mile route designed to mimic the torturous terrain encountered by racers in the Baja 1,000 off-road race. The prototypes, which were built from a mix of existing and next-gen Raptor components, were tested with "fast sandy washes, deep-rutted silt beds, steep climbs in deep sand, and slow meticulous crawls through tight trenches." Ford claims the new truck managed to run the circuit 25-percent faster than the current F-150 SVT Raptor, averaging 50 miles per hour while going as fast as 100 mph in stretches. That said, Dearborn didn't release any dedicated times, so it's unclear just how quickly the 66-mile stage was completed. We do know that durability was a big part of the testing. Ford claims each lap was completed by what sounds like a pretty significant jump, with the trucks ascending a steep ramp onto a two-foot plateau and then completing a step-down to level ground. We have to take Ford at its word here, though. "Steep" can mean any number of things, and we've no idea just how fast the trucks were hitting the ramp or how much air they got. Hopefully, the jumps were aggressive enough to prevent future frame issues. Still, Ford boasting about how rough the Raptor's testing is can be taken as a positive sign for fans of the next-generation of SVT's rugged pickup. NEW F-150 RAPTOR WRAPS UP INITIAL DESERT DURABILITY TESTING DEARBORN, Mich., July 7, 2015 – The 2017 F-150 Raptor – Ford's toughest, smartest, most capable off-road truck ever – recently completed more than 1,000 miles of testing in the southwestern United States. Over 1,028 miles of desert trail designed to parallel the Baja race course in Mexico, the 66-mile route featured a wide range of surfaces including fast sandy washes, deep-rutted silt beds, steep climbs in deep sand, and slow meticulous crawls through tight trenches. The truck topped speeds of 100 mph in places, slowing to 10 mph in others, for an average speed of approximately 50 mph. The 2017 Raptor is 25 percent faster than the current truck based on lap times. At the end of each lap, the new Raptor completed a tabletop jump consisting of a steep ramp up to a two-foot plateau, then a step-off back to level ground.

Ford's Mulally now said to be in lead for Microsoft CEO job

There have been rumors that Ford CEO Alan Mulally could assume the top job over at Microsoft, whose CEO, Steve Ballmer, will retire within the year. Mulally hasn't come out and said that he's considering moving to Microsoft after (or before) his contract with Ford through 2014 ends, but sources in the know say he's the front-runner to become the tech giant's CEO and has opened up to the idea more in recent weeks, AllThingsD reports.
Mulally is no stranger to Washington, where Microsoft is located, having worked in the state for Seattle-based Boeing Commercial Airplanes as CEO years ago. He also recently was an adviser to Ballmer in an effort to realign the company's management structure to help it become more competitive in a fast-changing computer hardware and software market. And when Ford developed its Sync digital interface, it tapped Microsoft to provide the operating system, Microsoft Auto. Perhaps the least crucial connection - but nonetheless an important one - is that Mulally still owns a house in the Seattle area, and it's been said he wants to return there, according to AllThingsD.
A main challenge Microsoft's next CEO will face is how to manage the company's numerous, fractured operations and, eventually, streamline them. But even on this front, Mulally has experience; after all, it was he who ushered in an era of global Ford vehicles, after the automaker had become complacent developing and selling vehicles by region leading up to the economic recession of 2008-2009.