1991 Ford F-250 Xlt Lariat 7.5l Club Cab on 2040-cars

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Ford CEO told Trump 1 million jobs at stake because of fuel economy regs

Bloomberg is reporting that Mark Fields, Ford's CEO, pushed President Donald Trump for market-driven national fuel economy standards, and that up to a million jobs could be at stake if those national regulations didn't take consumer expectations into account. Fields was reporting on his conversation with Trump in remarks made at the National Automobile Dealers Association in New Orleans, Bloomberg reports. The report also states that he and fellow CEOs Mary Barra of GM and Sergio Marchionne of FCA aren't seeking to eliminate fuel economy standards altogether, but rather to make them more flexible. Bloomberg reports that Fields didn't cite the studies he was referring to in support of his job loss figures, so we can't independently verify Fields' math at this time. But his push to stop selling cars consumers don't want – that is to say, more hybrids and EVs than consumer demand supports right now – is clear. We've already reported on that. To level an educated guess at what will happen next, Trump seems likely to reduce the stringent 2025 fuel economy targets, perhaps freezing them at current levels. The automakers are already invested in producing vehicles that meet current standards, and they also have to think about foreign markets like Europe that aren't likely to relax standards below current levels. If you consider economies of scale, automakers are likely to ask for federal standards that match global standards for their largest markets as closely as possible. We'll see if Trump buys Fields' math, but Ford isn't hedging its bets. Backing out of the Mexican assembly plant cost the company $200 million – not a huge sum compared to the total value of Ford, a massive company which had its second best year ever, but still an important gesture to Trump about Ford's priorities. Related Video: News Source: BloombergImage Credit: Bloomberg via Getty Images Government/Legal Green Fiat Ford GM Sergio Marchionne Mary Barra Mark Fields

Ford, GM still doing new business with Takata amidst airbag crisis

Lengthy vehicle development times make it difficult for automakers to cut and run from the supplier. You might expect automakers to be fleeing any connection with beleaguered supplier Takata in the wake of the company's exploding airbag inflator crisis. After all, with a Senate hearing, pending lawsuit, plummeting stock value and demand for a national recall, the tier-one supplier isn't at its strongest right now. However, years of cooperation mean that automakers are standing by Takata, and necessity may be playing a role, as well. About 39 percent of Takata's business comes from airbags, and seatbelts make up another significant chunk of the operation too, says Bloomberg. The long-term relationships and lengthy vehicle development times make it difficult for automakers to cut and run from the supplier. "Takata has so much product breadth that I don't really see that they could just disappear," said AutoPacific analyst Dave Sullivan to Bloomberg. For example, Takata helped develop the unique front center airbag with General Motors in models like the Chevrolet Traverse and Buick Enclave. Outside of safety tech, it is also a partner with Ford on the adaptive steering system available on the upcoming 2015 Edge. These long-lasting partnerships make change difficult now that there's a problem. According to Reuters, automakers claim it would take a year or longer to set up with a different supplier for replacement airbag inflators. Switching to a completely different part for the repairs might not be a viable option either, because of the engineering time needed. BMW is taking action, though. According to Reuters, the Bavarian brand is working with the supplier to move inflator production from Monclova, Mexico, to a Takata factory in Freiburg, Germany. The Mexican plant may be the source of some of the faulty parts. News Source: Bloomberg, ReutersImage Credit: Jens Meyer / AP Photo BMW Ford GM Safety Takata airbag recall

Ford, Renault, VW shareholder oppose French aid for PSA/Peugeot-Citro"en

Pots and kettles, glass houses and stones - that's a little of what we appear to have going on in the European car market. New reports say that that three European automakers have registered their opposition to a loan deal that PSA/Peugeot-Citroën is working on with the French government. Peugeot's finance arm, Banque PSA Finance, is struggling with its debts and has been downgraded by Moody's to its lowest investment-grade classification, one step above junk. This makes it more expensive for a potential buyer to finance a car through Peugeot. The last thing Peugeot needs is more difficulty selling cars in the tough European market, and the situation will only worsen if the bank's credit worthiness takes another hit.
A deal being worked on would have the French government offer €7 billion ($9B U.S.) in bonds to guarantee the bank's loans, which would give the institution some breathing room to manage its debts and lower its interest rates. Outside of that, a group of banks would provide other, non-guaranteed loans to the bank to further help its position. In exchange for state help, though, the government wants seats on Peugeot's board for worker representatives and a government liaison, along with factory and worker guarantees. The Peugeot family would maintain control of the company.
So what we have is government assistance being provided to a car company's finance arm, akin to the way General Motors' GMAC (now Ally Financial) and Chrysler Financial got help in their time of need. What we also have is Ford and Renault, and Germany's State of Lower Saxony, the second-largest shareholder in Volkswagen, voicing their concern about the proposal, because they say it could create an unfair competitive advantage for Peugeot. Everyone in Europe's down market is fighting for every sale, and if Peugeot gets help to keep its auto loan costs down, it figures to help buyers choose Peugeot or Citroën.