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Ford Explorer problems gutted third-quarter sales

In early September, the Detroit Free Press published a feature noting numerous problems Ford's having with the 2020 Explorer and 2020 Lincoln Aviator launches. Issues with both SUVs, built at Ford's Chicago Assembly Plant, were so rife and dire that the automaker was trucking the vehicles 275 miles away to Michigan for repairs. Bloomberg reported earlier this month that Explorer's third-quarter sales dropped 48 percent compared to the previous model in 2018, with dealers unable to get enough units on lots for customers. Nor is the snafu over: Automotive News reports that another "batch of about 2,500 Explorers in need of repairs" arrived recently in Michigan, and sales through the first nine months of 2019 are down 31 percent. Sales dips during model changeovers are to be expected as old inventory gets sold down and new production ramps up, but this is different. Ford U.S. sales boss Mark LaNeve told Bloomberg earlier this month, "We’ve got adequate inventory in our stores. For Q4, availability wonÂ’t be an issue. WeÂ’ll be able to hit our stride with Explorer starting now." It's hard to know whether that's true, with thousands of Explorers still piling into Michigan; the batch AN mentioned represents about 5 days of sales during an average month in 2018, before the drawdown and interruptions hampered matters. And when Consumer Reports tested the Ford Explorer it bought this summer, it titled the review, "2020 Ford Explorer drives nicely but has many flaws / Poor interior quality and a high price overshadow the SUV's improvements."   On top of that, the AN piece mentions a new impediment to uncorking the Explorer sales stream: Worker strife in the Chicago plant. Allegedly, "Roving groups of workers are intimidating other employees, creating a hostile environment, the people said. ThatÂ’s driving up turnover and leaving some vehicle assembly unfinished, contributing to the company having to complete the work at the Michigan factory or at dealerships, the people said." Ford's been fined twice before for the same kinds of issues at its plants, once in 1999, again in 2017, but a spokesperson said Ford isn't aware of any such problems now. The pressure otherwise has got to be unpleasant for everyone on the Explorer team, from CEO Jim Hackett down. The automaker was meant to be "turning the corner" in April, but as of now, shares are down, credit rating is down, earnings are down.

Ford taken to task by gov't for Chicken Tax end-around

Ford is in a bit of a pickle for importing and selling Turkey-built Transit Connect cargo vans as passenger vehicles in the US, then converting them to commercial-vehicle specification stateside in an effort to bypass a 25-percent tax imposed on vehicles imported for commercial use. Automakers are required to pay a 2.5-percent tax on imported passenger vehicles.
The Blue Oval got into trouble for this in a January ruling in which U.S. Customs and Border Protection officials asked Ford to stop the practice of importing the Transit Connect vehicles with passenger seats, then removing and shredding them. Now Automotive News reports that Ford is appealing the ruling. The 25-percent "Chicken Tax," as the tariff is often called, is 50 years old and was enacted as a response to a German tariff on chickens. Like Ford, Chrysler bypasses the higher tariff, but it does so in a different manner. It partially disassembles Sprinter cargo vans before shipping them to the US, then rebuilds them at a plant in South Carolina.
But the ruling against Ford's strategy states that it "serves no manufacturing or commercial purpose" and is there to "manipulate the tariff schedule," Automotive News reports. As Ford's appeal goes through, it is importing the Transit Connect and paying the higher tax, hoping for a favorable outcome and planning to build the next-generation Transit Connect, which it plans to launch before the end of the year, in Spain.

2015 Ford Mustang dealer order guide surfaces

Details about the all-new, 2015 Ford Mustang continue to leak out. In fact, at this point, it's more of a stream than a drip. Its option prices are already available, and now the full ordering guide is on the web for all of the trims thanks to the Mustang 6G forum. Ford is rapidly running out of secrets to keep about its new sports coupe.
The 21-page guide can be perused in the gallery below and contains all of the standard features, colors, options codes, descriptions. Generally everything you might want to know about the 'Stang is there, other than its price or power. It even shows off the available wheel designs.
The guide finally gives away the contents of the Performance Package for the EcoBoost and GT trims. The EcoBoost's package includes: A larger rear sway bar, new chassis tuning, larger brake rotors, 19-inch black wheels, retuned driver assistance systems, an aluminum dash panel, added gauge pack, 3.55 limited slip rear differential, larger radiator, heavy-duty front springs and spoiler delete. When the options pricing leaked, it indicated the package would cost $1,995. If that is the case, it seems like quite a deal.