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2015 F-150 kick-starts Ford sales

The F-150 had a middling year in 2014, and its sales dipped slightly as Ford transitioned to producing the all-new truck with an aluminum body. But with one factory humming, another on the way and a fuller stock of trucks, 2015 is already shaping up to be a different story. The F-Series posted a 17-percent leap in January, helping to push Ford sales to a 15-percent gain for the month. The F-Series had its best January performance in 11 years with sales of 54,370 trucks last month. Much of this strength comes from the new generation of the F-150. While many of the old model are still being sold off, Ford is rolling out the new version. Just five percent of the F-150's retail sales were the new truck in December, but it was up to 18 percent in January. The increase comes as the first factory that makes the truck, Ford's Dearborn facility, is fully back online. The other F-150 factory, in Kansas City, is still completing its changeover to build the aluminum-bodied truck, and that's expected to be finished in the first quarter of this year. Sales of the truck will still be "tempered a bit" until the Kansas City plant ramps up, Ford sales analyst Erich Merkle said. Ford expects to have a full inventory of F-150s by mid-year. To that end, the company announced plans on Wednesday to add 1,550 jobs to support the F-150, including 900 positions at the Kansas City factory. The remaining jobs will be spread out over sites in metro Detroit. The Dearborn and Kansas City factories collectively will be able to build more than 700,000 F-150s annually. The added headcount also means Ford has reached the maximum number of entry-level workers allowed under its pact with the United Auto Workers. About 300 to 500 employees at several plants in the Midwest will transition to a higher pay rate, and their wages will rise from $19.28 an hour to $28.50 an hour. The F-Series was Ford's hottest seller in January, moving off lots in an average of 12 days. The high-end models, the King Ranch and the Platinum versions, are moving slightly quicker. The average transaction price is also up $2,100 for the F-150 compared to January 2014. "We're really pleased with how the new one is doing on dealer lots," Merkle said. A larger stock of F-150s will allow Ford and its rivals to capitalize on low fuel prices, which have slowed consumers' interest in smaller vehicles.

Suppliers love Toyota and Honda: Why that matters to you

You might think that a survey of automotive suppliers and their relationship with OEMs is the automotive equivalent of nerd prom. In some ways that's what the North American Automotive OEM-Supplier Working Relations Index (WRI) is. The study, the 17th annual conducted by Planning Perspectives Inc., is based on input from 652 salespeople from 108 Tier One suppliers, or, PPI points out, 40 of the top 50 automotive suppliers in North America. Suppliers to General Motors, Ford, FCA, Toyota, Honda, and Nissan. But the results have consequences in terms of tens of millions of dollars for OEMs - and in the quality, technology, and cost of the next vehicle you buy. There are a couple of ways to look at the results of the WRI. One is, "So what else is new?" And the other is, "Damn! How did that happen?" The study looks at five relationship areas — OEM Supplier Relationship; OEM Communication; OEM Help; OEM Hindrance; Supplier Profit Opportunity — within six purchasing areas — Body-in-White; Chassis; Electrical/Electronics; Exterior; Interior; Powertrain. In the overall rankings, Toyota is on top for the 15 th time in 17 years, with a score of 328. Honda, the only company to best Toyota (in 2009 and 2010), comes in second, at 319. Those two companies, explains John Henke, president of PPI, have collaborative working arrangements with colleagues and suppliers alike built into the very fabric of their cultures. This, however, is not a situation where one can readily conclude it is about "Japanese companies," because the third company with headquarters on the island of Honshu, Nissan, came in dead last. This is the "How did that happen?" portion. The Nissan score of 203 puts it 125 points behind Toyota. There hasn't been a number that low since the then-Chrysler Corp. scored 187 in 2010, when the company was clawing its way out of the recession. Clearly, the suppliers don't feel particularly engaged by the buyers at Nissan. Henke explains that whether a company does well or not on the WRI is rather simple. All people do things based on what they're measured on. "If you're measured on taking 10% out of your annual buy, you immediately know how to do it. But if you're also measured on improving relations, suddenly there is a new dynamic as to what you can do to achieve both.

Lincoln dealers to build standalone dealerships separate from Ford

Way back in 2011, Ford Motor Credit Co. established Lincoln Automotive Financial Services as part of what Automotive News called "a campaign to set the Lincoln brand apart." Lincoln's been on a wild, public ride in the seven years since, which included a near-death experience in 2013 under former Ford CEO Alan Mulally. But Ford's luxury brand has rebounded and is ready to take another shot at setting itself apart. Automaker execs have asked dealers with twinned Ford- Lincoln dealerships in 30 major U.S. markets to build standalone stores. According to company data, the move isn't a gamble — dealers with standalone showrooms sell more vehicles. Lincoln's standalone dealerships in the 30 major U.S. markets that account for 70 percent of luxury segment sales increased 48 percent from 2014 to 2017, compared to an overall Lincoln brand sales increase of 18 percent. After a former Ford-Lincoln dealer in Minneapolis opened a devoted Lincoln store this January, sales have climbed 60 percent so far this year. Dealers in Orange County, California, and Atlanta, Georgia have seen sales double since opening exclusive Lincoln storefronts. The sales manager at the Atlanta dealer said, "Customers have pulled up and said, 'This is how it should be.'" Robert Parker, Lincoln's head of marketing, said, "Customers expect the environment to be equal to the product. They want to buy a luxury product in a luxury environment." That issue repeatedly comes up when a mass-market brand launches a luxury product; observers have lately wondered how much the issue affects sales of Hyundai's Genesis brand. Out of 845 Lincoln showrooms nationwide, there are 150 Lincoln dealers in those 30 major U.S. markets. So far, 72 dealers have made or are working to make the standalone switch on their own. Lincoln is asking the remaining 78 shops to follow suit, to agree to a new facility by July 2019 and to have the store finished by July 2021. Only the showrooms would need to be exclusive, service and other back-end departments can remain in Ford-branded complexes. Wielding the carrot, Lincoln will help dealers with relocating, and pay more for every car sold. Wielding the stick, Lincoln said that come Q2 2019, it won't let twinned dealers sell Black Label trims if they don't already. Over the next couple of years, Lincoln will complete the revamp of its lineup. Said marketing honco Parker, "The next phase of the transformation is critical.