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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.

Ford recalls over 953,000 vehicles to replace Takata airbag inflators

DETROIT — Ford is recalling more than 953,000 vehicles worldwide to replace Takata passenger airbag inflators that can explode and hurl shrapnel. The move includes over 782,000 vehicles in the U.S. and is part of the largest series of recalls in U.S. history. Included are the 2010 Ford Edge and Lincoln MKX, the 2010 and 2011 Ford Ranger, the 2010 to 2012 Ford Fusion and Lincoln MKZ, the 2010 and 2011 Mercury Milan, and the 2010 to 2014 Ford Mustang. Some of the recalls may be limited to specific geographic areas of the U.S. Takata used the chemical ammonium nitrate to create an explosion to inflate airbags. But it can deteriorate over time due to heat and humidity and explode with too much force, blowing apart a metal canister designed to contain the explosion. At least 23 people have been killed worldwide and hundreds injured by the inflators. Ford says it doesn't know of any injuries in vehicles included in this recall. Dealers will replace the inflators. Ford will notify owners about the recall starting on Feb. 18, and the company has replacement parts available for dealers to order, said spokeswoman Monique Brentley. In previous Takata recalls, parts availability had been an issue. Owners can go to this Ford website and key in their vehicle identification number to see if their cars and SUVs are being recalled. The same information will be available soon at the NHTSA recall website. More than three years after the U.S. National Highway Traffic Safety Administration took over management of recalls involving Takata inflators, one third of the recalled inflators still have not been replaced, according to an annual report from the government and a court-appointed monitor. The report says 16.7 million faulty inflators out of 50 million under recall have yet to be replaced. And 10 million more inflators are scheduled to be recalled this month, including the Ford vehicles. Safety advocates said the completion rate should be far higher given the danger associated with the inflators. The recalls forced Takata of Japan to seek bankruptcy protection and sell most of its assets to pay for the fixes. The inflators grow more dangerous as they get older because ammonium nitrate deteriorates due to high humidity and cycles from hot temperatures to cold. The most dangerous inflators are in areas of the South along the Gulf of Mexico that have high humidity. Related Video:

2020 Ford Escape, Lincoln Corsair ace crash tests, earn Top Safety Pick from IIHS

The redesigned 2020 Ford Escape and its platform-mate, the 2020 Lincoln Corsair, have both just completed their bout of crash tests at the hands of the Insurance Institute for Highway Safety, and while they did not emerge unscathed, they did come away with the agency's Top Safety Pick Award. One caveat: The rating only applies to the Escape equipped with the available LED headlights, which were deemed Acceptable. Similarly, the Corsair needs the available curve-adaptive LED headlights, also rated Acceptable, in order to achieve Top Safety Pick. The Escape's standard halogen headlights scored only a Marginal rating, while the Corsair's base LED headlights were deemed Poor due to glare. Those low headlight ratings knock the vehicles out of contention for Top Safety Pick. Had either vehicle offered headlights able to achieve a Good rating, that would have been enough to get them the agency's Top Safety Pick+ rating. Outside of their headlights, the 2020 Escape and Corsair acquitted themselves well. The Escape saw a big improvement in the difficult small-overlap front crash test, going from a Poor result in the previous generation to Good with the new one. The Corsair performed identically, and both achieved Good ratings in all six crash tests. The IIHS also tests automatic emergency-braking systems, and the standard and optional systems in the Escape and the Corsair both earned Superior ratings.