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Ford and GM link bonus checks to quality scores

The poor first quarter earnings of Ford and General Motors are having an effect all the way up the food chain. Both automakers struggled with recalls in the first three months of the year, and, according to The Detroit News, they have responded by increasing the percentage of bonuses tied to vehicle quality for salaried workers, including top executives.
GM announced that 25 percent of bonuses (up from 10 percent) for all salaried workers would be tied to its vehicle quality standards. The automaker revealed in its financial report that it spent $1.3 billion on recall-related repairs in the first quarter, and net income was down 86 percent.
Ford also increased the quality proportion of bonuses for about 26,000 salaried workers all the way up to CEO Alan Mulally from 10 percent to 20 percent. The company announced in its report that the amount paid out in warranty and recall claims was about $400 million higher than expected in the first quarter. Its net income fell 39 percent from the previous year. "The change reflects how critical quality is to our overall business," said spokesperson Todd Nissen speaking to Autoblog.

Fiat boss Elkann being mentored by... Bill Ford?

Fiat Chairman John Elkann has been turning to an unusual source for advice on the car business. While speaking during an interview with The Detroit News, Elkann said he often asks Bill Ford Jr. for advice on how to proceed with the turnaround at Chrysler. "It's great to have the opportunity to share this with someone like Bill, who has experienced many things and gone through many things ... especially linked to Detroit." Elkann said.
As the Agnelli family heir, Elkann has inherited a long and fruitful friendship with the Ford family. While Giovanni Agnelli built his first Fiat four years before Henry Ford created his first vehicle, it was Ford that showed Agnelli the benefits of mass production and helped pave the way for what would become the Fiat empire.
Giovanni's grandson, Gianni, helped mentor Bill Ford when he was elected chairman of Ford Motor Company. Now, Ford is returning the favor by helping Elkann navigate the automotive industry's tumultuous waters.

Ford also opening up EV, hybrid patents, with a price tag

Like Tesla and Toyota before it, Ford is seeing the light when it comes to freeing up alternative powertrain patents. Of course, the Blue Oval does things differently, so free doesn't mean no cost. Instead of making its electric vehicle patents simply available to anyone, Ford is going to sell off its EV tech for an unspecified fee. Ford says it has 650 electrified vehicle patents and another 1,000 or so pending EV tech patent applications. Ford filed 400 such applications last year alone. To buy these patents, interested parties should contact Ford's technology commercialization and licensing office or work AutoHarvest. Or, you know, you could just go get Tesla patents for free. The jury is still out on whether these open patent programs are being used. The Tesla program, for example, didn't seem to be all that exciting to most OEMs right after it was announced. Ford has six vehicles with some sort of electrified powertrain: the Focus Electric, Fusion Hybrid and Energi PHEV, Ford C-MAX Hybrid and Energi plug-in hybrid and the Lincoln MKZ Hybrid. The only full EV in that group, the Focus Electric, starts at $29,995. Ford Opens Portfolio of Patented Technologies to Competitors to Accelerate Industry-Wide Electrified Vehicle Development Ford is opening its portfolio of electrified vehicle technology patents to competitive automakers to accelerate industry-wide research and development of electrified vehicles In 2014, Ford filed for 400-plus electrified vehicle patents – more than 20 percent of the total patents the company applied for last year Ford is set to hire an additional 200 electrified vehicle engineers this year as the team moves into a newly dedicated facility – Ford Engineering Laboratories – home to Henry Ford's first laboratories DEARBORN, Mich., May 28, 2015 – Ford Motor Company is offering competitors access to its electrified vehicle technology patents – a move to help accelerate industry-wide research and development of electrified vehicles. In 2014, Ford filed more than 400 patents dedicated to electrified vehicle technologies. This is more than 20 percent of the patents the company filed – totaling more than 2,000 applications. "Innovation is our goal," said Kevin Layden, director, Ford Electrification Programs. "The way to provide the best technology is through constant development and progress.