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Ford will lay off 700 employees in Michigan

Lagging sales of compact and electric cars are starting to take their toll on automakers. Ford said Thursday it intends to lay off 700 employees who work at the Michigan Assembly Plant in Wayne, MI, over the next five months. The plant makes Ford Focus and C-Max vehicles. Sales of both have stalled in recent months. The layoffs affect 675 hourly and 25 salaries employees, and will begin in late June and continue through September, according to paperwork filed with state officials. The company expects to re-hire the affected employees elsewhere and use them on temporary basis throughout the summer. Ford spokesperson Kristina Adamski said the affected employees will be "first in line" for other jobs at nearby plants, and UAW vice president Jimmy Settles said he expected all would be re-hired at other southeast Michigan factories by "early 2016." Although industry sales have remained high overall, the growth has come from SUVs and pickup trucks. Conversely, compact cars and alternate-powered vehicles like the C-Max have struggled to find customers amid cheap gasoline prices. Focus monthly sales fell 14.5 percent year over year in March, and C-Max monthly sales dropped 22.9 percent over the same period. It was less than three years ago that Ford hailed the Michigan Assembly Plant as a model for its future, one that would quickly adapt to market conditions through a more flexible assembly process. The plant was retrofitted at a cost of $550 million so that the same assembly line could install electric, plug-in hybrid or gasoline powertrains. Ford produces the Focus, Focus ST, Focus Electric, C-Max Hybrid and C-Max Energi here. At the time, company officials said the flexible line was a way to "not be trapped with dedicated one-trick-pony plants where you have under-capacity or over-capacity situations," said Jim Tetreault, Ford's vice president of North American manufacturing, in November 2012. But that's exactly where Ford finds itself as consumers have turned away from both compact and gas-sipping hybrids and electrics as gas prices have fallen to a national average of $2.49 per gallon, according to Thursday's AAA Fuel Gauge Report. One year ago, gas prices averaged $3.70 per gallon. In perhaps a melancholy twist, the Ford Expedition and Lincoln Navigator that were phased out at Michigan Assembly by the retrofit are once again the types of vehicles that are sought after by consumers.

Feds open investigation into Chevy Express, Ford Freestar rust issues

'Tis the season... for road salt. And with that, comes rust. And what does rust bring? Well, for Ford and General Motors, a National Highway Traffic Safety Administration investigation. According to The Detroit News, NHTSA is looking into potential recalls issues with Chevrolet Express vans and Ford Freestar minivans.
The feds have received five complaints that rust has caused leaking fuel filler pipes on 2003 Express vans. Separately, seven complaints have been filed over excessive rust in the rear wheel wells of 2004 Ford Freestar and Mercury Monterey minivans. The Freestar and Monterey went out of production in 2007. Neither issue has resulted in any crashes or injuries, according to the report.

Ford reveals Fiesta ST race car, points at road ahead for bigger things in Global RallyCross

The 2014 Ford Fiesta ST doesn't go on sale until this summer, but fans of Global RallyCross will be able to catch the car in action before then. Announced ahead of the Chicago Auto Show, the Fiesta ST will be the car run by Ford GRC teams this season, and the model on display in Chicago will be the racecar built by Swedish tuner OlsbergsMSE driven by Tanner Foust and Brian Deegan. Ken Block and his newly renamed Hoonigan Racing Division will also be competing in the Fiesta ST.
The 2013 GRC season has not been announced yet, but the venues will also include the summer X Games events in Brazil, Spain, Germany and, of course, Los Angeles. Ford announced that it will be the sole automotive sponsor of this year's summer X Games, and it will be looking to bring home a gold medal this year after Block placed silver last year.
In other Ken Block- and Ford-related news, another Chicago debut will be a tuned Focus ST called the TrackSTer project. Built in cooperation with Block, Ford and automotive tuner fifteen52, the TrackSTer will get plenty of styling, performance and handling upgrades. Some of the add-ons include a performance exhaust and short-throw shifter from Ford Racing, a rebuilt engine, upgraded components such as the limited-slip differential, intercooler, engine controller and clutch as well as upgraded brakes.