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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.

Will the Ford GT make 630 hp?

Ford intends to build just 250 examples of the next-generation GT annually when production begins next year. That's low even by supercar standards, but anyone with an Xbox One can drive the highly anticipated model right now in the demo for Forza Motorsport 6. The car is even on the cover of the retail version, but the game might be giving a glimpse at one of the upcoming vehicle's biggest secrets. According to the specs page, the GT makes 630 horsepower and 539 pound-feet of torque, according to Motor Authority. Weight is shown at 2,890 pounds with a front/rear distribution of 43/57. Until now, Ford's only comment on the GT's output from its 3.5-liter twin-turbo V6 is "more than 600 horsepower," and that's certainly the case here. If accurate, the figures make the new model 130-hp more powerful than than the last GT, while also being hundreds of pounds lighter. Compared to modern competitors, the GT would be less powerful than a Ferrari 488 GTB and heavier than a McLaren 675LT. Unfortunately, Ford isn't commenting on the numbers in the game. "As we stated back at NAIAS, the Ford GT will produce more than 600 horsepower, and we can't speak to what Forza includes as specifications in their video game," company spokesperson Matt Leaver said to Autoblog via email. Don't think this is all doom and gloom, just yet. For one thing, more than numbers make a great car. Plus, the GT is still quite some way out from production, and spy shots still show it under development. Even if these figures are accurate at the time of Forza's development, that doesn't mean that they can't change in the meantime. Related Video:

2016 Ford Mustang GT bringing back hood turn signals

The 2016 Ford Mustang is being teased again, this time with a short video. And what you're looking at here is a nod back to Mustangs of the 1960s. Ford is bringing back a hood with turn signals in the vents. In 1967, Ford offered an optional hood on the Mustang with two heat extraction vents that faced the windscreen. Inside those vents were amber turn signals, so, you know, drivers could see their own blinkers blinking. A novelty feature, sure, but a nice historical cue that Ford is bringing back for its updated 2016 'Stang. We also know that Ford will offer a California Special pack on the 2016 Mustang GT. Beyond that, we don't expect too many more changes, seeing as how the Mustang was just completely redesigned for 2015. Stay tuned for the full details on Monday, May 11. Related Video: