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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.

Ford sets world record for biggest Hot Wheels track loop

Take Your Child to Work Day looks like a pretty amazing experience for a child if their parent works at Ford. For the recent event, workers at the Blue Oval set up the world's largest Hot Wheels track loop in the atrium of the company's Research and Innovation Center in Dearborn, MI, and launched toy cars from over three stories. The idea came from Ford dynamometer technician Matt West who had been building progressively larger loops with his son. This one was the biggest ever, though, with a ramp 35.5-feet high and a 12.5-foot loop to crush the previous record of nine feet, nine inches tall. Fittingly, the track was inaugurated with a Ford Mustang Hot Wheels car taking the first run. To support such a massive size, the Hot Wheels track fits into a plywood structure that's bolted together. Beyond just being fun and looking incredibly cool, the stunt was meant to teach kids about mathematics and engineering. Ford Sets World Record for Biggest Hot Wheels Car Track Loop in Support of Take Your Child to Work Day • To help children cultivate an interest in science and engineering, Ford attempted to set a new world record for building the largest Hot Wheels® car track loop as part of this year's Take Your Child to Work Day • Ford Mustang Hot Wheels car started at more than three stories high inside Ford Research and Innovation Center • Old record loop stood at nine feet, nine inches tall DEARBORN, Mich., April 23, 2015 – Ford ran circles around the old Hot Wheels® record loop as part of this year's Take Your Child to Work Day. When the effort was complete, Ford had made a world record attempt with a Hot Wheels car track loop that exceeded 12 feet tall. The world record attempt was the brainchild of Ford dynamometer technician Matt West, who had built increasingly large Hot Wheels loops with his six-year-old son Blade at their home in Monroe, Michigan. The attempt took place in the three-story atrium of the company's Research and Innovation Center in Dearborn in support of Ford's participation in national Take Your Child to Work Day. "It started as part-fun, part-physics lesson with my son at home," said West. "We built one in our playroom, and then built a five-foot- tall loop in our backyard.

Coronavirus shakes up America's truck market: GM outselling Ford and Ram

FCA, Ford and General Motors joined the rest of the U.S. auto industry in taking heavy volume hits due to coronavirus-related shortages of both cars and customers. The saying goes that a rising tide lifts all boats; it stands to reason, then, that a falling one would have the opposite effect.  However, as we learned Thursday, the automotive market can behave in unpredictable ways. While the F-Series remained the best-selling nameplate in Q1, GM's full-size trucks are now outselling Ford's again for the first time in years, and with this upward thrust from the General, FCA's Ram was unceremoniously booted out of a hard-earned second place.  While late-March sales declines hit just about every major automaker in one way or another, the model-by-model results weren't nearly so uniform. And because the market tends to be a zero-sum game, for every winner, there generally has to be a loser.  In this case, that winner was GM, and its rise had to come at the expense of another automaker, in this case, Ford. F-Series sales dropped 13.1 percent in the first quarter of 2020, while sales of GM's full-sized Silverado and Sierra surged nearly 28% in the same period. FCA's Ram lineup managed a steady-as-she-goes 7% increase. All-in, GM finished the quarter with 197,743 full-size trucks sold to Ford's 186,562. Here's the full breakdown: Ford F-Series: 186,562  Chevrolet Silverado*: 144,734 Ram P/U: 128,805 GMC Sierra: 53,009 *includes 1,036 Medium Duty sales Things are a but murkier in the midsize segment, where the Chevy Colorado slipped 36% to just 21,430 units sold — just a few hundred better than the slow-selling Ford Ranger's Q1 numbers. The GMC Canyon experienced an almost identical slide, finishing the quarter with just 4,483 units sold. For perspective, Jeep sold more than 15,000 Gladiators and Toyota's midsize Tacoma slipped less than 8%, finishing the quarter with nearly 54,000 sales.  We suspect this discrepancy in full- and mid-size truck sales comes from shifting incentives. Ford, GM and FCA would like to keep selling bigger trucks because there's far more profit margin built into their list prices. Even with tens of thousands of dollars in manufacturer money on the hood, big trucks still make money.  Since these automakers report quarterly, we won't get another good look at these numbers until July, but if you thought that 2019 represented the new normal for U.S. auto sales, well, think again.