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Ford paying $750 million just to close plant in Belgium

According to a report from Reuters, Ford is shelling out $750 million in a severance deal that will see the automaker close its facility in Genk, Belgium. The automaker reached this deal with the 4,000 hourly workers employed at the plant last week, which means the company will pay out an average of $187,500 per worker.
Ford is still negotiating with the 300 salaried workers at the factory, which currently produces the Mondeo sedan. All told, Ford expects to lose around $2 billion in Europe thanks in no small part to the region's ongoing economic downturn, and two more plants are scheduled to be shut down in Europe this year. The company will log its $750 million payout under "special items" for this quarter.
As you may recall, Ford took a similar path in the US back in 2009 when the domestic market took a spill. Back then, the company shelled out around $50,000 per employee with at least one year of experience, plus either $25,000 toward a new car or an extra cash payment of $20,000. It would seem the cost of closing plants in Belgium is a much harder pill to swallow than in the States...

U.S. auto sales fall in July, as Detroit dials back on inventory, rental sales

DETROIT — U.S. carmakers said on Tuesday they continued to slash low-margin sales to daily rental fleets in July as General Motors, Ford and Fiat Chrysler Automobiles struggled to curb a slide in retail sales. July is on track to be the fifth straight month in which the annual pace of car and light truck sales declined from the same month a year ago, in part because of fewer fleet sales, analysts and industry executives said. July 2016 sales hit a strong 17.9-million-vehicle pace. GM said the seasonally adjusted annual sales rate fell to an estimated 16.9 million vehicles in July. At midmorning on Tuesday, GM shares were down 3.4 percent at $34.77, Ford was down 2.8 percent at $10.91, and Fiat Chrysler shares were down 0.3 percent at $12.05 in New York. GM sales dropped 15 percent from a year ago to 226,107 vehicles, as the company cut rental fleet sales more than 80 percent. The automaker said inventories of unsold vehicles at month's end were 104 days, down from 105 days at the end of June. GM has promised investors to reduce inventories to 70 days by year-end. Ford said its July sales dipped 7.5 percent to 200,212 vehicles, as it cut fleet sales more than 26 percent. Inventories fell to 77 days from 79 the previous month. Fiat Chrysler said sales dropped 10 percent to 161,477, as it also cut back sales to daily rental fleets. Among the top Japanese companies, only Toyota reported a year-to-year gain, with sales up 4 percent to 222,057 — just 4,000 units behind GM. Honda sales were down 1 percent to 150,980 — its first-quarter sales continuing to decline in North America but seeing a big increase in China. And Nissan sales fell 3 percent to 128,295. GM, Ford and Fiat Chrysler have cautioned that second-half financial results likely will be lower than first-half results, in part reflecting production cuts in North America and pricing pressures. The automakers this year have been deliberately dialing back sales to rental-car companies, which often generate little to no profit, while struggling to keep retail sales from sagging further, according to industry analysts. Industry consultant LMC cut its full-year forecast for new vehicle sales to 17 million vehicles. Automakers sold a record 17.55 million vehicles in the United States in 2016.

Three automotive tech trends to watch in 2018 and beyond

Every year, technology plays a bigger and bigger role in the auto industry. To put things in perspective, 10 years ago iPod integration and Bluetooth were cutting-edge in-car innovations, and smartphones and apps weren't yet a thing since the first iPhone was only about six months old. And I can't recall anyone talking about autonomous cars. Compare that to today, with mainstream coverage of the auto industry dominated by autonomous technology, along with electrification and almost every move made by Tesla. These three topics were the most significant trends of car tech in 2017 and I believe they will continue to shape the auto industry in 2018 and beyond. Let's examine them. Full Autonomy Gets Closer to Reality While there were many developments this year that indicate we're inching closer to fully autonomous vehicles, I was behind the wheel for hours to witness one of them. In October I had the chance to test Cadillac Super Cruise on a 700-mile, 11-hour drive from Dallas to Santa Fe – and had my hands on the wheel for maybe 45 minutes max throughout the entire trip. Super Cruise is far from making the Cadillac CT6 or any GM vehicle fully autonomous, and has limitations such as functioning only on pre-mapped main highways. While it simply adds a layer of lane centering to adaptive cruise control, the technology will go a long way in making mainstream drivers more comfortable with letting machines take over. On a separate front, GM is pushing ahead with fully autonomous vehicles and announced last month that it plans to launch of fleets of self-driving robo-taxis in several urban areas in 2019. While most automakers are also in the race to make autonomous cars a reality, GM's turbocharging of its efforts appeared to be in response to Waymo, which announced just weeks earlier that its Early Rider Program in the Phoenix area would go completely driverless. The Early Rider Program launched last April, offering the public a chance to ride in Waymo's autonomous Chrysler Pacifica minivans. In this new phase of testing, Waymo is using its own employees as guinea pigs instead of the public while the vehicles operate without a human behind the wheel, and takes another giant step forward for fully autonomous driving.