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There's an impending shortage of new trucks in America's heartland

URBANDALE, Iowa — Jerry Bill is worried the novel coronavirus could hurt business at the Des Moines auto dealership he runs, but not because of a shortage of buyers for the big Ram pickups on his lot. "Our biggest issue will be if we don't get more inventory," said Bill, general sales manager of Stew Hansen Chrysler Dodge Jeep Ram, which sells around 2,700 new vehicles a year in Urbandale, a suburb of Iowa's capital Des Moines. After a drop in sales in April when consumers stayed home, Bill expects pickup truck sales to end May similar to where they were a year earlier. And if demand remains strong, Bill said he will run out of popular models in June. Fiat Chrysler began slowly restarting Ram truck assembly lines on Monday after a two-month shutdown. The U.S. economy contracted in the first quarter at its sharpest pace since the Great Recession of 2007-2009 because of lockdown measures aimed at slowing the spread of the coronavirus. Economists warn the second quarter will be much worse. Still, far from the lockdowns of states like New York, Michigan or Ohio, dealerships like Stew Hansen have provided FCA and Detroit rivals General Motors and Ford a rare bright spot: strong sales of pickup trucks in America's heartland. Overall U.S. sales of cars and light trucks crashed to the weakest pace in 50 years last month. But sales of big Detroit brand pickups, particularly in southern and western states less affected by the outbreak, significantly outperformed the market, industry executives and analysts said. Pickup trucks are one of the most profitable automotive segments in the world. They account for a huge portion of the Detroit automakers' profits and formed a huge lure for Peugeot, which expects to merge with FCA by early 2021. The pressure is now on to boost pickup truck production and send vehicles to dealers in parts of the country with dwindling supplies. That is particularly true for GM, which is running short of certain truck models after losing 40 days of production to a strike last fall. "If you don't have what someone wants, they can choose to go to another brand," said Cox Automotive analyst Michelle Krebs. 'Easiest swap ever' Detroit automakers in March rolled out large discounts — such as interest-free loans for seven years — to keep vehicles rolling off dealer lots.

Company veterans promoted to set a course for the future of Ford

Ford on Wednesday named two company veterans to lead its auto and mobility businesses as the No. 2 U.S. automaker shifts its focus to autonomous vehicles and realigns its automobile portfolio. Joe Hinrichs was named president of Ford's automotive unit, and Jim Farley will be president, new businesses, technology and strategy, effective May 1. Both will report to Chief Executive Officer Jim Hackett. Hinrichs' goal will be a sustainable EBIT margin (earnings before interest and taxes) of at least 8 percent, Ford said. He'll have responsibility for all of Ford's global business units, and both the Ford and Lincoln brands. And he'll lead all of the automotive skills teams, from product development through customer experience. "Joe Hinrichs possesses the knowledge, experience and leadership to now take our Automotive business to world-class levels of product excellence, customer satisfaction, efficiency and financial performance," Hackett said. "As we enter a busy period for new product launches and further restructuring in underperforming markets, Joe's leadership in transforming businesses through focused execution will be key." Farley is charged with leading Ford's strategic transformation, in which it hopes to gain higher margins through smart/connected vehicles. He'll oversee corporate strategy, global data analytics, global partnerships, research and advanced engineering, including initiatives in smart mobility and autonomous vehicles. "Jim Farley's job is to drive us into the future, both strategically and operationally, from AVs to mobility experiences to leveraging AI and big data. Jim combines an innate feel for what customers want and need in vehicles and the ability to translate this into the vehicles and services of the future," Hackett said. Marcy Klevorn, president of Ford Mobility, plans to retire Oct. 1 after 36 years at Ford. Until then, she will report to Hackett in a strategic role. "I have asked Marcy to work with me and the senior team to accelerate our transformation," Hackett said. "Marcy's decades of experience working with many of the leading companies in the tech space as well as the work she has done with the transformation of Ford IT and the establishment of Ford Mobility gives her unique knowledge to drive these initiatives."

Ford rolls out Vignale Mondeo for upscale European buyers

North American buyers looking for a luxury automobile from Dearborn know to turn to Lincoln, but overseas, the Ford brand itself appeals to upscale customers with its own products. The Blue Oval automaker unveiled a premium take on the Taurus for the Chinese market at the Shanghai Motor Show this weekend, and in Europe it's rolling out the Vignale sub-brand with the model you see here. Previewed in concept form a year and a half ago at the Frankfurt Motor Show, the Vignale line revives the name of a storied Italian coachbuilder that Ford acquired (together with Ghia) back in 1973. Now ready for production, the first Vignale model upgrades on the Mondeo (which we know as the Fusion) with a number of high-end features. The cabin space is altogether more luxurious, featuring high-end, laser-cut leather trim with hexagonal quilting and "tuxedo" stitching. The multi-contour front seats have a massage function, and occupants are better isolated from the road via upgraded sound insulation and active noise cancellation. The Ford Vignale Mondeo benefits from all the latest safety-convenience and infotainment technologies, including an optional Sony digital audio system with twelve speakers. The exterior is made to look more upscale as well, with unique metallic paint finishes, special chrome trim, 18-inch alloys and the requisite special badging to set it apart from ordinary Mondeos. Buyers will be able to choose between sedan or wagon body styles, front- or all-wheel drive and from a number of engine options. There's a 2.0-liter EcoBoost four with 237 horsepower, a 2.0-liter turbodiesel available with 177 or 207 hp, and a gasoline-electric hybrid system with 184 hp. Each vehicle is hand-finished and individually inspected at the Vignale Centre at Ford's plant in Valencia, Spain, and will be offered through select dealerships outfitted with premium Vignale Lounges. Customers will also benefit from access to a dedicated "relationship manager," customer assistance operators on call 24 hours a day and a companion app, but of course none of these features come cheap: At around GBP30k in the UK, the price of a Vignale Mondeo comes close to that of an Audi A6 or Jaguar XF, and it'll be up to individual buyers to decide whether the spruced-up Fusion is worth the premium. Look for a Vignale version of the S-Max to follow.