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Ford defends plan to shareholders: ‘We're simply reinventing the American car’

Ford's top executives took heat from shareholders over their plan to do away with sedans as we know them in Ford's North American lineup, as the company held its annual meeting Thursday. Critics said the plan to shelve the Fiesta, Focus and Taurus, reduce the Focus to one crossover model, and concentrate on high-margin trucks and SUVs was a shortsighted abandonment of entire market segments of affordable vehicles. "This doesn't mean we intend to lose those customers," Ford CEO Jim Hackett said. "We want to give them what they're telling us they really want. We're simply reinventing the American car." Ford has said SUVs/crossovers and pickups will constitute 90 percent of its North American lineup by 2020. And though only the Mustang and new Focus Active will remain, it plans to add new vehicles going forward that offer better fuel economy and utility, including EVs and hybrids. Hackett characterized the shift not as an abandonment of traditional cars but as a transformation of them. "We don't want anyone to think we're leaving anything," Hackett said. "We're just moving to a modern version. This is an exciting new generation of vehicles coming from Ford." It was Hackett's first annual meeting as CEO, and for the second year it was conducted online rather than in person. The change to Ford's lineup is part of Hackett's overall plan to cut $25.2 billion in costs by the year 2022. Executive Chairman Bill Ford Jr. blamed the negative reaction to the lineup plan on media coverage. "I wish the coverage had been a little different," he said. "If you got beyond the headline, you'll see we're adding to our product lineup and by 2020 we'll have the freshest showroom in the industry. The headlines look like Ford's retreating. In fact, nothing could be further from the truth." While Ford was clear about its plans for the Blue Oval, it has been less clear about the Lincoln brand. Hackett on Thursday said only that the Lincoln Continental, re-introduced just two years ago, would continue "through its life cycle" — but it has been such a slow seller that rumor has Ford killing the Continental again after that, and Hackett made no mention of a new generation. Presumably the MKZ sedan will go away when its twin the Ford Fusion does, but although Ford has outlined end dates for other models, the Fusion's departure is open-ended. The stock price has been a frustration for investors for years and has fallen 12 percent since the first of the year.

Consumer Reports: Ford Fusion fun but flawed; Mitsubishi i-MiEV slow, chintzy [w/videos]

Waiting for a Ford compliment from Consumer Reports these days is like waiting for a low-cost new product from Apple. So we weren't really expecting a glowing review of the 2013 Ford Fusion when CR got its hands on the car. The institute's crew bought three different versions of the Fusion (Hybrid, 1.6-liter EcoBoost and a Titanium with the 2.0-liter EcoBoost) to put through its barrage of tests, and while we aren't too surprised by some of the findings, they're still interesting nonetheless.
CR praises the Fusion for its "eye-catching" design and says that the sportier Titanium trim level is the best-handling midsize sedan they've ever tested, but that's about where the good news ends for Ford. The Fusion Hybrid also posted the best-ever fuel economy CR has recorded in a midsize sedan, but the only problem is that their number was 39 miles per gallon combined - far less than Ford's 47 mpg rating for city, highway and combined. As expected, CR also dinged the Fusion for its MyFord Touch, but some of the other gripes about the car include a cramped cabin and poor fit and finish.
Other Ford products tested this time around include the Focus Electric and C-Max Hybrid. Like the Fusion, CR's observed fuel economy of 37 mpg for the C-Max fell well short of Ford's advertised 47-mpg rating, and both cars were criticized for the use of MyFord Touch. CR notes that the Focus Electric's interior is also cramped, with the battery pack taking up a lot of cargo space.

Ford Mustang was almost 'Imported from Detroit'

The Ford Mustang achieved iconic status nearly the moment the sheet came off at the 1964 World's Fair. And if Henry Ford II wasn't getting divorced around that time, the pony car might have been called the Torino and been marketed as 'Imported from Detroit,' according to Automotive News. We'll explain. During research for the new book Once in a Great City: A Detroit Story, author David Maraniss found an interesting connection between Chrysler's (now FCA US) slogan and the Ford Mustang. Before the pony car even had a name, the Blue Oval's advertising agency had the idea to market it as a "brand new import ... from Detroit," according to Automotive News. The vehicle would be sold as "inspired by Italy's great road cars, but straight from Detroit." The name Torino was suggested, as well. However, the real world interfered in making the Mustang Detroit's first import. According to the author, Henry Ford II was getting a divorce, and his future wife was Italian. It was therefore thought to be a bad idea to sell the future pony car as being from Italy. Things clearly changed by the time the Torino hit the streets years later. Related Video: