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UAW strike decision day comes as bargaining heats up

DETROIT — United Auto Workers President Shawn Fain is scheduled to say later on Friday whether recent intensified bargaining with the Detroit Three automakers has produced enough progress to forestall more walkouts. A video address by Fain is scheduled for 2 p.m. EDT and will cover substantive bargaining updates, people familiar with the UAW's plans said. That timing is a departure from the previous two Fridays in which Fain addressed union members at about 10 a.m. Detroit time, and ordered walkouts at additional Detroit Three factories to start at noon. Fain kept automakers guessing with a social media post on Thursday afternoon that showed an image of three men in suits, their faces obscured by the logos of the Detroit automakers, standing in front of a table with roses on it. "Tune into @UAW's Facebook page at 2pm on Friday, October 6th to see who gets the rose!" Fain tweeted, a reference to the television reality show "The Bachelorette," in which the week's winners get a rose. In the UAW version, the winner offers richer contract terms, and gets a week without a new strike. People familiar with the bargaining among the UAW and Detroit automakers General Motors, Ford Motor and Chrysler parent Stellantis said talks have heated up this week after days of little movement. Ford, GM and Stellantis have made new proposals in an effort to end the escalating cycle of walkouts that threaten to undercut profits and cripple smaller suppliers already strained from months of production cuts forced by semiconductor shortages. The pressure is rising on the three automakers as EV market leader Tesla cut U.S. prices of its Model 3 sedan and Model Y SUV, ratcheting up its price war and further pressuring profits on all EV models that are forced to match CEO Elon Musk's aggressiveness. Ford said its latest wage offer would provide raises in excess of 20% over the life of a contract. Combined with proposed cost-of-living-adjustments, workers could see close to 30% increases in pay, people familiar with the proposal said. Fain's Friday video addresses have become must-see events since he launched coordinated strikes at GM, Ford and Stellantis plants shortly after midnight on Sept. 15. Each Friday since, Fain has kept the automakers in suspense as to whether he would order additional plants shut down, or give an automaker a pass because they had offered new concessions.

Ford 2Q profit drops 86% as it restructures overseas

DEARBORN, Mich. (AP) — Ford's net profit tumbled 86% in the second quarter due largely to restructuring costs in Europe and South America. Net income for the April-through-June period dropped to $148 million, or 4 cents per share. Without the charges the company made 28 cents per share. Revenue was flat at $38.9 billion. On average, analysts surveyed by FactSet expected earnings 31 cents per share on revenue of $38.49 billion. Chief Financial Officer Tim Stone says the company had charges of $1.2 billion as it moved to close factories in Europe and South America. He says Ford already is seeing an impact from its global fitness measures that included a reduction of 7,000 white-collar workers. Ford, which released numbers after the markets closed Wednesday, says its results include a $181 million valuation loss on an investment in a software company, trimming 4 cents off adjusted earnings per share. Its stock fell 6.3% in after-hours trading to $9.68. Stone said Ford is in the early stages of its restructuring, but already is seeing improvement in some regions. Free cash flow also improved by 80% to $2.1 billion in the first half of the year, he said. "We're already starting to see some early benefits," he said. "A lot of work to do." The company expects improvement in the second half of the year as more new big SUVs hit dealerships and more of the restructuring takes hold. Ford on Wednesday forecast pretax adjusted earnings of $7 billion to $7.5 billion for all of 2019, compared with $7 billion last year. The company previously had only said that pretax earnings would improve. Full-year adjusted earnings per share are forecast to be $1.20 to $1.35, up from $1.30 in 2018. Previously it did not give per-share guidance. Ford's U.S. sales fell nearly 5% in the second quarter, according to the Edmunds.com auto pricing site, as the company exited most of its passenger car business. But Stone said sales of the new Ford Ranger small pickup offset much of that as its share of the small truck segment rose 14%. Edmunds, which provides content for The Associated Press, said Ford's average vehicle sale price rose 2.8% to $41,328 during the quarter. In North America, Ford's biggest profit center, pretax earnings fell 3% to just under $1.7 billion, which the company blamed on switching its Chicago factory to build new versions of midsize SUVs.

Find out if the Ford Fiesta ST can match Europe's latest hot hatches

The V8 grunt of the Mustang has defined Ford performance cars in the US for the last 50 years, but in Europe, the Blue Oval has nearly as a long history of building some of the best hot hatches on the market with the Fiesta, Escort and later the Focus. The latest Fiesta ST has just hit the roads on both sides of the pond and has been enthusiastically received thanks to its combination of a peppy, turbocharged engine and hatchback utility.
However, Europe is getting a bumper crop of hot hatches at the moment, including the forthcoming, third-generation Mini Cooper S. Should Ford have waited to launch the ST until it knew how the competition performed? That's the answer that Xcar is after in its latest video, and it took the Fiesta to the track and some very misty, Welsh roads to find out. Scroll down to find out whether the ST stacks up.