1964 Ford Thunderbird on 2040-cars

Auto blog

Stocks down as automakers, Boeing lead China's hit list in trade spat

Shares in U.S. exporters of everything from planes to tractors fell on Wednesday after China retaliated against the Trump administration's tariff plans by proposing duties on key U.S. imports including soybeans, beef and chemicals. U.S. automakers' products are prominent on China's list of tariff targets, yet shares of automakers ended higher on Wednesday as Wall Street stocks changed course in the afternoon when investors' trade fears subsided. Tesla shares closed 7.3 percent higher at $286.94, Ford shares gained 1.6 percent to close at $11.33, and GM shares were up 3 percent at $38.03. Aircraft maker Boeing closed down 1 percent, weighing the most on the Dow Jones Industrial Average as documents from China's Ministry of Commerce and the U.S. manufacturer showed the move would affect some older Boeing narrowbody models. It was not immediately clear how much the tariffs would impact its newer aircraft. Boeing said it was assessing the situation while analysts from JP Morgan said the proposals from China looked to have been calibrated carefully to avoid a major impact on the planemaker. Fellow Dow component 3M lost as much as 2.4 percent. And farming equipment maker Deere lost nearly $10 per share at its lowest. The company urged the two countries to work toward a resolution to "limit uncertainty for farmers and avoid meaningful disruptions to agricultural trade." The speed with which the trade spat between Washington and Beijing is ratcheting up — the Chinese government took less than 11 hours to respond with its own measures — led to a sharp selloff in global stock markets and commodities. China was hitting back against U.S. President Donald Trump's plans to impose tariffs on $50 billion in Chinese goods with similar tariffs on U.S. goods even as Trump said the country is "not in a trade war with China." "Everybody knew they were going to retaliate. The question was how strong of a retaliation. Today's move clearly shows that they mean business," said Adam Sarhan, chief executive of 50 Park Investments in New York. China levied 25 percent additional tariffs on U.S. goods, but unlike Washington's list that covers many obscure industrial items, Beijing's covers 106 key U.S. imports including soybeans, planes, cars, whiskey and chemicals. Trump denied that the tit-for-tat moves amounted to a trade war between the world's two economic superpowers.

Ford Mustang, F-150, Expedition, and Lincoln Navigator recalled

The Basics: Ford will recall 201,900 examples of the 2011-2012 F-150, 2012 Expedition, 2012 Mustang, and 2012 Lincoln Navigator. The affected vehicles have the 6R80 transmission. Of the total, there are 84,000 of them in the United States and 17,900 in Canada. The Problem: The output speed sensor on the vehicle's transmission lead frame can force the gearbox to downshift into first gear. If this happens at high speed, it could cause the rear tires to slide or lock up. Injuries/Deaths: There are no reported injuries, but Ford know of three accidents related to this problem. The Fix: Dealers will update the powertrain control module software to eliminate the problem, and they'll also replace the transmission lead frame. If You Own One: Ford will begin notifying affected customers by mail on May 23. Related Video: FORD MOTOR COMPANY ISSUES THREE SAFETY RECALLS AND TWO SAFETY COMPLIANCE RECALLS IN NORTH AMERICA DEARBORN, Mich., April 27, 2016 – Ford Motor Company is issuing three safety recalls and two safety compliance recalls in North America. Details are as follows: Ford issues safety recall and customer satisfaction program for certain 2011-2012 Ford F-150, and 2012 Ford Expedition, Ford Mustang and Lincoln Navigator vehicles in North America to update powertrain control module software and inspect for certain diagnostic trouble codes Ford is issuing a safety recall for approximately 202,000 2011-2012 Ford F-150, and 2012 Ford Expedition, Ford Mustang and Lincoln Navigator vehicles for a potential issue with the output speed sensor on the vehicle's transmission lead frame. Under certain conditions, the transmission controls could force a temporary downshift into first gear. Depending on the speed of the vehicle at the time of the downshift, the driver could experience an abrupt speed reduction that could cause the rear tires to slide or lock up. This condition could result in loss of vehicle control, increasing the risk of a crash. Ford is aware of three reports of accidents and no injuries related to this condition. Affected vehicles are equipped with a 6R80 transmission and include certain 2011-2012 Ford F-150 vehicles built at Dearborn Truck Plant and Kansas City Assembly Plant, Aug. 19, 2011 through March 9, 2012; 2012 Ford Expedition vehicles built at Kentucky Truck Plant, Aug. 19, 2011 through Dec. 19, 2011; Ford Mustang vehicles built at Flat Rock Assembly Plant, Aug. 19, 2011 through Feb.

Ford idling Michigan Assembly Plant to trim Focus, C-Max supply

Ford will be putting the brakes on production at its Michigan Assembly Plant in Wayne, MI, idling production during the weeks of October 28 and December 16. Ford is citing the first drop in US sales in 27 months, a 4.2-percent dip in September, as the impetus for trimming their supplies, according to Automotive News.
Ford's deft management of its supplies has been part of its success over the years, and seeing supplies of Focus and C-Max, the two vehicles built at MAP, rise from 58 and 108 days, respectively, to 71 and 122 days over the span of a month was apparently all that was need to justify the trimming. As AN points out, the rule of thumb for many automakers is to maintain a 60-day supply of vehicles.
"Ford has been focused on keeping their pricing in check. Their operating margin is in double digits. Nobody else is there and they're obviously very proud of that," Alan Baum, an auto analyst with Baum & Associates told AN. Keeping the supply chain operating smoothly and not increasing supplies too much is crucial to that healthy profit margin. After all, a large supply lowers prices ,which, in turn, cuts profit. So while this news might not be great for employees at MAP, who now have an extra two weeks of vacation time, it's far from a sign of problems in Dearborn. Quite the opposite, actually.