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Ford, GM still doing new business with Takata amidst airbag crisis

Lengthy vehicle development times make it difficult for automakers to cut and run from the supplier. You might expect automakers to be fleeing any connection with beleaguered supplier Takata in the wake of the company's exploding airbag inflator crisis. After all, with a Senate hearing, pending lawsuit, plummeting stock value and demand for a national recall, the tier-one supplier isn't at its strongest right now. However, years of cooperation mean that automakers are standing by Takata, and necessity may be playing a role, as well. About 39 percent of Takata's business comes from airbags, and seatbelts make up another significant chunk of the operation too, says Bloomberg. The long-term relationships and lengthy vehicle development times make it difficult for automakers to cut and run from the supplier. "Takata has so much product breadth that I don't really see that they could just disappear," said AutoPacific analyst Dave Sullivan to Bloomberg. For example, Takata helped develop the unique front center airbag with General Motors in models like the Chevrolet Traverse and Buick Enclave. Outside of safety tech, it is also a partner with Ford on the adaptive steering system available on the upcoming 2015 Edge. These long-lasting partnerships make change difficult now that there's a problem. According to Reuters, automakers claim it would take a year or longer to set up with a different supplier for replacement airbag inflators. Switching to a completely different part for the repairs might not be a viable option either, because of the engineering time needed. BMW is taking action, though. According to Reuters, the Bavarian brand is working with the supplier to move inflator production from Monclova, Mexico, to a Takata factory in Freiburg, Germany. The Mexican plant may be the source of some of the faulty parts. News Source: Bloomberg, ReutersImage Credit: Jens Meyer / AP Photo BMW Ford GM Safety Takata airbag recall

Autoblog Minute: VW Emissions Scandal, New Ford Super-Duty

We got our first looks at look at Ford's new Super Duty truck lineup this week but it's Volkswagen that has been dominating the news cycle, as Matthias Muller is named CEO of the embattled automaker. Autoblog's Senior editor Greg Migliore reports on the recap edition of Autoblog Minute. Show full video transcript text [00:00:00] We got our first looks at look at Ford's new Super Duty truck lineup this week but it's Volkswagen that has dominated the news cycle as Matthias Muller is named CEO of the embattled automaker. I'm Senior editor Greg Migliore and this is your Autoblog Minute Weekly Recap. Super Duty is new for 2017. Our first look at these heavy duty trucks showed increased cab space for passengers, and [00:00:30] a lighter aluminum frame. Ford insists these changes will provide customers with increased towing capacity and fuel efficiency. The all-new Super Duty will be built at Ford's Kentucky Truck Plant, and it goes on sale in late 2016. Now, in case you missed it Volkswagen is under fire for gaming EPA emissions testing. A massive government recall is in the works and the world's top-selling automaker is looking at significant losses in both car sales and its stock value. On top of losing billions of dollars, Volkswagen is also facing [00:01:00] legal issues. And this week we saw Martin Winterkorn step down as CEO of Volkswagen Group. These changes mark just the beginning of VW's arduous process of rebuilding consumer trust. Those are the highlights from the week that was. Be sure to check out my full recap this Saturday, plus some added insight on the Buick Cascada and its pricing strategy. For Autoblog, I'm Greg Migliore. Autoblog Minute is a short-form video news series reporting on all things automotive. Each segment offers a quick and clear picture of what's happening in the automotive industry from the perspective of Autoblog's expert editorial staff, auto executives, and industry professionals.

Ford C-Max sales hold steady despite fuel economy fracas

Despite the ballyhoo that accompanied Ford's lowering of the C-Max fuel economy figures, the Blue Oval is still seeing strong demand for the five-seat MPV, as Automotive News reports. Speaking to marketing boss Jim Farley, AN says that the controversy surrounding the C-Max's fuel economy figures won't force Ford to change its marketing strategy.
Ford lowered the fuel economy rating of the C-Max after public outcry and legal action by customers that were unable to reach the 47 miles per gallon promised by the window sticker. The new ratings were dropped about a month ago to 45 mpg on the freeway and 40 mpg in the city. Ford offered rebates for current C-Max owners, with $550 going to those that bought their car and $325 to lessees. The issue, says Ford, stemmed from testing standards that allowed the automaker to base the C-Max's fuel economy on the Fusion Hybrid, because they use identical powertrains. The C-Max's less aerodynamic shape wasn't taken into account, though.
Whether Ford's PR team handled the crises perfectly or people just aren't that bothered by a four-mpg drop in combined ratings, demand remains strong for the C-Max among consumers. Ford moved 3,000 units in August, which was a 12-percent jump over July sales. Meanwhile, consumer demand through third-party shopping websites remains strong as well, according to Autometrics, a data analysis company that spoke with Automotive News. While the long-term effects of the adjustments remain unknown, the C-Max appears to have fared well in the near term.