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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.

Hot-selling Ford Expedition, Lincoln Navigator get production boost

Ford is investing an additional $25 million in its Kentucky Truck Plant in Louisville to increase by 25 percent production of the hot-selling and all-new Lincoln Navigator and Ford Expedition SUVs. The investment adds to $900 million in previously announced spending at the plant, which also builds F-Series Super-Duty pickups and employs 8,400 workers. Assembly-line workers are putting in overtime and working voluntary weekend shifts to keep up with demand. The new investment will cover upgrades to the assembly line but does not involve further hiring, Ford spokeswoman Kelli Felker says. The popularity of the Ford Expedition and Lincoln Navigator is a bright spot as Ford stock has been battered by Wall Street amid concerns concerns about the automaker's future vision and slowness to detect trends. Ford says the investment is an example of its bid to improve "operational fitness," one of CEO Jim Hackett's common refrains. Ford says Navigator retail sales more than doubled in January, and Navigators are spending an average of just seven days on Lincoln dealership lots as customers trade in vehicles including Land Rovers and Mercedes-Benz. Nearly 85 percent of buyers are opting for high-end Black Label and Reserve trim packages, contributing to an average transaction price increase of more than $21,000 in January compared to a year ago. The 2018 Navigator won the North American Truck of the Year award and also topped a Detroit News poll of public favorites at last month's Detroit Auto Show. Sales of the Expedition, meanwhile, were up almost 57 percent last month as the full-size SUVs also spent an average of just a week on dealer lots. Platinum trim models represented 29 percent of sales, pushing transaction price increases up $7,800. Ford gave the 2018 Expedition an all-aluminum body to save mass in its first significant redesign since 2007. The plant last year got nearly 400 new robots, mainly in the body shop, to help increase line speed, and Ford added a robot lab where employees can test software tweaks or troubleshoot issues away from the factory floor. The Louisville plant also benefits from extensive new data analytics, with seven big-screen monitors providing minute-by-minute updates showing progress against hourly targets or alerting workers to pending parts shortages. A huge spare-parts "vending machine" lets workers more quickly locate needed parts and keep inventory at necessary levels.

2023 Lincoln Aviator gets a few small changes, small price bumps

The 2023 Lincoln Aviator Lincoln makes a few small changes to its offer, as related by Ford Authority. On the feature side, the 12-way Comfort Front Seats for driver and passenger are gone. The bottom three trims, Standard, Reserve and Grand Touring all come with a 10-way Comfort Front Seat for the driver and an eight-way throne for the passenger. The Black Label and Grand Touring continue with their 30-way Perfect Position front seats. Outside, the Bronze Smoke Metallic and Burgundy Velvet Metallic colors depart the exterior palette, replaced by Diamond Red Metallic Tinted Clearcoat and Jewel Sandstone. The Jet Package expands availability to the base Reserve trim, no longer requiring the Reserve I package, and to the Black Label, which didn't offer it before. The package full of black trim pieces and wheels hasn't changed from when Lincoln introduced it a year ago, including bits like a solid black grille and surround, black door spears and mirror caps, and 22-inch black aluminum wheels. A similar package exclusively for the Black Label trims is called the Black Label Special Edition Package. It makes the same changes as the Jet Package while also painting the roof black. Finally, the Illumination Package for the Grand Touring PHEV adds fog lights for 2023. Prices for the 2023 model year after the $1,195 destination charge are up a little over the sums we noted when the 2022 model year debuted. Remember, however, that 2022 pricing went down on all but one trim by anywhere from $5 to $1,085. The new MSRPs are in line with model year premiums we're used to seeing from a time before industrial upheaval. The figures and their differences from 2022 are: Standard: $54,535 ($1,875) Reserve: $59,700 ($1,150) Grand Touring: $70,385 ($830) Black Label: $81,920 ($1,375) Black Label Grand Touring: $90,475 ($1,375) Engine choices don't change, those being the twin-turbo 3.0-liter EcoBoost V6 with 400 horsepower and 415 pound-feet of torque for all trims but the Grand Touring PHEV. The plug-in hybrid electrifies that engine to make a combined 494 hp and 630 lb-ft. Every Aviator shifts through a ten-speed automatic. The Aviator has sold 20,324 units so far this year. Based on figures for the past three years, we anticipate it will finish above last year's 20,324 sales and 2020's tally of 23,080 sales. A refresh expected in 2024 should bring more substantial updates and improvements.  Related video: This content is hosted by a third party.