by Louis Navellier
It is official. The government can only go so far to change the rules of the game.
Attempts to save two of the Big 3 automakers from bankruptcy are unraveling with news that certain Chrysler bondholders are resisting efforts to restructure the company. Without that support, the company headed to bankruptcy court.
That doesn't mean the end of Chrysler, but the move will have a huge impact on the industry and does not bode well for fellow maker General Motors (GM). The good news for investors is that Ford (F) will emerge the big winner and is a great buy.
What Chrysler means to you
The problem is that the government is trying to negotiate a deal that does not fairly compensate bondholders for risks they took when they originally invested. The deals on the table do not go far enough in providing equity stakes to those with the highest claims on company assets, the bondholders.
This outcome should come as no surprise to anyone. If I was a bondholder, I would be fighting tooth and nail for a priority claim on the assets of the company. If indeed the company is planning on emerging from bankruptcy, I want to own it.
It is all rather plain and simple. Unfortunately the government, in bailout mode, feels differently.
This mess has been a waste of time and money. The automakers that have been struggling since the beginning. Politics got in the way of capitalism, and that is never a good thing.
I’m not suggesting that there should be no role for the government. In the case of the financial crisis, government intervention was truly the only option to prevent Armageddon. Allowing one or two automakers to restructure in bankruptcy did not come close to meeting that level of crisis.
We were all duped, and now government loans appear to be at risk. In fact, one could argue that the intervention has only complicated matters and extended the time it will take to sort everything out.
The big winner is Ford
That bodes well for Ford. Given that GM is likely to follow Chrysler into bankruptcy, Ford will absolutely be the big winner in all of this. The U.S. automaker that isn't broke now also has a huge competitive advantage. And you can bet it will take advantage.
Don’t listen to the noise about dominos falling here. It is not going to happen. What will happen is that we will have three automakers that ultimately survive, but in far different shape and form.
Ford will be at the top of that food chain and should be owned by those wanting exposure to this volatile and risky industry. I rate Ford a B or buy.
Thursday, April 30, 2009
Reports of aggressively rusting Toyota pickup frames piling up
Some Toyota Tundra owners are reportedly experiencing inordinately heavy amounts of premature rust, and they want the Japanese automaker to take action to address the problem. WCVB TV in Boston has been investigating the Toyota rust situation for about a year, and they're reporting that at least two dozen 2000-2001 Tundra owners have complained to the National Highway Traffic Safety Administration (NHTSA). Owners of 1995-2001 Toyota pickups say their vehicles had inadequate corrosion protection, and many feel that the automaker should recall the vehicles.
When we mention excessive rust, we're not talking about some corroded quarter panels or a little dusting around the wheel wells. Drivers have complained of trucks so rusty that the frames are cracking, panels are falling off, and, in some cases, the trucks are too unsafe to drive. One owner is reportedly dealing with a power steering rack in need of repair, but the rust is so bad a new rack can't be bolted to the frame. The Boston TV station also investigated the smaller Tacoma for rust issues last year and found several frames that were disintegrating due to exce s sive corrosion.
For Toyota's part, the station reports that the automaker is buying back select models at 1.5 times their Blue Book value, but there are other truck owners who are still clamoring for resolution. The Japanese automaker says it is investing every case individually and that it's using lessons learned from the Tacoma incident to proactively investigate vehicles made with similar production techniques. Toyota won't comment on how many rust problem complaints it has received. Hat tip to Chris!
[Source: The Boston Channel]
When we mention excessive rust, we're not talking about some corroded quarter panels or a little dusting around the wheel wells. Drivers have complained of trucks so rusty that the frames are cracking, panels are falling off, and, in some cases, the trucks are too unsafe to drive. One owner is reportedly dealing with a power steering rack in need of repair, but the rust is so bad a new rack can't be bolted to the frame. The Boston TV station also investigated the smaller Tacoma for rust issues last year and found several frames that were disintegrating due to exce s sive corrosion.
For Toyota's part, the station reports that the automaker is buying back select models at 1.5 times their Blue Book value, but there are other truck owners who are still clamoring for resolution. The Japanese automaker says it is investing every case individually and that it's using lessons learned from the Tacoma incident to proactively investigate vehicles made with similar production techniques. Toyota won't comment on how many rust problem complaints it has received. Hat tip to Chris!
[Source: The Boston Channel]
Tuesday, April 28, 2009
Fusion Hybrid Averages 81.5 Mpg, Sets World Record with 1,445 Miles on Single Tank of Gas
WASHINGTON, April 28, 2009 – Drivers trained in mileage-maximizing techniques such as smooth acceleration and coasting to red lights were able to get an extraordinary 1,445.7 miles out of a single tank of gas during a fund-raising effort in Washington, D.C. that concluded today. They did it by averaging 81.5 miles per gallon in an off-the-showroom floor, non-modified 2010 Ford Fusion Hybrid, the most fuel-efficient midsize car in North America – nearly doubling its U.S. certified mileage.
The Fusion Hybrid 1,000-Mile Challenge started at 8:15 a.m. EDT on Saturday, April 25, from Mount Vernon, Va., and ended this morning at 5:37 a.m. on George Washington Parkway in Washington, D.C. After more than 69 continuous hours of driving, the Fusion Hybrid finally depleted its tank and came to a stop with an odometer reading of 1,445.7 miles – setting a world record for gasoline-powered, midsize sedan.
The challenge team, which included NASCAR star Carl Edwards, high mileage trailblazer Wayne Gerdes and several Ford Motor Company engineers, raised more than $8,000 for the Juvenile Diabetes Research Foundation (JDRF) by exceeding the goal of 1,000 miles on a single tank of gas. The Fusion Hybrid’s official estimated range is approximately 700 miles per tank.
“Not only does this demonstrate the Fusion Hybrid’s fuel efficiency, it also shows that driving technique is one of the keys to maximizing its potential,” said Nancy Gioia, director, Ford Sustainable Mobility Technologies and Hybrid Vehicle Programs. “The fact that we were able raise much needed funds for JDRF while raising the bar on fuel efficient driving performance made the effort doubly worthwhile.”
A team of seven drivers prepared for the challenge by learning a few mileage-maximizing techniques, most of which can be used in any vehicle to improve fuel economy, but are especially useful in the Fusion Hybrid where the driver can take advantage of pure electric energy at speeds below 47 mph.
CleanMPG.com founder Wayne Gerdes, an engineer from Illinois who coined the term “hypermiling” to describe the mileage-maximizing techniques, provided the pointers. They include:
· Slowing down and maintaining even throttle pressure;
· Gradually accelerating and smoothly braking;
· Maintaining a safe distance between vehicles and anticipating traffic conditions;
· Coasting up to red lights and stop signs to avoid fuel waste and brake wear;
· Minimize use of heater and air conditioning to reduce the load on the engine;
· Close windows at high speeds to reduce aerodynamic drag;
· Applying the “Pulse and Glide” technique while maintaining the flow of traffic;
· Minimize excessive engine workload by using the vehicle’s kinetic forward motion to climb hills, and use downhill momentum to build speed; and
· Avoiding bumps and potholes that can reduce momentum
“You become very aware of your driving because you’re constantly looking for opportunities to maximize mileage, and a more aware driver is a safer driver, too,” said Gil Portalatin, Ford hybrid applications manager.
In addition, it is important for Fusion Hybrid drivers to manage the battery system’s state of charge through the use of regenerative braking and coasting, and balancing the use of the electric motor and gas engine in city driving to avoid wasting fuel.
Fusion Hybrid drivers also can stay more connected to the hybrid driving experience with Ford’s SmartGaugeTM with EcoGuide, a unique instrument cluster that helps coach drivers on how to optimize performance of their hybrid.
The Fusion Hybrid 1,000-Mile Challenge team took turns driving several routes in and around the national capital over the course of approximately three days and nights. The route involved elevation changes, and ranged from the relatively open George Washington Parkway to a 3-mile stretch in the heart of the city that is clogged with roughly 30 traffic signals.
“The Fusion Hybrid works brilliantly,” Gerdes said. “When you don’t need acceleration power while driving around town, the gas engine shuts down seamlessly. There’s not another hybrid drivetrain in the world that does that as effectively. The Fusion engineering team really knocked it out of the park.”
Ford NASCAR star Carl Edwards took time away from the high speed world of professional car racing to contribute to the Fusion Hybrid team’s success in D.C.
“It was exciting to be an active part in this challenge. The fact that it will help spread the word about the Fusion Hybrid’s great mileage, and help out a great charity, makes it even more special,” said Edwards, whose ‘99’ team has used fuel-saving techniques to win races. “There’s no question that the Fusion Hybrid will help consumers save fuel when they drive it. Having driven the car, I feel strongly about how great it is – so strong that I’ve purchased one myself.”
The Fusion Hybrid 1,000-Mile Challenge started at 8:15 a.m. EDT on Saturday, April 25, from Mount Vernon, Va., and ended this morning at 5:37 a.m. on George Washington Parkway in Washington, D.C. After more than 69 continuous hours of driving, the Fusion Hybrid finally depleted its tank and came to a stop with an odometer reading of 1,445.7 miles – setting a world record for gasoline-powered, midsize sedan.
The challenge team, which included NASCAR star Carl Edwards, high mileage trailblazer Wayne Gerdes and several Ford Motor Company engineers, raised more than $8,000 for the Juvenile Diabetes Research Foundation (JDRF) by exceeding the goal of 1,000 miles on a single tank of gas. The Fusion Hybrid’s official estimated range is approximately 700 miles per tank.
“Not only does this demonstrate the Fusion Hybrid’s fuel efficiency, it also shows that driving technique is one of the keys to maximizing its potential,” said Nancy Gioia, director, Ford Sustainable Mobility Technologies and Hybrid Vehicle Programs. “The fact that we were able raise much needed funds for JDRF while raising the bar on fuel efficient driving performance made the effort doubly worthwhile.”
A team of seven drivers prepared for the challenge by learning a few mileage-maximizing techniques, most of which can be used in any vehicle to improve fuel economy, but are especially useful in the Fusion Hybrid where the driver can take advantage of pure electric energy at speeds below 47 mph.
CleanMPG.com founder Wayne Gerdes, an engineer from Illinois who coined the term “hypermiling” to describe the mileage-maximizing techniques, provided the pointers. They include:
· Slowing down and maintaining even throttle pressure;
· Gradually accelerating and smoothly braking;
· Maintaining a safe distance between vehicles and anticipating traffic conditions;
· Coasting up to red lights and stop signs to avoid fuel waste and brake wear;
· Minimize use of heater and air conditioning to reduce the load on the engine;
· Close windows at high speeds to reduce aerodynamic drag;
· Applying the “Pulse and Glide” technique while maintaining the flow of traffic;
· Minimize excessive engine workload by using the vehicle’s kinetic forward motion to climb hills, and use downhill momentum to build speed; and
· Avoiding bumps and potholes that can reduce momentum
“You become very aware of your driving because you’re constantly looking for opportunities to maximize mileage, and a more aware driver is a safer driver, too,” said Gil Portalatin, Ford hybrid applications manager.
In addition, it is important for Fusion Hybrid drivers to manage the battery system’s state of charge through the use of regenerative braking and coasting, and balancing the use of the electric motor and gas engine in city driving to avoid wasting fuel.
Fusion Hybrid drivers also can stay more connected to the hybrid driving experience with Ford’s SmartGaugeTM with EcoGuide, a unique instrument cluster that helps coach drivers on how to optimize performance of their hybrid.
The Fusion Hybrid 1,000-Mile Challenge team took turns driving several routes in and around the national capital over the course of approximately three days and nights. The route involved elevation changes, and ranged from the relatively open George Washington Parkway to a 3-mile stretch in the heart of the city that is clogged with roughly 30 traffic signals.
“The Fusion Hybrid works brilliantly,” Gerdes said. “When you don’t need acceleration power while driving around town, the gas engine shuts down seamlessly. There’s not another hybrid drivetrain in the world that does that as effectively. The Fusion engineering team really knocked it out of the park.”
Ford NASCAR star Carl Edwards took time away from the high speed world of professional car racing to contribute to the Fusion Hybrid team’s success in D.C.
“It was exciting to be an active part in this challenge. The fact that it will help spread the word about the Fusion Hybrid’s great mileage, and help out a great charity, makes it even more special,” said Edwards, whose ‘99’ team has used fuel-saving techniques to win races. “There’s no question that the Fusion Hybrid will help consumers save fuel when they drive it. Having driven the car, I feel strongly about how great it is – so strong that I’ve purchased one myself.”
Friday, April 24, 2009
Ford Fusion Hybrid set to attempt to travel 1,000 miles on a single tank of gas
How far can you get on a single tank of gas? That depends on such details as how much fuel you can fit in your tank, the efficiency of your vehicle and how much control you have over your bladder. Ford seems to think you can eke 1,000 miles out of a single tank of 87-octane with its new 2010 Fusion Hybrid – a figure that seems nearly impossible at first blush.
To meet this rather impressive goal, the aforementioned hybrid sedan would need to average 57 miles per gallon, an attainable figure since Ford's preliminary testing indicates the Fusion Hybrid can manage up to 70 mpg when driven by a hyper-miller like Wayne Gerdes, who will join NASCAR racer Carl Edwards and a few assorted engineers as drivers.
Ford estimates that it will take 43 hours to get from Mount Vernon, VA to Washington, DC – a trip of about 20 miles as the crow flies (yes, you read that right). In fact, the crew could almost make it to Miami, Florida, from their starting point in Virginia using that same tank of gas. Obviously, Ford has a meandering route in mind.
Besides attempting to prove how fuel efficient its hybrid is and how the way you drive is nearly as important as what you're driving, the Blue Oval will also be raising funds for the Juvenile Diabetes Research Foundation. Full press release after the break.
PRESS RELEASE:
Ford Team Aims To Drive 2010 Fusion Hybrid 1,000 Miles on a Single Tank of Gas
The Ford Fusion Hybrid team will attempt to drive more than 1,000 miles for more than 43 continuous hours - on a single tank of gas, raising money for the Juvenile Diabetes Research Foundation in the process
The most fuel-efficient, mid-sized sedan in America - the Fusion Hybrid driven by a team of Ford hybrid engineers, a fuel efficiency expert and a NASCAR star, will have to achieve an average of at least 57 mpg on the challenge to reach its goal
By using Eco-Driving techniques engineers have achieved 70 mpg during testing of the Ford Fusion Hybrid in preparation for the challenge
Consumers can improve their own vehicle's fuel economy performance is by adopting Ford's "Eco-Driving" tips used for the 1,000-Mile Challenge
DEARBORN, Mich., April 21 /PRNewswire-FirstCall/ -- This weekend, the 2010 Ford (NYSE: F) Fusion Hybrid is being put to the ultimate fuel-efficiency test. A team of drivers, including NASCAR star Carl Edwards and world-record breaking hypermiler Wayne Gerdes, will attempt to drive more than 1,000 miles on a single tank of gas, raising money for the Juvenile Diabetes Research Foundation in the process.
The 1,000-Mile Challenge starts at around 8:00 a.m. on Saturday, April 25, from Mount Vernon, Va., and ends the morning of Monday, April 27, in Washington, D.C. The team will drive for more than 43 hours continuously to reach the 1,000-mile goal. The drivers will do stints of between two and three hours each and will have regular breaks to ensure safe driving is maintained. Already rated as the most fuel-efficient, mid-sized sedan in America, the Fusion Hybrid will need to average at least 57 mpg to achieve its goal. During preliminary testing in preparation for this challenge, Ford engineers have reached as much as 70 mpg in the Fusion Hybrid by using Eco-Driving techniques.
The team will run clinics for media and customers over the weekend in the Fusion Hybrid, conducting interviews and vehicle demonstrations on how simple techniques can make a significant difference to real world fuel economy numbers.
The Fusion Hybrid being used in the challenge will be a factory produced model with no modifications or alterations and will run on regular 87 octane gas.
Ford is taking on the 1,000-Mile Challenge for a number of reasons:
To demonstrate Ford's commitment to be the best or amongst the best in fuel economy in every vehicle segment in which it competes;
To highlight the crucial role the driver plays in maximizing fuel economy and demonstrate how consumers can make a difference through Eco-Driving;
To raise awareness about Eco-Driving and how the Fusion Hybrid contributes to it with the ability to run up to 47 mph in pure electric mode; and
To raise awareness and funds for the Juvenile Diabetes Research Foundation
The 1,000-Mile Challenge team comprises of:
Wayne Gerdes, the world-record breaking hypermiling champion and founder of www.cleanmpg.com;
Carl Edwards, the NASCAR race star who recently bought his own 2010 Ford Fusion Hybrid;
Sherif Marakby, graduate of Maryland University and Ford hybrid chief engineer;
Gil Portalatin, Ford hybrid applications manager and Ford Fusion Hybrid team leader;
Tom Rolewicz, one of Ford's top calibration experts and hybrid system expert; and
Steve Burke, Ford product expert on hybrid applications
The mileage-maximizing techniques that the Ford team will use and pass on to consumers include:
Slowing down and maintaining even throttle pressure;
Gradually accelerating and smoothly braking;
Maintaining a safe distance between vehicles and anticipating traffic conditions;
Coasting up to red lights and stop signs to avoid fuel waste and brake wear;
Minimize use of heater and air conditioning to reduce the load on the engine;
Close windows at high speeds to reduce aerodynamic drag;
Applying the "Pulse and Glide" technique while maintaining the flow of traffic;
Minimize excessive engine workload by using the vehicle's kinetic forward motion to climb hills, and use downhill momentum to build speed; and
Avoiding bumps and potholes that can reduce momentum
To meet this rather impressive goal, the aforementioned hybrid sedan would need to average 57 miles per gallon, an attainable figure since Ford's preliminary testing indicates the Fusion Hybrid can manage up to 70 mpg when driven by a hyper-miller like Wayne Gerdes, who will join NASCAR racer Carl Edwards and a few assorted engineers as drivers.
Ford estimates that it will take 43 hours to get from Mount Vernon, VA to Washington, DC – a trip of about 20 miles as the crow flies (yes, you read that right). In fact, the crew could almost make it to Miami, Florida, from their starting point in Virginia using that same tank of gas. Obviously, Ford has a meandering route in mind.
Besides attempting to prove how fuel efficient its hybrid is and how the way you drive is nearly as important as what you're driving, the Blue Oval will also be raising funds for the Juvenile Diabetes Research Foundation. Full press release after the break.
PRESS RELEASE:
Ford Team Aims To Drive 2010 Fusion Hybrid 1,000 Miles on a Single Tank of Gas
The Ford Fusion Hybrid team will attempt to drive more than 1,000 miles for more than 43 continuous hours - on a single tank of gas, raising money for the Juvenile Diabetes Research Foundation in the process
The most fuel-efficient, mid-sized sedan in America - the Fusion Hybrid driven by a team of Ford hybrid engineers, a fuel efficiency expert and a NASCAR star, will have to achieve an average of at least 57 mpg on the challenge to reach its goal
By using Eco-Driving techniques engineers have achieved 70 mpg during testing of the Ford Fusion Hybrid in preparation for the challenge
Consumers can improve their own vehicle's fuel economy performance is by adopting Ford's "Eco-Driving" tips used for the 1,000-Mile Challenge
DEARBORN, Mich., April 21 /PRNewswire-FirstCall/ -- This weekend, the 2010 Ford (NYSE: F) Fusion Hybrid is being put to the ultimate fuel-efficiency test. A team of drivers, including NASCAR star Carl Edwards and world-record breaking hypermiler Wayne Gerdes, will attempt to drive more than 1,000 miles on a single tank of gas, raising money for the Juvenile Diabetes Research Foundation in the process.
The 1,000-Mile Challenge starts at around 8:00 a.m. on Saturday, April 25, from Mount Vernon, Va., and ends the morning of Monday, April 27, in Washington, D.C. The team will drive for more than 43 hours continuously to reach the 1,000-mile goal. The drivers will do stints of between two and three hours each and will have regular breaks to ensure safe driving is maintained. Already rated as the most fuel-efficient, mid-sized sedan in America, the Fusion Hybrid will need to average at least 57 mpg to achieve its goal. During preliminary testing in preparation for this challenge, Ford engineers have reached as much as 70 mpg in the Fusion Hybrid by using Eco-Driving techniques.
The team will run clinics for media and customers over the weekend in the Fusion Hybrid, conducting interviews and vehicle demonstrations on how simple techniques can make a significant difference to real world fuel economy numbers.
The Fusion Hybrid being used in the challenge will be a factory produced model with no modifications or alterations and will run on regular 87 octane gas.
Ford is taking on the 1,000-Mile Challenge for a number of reasons:
To demonstrate Ford's commitment to be the best or amongst the best in fuel economy in every vehicle segment in which it competes;
To highlight the crucial role the driver plays in maximizing fuel economy and demonstrate how consumers can make a difference through Eco-Driving;
To raise awareness about Eco-Driving and how the Fusion Hybrid contributes to it with the ability to run up to 47 mph in pure electric mode; and
To raise awareness and funds for the Juvenile Diabetes Research Foundation
The 1,000-Mile Challenge team comprises of:
Wayne Gerdes, the world-record breaking hypermiling champion and founder of www.cleanmpg.com;
Carl Edwards, the NASCAR race star who recently bought his own 2010 Ford Fusion Hybrid;
Sherif Marakby, graduate of Maryland University and Ford hybrid chief engineer;
Gil Portalatin, Ford hybrid applications manager and Ford Fusion Hybrid team leader;
Tom Rolewicz, one of Ford's top calibration experts and hybrid system expert; and
Steve Burke, Ford product expert on hybrid applications
The mileage-maximizing techniques that the Ford team will use and pass on to consumers include:
Slowing down and maintaining even throttle pressure;
Gradually accelerating and smoothly braking;
Maintaining a safe distance between vehicles and anticipating traffic conditions;
Coasting up to red lights and stop signs to avoid fuel waste and brake wear;
Minimize use of heater and air conditioning to reduce the load on the engine;
Close windows at high speeds to reduce aerodynamic drag;
Applying the "Pulse and Glide" technique while maintaining the flow of traffic;
Minimize excessive engine workload by using the vehicle's kinetic forward motion to climb hills, and use downhill momentum to build speed; and
Avoiding bumps and potholes that can reduce momentum
Friday, April 17, 2009
Ford Hopes To Snatch Opportunity From Crisis
The government is forcing General Motors and Chrysler to dramatically restructure their businesses or face a bankruptcy judge.
But Ford is a different story.
Unlike its Detroit rivals, Ford is not beholden to Washington. Company officials hope that fact — and some new products — will give Ford a competitive edge in the future.
The collapse in auto sales has clobbered all car companies, but for those that are relatively strong, the recession may be an opportunity.
Crisis Creates Opportunity
Mark Truby, head of Ford's corporate communications, said the crisis is a chance to show that Ford isn't like its competitors.
"We want everybody to be clear about where we are in terms of the government funding," Truby said.
In other words: Ford hasn't taken a dime from Washington — at least, not yet. GM and Chrysler already owe the government more than $17 billion.
Ford is also unveiling more fuel-efficient models –- including the new Fusion Hybrid, a midsize sedan.
Truby said he hopes that by putting out competitive products — without the help of taxpayer loans — Ford will win over more consumers.
"We think it's important for customers to know we're still going to be there," he said. "We're not going anywhere. We're committed to being one of the survivors of this downturn."
But does that sort of pitch resonate in showrooms? Several dealers said sales for all three carmakers are so bad, they don't see much difference.
Customers Take Note
But some customers are paying attention.
Carl Schartner recently went shopping at Springfield Ford Lincoln-Mercury in suburban Philadelphia. He traded in his Chevy Equinox for a new Ford Escape.
Schartner, 70, said one reason he bought a Ford was because the company hadn't taken taxpayer money and seemed more secure.
"Ford is not in the bailout," he said. "So, I just thought Ford has its feet on the ground better."
A retired technical support worker, Schartner said the Escape may be his last vehicle, and he wants to make sure the company will be around if it should develop a problem.
"Ford is going to be around for a while for parts," he said. "The others, I don't know how the service would be if they went out (of business) and somebody else took over. Would they or would they not recognize warranties?"
Ford Searches Increase
In fact, the government said it will stand behind Chrysler and GM warranties. But the future of the companies is uncertain, and that can spook customers.
For instance, sales generally rise in the spring, but Ford's sales last month picked up considerably more than GM's and Chrysler's, according to Jessica Caldwell, an analyst with Edmunds.com, the consumer car Web site.
Caldwell also said more people are looking at Ford products on the Edmunds Web site, while fewer are looking at GM and Chrysler vehicles.
"I think Ford has done a good job of trying to distance itself as much as it could from the other two automakers," Caldwell said.
But she said that the strategy could boomerang. Nationally, car sales remain low, and last year, Ford lost more than $14 billion.
"The pitfall is if Ford has to ask for government aid, then I think all that is for nothing — and they have, perhaps, set themselves up for a bigger fall," Caldwell said.
Ford Borrowed Early
Truby downplayed the risk. He said the most important thing is that Ford is in a stronger position than GM and Chrysler, and many analysts agree.
People who follow the industry said Ford is further along in its turnaround and has more cash. That's not because it's making lots of money, but because it borrowed billions of dollars several years ago.
"We went out in 2006, and we essentially raised the money when the capital markets were still functioning normally, and that has helped us get through this downturn," Truby said.
In fact, Ford mortgaged the company, all the way down to its blue oval logo.
"At the time, people said 'Maybe you went a bit too far, that seems risky; that seems desperate,' " Truby recalled.
But now it seems to be the company's saving grace.
Because Ford borrowed early, it has more money to weather the worst car market in more than two decades and — perhaps — come out of it in better shape than its rivals.
But Ford is a different story.
Unlike its Detroit rivals, Ford is not beholden to Washington. Company officials hope that fact — and some new products — will give Ford a competitive edge in the future.
The collapse in auto sales has clobbered all car companies, but for those that are relatively strong, the recession may be an opportunity.
Crisis Creates Opportunity
Mark Truby, head of Ford's corporate communications, said the crisis is a chance to show that Ford isn't like its competitors.
"We want everybody to be clear about where we are in terms of the government funding," Truby said.
In other words: Ford hasn't taken a dime from Washington — at least, not yet. GM and Chrysler already owe the government more than $17 billion.
Ford is also unveiling more fuel-efficient models –- including the new Fusion Hybrid, a midsize sedan.
Truby said he hopes that by putting out competitive products — without the help of taxpayer loans — Ford will win over more consumers.
"We think it's important for customers to know we're still going to be there," he said. "We're not going anywhere. We're committed to being one of the survivors of this downturn."
But does that sort of pitch resonate in showrooms? Several dealers said sales for all three carmakers are so bad, they don't see much difference.
Customers Take Note
But some customers are paying attention.
Carl Schartner recently went shopping at Springfield Ford Lincoln-Mercury in suburban Philadelphia. He traded in his Chevy Equinox for a new Ford Escape.
Schartner, 70, said one reason he bought a Ford was because the company hadn't taken taxpayer money and seemed more secure.
"Ford is not in the bailout," he said. "So, I just thought Ford has its feet on the ground better."
A retired technical support worker, Schartner said the Escape may be his last vehicle, and he wants to make sure the company will be around if it should develop a problem.
"Ford is going to be around for a while for parts," he said. "The others, I don't know how the service would be if they went out (of business) and somebody else took over. Would they or would they not recognize warranties?"
Ford Searches Increase
In fact, the government said it will stand behind Chrysler and GM warranties. But the future of the companies is uncertain, and that can spook customers.
For instance, sales generally rise in the spring, but Ford's sales last month picked up considerably more than GM's and Chrysler's, according to Jessica Caldwell, an analyst with Edmunds.com, the consumer car Web site.
Caldwell also said more people are looking at Ford products on the Edmunds Web site, while fewer are looking at GM and Chrysler vehicles.
"I think Ford has done a good job of trying to distance itself as much as it could from the other two automakers," Caldwell said.
But she said that the strategy could boomerang. Nationally, car sales remain low, and last year, Ford lost more than $14 billion.
"The pitfall is if Ford has to ask for government aid, then I think all that is for nothing — and they have, perhaps, set themselves up for a bigger fall," Caldwell said.
Ford Borrowed Early
Truby downplayed the risk. He said the most important thing is that Ford is in a stronger position than GM and Chrysler, and many analysts agree.
People who follow the industry said Ford is further along in its turnaround and has more cash. That's not because it's making lots of money, but because it borrowed billions of dollars several years ago.
"We went out in 2006, and we essentially raised the money when the capital markets were still functioning normally, and that has helped us get through this downturn," Truby said.
In fact, Ford mortgaged the company, all the way down to its blue oval logo.
"At the time, people said 'Maybe you went a bit too far, that seems risky; that seems desperate,' " Truby recalled.
But now it seems to be the company's saving grace.
Because Ford borrowed early, it has more money to weather the worst car market in more than two decades and — perhaps — come out of it in better shape than its rivals.
Ford's fuel efficient future
Ford is taking a measured approach to rolling out electrically driven cars. We got to drive a few of the vehicles that the company has up its sleeve.
Escape Plug-in.
Ford doesn't have anything as splashy as the Toyota Prius or Chevrolet Volt in its line-up - yet. But the carmaker has long touted its multi-tiered approach toward a gas-free future.
Things have advanced far enough that some of these technologies are available to drive now, so we tried them out.
The Ford Fusion Hybrid is just coming to market now. The Taurus SHO, with Ford's EcoBoost engine will be available this summer. The Ford Fiesta subcompact car will be here next year and, in 2011, Ford will begin selling a fully electric compact car.
The Escape Plug-in, shown here, is the farthest out. It isn't coming until 2012. It's in testing with power companies around the country now and I was able to take one for a short drive last year.
The reason it's taking so long to come to market is that plug-in hybrid is actually the toughest technology to execute. Unlike a full electric vehicle, it relies on two power sources at one time to power the wheels. And unlike today's regular hybrids, the computers have to be smart enough to make good use of the extra plug-in electricity to deliver maximum efficiency.
During my drive, which was mostly on city streets, the gasoline engine turned on only occasionally, when it was needed for extra punch.
Keep on reading for an early look at four fuel economy strategies that Ford will bring to market over the next couple of years.
Escape Plug-in.
Ford doesn't have anything as splashy as the Toyota Prius or Chevrolet Volt in its line-up - yet. But the carmaker has long touted its multi-tiered approach toward a gas-free future.
Things have advanced far enough that some of these technologies are available to drive now, so we tried them out.
The Ford Fusion Hybrid is just coming to market now. The Taurus SHO, with Ford's EcoBoost engine will be available this summer. The Ford Fiesta subcompact car will be here next year and, in 2011, Ford will begin selling a fully electric compact car.
The Escape Plug-in, shown here, is the farthest out. It isn't coming until 2012. It's in testing with power companies around the country now and I was able to take one for a short drive last year.
The reason it's taking so long to come to market is that plug-in hybrid is actually the toughest technology to execute. Unlike a full electric vehicle, it relies on two power sources at one time to power the wheels. And unlike today's regular hybrids, the computers have to be smart enough to make good use of the extra plug-in electricity to deliver maximum efficiency.
During my drive, which was mostly on city streets, the gasoline engine turned on only occasionally, when it was needed for extra punch.
Keep on reading for an early look at four fuel economy strategies that Ford will bring to market over the next couple of years.
Wednesday, April 1, 2009
2009 Subaru Outback 2.5i: Modest Power, Magnificent Details
We recently spent a few days in a 2009 Subaru Outback, which basically amounts to a Legacy sedan wearing a backpack and walking on stilts. With the 2010 Subaru Legacy debuting next week at the New York Auto Show and arriving at dealers this summer, it was a well-timed opportunity to get one last feel for the Legacy as it is now.
Our non-turbo four-cylinder was not a powerful vehicle by any stretch. And yet, the softly-thrumming 2.5-liter boxer four is a perfect companion for around-town driving, as it gives you seemingly immediate access to its 170 lb-ft torque due in part to its i-Active Valve Lift system. Even spinning through an old-tech four-speed automatic, 0-30 mph is delivered in an quick, effortless manner, without need for big throttle openings or high engine rpm. And the inherently balanced, horizontally-opposed engine design means none of the typical four cylinder drone.
At 40 mph and above, the powertrain does progress in a leisurely fashion, and highway passing maneuvers are deliberate. Maximizing ratios helps a vehicle with minimal power, and so it's a shame the roughly 3,500-lb Outback is saddled with only four ratios. This hurts both performance and economy (20/26 EPA), and the CVT that will be installed in the 2010 Legacy should improve both measures. We don't tend to be fans of CVT transmissions (except in hybrids devoted to economy such as the Toyota Prius and Honda Insight), and were positively annoyed with the stepless setup in the last Nissan Maxima we drove. Fingers crossed that Subaru engineers give their new unit a natural-feeling delivery. But even if they don't, ever-quirky Subaru aficionados will probably adopt the CVT with their usual abandon.
The visibility in this car is fantastic. Not since Honda sedans from the late 80s and early 90s have I been in a car with such a wonderfully low cowl and beltline. As opposed to so many cars today that have massive A, B, C (and sometimes D) pillars, which obscure side views and make backup cameras a necessity, the upright, simple wagon format of the Outback means clear views out...back (ha).
The Outback's ride/handling balance is excellent. Much like the 2009 WRX, the Outback manages a luxuriously creamy ride without handling slop. And with plenty of mechanicals turning the rear axle plus a wagon body in the back, the chassis is balanced front to rear and doesn't plow in turns like most front-drive sedans and wagons. Icing on the cake are five-star NHTSA crash ratings across the board, proving that you don't need size XL roof pillars for solid side impact crash protection.
A trip to IKEA with a friend proved the Outback's versatility. After folding the rear seats down and removing the cargo shade, we easily fit an enormous mirror, a lamp, and all of the boxes and assembly parts/pieces for a bedroom dresser. We didn't need an SUV for this errand, and once we were done getting from point A to B we weren't left with an SUV's mass, high center of gravity, and gas-guzzling nature. Yet the Outback comports itself very well offroad, with standard full-time symmetrical all-wheel drive and 8.4 inches of ground clearance that beats some of its SUV competitors.
Subaru's trademark frameless windows are quite elegant and set the car apart. The company's latest generation interiors have improved dramatically in fit, finish, and feel. The Outback's large buttons, excellent control feedback, and simple to use interface had the precise, luxurious feel of an Acura.
It's only appropriate that a vehicle that costs $31,211, as did our loaded Subaru Ouback 2.5i Limited, is so well appointed inside, outside, and underneath. However, a base Outback starts at $22,295 and even without navigation, leather, 17-inch alloys, and other options, it still contains all of the goodness that make this vehicle such a satisfying drive.
We're excited about more power and a 6-speed manual, hopeful about the CVT coming on the 2010 Legacy. But we're concerned about potential reductions in visibility due to a higher beltline and cowl. And we're just sad about losing frameless windows in the new Legacy, though we've heard complaints from some owners about those windows squeaking in their rubber seals so perhaps it's a wise change.
Subaru made only good changes to the Forester with that vehicle's 2009 redesign, nabbing Motor Trend's SUV of The Year laurels in the process. We have faith they'll do at least as well with the 2010 Legacy and the Outback that will share its chassis.
Our non-turbo four-cylinder was not a powerful vehicle by any stretch. And yet, the softly-thrumming 2.5-liter boxer four is a perfect companion for around-town driving, as it gives you seemingly immediate access to its 170 lb-ft torque due in part to its i-Active Valve Lift system. Even spinning through an old-tech four-speed automatic, 0-30 mph is delivered in an quick, effortless manner, without need for big throttle openings or high engine rpm. And the inherently balanced, horizontally-opposed engine design means none of the typical four cylinder drone.
At 40 mph and above, the powertrain does progress in a leisurely fashion, and highway passing maneuvers are deliberate. Maximizing ratios helps a vehicle with minimal power, and so it's a shame the roughly 3,500-lb Outback is saddled with only four ratios. This hurts both performance and economy (20/26 EPA), and the CVT that will be installed in the 2010 Legacy should improve both measures. We don't tend to be fans of CVT transmissions (except in hybrids devoted to economy such as the Toyota Prius and Honda Insight), and were positively annoyed with the stepless setup in the last Nissan Maxima we drove. Fingers crossed that Subaru engineers give their new unit a natural-feeling delivery. But even if they don't, ever-quirky Subaru aficionados will probably adopt the CVT with their usual abandon.
The visibility in this car is fantastic. Not since Honda sedans from the late 80s and early 90s have I been in a car with such a wonderfully low cowl and beltline. As opposed to so many cars today that have massive A, B, C (and sometimes D) pillars, which obscure side views and make backup cameras a necessity, the upright, simple wagon format of the Outback means clear views out...back (ha).
The Outback's ride/handling balance is excellent. Much like the 2009 WRX, the Outback manages a luxuriously creamy ride without handling slop. And with plenty of mechanicals turning the rear axle plus a wagon body in the back, the chassis is balanced front to rear and doesn't plow in turns like most front-drive sedans and wagons. Icing on the cake are five-star NHTSA crash ratings across the board, proving that you don't need size XL roof pillars for solid side impact crash protection.
A trip to IKEA with a friend proved the Outback's versatility. After folding the rear seats down and removing the cargo shade, we easily fit an enormous mirror, a lamp, and all of the boxes and assembly parts/pieces for a bedroom dresser. We didn't need an SUV for this errand, and once we were done getting from point A to B we weren't left with an SUV's mass, high center of gravity, and gas-guzzling nature. Yet the Outback comports itself very well offroad, with standard full-time symmetrical all-wheel drive and 8.4 inches of ground clearance that beats some of its SUV competitors.
Subaru's trademark frameless windows are quite elegant and set the car apart. The company's latest generation interiors have improved dramatically in fit, finish, and feel. The Outback's large buttons, excellent control feedback, and simple to use interface had the precise, luxurious feel of an Acura.
It's only appropriate that a vehicle that costs $31,211, as did our loaded Subaru Ouback 2.5i Limited, is so well appointed inside, outside, and underneath. However, a base Outback starts at $22,295 and even without navigation, leather, 17-inch alloys, and other options, it still contains all of the goodness that make this vehicle such a satisfying drive.
We're excited about more power and a 6-speed manual, hopeful about the CVT coming on the 2010 Legacy. But we're concerned about potential reductions in visibility due to a higher beltline and cowl. And we're just sad about losing frameless windows in the new Legacy, though we've heard complaints from some owners about those windows squeaking in their rubber seals so perhaps it's a wise change.
Subaru made only good changes to the Forester with that vehicle's 2009 redesign, nabbing Motor Trend's SUV of The Year laurels in the process. We have faith they'll do at least as well with the 2010 Legacy and the Outback that will share its chassis.
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