Tag Archives: Ford Motor Co

Ford aims to be world’s #2 electric vehicle maker within two years – COO

By Paul Lienert

(Reuters) – Ford Motor Co expects to be the world’s second largest electric vehicle manufacturer within two years, with annual production capacity of nearly 600,000, a top company executive said Friday.

The automaker’s optimism stems from increasing demand for its next new EV, the Ford F-150 Lightning pickup, with retail reservations approaching 200,000, Lisa Drake, chief operating officer of Ford North America, said.

Reuters reported on Wednesday that Ford likely would be vying with Stellantis for third place in the EV race by 2025, behind Tesla and the Volkswagen Group, based on production forecast data provided by AutoForecast Solutions.

Speaking at an investor conference, Drake said Ford is working to vertically integrate more EV components, including power electronics and e-drives, at existing facilities that build parts for combustion vehicles – a modern take on founder Henry Ford’s pioneering work in building many of his own components.

“We haven’t used ‘vertical integration’ in this industry in a long time,” Drake said, but “you’re going to hear it a lot more” as Ford and other automakers transition from combustion to electric vehicles.

She said Ford working with five global battery suppliers to manufacture and help develop battery cells for its future EVs, aiming to build 240 gigawatt-hours of production capacity globally by 2030. Those suppliers include SK On, LG Energy Solution, CATL, BYD and Panasonic.

Ford expects to reduce EV battery cell cost to $80 per kilowatt-hour at the pack level “well before the end of the decade,” Drake said.

The automaker is looking at different cell chemistries, including cobalt-free lithium iron phosphate, and cell-to-pack structural batteries to help reduce costs.

Ford and BMW are working with Colorado-based startup Solid Power on developing solid state batteries, which Drake said should be commercialized “well before the end of the decade.”

(Reporting by Paul Lienert in Detroit; editing by Barbara Lewis)

Ford says U.S. Justice Dept., California end probe into emissions issue

By David Shepardson

WASHINGTON (Reuters) – Ford Motor Co confirmed on Friday the U.S. Justice Department and California Air Resources Board have closed a lengthy investigation into the No. 2 U.S. automaker’s emissions certification process without taking any action.

Ford said in a securities filing that reviews by the U.S. Environmental Protection Agency and Environment and Climate Change Canada remain open.

Ford first disclosed the criminal probe in April 2019 and earlier hired outside law firm Sidley Austin and experts to investigate its vehicle fuel economy and testing procedures after employees raised concerns about analytical modeling that is part of its fuel economy and emissions compliance process.

Ford said Friday the investigations’ closure was “consistent with the company’s own investigation and conclusion that we appropriately completed our certification processes.”

Ford declined to releasing findings from its own investigation and said it has not changed any fuel economy ratings as a result.

Ford faces a class-action lawsuit from owners who claim Ford “cheated on its fuel economy testing on some of its best-selling and most popular trucks” and said the issue affected over a million Ford truck owners.

The lawsuit claims that “independent testing conducted on Ford F-150 and Ford Ranger vehicles has vindicated the concerns of both consumers and Ford’s own employees: Ford did not follow appropriate coastdown testing procedures, and instead disclosed inaccurate resistance figures to increase the MPG Rating of its F-150 and Ranger vehicles.” Coastdown testing measures the effects of wind and road resistance on a coasting vehicle.

The lawsuit said “extra fuel costs for all 2018 and 2019 F-150s” would total approximately $2.32 billion for city driving, $2.09 billion highway, and $1.9 billion combined.”

Ford declined to comment on the lawsuit Friday but argues in court papers it should be dismissed, saying owners are “implausibly claiming that Ford had a duty to disclose the ‘true fuel economy’ for the subject vehicles, as if such a figure actually exists.”

(Reporting by David Shepardson; Editing by Steve Orlofsky)

GM shares jump on plans for electric delivery vehicle business

By Ben Klayman and Paul Lienert

DETROIT (Reuters) – General Motors Co shares jumped on Tuesday to their highest level since the company’s post-bankruptcy IPO in 2010, as the automaker announced its entry into the growing electric delivery vehicle business.

After Chief Executive Mary Barra outlined plans for GM’s first BrightDrop commercial vans to be delivered to FedEx later this year, GM shares rose as high as $48.95 in morning trading, pushing the company’s market cap over $68 billion.

The new BrightDrop delivery business will put GM squarely in competition in the commercial sector with cross-town rival Ford Motor Co, as well as startups such as Rivian, Arrival and Canoo that are developing electric commercial vehicles for customers ranging from Amazon to Hyundai Motor.

Fueled in part by the COVID-19 pandemic, GM estimates the U.S. market for parcel and food delivery will climb to more than $850 billion by 2025. It is one sector that EV sales leader Tesla has yet to crack.

Barra said BrightDrop will offer delivery and logistics customers such as FedEx a range of products and services that leverage the automaker’s expertise in electrification and fleet management.

The BrightDrop EV600 will use a version of GM’s Ultium battery system that will power many of the company’s future electric vehicles, including the Hummer EV pickup and the Cadillac Lyriq crossover.

Barra introduced BrightDrop in an online keynote address at the CES annual tech and gadget show.

As part of Barra’s presentation, GM design chief Mike Simcoe hosted a virtual unveiling of two battery-powered Cadillac concepts: A flying car and a boxy shuttle with sliding doors. Simcoe said Cadillac also is working on a luxury electric two-seater.

In a pre-show briefing, Pam Fletcher, GM vice president of global innovation, said the BrightDrop EV600 is a large, purpose-built delivery van that will have a range of 250 miles (400 km) between charges, with a long list of advanced safety features and built-in internet connectivity.

Unlike Cruise, the San Francisco self-driving startup that is majority-owned by GM and is developing a robotaxi business, BrightDrop does not plan to operate its own vehicle fleet. It will focus on supplying electric vans and related services to commercial customers.

A source familiar with details of the EV600 said it will share basic underbody architecture with the Hummer EV and a variety of other large GM trucks and SUVs that will hit the market over the next three years.

The first 500 units will go to FedEx by the end of the year, with deliveries to other customers starting in early 2022, Fletcher said.

The BrightDrop commercial van family could eventually include a smaller model designed for medium-distance deliveries and a larger model designed for rapid loading and unloading, she said.

In November, GM said it would challenge Tesla with increased spending and accelerated vehicle production targets. The higher investment will be funded by expanded pickup and SUV production.

GM said it planned to increase spending on electric and autonomous vehicles to $27 billion by 2023, up 35% from previously disclosed plans. The Detroit automaker will offer 30 EVs globally by 2025 and wants to exceed annual sales of 1 million EVs in China and the United States by then.

(Reporting by Ben Klayman and Paul Lienert in Detroit; Editing by Richard Pullin, Dan Grebler and Bernadette Baum)

Ford recalls 1.48 million F-150 pickups in North America over transmissions

FILE PHOTO: A row of new Ford F-150 pickup trucks are parked for sale at a Ford dealer in the Denver suburb of Broomfield, Colorado, U.S., April 14, 2011. REUTERS/Rick Wilking/File Photo

By David Shepardson and Ben Klayman

WASHINGTON (Reuters) – Ford Motor Co said on Wednesday it was recalling about 1.48 million F-150 pickup trucks in North America due to a potential transmission downshift issue that could increase the risk of a crash.

Ford said select 2011-2013 model year trucks with six-speed automatic transmission could experience an unintended downshift into first gear without warning, which could result in the loss of vehicle control. Ford is aware of five accidents, including one report of whiplash potentially related to the issue.

The recall covers 1.26 million trucks in the United States and 221,000 in Canada. Dealers will update the powertrain control software and the company will notify customers next month.

In March 2016, Ford recalled 153,000 U.S. 2011-2012 Ford F-150, Ford Expedition and Lincoln Navigator vehicles for a similar transmission downshift problem. Ford spokeswoman Monique Brentley said the root cause was different than in the new recall.

In December 2017, the National Highway Traffic Safety Administration opened an investigation into whether that recall should be expanded by nearly 1.4 million 2011-2013 vehicles after 123 complaints and two crashes but no reported injuries.

The agency said an unexpected downshift “can cause the vehicle to slow down suddenly and without warning. This can also cause the rear tires to skid or lock up, increasing the risk of a crash.”

The investigation is pending.

Ford also said it is issuing two other recalls. One covers 28,200 2017-19 Lincoln Continental vehicles in North America for door latches that may not engage due to the buildup of silicon contamination and could result in the door opening while driving.

Ford said it was not aware of any reports of accidents or injuries. Dealers will replace the door latch assemblies in all four doors.

Ford is also recalling 4,200 2019 model Ford Mustang, Lincoln Nautilus and Lincoln Navigator vehicles for instrument panel cluster assemblies that are blank when the vehicles are started. Dealers will update the software. No crashes are reported linked to the recall.

(Reporting by David Shepardson and Ben Klayman; Editing by Chizu Nomiyama and Jeffrey Benkoe)

Toyota recalls 1.7 million vehicles worldwide over air bag inflators

Toyota Motor Corp's logo is pictured on a car in Tokyo, Japan, November 8, 2016. REUTERS/Kim Kyung-Hoon

By David Shepardson

WASHINGTON (Reuters) – Toyota Motor Corp said Wednesday it is recalling another 1.7 million vehicles worldwide for potentially faulty Takata airbag inflators as part of a multi-year industry recall campaign announced in 2016.

Automakers are adding about 10 million vehicle inflators in the United States to what was already the largest-ever recall campaign in history. Last week, Ford Motor Co said it was recalling 953,000 vehicles worldwide for Takata inflators. Previously, 37 million U.S. vehicles with 50 million inflators were recalled and 16.7 million inflators remain to be replaced.

At least 23 deaths worldwide have been linked to the rupturing of faulty Takata air bag inflators, including 15 in the United States.

Toyota’s new recall relates to vehicles from the 2010 through 2015 model years, and includes 1.3 million vehicles in the United States.

More than 290 injuries worldwide have been linked to Takata inflators that could explode, spraying metal shrapnel inside cars and trucks. In total, 19 automakers are recalling more than 100 million potentially faulty inflators worldwide.

To date, 21 deaths have been reported in Honda Motor Co vehicles and two in Ford vehicles. Both automakers have urged some drivers of older vehicles not to drive them until the inflators are replaced.

The defect led Takata to file for bankruptcy protection in June 2017. In April, auto components maker Key Safety Systems completed a $1.6 billion deal to acquire Takata. The merged company, known as Joyson Safety Systems, is a subsidiary of Ningbo Joyson Electronic Corp.

Automakers in the United States repaired more than 7.2 million defective Takata airbag inflators in 2018 as companies ramped up efforts to track down parts in need of replacement, according to a report released last month.

(Reporting by David Shepardson, Editing by Franklin Paul and Bernadette Baum)

Ford expands ‘Do Not Drive’ warning to 33,000 more pickup trucks

A Ford logo is pictured at a store of the automaker, in Mexico City, Mexico, April 5, 2016. REUTERS/Edgard Garrido/File Photo

By David Shepardson

WASHINGTON (Reuters) – Ford Motor Co on Monday warned an additional 33,000 owners of older pickup trucks in North America to stop driving them until potentially defective Takata Corp air bag inflators can be repaired.

In January, Ford told 2,900 owners of model year 2006 Ford Ranger trucks to stop driving immediately after a second death was linked to inflators built on the same day.

The expanded warning was prompted by additional testing, Ford, the second largest U.S. automaker, said in a statement, and now covers a broader time frame of production.

Mazda Motor Corp said it was issuing a similar expansion for about 1,800 2006 Mazda B-Series trucks that were built by Ford after it had issued a warning for 160 trucks in January.

The National Highway Traffic Safety Administration (NHTSA) said the vehicles pose “an immediate risk to safety” and urged owners to immediately schedule a free repair.

Ford and Mazda have replacement air bag inflators available now and will tow vehicles to a dealership for repairs as well as provide loaner vehicles free of charge, the companies and NHTSA said. About 90 percent of the vehicles subject to the “Do Not Drive” warning are in the United States.

Two U.S. senators in January questioned why Ford’s warning only applied to a small number of the 391,000 2004-2006 Ranger trucks recalled because of Takata air bags in 2016 in the United States.

Ford said last month the death in a July 2017 crash in West Virginia in a 2006 Ford Ranger was caused by a defective Takata inflator after a similar 2015 death in South Carolina.

At least 22 deaths worldwide are linked to the Takata inflators that can rupture and send deadly metal fragments into the driver’s body.

The faulty inflators have led to the largest automotive recall in history. The other 20 deaths have occurred in Honda Motor Co vehicles, most of which were in the United States.

About a quarter of the 2,900 vehicles have been repaired since Ford issued the warning last month, the company said on Monday.

Takata said in June it has recalled, or expected to recall, about 125 million vehicles worldwide by 2019, including more than 60 million in the United States. About 19 automakers worldwide are affected.

Takata inflators can explode with excessive force, unleashing metal shrapnel inside cars and trucks and have injured more than 200 people. The defect led Takata to file for bankruptcy protection in June.

(Reporting by David Shepardson; Editing by Grant McCool and Jeffrey Benkoe)