WCA September 2009

Ford also cut its automotive debt by $10.1 billion, or 38%, through a restructuring programme that concluded in April. Briefly noted . . . Also from the ❖ ❖ Detroit Free Press , auto critic Mark Phelan has noted wide differences among the world’s auto makers in their enthusiasm for diesel-powered engines. While German auto makers promote diesel sales in the US, American and Japanese companies have postponed plans for the fuel-efficient engines. The sole US exception is Chrysler, which is adapting several Fiat diesels for sale in various models. Mr Phelan wrote on 2 nd July, “Tight finances, tough new emissions limits, and technologies to make gasoline engines more fuel-efficient all weigh against diesels becoming a major factor in the United States for Ford, GM, Honda, Nissan, and Toyota.” In his view, Ford and GM will continue to count on large-displacement diesel engines for their heavy-duty pickups, but have moved to the back burner any plans to offer smaller diesels. Nissan and Honda also have postponed plans to sell diesel cars in the US. Contrariwise, Audi, BMW, Mercedes-Benz, and Volkswagen all plan to increase the number of diesel vehicles they sell in the United States.

The company has been in an upbeat mood for a while now, having gained retail market share in eight of the nine months through May. Expecting another gain in June, Ford impressed Mr Snavely as a company definitely poised to ride the upturn. (“Ford Sees Turnaround in Third Quarter,” 29 th June) The cash-for-clunkers legislation passed by Congress in mid-June is intended to take gas-guzzling older cars off the road by providing the owner of an older model with a voucher worth $3,500 to $4,500 toward the purchase of a new vehicle. Ford sales analyst George Pipas told Freep.com that he expects the company to get an enormous boost from the legislation and attendant publicity. Mr Pipas told Freep.com, “From the White House press room, to the halls of Congress, to dealerships and web- sites all around the country, there is going to be a pretty loud campaign.” In marked contrast to General Motors and Chrysler, Ford has positioned itself to benefit from such strokes of fortune. Unionised Ford workers ratified changes to their 2007 contract that are expected to save the auto maker at least $500 million a year. The company also eliminated its jobs bank programme, which allowed laid-off workers to continue collecting most of their salaries, and persuaded the United Auto Workers to accept stock in the company in lieu of up to $6.5 billion in contributions to a new health-care fund for retirees.

Dorothy Fabian – Features Editor

Wire & Cable ASIA – September/October 2009