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Wire & Cable ASIA – September/October 2009
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.
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.
Dorothy Fabian – Features Editor