Ford to produce an all-electric version of its popular Transit cargo van

(March 3) Ford announced that it will be producing an all-electric version of the popular Transit cargo van for US and Canadian markets. The van is scheduled to be released by 2021.

Many details about the van were not given

Ford did not say what the battery pack size of the van would be nor its estimated range on a charge. None of its performance characteristics were provided. Ford had previously announced back in 2019 that there would be all-electric Transit van for the European market. The company expects to launch the van in Europe by 2021 as part of the company's electrification program.

The announcement did indicated that the van will come with a 4G LTE hotspot and will also have a number of tech features that are designed for managers of fleets. This includes live GPS tracking and diagnostics. The van will also come with safety and drive assistance features. These will include collision warning and assist, automatic emergency braking, automatic lane-keeping and also pedestrian detection.

Ford also announced that at this time it had no news about an electric version of its Transit passenger van at present.

Ford's Transit van best-selling cargo van in the US

Even so, it is facing increased competition during the last several years from Germany's Mercedes-Benz's Sprinter van. There are already two electric versions of the Sprinter.

Mercedes electric Sprinter van

One electric version of the Sprinter has a 55kWh battery that can travel 168 kilometers or 104 miles on a full charge. It has a payload of 891 kilograms or 1,964 pounds. However there is also another version with a smaller 41kWh battery that can go just 115 kilometers or 72 miles on a charge. Yet this version can carry up to 1,045 kilos or 2,304 pounds. Both versions have the same storage space, 10.5 cubic meters or 370.8 square feet.

Mercedes Benz also announced an electric only vehicle (EOV) for more everyday use. It will be slightly smaller than the Sprint and will have a much longer range of 249 miles from a larger 100kWh battery that provides up to 200 horsepower. It also sports the company's MBUC infotainment system.

Other competitors and Ford

Rivian an EV startup has a contract to build 100,000 electric delivery vans for Amazon over the new few year. Ford has invested $500 million in the company which is helping to build a luxury electric SUV which will have the Lincoln brand. Ford is also collaborating with Volkswagen to produce vans after they formed a global alliance early in 2019. The appended video shows some of the all electric vans available.

Previously published in the Digital Journal

Ford unveils an all-electric Mustang Mach-E

(November 18, 2019) Ford has just unveiled the fully electric Mustang Mach-E. The new EV promises the performance of the fossil-fueled version but with far more practicality. However, naming the EV a Mustang has riled up some supporters of the gas model .

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Ford made a bold move to use the Mustang brand for the EV

Even though there may be some negative reaction to the move it has probably drawn attention to the car that it would not otherwise have had. Perhaps any publicity is good publicity. A new name or that of another existing Ford vehicle would likely not have garnered so much interest.

Design is quite different from the existing Mustang

The Mach-E has a quite different front grille from the traditional Mustang. It has a nose matching the SUV's body color. Electric vehicles tend to need less direct air cooling. This has led automakers to become clever with design. However, the move is bound to elicit scorn from some who love the traditional design.

Features

The Mach-E has a decent range for an all-electric vehicle of up to 300 miles of range. The price range will be between $44,000 to over $60,000. State and Federal tax incentives will help lower the price but the Mach-E is still a premium car.

The Mach-E will not ship for about a year but the models recently tested felt like a complete package even though the software is not yet close to working according to Sean O'Kane of Verge.

Details of different versions of the Mach-E are available in a Verge article.

The Mach-E is said to have a lot of head room by O'Kane and leg room as well especially since it is small as SUVs go. The car also has a USB-C port and also a wireless charging mat a boon for techies. There is a large front trunk and deep storage places in both the doors and the center console.

The 15.5 inch touchscreeen was not yet functional. However, it has a simple digital instrument cluster with basic information. There is also a driver monitoring system. Ford eventually wants a hands-free driving system and the monitoring system will be a safety feature for when that occurs.

Comparisons with Teslas

The forthcoming Tesla Model Y will have similar specs to the Mach-E and is scheduled to be released around the same time.

Shortly after the unveiling event, Elon Musk CEO of Tesla congratulated Ford on the Mach-E tweeting: “Sustainable/electric cars are the future!! Excited to see this announcement from Ford, as it will encourage other carmakers to go electric too."

Ford may end up in financial difficulty

]Ford is committed to a huge investment over the next years: "Ford Motor Company said Sunday that it would more than double its investment in the production of electric vehicles, promising to spend $11 billion on the technology by 2022. The auto giant will roll out 16 fully electric cars within five years, the first of which would arrive in 2020."

O'Kane thinks that Ford made the right choice in going ahead producing the premium and superior Mach-E rather than a slightly improved Ford Focus as they earlier planned. However, the latter vehicle might have been cheaper and more suitable for a mass market. It remains to be seen how many are willing to plump down a fairly high sum for the Mach-E when the entire EV market is just a small fraction of the existing new automobile market.

In May of this year Ford cut 7,000 white collar jobs or ten percent of its workforce: "Ford is cutting 7,000 white-collar jobs, or about 10% of its salaried staff worldwide, as part of a cost-cutting effort it says will save the company about $600 million a year." There have been other cuts since then including 450 workers in the Oakville Canada assembly plant as sales for the Flex model slump.

A recent late October article on Ford stock provides four difficulties Ford faces and concludes: "Ford (NYSE:F) faces too many challenges to be a buy right now. The carmaker reported third-quarter results this week, including earnings declines, lowered guidance, and less-than-promising sales trends overseas. Most of the turmoil seems to revolve around the company's attempt to restructure and move away from stagnant sedans. Nonetheless, it isn't doing much that will create a bull case for its stock. Here are the four key headwinds holding things back."

Previously published in the Digital Journal

Volkswagen might use Ford's US plants to produce its own electric vehicles (EVs)

U.S. auto manufacturer Ford is talking with Volkswagen in Washington, DC about the German auto maker possibly using Ford plants to make electric vehicles and sharing its platform with Ford in the U.S.

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EVs to be manufactured may include microbuses

Back in June the two companies announced that they were planning an alliance to cooperate on some future products. Diess said that the alliance would not include equity stakes for the automakers. Volkswagen chief executive officer Herbert Deiss said recently that he is looking for a place to build the company's electric cars in North America.

EV models include classic microbuses

Although Diess did not say what exact models may be made in the U.S., they may include the I.D. Crozz and the I.D. Buzz.

The I.D. Crozz is expected to go on sale in 2021, and the I.D. Buzz in 2022. The Buzz is a remake of the classic microbus. However other possibilities include pickup trucks shown at recent auto shows that are sold worldwide.

Diess said: “We need additional capacity here in the United States, we need an additional car plant for VW and Audi combined.” Audi, which is now part of the Volkswagen group. is also planning to sell vehicles in the U.S. including several models that will be based on VW's MEB platform designed to produce more affordable models.

A recent article notes: "Volkswagen is expecting to launch at least three new all-electric vehicles in the U.S. in the next five years.The first will be the 2020 introduction of the ID, a unique electric-only that would replace the e-Golf; the much-anticipated, all-electric ID Buzz, a remake on the counterculture-icon microbus, due in 2022; and the I.D. Crozz, a rugged-hatchback spinoff. A flagship sedan, previewed by last year’s I.D. Vizzion concept, could also arrive around 2022."

Ford could use VW's EV architecture

If Ford and VW come to an agreement on sharing the development of EVs, both companies could use VW's EV architecture. VW is planning large investments in EVs up to $50 billion.

VW hopes that by just 2025 fully a quarter of all the groups' vehicles will be solely powered by electricity. They expect to have some 50 different fully battery powered vehicles plus 30 plug-in hybrids.

Using Ford plants would save VW money

Although there are some reports and rumors about VW expanding its existing plant in Chattanooga, Tennessee or even building a new plant, sharing facilities with Ford could achieve the aims of VW without the company having to invest a great deal of money in a new or expanded facility. It would help localize production as well and help shield it from currency fluctuations or trade wars.

Neither company has released any specifics about their deal, and both said they were still in the process of working out details.

Previously published in Digital Journal

US auto sales rise in June for US big three

(July 3) In June, sales were stronger for top US auto manufacturers. Consumers continued to buy sport utility vehicles and trucks in larger numbers. So far there seems to be no negative reaction to higher fuel prices, interest rates and trade tensions.

Sales rise but investors sell shares in auto firms

Investors were selling off shares in the big three Detroit auto manufacturers, GM, Ford, and Fiat Chrysler during June. This may be caused by rising trade tensions between the US and trading partners and the threat of tit-for-tat tariffs in the auto sector. The tensions have led to a fall in US consumer confidence in June and caused some effect on plans to purchase big ticket items. Some consumers may be buying autos before the price rises due to a trade war.

A poll of economists by Reuters predicted a seasonally adjusted annual rate of 17.0 million vehicles for the U.S. auto industry in June. U.S. vehicle demand in June of 2016 hit a record 17.5 million vehicles .

GM sales are up

The number one US auto manufacturer GM, has stopped reporting its monthly numbers this April but claimed its sales rose 4.6 percent to 758,376 for the quarter that ending in June. The sales increase saw strong truck sales and of new cross-over vehicles.

Kurt McNeil, the vice president of US sales operations said: "Customers are buying with confidence because the economy is strong and they expect it to remain strong.

Ford sales also increased

Ford is the second largest auto manufacturer in the US. The company said it sold 230, 635 vehicles in June compare with 227,979 in 2017. Ford SUV's sold 77,453 vehicles up 8.1 percent and a record for June.

The company said that sales of its popular F-series large pickup trucks were on track to break the previous annual record of 939,511 units set back in 2004. The series is the best-selling model line in the US.

Fiat Chrysler also does well

The company claims that US sales rose 8 percent in June to 202,264 vehicles. The sales spurt was largely driven by Jeep and Ram trucks brands. Jeep sales alone rose a whopping 19 percent while Ram Trucks also posted a 6 percent gain, their best June sales ever. In June of this year the Jeep Cherokee sales rose 89 percent to 22,433 vehicles compared to just 11,895 in June of last year.

Positive signs for auto manufacturers

US jobless rates are at their lowest level since the turn of the century 2000. Average incomes are also beginning to grow more strongly. Nevertheless many analysts are predicting weaker sales for the rest of the year and declining demand next year.

The weaker outlook is caused by rising interest rates on car loans while bankers are tightening terms for car loans according to economist Charlie Chesbrough who argued that autos were becoming less affordable.

GM and other car makers have also warned that if US president Donald Trump imposes steep tariffs on foreign vehicles and imported auto parts this will raise prices to consumers and costs to manufacturers and sales could drop dramatically.

Previously published in Digital Journal

US February auto sales rise significantly

February auto sales in the United States rose at a seasonally adjusted annual rate in February of 17.43 million according to WardsAuto. Autodata put the rate at 17.54 million.

2016 started off in January with sales growing at the fastest pace since 2000. February continues the trend upward — most companies beat expectations with Ford among the the leaders. Of the other big three, GM posted an unexpected decline while Fiat Chrysler did very well. Ford sales grew by a humongous 20.2 percent compared to last year while expected growth was 12.6 percent. GM sales declined by 1.5 percent while sales were expected to grow by 5.1 percent. Fiat Chrysler sales grew by 11.8 percent while expectations were for a growth rate of just 9.2 percent.

Volkswagen sales were still hurting as a result of their diesel emissions scandal. Sales slumped by 13 percent. However, the Tiguan soared in sales by 78 percent. Luxury German maker BMW sales also declined by 12.4 percent. However, Porsche was one bright spot among German auto manufacturers with a sales jump of 11.2 percent.

Among Japanese auto makers Nissan had a sales jump of 10.5 percent much more than the 7.2 percent expected. Toyota had a gain of just 4.1 percent less than the 4.9 percent expected. Honda had a large jump of 12.8 percent compared to expectations of 8.8 percent.

Among Korean auto makers Hyundai had a marginal 1 percent gain in sales while Mazda had a large drop of 16 percent. Kia was the big winner with a sales jump of 13 percent.

Ford's impressive growth was fueled by strong demand for SUV and crossover vehicles whose sales increased by 28 per from last February. However, the popular F-Series pickup trucks also sold well, 10 percent better than a year ago. Cars also did quite well jumping by 19 percent from last year. Fiat Chrysler's sales were bolstered by strong demand for the Jeep SUV and for the Ram truck line.

Several factors may have influenced the increase in sales. Michelle Krebs, an analyst with Autotrader said: "In addition to positive economic factors, February car sales got a boost from the Super Bowl, (the) Presidents Day (holiday) and beefed up dealer advertising." Analysts expect that eventually sales will hit a plateau and taper off, but since the 2008-9 recession sales have been increasing. On the east coast of the US, a January blizzard may have resulted in purchases being delayed until February. Low fuel prices, easy credit, and a high employment level may also help increase demand for new cars. The low fuel prices may be leading to more sales of expensive trucks and SUVs. Edmunds.com reports that light trucks and SUV's outsold cars for thirty months in a row and amount to 60 percent of sales overall in February.