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Ford profits soar as problems mount

Ford is doing well. It can't make enough examples of its new Fusion, it can barely make enough of the aging F-150, it's getting good brand rankings, people like its turnaround story, it's selling oodles of product and its quarterly profit numbers end in the word "billion." As other high-flying examples have demonstrated over the past few years, though, big numbers can come with problems that aren't exactly small.
Automotive News has published a good "nutshell" report of Ford's progress and problems. The Dearborn automaker's optimistic "general label rule" determination of gas mileage for the C-Max Hybrid has led to lawsuits, hybrid software updates, a downward revision of C-Max fuel economy and millions in rebates. AN notes the C-Max was the "worst-scoring model in this year's J.D. Power Initial Quality Study," but Ford will probably be happy that it managed not to be mentioned further in the study's results after last year's mediocre showing. Its MyTouch and SYNC systems, the bugbears sabotaging Ford's J.D. Power results, have also led to lawsuits, software updates, more software updates and a center console rethink. On top of that, the 1.6-liter EcoBoost in the 2013 Ford Escape that Ford called a "hero" was soon catching fire for three different reasons. And let's not even get into the troubled launch of the Lincoln MKZ.
The Automotive News piece notes that industry observers have been surprised at Ford's stumbles because everything has been looking so good. Nevertheless, there is still the issue of those billions in profits - the company is doing plenty of things, plural, right. Ford says it is tackling its problems, hiring engineers and instituting new quality control processes as part of its effort to find solutions. The test will be to see if in a year from now we begin the discussion of these issues with "Remember when Ford...", or "Problems continue at The Blue Oval."

Ford idling Michigan Assembly Plant to trim Focus, C-Max supply

Ford will be putting the brakes on production at its Michigan Assembly Plant in Wayne, MI, idling production during the weeks of October 28 and December 16. Ford is citing the first drop in US sales in 27 months, a 4.2-percent dip in September, as the impetus for trimming their supplies, according to Automotive News.
Ford's deft management of its supplies has been part of its success over the years, and seeing supplies of Focus and C-Max, the two vehicles built at MAP, rise from 58 and 108 days, respectively, to 71 and 122 days over the span of a month was apparently all that was need to justify the trimming. As AN points out, the rule of thumb for many automakers is to maintain a 60-day supply of vehicles.
"Ford has been focused on keeping their pricing in check. Their operating margin is in double digits. Nobody else is there and they're obviously very proud of that," Alan Baum, an auto analyst with Baum & Associates told AN. Keeping the supply chain operating smoothly and not increasing supplies too much is crucial to that healthy profit margin. After all, a large supply lowers prices ,which, in turn, cuts profit. So while this news might not be great for employees at MAP, who now have an extra two weeks of vacation time, it's far from a sign of problems in Dearborn. Quite the opposite, actually.

2013 North American Car and Truck/Utility of the Year finalists announced [w/poll]

2012 is almost in the books and automakers are spending December gearing up for the 2013 auto show season, which tips off next month at the Detroit Auto Show. Traditionally, the latter opens up with the announcement of the North American Car and Truck/Utility of the Year awards, and this year figures to be no different.
But up until this moment, we didn't know which six vehicles would be parked ahead of the stage as finalists, with executives and engineers waiting for the winners to be disclosed. Whittled down from October's "short list" of nominees (11 cars and 10 truck/utility vehicles), the finalists are as follows:
2013 North American Car of the Year: