Tag Archives: Environment

Ford Shutting Down Plants as Chip Shortage Rages

Ford Motor Co.’s been among the hardest hit — if not the hardest — by the ongoing semiconductor chip shortage. 

In fact, the Detroit-area automaker announced another round of plant shutdowns — most related to chip related issues — June 30, but the stock fell only slightly closing at $14.84, down just 17 cents from the previous day’s closing price of $15.01.

Ford announced it will be closing down its Kansas City truck plant for two weeks next month.

The Dearborn, Michigan-based automaker has been battling the semiconductor challenge essentially on two fronts. First, its primary supplier of chips, Japan-based Renesas saw its plant catch fire in mid-March. Any chance to go to the open market to make up for that was obviously impossible since large-scale producers in Taiwan and Asian countries were overrun by demand from, well, everyone.

Despite this compounding set of problems, investors seem to be riding the chip-powered rollercoaster with the automaker in 2021. The company’s stock, which languished below the $10 a share mark for much of the 18 months heading into this year, has enjoyed steady support thus far in 2021.

Riding the slow-rising wave

Analysts and investors alike have been waiting for the stock to begin some sort of comeback. It wasn’t all that long ago it traded above the $40 a share mark. In 2020, it fell as low as $4.33 in March; however, when the markets opened Jan. 4, 2021, Ford started at $9 even. 

And despite repeated plant closures, which included its best selling and most profitable vehicles — trucks and SUV — investors seemed to keep the faith, prices rising into the second quarter despite repeated warnings from CEO Jim Farley repeatedly telling anyone who would listen that the second quarter would be the worst.

Ford is going to cut production at its Chicago assembly plant due to the chip shortage.

Forewarned is forearmed

It appears sounding the alarm worked. The stock price began Q2 at $12.17 and closed June 30, the last day of the period just shy of $15 even as more closures were announced.

It’s shuttering the production line for the F-150 pickup truck at its Kansas City assembly plant for two weeks next month. Additionally, Ford’s Michigan assembly plant that recently started shipping its Bronco SUVs will be down for two weeks in July due to a shortage of certain auto parts, the company said, adding that this was unrelated to the chip shortage.

Ford’s massive Chicago assembly plant, which makes the Explorer sport-utility vehicles is closing from the week of July 5 to the week of July 26. It will run just two shifts – instead of three — the week of Aug. 2, according to the maker. Despite this, analysts seem pleased with what the automaker is doing. 

“Ford is doing pretty well,” said Bank of America Analyst John Murphy during Merrill Lynch’s “Car Wars” online event for investors. He noted the company’s betwixt and between its product cycles with some all-new models coming out and generating excitement — like the Bronco Sport and Bronco — while some of its older models getting only minor tweaks to gain interest.

All charged up by EVs

2021 Ford Mustang Mach-E GT Performance Edition
CEO Jim Farley noted recently the Mustang Mach-E is completely sold out.

What’s endearing Ford to investors is its leap into the EV market with its two strong product names: Mustang and F-150. In the last six months, the public’s finally gotten a good look what Ford plans to bring to the market in terms of the Mustang Mach-E followed by the F-150 Lightning. To a lesser extent, but still difficult to ignore, the company’s is the top seller of vans with its Transit and it revealed the electrified E-Transit too.

“We have the number one pickup truck, globally, that’s going with the number one van globally, that’s going electric and in North America, globally, for both,” Farley said during a call in mid-July. “And we have the number one sports car in the world going global, and going (to get) better in the next six months. 

“And so far, Mustang Mach-E is the only one out — it’s completely sold out. So, all I can tell you is that we’re going to be working hard on the flexibility for manufacturing, and our battery supply because we have the demand. And so far, early indications are that when you look at F-150. The adoption and the interest from customers is going faster, maybe, than even Ford expected.”

At the debut of the F-150 Lightning, Farley told reporters, “I am looking at this vehicle as a test for adoption of electric vehicles.” He added by using the company’s highest profile vehicles, it demonstrated commitment to EVs. By introducing it on its best-selling model, it gets scale, allowing the company to introduce the Lightning at just under $40K and securing more than 100,000 deposits — at $100 each — within a few weeks of its debut. 

Electric F-150 Lightning Tops 44K Reservations as Ford Reveals More About Commercial Version

Ford’s all-electric F-150 Lightning appears to be striking a responsive chord with consumers, the automaker’s CEO Jim Farley tweeting that advance reservations for the battery-powered pickup topped 44,000 within just two days after its introduction.

The response from consumers to the F-150 Lightning has been strong.

The automaker is hoping to build even more momentum as it reveals new details about the commercial version of the truck, including a long-range Lightning Pro that will start at $49,974. That price, Ford said in a release, will include an 80-amp charger capable of bringing a nearly drained battery back to 100% overnight.

“More than 44,500 reservations in less than 48 hours … and counting,” said Farley in his tweet. “The future is here.”

Sales supercharged by a presidential visit

The F-150 Lightning is the third in what is expected to be a wave of new, all-electric pickups coming to market in the next few years, following the Tesla Cybertruck unveiled in 2019, and the GMC Hummer introduced last October. With the formal sales launch of Tesla delayed, Ford’s offering could become the second to actually reach showrooms — if it holds to a spring 2022 target.

Lightning got a “really big boost,” last week a top Ford executive told TheDetroitBureau.com during a background conversation, when President Joe Biden came to Detroit. He did several burnouts in the truck — which officially can hit 60 in 4.5 seconds — declaring, “This sucker is really fast.”

For potential buyers, however, it’s the utility the truck will offer that is making waves. That includes a trunk-sized “frunk” under its hood to the built-in generator capable of providing up to 9,600 watts of power. That’s enough to power a large worksite or a typical home for three days or more, according to Ford.

Two range options

Two equally big selling points are the potential range the truck will offer, along with its starting price. The 230-mile version of the F-150 Lightning Pro starts at $39,974 — or $16 less than a Tesla Model 3 sedan. The 300-mile model will come in at $49,974, Ford announced today. Both include the 80-amp Ford Charge Station Pro which can fully charge the truck in as little as eight hours.

Tesla CEO Elon Musk offered a congratulatory tweet.

Today’s announcement could lead to some confusion for buyers, however. The short-range Lightning Pro will be available to both commercial and retail buyers. The 300-mile model will be sold exclusively to fleets and other commercial customers.

Retail buyers will have a variety of other models available, however, including high-line trim levels, such as the King Ranch and Platinum, that will push as high as $95,000. (All prices quoted here exclude delivery charges, as well as federal tax credits of up to $7,500.)

All versions of the F-150 Lightning will use twin motors, one on each axle, to deliver all-wheel-drive without a connecting drive shaft. The short-range model will produce 426 horsepower and 775 pound-feet of torque. The long-range package will boost horsepower to 563. Depending on the package and options, the Pro series will handle up to 10,000 pounds of towing.

The frunk carries plenty of job-related necessities for the work site.

Fleet-minded telematics technology

The Pro models are targeted at those who want a relatively stripped-down truck for rough-and-tumble applications. They come with vinyl seats but also feature a full-size spare mounted under the skateboard-like chassis, behind the battery pack.

The purpose-built models also will offer what Ford calls “seamless integration” of telematics features that allow a fleet manager or commercial customer to remotely track things like a battery pack’s state-of-charge, potential service issues and other vehicle operations. Like the retail F-150 Lightning, the Pro also will allow “pre-conditioning” of the cabin, warming or cooling it up while connected to a charger, in order to extend range.

With the truck capable of smartphone-style over-the-air updates, Ford also plans to update onboard software and offer new features for Lightning in the future.

“As more companies make the commitment to go carbon neutral, they are going to expect electric products that can integrate into their operations easily,” Farley said in a statement today. “F-150 Lightning Pro represents so much more than an electric workhorse – it’s made for commercial customers inside and out, it gets better over time, and it’s totally plugged into always-on services that can help business productivity.”

Toyota Aims to “Electrify,” But Gas-Powered Models Will Dominate the Next Decade.

Toyota delivered the first mainstream hybrid vehicle more than two decades ago, and the automaker says gasoline technology will continue to dominate its line-up going into the 2030s.

The Japanese giant has been a big proponent of conventional hybrids, such as its once groundbreaking Prius, but it continues to be skeptical about pure battery-electric vehicles, citing a variety of issues such as cost and the lack of a convenient public charging network.

Toyota’s Jun Nagata confirmed the company doesn’t view battery-electric vehicles as the best way to achieve zero emissions.

“If you take a snapshot of 2030, the price of battery EVs and the provision of infrastructure around the globe probably won’t have advanced all that much,” Toyota executive Jun Nagata said during the company’s earnings news conference Wednesday. “Hybrids and plug-in hybrids will be easier for customers to buy.”

Battery electrics secondary to hybrids

Toyota does expect to see a sharp rise in the number of “electrified” vehicles it sells. CEO Akio Toyoda has laid out plans to offer conventional and plug-in hybrid options for virtually all of the company’s product lines by mid-decade. The new Sienna minivan and Venza SUV, for example, are offered solely with gas-electric drivetrains.

So, “70% of the Toyota and Lexus combined sales mix will be electrified (in one form or another) by 2030,” the company said in a statement “On a global basis, Toyota expects to sell approximately 8 million electrified vehicles by 2030, of which 2 million will be BEVs and FCEVs.”

Toyota’s James Kuffner said despite its focus on hybrids, Toyota will be the world’s low-cost producer of electric vehicles.

The mix also will include some battery-electric vehicles. Toyota last year launched its first long-range BEV in Europe and revealed another at the recent Shanghai Auto Show. It has hinted that it will show off its first long-range U.S. model this spring. The carmaker already sells another form of zero-emission vehicle, its hydrogen-powered Mirai. The fuel-cell vehicle was completely redesigned for the 2021 model year.

“We’re strongly positioned to lead the world in the best reliable low-cost battery-electric vehicles,” said James Kuffner, Toyota’s chief digital officer.

But, in its statement, as well as Wednesday’s news conference, Toyota made clear that products without any internal combustion engine will play a minor role. The company “expects BEVs and FCEVs will make up 15% of its U.S. sales by 2030.”

Running uphill

That’s in sharp contrast to what a number of competitors are aiming for. A few, notably niche brands like Bentley, are aiming to go 100% BEV by 2030. Ford plans to sell only plug-based models in Europe by 2026, and will go pure electric by 2030. It also has doubled its planned investment in battery-based models and will roll out BEVs faster than planned just a year ago, senior product executive Hau Thai-Tang said recently.

Toyota bZ4X Concept front
The Toyota bZ4X Concept debuted just ahead of Auto Shanghai 2021 and highlights the automaker’s vision for a global series of EVs.

General Motors and Volkswagen are two of the carmakers planning to go entirely BEV worldwide within the next 10 to 15 years.

The push for battery power might have begun in Japan but, with the exception of Nissan, automakers there have been reluctant to embrace technology beyond conventional hybrids – at least until now.

Subaru this week teased plans to launch the brand’s first all-electric model, the Solterra. It will share the same BEV drivetrain as the upcoming Toyota. Mazda is just launching its first BEV.

Honda, meanwhile, will launch two BEVs in the U.S. using underpinnings developed by General Motors. Then, it plans to add several more all-electric models using a new architecture developed in-house. But Honda officials expect hybrids and PHEVs to continue to dominate into the next decade, however, much like Toyota.

The Japanese leader’s executives have cited a variety of reasons why they don’t expect all-electric technology to become dominant anytime soon. The higher costs, range concerns and a lack of a charging network were serious concerns, said Kuffner. There are other ways to deal with climate change, he said during a news conference called to discuss the company’s latest earnings.

“The goal is not electric vehicles, the goal is carbon neutrality, and even if we have the best technology, if it’s not chosen by customers, it will not have the impact of reducing emissions,” he said.

Ford Makes Former Ambassador, Board Member Huntsman New Vice Chairman

Jon M. Huntsman, Jr.

Jon Huntsman will remain on Ford’s board of directors as he moves into the vice chairman role.

Ford Motor Co. is giving one of its outside directors a new title, vice chairman.

Jon Huntsman, who is described as a “vital” member of Ford’s board of directors, joins the company in a senior advisory position, the company said. Company directors Wednesday approved the appointment of Huntsman as vice chair, Policy, effective May 3.

He will advise Jim Farley, Ford’s president and CEO, and Executive Chair Bill Ford as the company considers and implements strategic policy choices during a period of profound industry change, including the transition to zero-emission battery electric vehicles, the company’s statement on Huntsman’s new role said.

Huntsman will remain on Ford’s board of directors, the automaker said.

Tasks for new role

Bill Ford will use the counsel of Huntsman on a variety of issues going forward.

In his new role, Huntsman will work closely with company teams across a range of disciplines, especially Government Relations; the Office of the General Counsel; and Sustainability, Environment and Safety Engineering. He will represent Ford with certain government officials and influencers in the United States and other countries around the world, Ford said.

“Global policy is hugely important to transforming Ford and unlocking great value for customers and all stakeholders,” said Farley.

“Jon’s background, insights and achievements are unrivaled — as an ambassador and trade representative, a state governor and a public-company executive.”

Farley added that Huntsman is highly regarded by government, NGO and business leaders worldwide, including on both sides of the aisle in Washington, D.C.

Diplomatic experience

Ford CEO Jim Farley said Huntsman’s political experience will be invaluable to the automaker.

Huntsman was first elected to Ford’s board of directors in 2012, after serving as the U.S. Ambassador to the Peoples Republic of China during the Obama administration.

He resigned in September 2017 to become U.S. ambassador to Russia under President Donald Trump, Huntsman returned to the Ford board of directors in October of 2020 and is standing for re-election at the annual shareholders meeting on May 13.

He also served as ambassador to Singapore in the early 1990s under Presidents Bill Clinton and George H.W. Bush. In a series of trade assignments, including two years as deputy U.S. trade representative under President George W. Bush, Huntsman negotiated dozens of trade and investment agreements in Asia Pacific and Africa.

Huntsman also was the Republican governor of Utah from January 2005 to August 2009. Earlier, he was an executive of Huntsman Corp., an innovative global chemicals company. Huntsman is also a member of the Chevron board of directors. He is a graduate of the University of Pennsylvania with a degree in International Politics.

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Japan Joins Growing List of Countries Set to Ban Sales of Gas-Powered Vehicles

Japanese Prime Minister Yoshihide Suga supports the move to ban the sale of non-electric new vehicles staring in 2035.

Despite strong pushback from the country’s largest automaker, Japan has announced plans to halt the sale of vehicles relying solely on internal combustion engines after 2035.

The move means the Asian nation will join a growing list of countries planning to phase out vehicles powered by gas or diesel, including both the United Kingdom and Norway. A number of other countries, including France and Germany, are considering similar bans.

Vehicles with internal combustion engines won’t be banned entirely. Automakers will still be able to market hybrids in Japan, regulators ruled. Even so, the plan released on Christmas Day was a significant victory for Japanese environmentalists considering it was strongly opposed by key industry leaders, including Toyota President Akio Toyoda who warned earlier this month that a broad shift to electric vehicles could cause the auto industry’s traditional business model “to collapse.”

(Toyota boss Akio Toyoda remains EV skeptic.)

Akio Toyoda, Toyota’s top officer, is against the ban.

As the head of Japan’s largest and most powerful company – and in his role as the head of the Japan Automobile Manufacturers Association – Toyoda hoped to convince regulators to back off on the proposed ban. But it had widespread backing from other quarters, including Japan’s new Prime Minister Yoshihide Suga.

In October, shortly after assuming his post, Suga had pledged to cut Japan’s carbon dioxide emissions to net zero by 2050 while indicating he supported a shift to battery-powered vehicles.

Global sales of electrified vehicles remain modest, running in single digits in all but a handful of markets, even when including hybrids, PHEVs and fuel-cell vehicles, as well as pure battery-electric vehicles. But demand is expected to increase sharply as key obstacles, such as range, cost and public charging, are addressed. It also will help that scores of new BEVs are scheduled to go into production in the coming years, proponents say.

While Japanese automakers were pioneers with their early push to bring hybrids to market, “Japan is very far behind” in terms of developing more advanced products relying solely on battery power, Masayoshi Arai, an official with the country’s

Nissan is one of a few Japanese automakers dedicating resources to a move to EVs.

Ministry of Economy, Trade and Industry, said last week.

Toyota only recently introduced a BEV model in Europe, though it has announced plans to add two more – one through the flagship Toyota division, a second under the Lexus badge. It also this month revealed an all-electric microcar targeting the Japanese home market. Only the Nissan and Mitsubishi brands, among Japanese automakers, have committed significant resources to the development of pure battery-electric vehicles and, even then, they have fallen behind key foreign rivals in terms of bringing new products to market.

(Toyota hopes to boost interest in hydrogen tech with second-generation Mirai.)

Toyota officials have, throughout the years, pointed to numerous concerns about BEVs, including their cost, limited range and other obstacles to widespread consumer acceptance. For his part, company chief Toyoda said this month that he feared a switch to all-electric models would seriously disrupt the classic automotive industry business model. He also raised questions about whether Japan’s electric grid could supply the needed energy — and, if it did add the generating capacity, he warned, that could actually increase the country’s reliance on fossil fuels.

With the debut of the 2021 Mirai fuel-cell vehicle, Toyota’s hoping to spur interest in the tech again.

For his part, Japan’s new prime minister is downplaying such concerns and said that efforts to address greenhouse gas production “should be tackled as a strategy for growth, not as a limitation on growth.”

Downplaying the need for new coal or natural gas plants, the plan released by the Japanese government would add up to 45 gigawatts of new offshore wind generating capacity by 2040.

With the Christmas Day announcement, Japan becomes the second member of the Group of Seven, or G7, to lay out specific plans to ban non-electrified vehicles.

The UK originally had planned to do so by 2040 but now has pushed that target date up to 2030. Like Japan, its ban will continue to permit the sale of hybrids – but only through 2035, at which point only pure, zero-emissions vehicles will be able to be sold in Great Britain. That will include both BEVs and hydrogen fuel-cell vehicles.

Despite its reticence about EVs, Toyota rolled out a new battery-electric car Dec. 25: the C+pod.

A handful of other countries, including Norway, have also laid out ZEV transition plans. So have some states and regions – including California and the Canadian province of British Columbia. A number of cities, such as London, Paris, Berlin and Mexico City, plan to bar vehicles not running in zero-emissions mode, meanwhile. China, meanwhile, has laid out plans to have “New Energy Vehicles,” plug-based models, reach 20% of the market by 2025. It is considering a total ban at a later date.

(Britain to ban sale of all new gas and diesel cars by 2030.)

With most of the country’s automakers reluctant to bring plug-based models to market, demand has grown far more slowly than in many other major regions. The Ministry of Economy, Industry and Trade noted that consumers purchased only 6,000 PHEVs and BEVs during the third quarter of 2020. By comparison, demand tripled in Europe to 270,000 – all-electric models accounting for roughly three-quarters of Norwegian sales. China, meanwhile, is expected to again top 1 million plug-based models for all of 2020.