FORD CRUISE CONTROL RECALL EXPANDED

Ford issued the largest single recall in Ford history on Tuesday. Owners of an additional 4.5 million Ford vehicles were warned about recall due to a fire hazard from a faulty switch.

The National Highway Traffic Safety Administration said this was the eighth Ford recall, involving a total of 16 million Ford Motor vehicles, concerning the cruise control deactivation switch manufactured by Texas Instruments

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The faulty cruise control switch involved in this Ford Recall can leak hydraulic fluid, overheat, smoke and then burn, and risks causing a fire even when the ignition is turned off, parked and unattended, the NHTSA said.

The risk is elevated for 1.1 million Windstars that were subject to a government investigation, said Ford spokesman Wes Sherwood.

"We determined with the government that there is a low risk of fires for those vehicles," Sherwood said. "The other 3.4 million vehicles are the remaining vehicles that have the Texas Instrument switch, so we're recalling them to reassure customers and prevent future recalls." Sherwood added Ford has always gone beyond recalling only the cars that present a risk. While the Ford does not discuss its current suppliers, Sherwood said Ford vehicles did not use the Texas Instrument switch in post-2003 models.

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NHTSA said Ford drivers should look for warnings of possible imminent fires, including malfunctioning cruise control systems and brake lights and antilock braking system and brake light warnings on the dashboard. The safety agency also said difficulty in getting the vehicle out of the park mode should be treated as a warning.

"I urge customers to pay attention to this warning and bring the affected models in to have them repaired as soon as possible," said Transportation Secretary Ray LaHood, in a statement.

Ford is notifying customers and instructing them to take vehicles to dealers for a complimentary installation of a fused wiring harness that will eliminate the risk of fires, the NHTSA said.

The safety recall is expected to begin around Oct. 26. Owners may contact Ford at 1-800-392-3673 or NTHSA's vehicle safety hotline at 1-888-327-4236 or visit http://www.safercar.gov.

Tuesday's Ford recall includes the following recalled Ford models: 1995-2003 Windstars, 2000-2003 Excursion diesels, 1993-1997 and 1999-2003 F-Super Duty diesels, 1992-2003 Econolines, 1995-2002 Explorers and Mercury Mountaineers, 1995-1997 and 2001-2003 Rangers and 1994 F35 motorhomes.

In other Ford news, Ford Motor Company is building another plant in China.

2010 FORD TAURUS - More Bull for your Buck

Back when Granadas, LTDs and Fairmonts were Ford's mainstay sedans, the 1986 Ford Taurus was a breakthrough car. In its day, nothing else looked or performed like it.

With a few notable exceptions (such as the excellent Taurus SHO editions), it's been downhill for the Taurus ever since. Unforgivably, Ford management worked the bull hard until it nearly died. Short-term profits were more important than car's best-of-breed style or performance. Inevitably, the Taurus became an also-ran car.

While not a lousy car in its current form, the 2008-2009 Taurus didn't revive sales. For 2010, Ford decided to do something drastically different. The all-new full-size 2010 Taurus is it. With the exception of on the auto show circuit, expect to see it in dealers this summer at a price that matches the outgoing car, $25,995.

The larger, all-new design is decidedly upscale. Thankfully the design team eschewed the outgoing Taurus's giant VW Passat roofline. There's not a hint of the dowdy old style to be found. Ford's marketing people hope that the new Taurus will become the flagship for the brand. This is a tall order given the car's current reputation as a rental fleet pariah and/or a retiree's final vehicular purchase.

It looks like the new Taurus is up to the task with its sculpted hood and sleeker lines. The front fenders are pronounced and the roof is lowered, giving the sedan a sportier stance. Our only quibble is with the grille. The 2010 Fusion and 2009 F-150 both feature prominent three-bar grilles, but the new Taurus's seems to be confused. With a broad upper chrome bar and three dissimilar painted bars below, the 2010 Taurus grille and wrap-around headlights look good, but they simply don't match the other cars in the Ford line. Standard wheels are 17-inch, and 20-inch rims are optional. The new designs fill the sculpted wheel wells and work well with the raised shoulder line of the rear fenders.

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Inside, a forward-leaning center stack clearly makes the 2010 Ford Taurus a five-seater. There will be no front bench seats or column shifters available for this car (we hope fleet car purchasing agents aren't crying too hard). New production techniques have yielded better looking and richer feeling dash and door coverings. As evidenced in recently introduced models, Ford knows how to craft high-quality and visually pleasing interiors. Panel gaps and materials appear on par with luxury cars.

Even though the Taurus is a full-size car, the amount of passenger room is still surprising. The adjective "huge" comes to mind. The trunk, thanks to the high profile of the rear fenders and the tall deck, is likewise enormous. Back in the days of drive-in movies, it would have been easy to fit three stow-aways back there with room for beer and chips.

The 2010 Ford Taurus is a sleek, stylish update of a car that has been one of the mainstays of the Ford fleet, and it's turning heads at the show with its expressive lines and improved interior, including a new instrument panel with chrome ringed gauges. The Taurus also delivers more fuel efficiency. No fuel economy numbers are available as yet, though Ford promises that it will be 10% better than the 2009 Taurus.

The 2010 Ford Taurus should have the moves to match its trimmer more athletic looks. The mechanicals are based on the Lincoln MKS, a car we've driven and liked. The standard engine is the proven Duratec 3.5-liter V-6, generating an estimated 263 horsepower and 249 foot-pounds of torque. Along with earning ULEV-II emissions certification front-wheel-drive Taurus (all-wheel drive is optional) is expected to deliver unsurpassed highway fuel economy in the class, but Ford hasn't yet released mpg estimates. Plan also calls for the availability of Ford’s turbocharged and direct-injected 3.5-liter V-6 to become available after the car goes on sale. In the MKS, the boosted engine produces 340 horsepower. Perhaps this foreshadows the return of the SHO (Super High Output)?

The base Taurus SE offers a six-speed automatic transmission with a Grade-Assist hill-holding rollback prevention feature, paired with an economical 2.77 final drive ratio. Taurus SEL and Limited models get the SelectShift gearbox used in the Lincoln MKS. It features paddle shifters on the steering wheel, manual shift mode, and rev-matching downshifts. Enhancing acceleration, the Limited series uses a 3.16 gear in front-wheel-drive models, and a 3.39 ratio in all-wheel-drive models to provide compensate for the added weight of the extra drive mechanicals.

Compared to the outgoing model, the chassis components under the 2010 Taurus should deliver sportier ride dynamics. Ford engineers promise more roll stiffness and more responsive steering. Like the MKS, the new Ford uses struts up front and multi-link, fully-independent arrangement in the rear.

Ford added a healthy helping of technology to the 2010 Taurus. Many of these features were once found exclusively in high-end luxury cars, but now Ford is making them mainstream. The list of optional features includes: Adaptive cruise control that uses radar to adjust the car's cruising speed in traffic; keyless entry with push-button start; and Ford's keyless entry keypad with a new pad flush-mounted on the driver’s side B-pillar. These are added to the latest version of Ford's SYNC infotainment interface that includes turn-by-turn route guidance (SYNC and GM's OnStar are in a heated battle to out-feature the other).

Offering even more travel-type information is optional voice-activated NAV with SIRIUS Travel Link. It uses a large eight-inch screen to present a birds-eye-view map with 3D landmarks. The Travel Link subscription provides current weather conditions (real-time radar), a five-day forecast, local fuel pricing by cost per gallon as well as brand, sports scores and movie listings.

One especially interesting option is what Ford is calling multi-contour front seats. These seats include six-way lumbar support and subtle rolling pattern massage. The minute but continuous movement stirs a change of muscular activation helping a driver avoid back pain and help reduce long-distance driving fatigue.

On the safety front, the 2010 Taurus is well equipped with standards including six air bags (including a two-row side canopy), electronic stability control, ABS, traction control, automatic high beams, rain-sensing wipers, plus a post-crash feature that unlocks all doors, flashes the emergency flashers, and sounds the horn in an event of an airbag deployment.

Safety enhancing options include a collision warning system that's part of the adaptive cruise control. When the potential for a collision is detected, the brakes are pre-charged for faster response, and a visual "heads-up" warning signal is flashed on the base of the windshield. Drivers are also warned of traffic they might not see on the highway or in parking lots by Ford's Blind Spot Information and Cross Traffic Alert systems; these use rear- and side-aiming radar. Additionally, Ford's SYNC now includes a 911 Assist enhancement that will place a call to a local emergency operator in the event of an air bag deployment incident.

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The 2010 Ford Taurus also boasts a stronger body structure that makes use of high-strength boron steel. If the crash results of the 2009 Lincoln MKS are any indication, this sedan should earn full five-star ratings and a "good" rating from the IIHS.

Regardless of your take on the old Taurus, this new offering looks to be a lot of bull for the money.

FORD 2009 FIESTA ECOnetic - 65 Miles per Gallon

If ever there was a car made for the times, this would seem to be it: a sporty subcompact that seats five, offers a navigation system, and gets a whopping 65 miles to the gallon. Oh yes, and the car is made by Ford Motor, known widely for lumbering gas hogs.

Ford's 2009 Fiesta ECOnetic goes on sale in November. But here's the catch: Despite the car's potential to transform Ford's image and help it compete with Toyota Motor and Honda Motor in its home market, the company will sell the little fuel sipper only in Europe. "We know it's an awesome vehicle," says Ford America President Mark Fields. "But there are business reasons why we can't sell it in the U.S." The main one: The Fiesta ECOnetic runs on diesel.

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Automakers such as Volkswagen and Mercedes-Benz have predicted for years that a technology called "clean diesel" would overcome many Americans' antipathy to a fuel still often thought of as the smelly stuff that powers tractor trailers. Diesel vehicles now hitting the market with pollution-fighting technology are as clean or cleaner than gasoline and at least 30% more fuel-efficient.

Yet while half of all cars sold in Europe last year ran on diesel, the U.S. market remains relatively unfriendly to the fuel. Taxes aimed at commercial trucks mean diesel costs anywhere from 40 cents to $1 more per gallon than gasoline. Add to this the success of the Toyota Prius, and you can see why only 3% of cars in the U.S. use diesel. "Americans see hybrids as the darling," says Global Insight auto analyst Philip Gott, "and diesel as old-tech."

None of this is stopping European and Japanese automakers, which are betting they can jump-start the U.S. market with new diesel models. Mercedes-Benz by next year will have three cars it markets as "BlueTec." Even Nissan (NSANY) and Honda, which long opposed building diesel cars in Europe, plan to introduce them in the U.S. in 2010. But Ford, whose Fiesta ECOnetic compares favorably with European diesels, can't make a business case for bringing the car to the U.S.

TOO PRICEY TO IMPORT
First of all, the engines are built in Britain, so labor costs are high. Plus the pound remains stronger than the greenback. At prevailing exchange rates, the Fiesta ECOnetic would sell for about $25,700 in the U.S. By contrast, the Prius typically goes for about $24,000. A $1,300 tax deduction available to buyers of new diesel cars could bring the price of the Fiesta to around $24,400. But Ford doesn't believe it could charge enough to make money on an imported ECOnetic.

Ford plans to make a gas-powered version of the Fiesta in Mexico for the U.S. So why not manufacture diesel engines there, too? Building a plant would cost at least $350 million at a time when Ford has been burning through more than $1 billion a month in cash reserves. Besides, the automaker would have to produce at least 350,000 engines a year to make such a venture profitable. "We just don't think North and South America would buy that many diesel cars," says Fields.

The question, of course, is whether the U.S. ever will embrace diesel fuel and allow automakers to achieve sufficient scale to make money on such vehicles. California certified VW and Mercedes diesel cars earlier this year, after a four-year ban. James N. Hall, of auto researcher 293 Analysts, says that bellwether state and the Northeast remain "hostile to diesel." But the risk to Ford is that the fuel takes off, and the carmaker finds itself playing catch-up—despite having a serious diesel contender in its arsenal.

Ford to Bring European Models to North America

Ford this Thursday is expected to announce it will fast-track at least one of its European passenger cars for U.S. production. The announcement will come amidst Ford’s second quarter earnings report and an update on its restructuring plan.

The two cars that CEO Alan Mulally has been pushing Ford to build in the U.S. are the Ford Mondeo and European Ford Focus. I have also heard that some in Ford have been trying to make a business case to sell the tiny Ka car in the U.S.

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It is vital that Ford build these cars in North America if they are to sell them, rather than trying to export them from Europe. The weak dollar makes such a move a loser. Ford would lose money on each Mondeo and Focus it would import from Europe today. Those cars are not “federalized” for U.S. emissions and safety standards anyway.

For years, Ford’s management has fended off calls to unify its product offerings in Europe and the U.S. The European Mondeo, for example, is a huge critical and sales success, and is widely viewed as a more attractive vehicle than the U.S. Fusion. Too, the auto press has long praised the European Focus, while Ford has chosen to sell a different Focus in the U.S.

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When Ford launched the Focus in the U.S. and Europe in the late 1990s, it was the same car on both continents. The manufacturing launch, though, was chaotic and the U.S. Focus was beset with numerous recalls. Once Ford got the bugs out, the reputation of the car was damaged. The automaker has not remade the car from top to bottom since its launch, choosing instead to change the design while keeping much of the mechanicals beneath. The current U.S. Focus is selling well as the demand for fuel efficient cars has spiked. But the car is not critically praised much for design and performance. The European Focus, meantime, has been substantially upgraded twice.

Ford managers have pushed back against Mulally’s directive to “make it happen,” referring to his desire to unify Ford’s global product line and make some of the European product in the U.S. These are the same strategic planners in some case, though, who made Ford so top-heavy on trucks and SUVs and short of competitive passenger car products.

This is where the choice of Mulally should really pay off for Ford. An outsider who came to Ford in 2006 from Boeing Co., Mulally has a retort for long-time Ford managers who fight him on a decision that makes so much sense…”How’s that workin’ out for ya so far?” Not too well. Ford managers have painful memories of the company trying to sell the Ford Contour/original Mondeo globally. And who could forget the raging success of the Merkur Scorpio in the U.S. But those people are responsible for a alot of Ford’s problems today. It’s time to try it Mulally’s way.

But just because those Euro models didn’t work, it doesn’t mean that today’s Focus and Mondeo can’t be globalized with success. The designs are much better than those previous attempts, and the world is different when it comes to design. Last time I checked, Toyota was doing pretty well selling a global Camry and Corolla design.

Given the long-term prospects or oil prices, Ford would do well to have a full line of passenger cars that includes the Fiesta, Focus, Fusion, Mondeo, Taurus…Ka? What remains to be seen in Mulally’s announcement is whether or not the Mondeo will replace the Fusion, or be added to the lineup. There has already been a move to unify the design of the Fusion and Mondeo for each car’s next generation. Ford also has an updated design of the Taurus due next year. The update, as seen in spy shots and in a slide presented to dealers a few months ago, looks akin to the Mondeo.

The next generation Focus, too, was to be brought together. So, Mulally will be outlining whether or not the end result of this will be adding models, or just accelerating the merging of these model programs. Either way, Ford’s car lineup is going to get a needed boost.

Ford Posts $ 8.03 billion Loss for second Quarter

Ford Motor Co. said Thursday it lost $8.67 billion in the second quarter and will retool two more North American truck and sport utility vehicle plants to build small, fuel-efficient vehicles. The net loss includes $8.03 billion worth of write-offs because of a decline in value of North American assets and Ford Motor Credit Co.'s lease portfolio. Even excluding those items, Ford lost 62 cents per share, worse than Wall Street expected. Twelve analysts surveyed by Thomson Financial, on average, expected a 27 cent loss per share. Including the write-downs, Ford lost $3.88 per share in the April-June quarter, compared with net profit of $750 million, or 31 cents per share, in the same quarter a year ago.

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Second-quarter revenue was $38.6 billion, down $5.6 billion from the year-ago period. Analysts expected $34.6 billion. Ford also announced that it will bring six European small car models to North America by the end of 2012 as it deals with a market shift from trucks to cars brought on by high gasoline prices. The company said it will retool the Michigan Truck plant in suburban Detroit, shifting its products from large SUVs to make global vehicles off the European Focus platform by 2010. The SUVs made at Michigan Truck — the Lincoln Navigator and Ford Expedition — will be shifted to the Kentucky Truck plant in Louisville, which makes Ford Super Duty pickups.

The company also will retool the Louisville Assembly Plant, which now builds the Ford Explorer midsize SUV, to produce vehicles on the European Focus frame, starting in 2011. The company had previously announced it would retool its pickup truck factory in Cuautitlan, Mexico, to build the Fiesta subcompact for North America starting in 2010. Ford also said its Twin Cities Assembly Plant in St. Paul, Minn., will continue producing the Ranger small pickup through 2011. The plant was scheduled to close next year, but Ranger sales are down just 4 percent in the first half of this year, versus 18 percent for the U.S. light truck market as a whole.

The company said its write-offs included $5.3 billion in North America and $2.1 billion for Ford Credit's truck-heavy lease portfolio. Chief Financial Officer Don Leclair said most of the write-down was triggered by the drop in value of the company's truck and SUV inventory and lease residuals. Ford reported a pretax loss of $1.3 billion in North America because of the deteriorating U.S. market and the shift away from trucks. U.S. sales overall were down 10 percent in the first half of the year, with Ford's sales down 14 percent.

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The company, though, continued to be profitable overseas, posting a $582 million profit in Europe and $388 million in South America. The company also made $50 million at its Asia-Pacific-Africa division.

"The second half will continue to be challenging, but we have absolutely the right plan to respond to the changing business environment and begin to grow again for the long term," President and CEO Alan Mulally said in a statement.

Ford said it does not expect a U.S. economic recovery to start until early 2010.

The company identified only three of the European small vehicles it will bring to North America: the Transit Connect small van, the European Focus and the subcompact Fiesta. Most will be built in North America, and Leclair said some might be exported. Ford already has announced that the Transit Connect will be imported from Turkey.

Ford said the other three vehicles would be identified later, including one that is unique within its segment.

Other possible vehicles are the Kuga small crossover, the C-Max small van and the Mondeo midsize car.

Ford also announced that the next-generation Ford Explorer midsize SUV will come out in 2010 and be built on car underpinnings, making it more fuel efficient than the current truck-based model. And it announced it will build a seven-passenger car-based crossover vehicle for Lincoln in mid-2009.

FORD is RECALLING more than 650,000 F-150 and Lincoln Mark LT pickup trucks

The Ford Motor Company is recalling more than 650,000 F-150 and Lincoln Mark LT pickup trucks because of a faulty power brake assist hose.

The Ford recall covers 2005 and 2006 F-150 and Mark LT trucks equipped with the 5.4-liter three-valve engine, according to the National Highway Traffic Safety Administration (NHTSA) Web site.

The brake hose may swell over time causing the hose to become detached from the intake manifold, NHTSA reported. As a result the agency warned, applying the brakes could require increased pressure on the brake pedal.

“Several brake applications with power assist will be available before the vacuum reserve is depleted,” according to the NHTSA report.

A Ford spokesman said there are reports of 11 minor accidents caused by the brake hose issue with no injuries.

More than 600,000 of the recalled trucks are in the U.S. and roughly 50,000 are in Canada. Another 1,500 pickups are in other countries.

“Parts are currently not available to complete the required repairs” the automaker said in a letter to all Ford Lincoln and Mercury dealers. Ford plans to begin notifying F-150 and Mark LT owners of the recall in early July.

Dealers will replace the hose at no charge to customers when the recall begins.

Owners may contact Ford at 1-800-392-3673 or NHTSA at 1-888-327-4236 (TTY 1-800-424-9153).

The Little Zipcar Deal Dwarfs the Big Jaguar Sale

We often measure change by large events, such as Ford's sale last week of its Jaguar and Land Rover luxury brands to the Tata Group, a wealthy Indian conglomerate.

But such measurements can be misleading.

The sale of Jaguar and Land Rover to Tata is not the seminal event some in the media have portrayed it to be. Instead, examined in its particulars -- Ford's unloading of those brands for $2.3 billion, less than half of what it paid to acquire them in 1989 -- is little more than a desperate correction of a mistake that never should have been made in the first place.

Ford bought Jaguar and Land Rover to regain some of the prestige it had lost by failing to build desirable, high-quality cars wearing Ford, Lincoln and Mercury badges. It was a waste of money, a pursuit as useless as trying to buy friendship. Now, Ford plans to use the money it gets from the Tata deal to do what it should have been doing all along: designing and manufacturing superior quality, must-have, Ford-branded cars and trucks.

It is important to note that development. But it is also important to point out that Ford's deal with Tata, expected to be finalized by the end of the quarter, is not nearly as significant as something else that occurred last week: the merger of Zipcar and Flexcar, the nation's leading urban car-sharing providers.

The Zipcar-Flexcar deal, which could help reduce the number of cars and trucks crowding America's roads while simultaneously boosting the fuel efficiency of the vehicles using them, points to the future of the automobile industry.

The resale of Jaguar and Land Rover is in many ways a continuation of the past, the purchase of prestige stemming from an age when fuel was plentiful and relatively cheap, when luxury meant the exclusion of most things practical, when horsepower ruled.

In short, here's betting that Tata will have more success with its super-cheap, super-efficient Nano city car and that automobile's future derivatives than it will have with keeping fuel-consumptive Jaguars and Land Rovers afloat in an era of $100-per-barrel and higher oil costs.

A Nano-like car, should it ever make it to the Western Hemisphere, would fit in perfectly with Cambridge, Mass.-based Zipcar and D.C.-based Flexcar, now merged singly under the Zipcar banner.

The newly expanded Zipcar will bring car-sharing to 26 of the United States as well as to jurisdictions in Canada and London.

The merged company now has 180,000 international members -- consumers using the service -- who will have access to 5,000 vehicles, many of them representing the best fuel efficiency available, in the Zipcar fleet.

Simple math breaks that down to 36 people per Zipcar.

Ford Motor Company to take over Romanian Car Plant

Ford Motor Co. will formally take over a Romanian car manufacturer by the end of this month, the prime minister said Wednesday.

Ford was the only bidder for Automobile Craiova in September, paying 57 million euros ($77.9 million) for a 72.4 percent stake in the state-owned company and vowing to invest another 675 million euros ($923 million) to upgrade and expand car production.

Parliament voted 238-15 with five abstentions Tuesday to approve the sale.

The European Union has criticized the sale, accusing Romania of underselling Automobile Craiova to Ford. Regulators have ordered the government to demand Automobile Craiova pay the state the lost revenue from the sale.

The EU executive said the stake was actually worth 84 million euros ($125 million) and the Romanian state lost 27 million euros ($40 million). Romania joined the EU in 2007.

Despite the EU criticism, Prime Minister Calin Popescu Tariceanu said: "I am happy we can finalize this project ... We can ensure jobs to workers in Craiova."

"An entire network of suppliers of parts and components will be created, which will become the second major industrial landmark of the automobile industry in Romania," he said.