Tagged: Ford Motor Company

Rising gasoline prices are apparently spurring interest among car buyers in smaller, more fuel efficient vehicles. Gas prices in Michigan are hovering around $3.50 a gallon. In California, the average price for a gallon of gas is nearly $4. 

George Peterson is the president of Auto-Pacific, an automotive marketing research firm. He says gas prices are helping boost interest in small cars. 

“There’s a tremendous amount of interest, especially with the new small cars on the road that are very, very good.  The Hyundai Elantra, the Ford Focus, the Chevrolet Volt, the Chevrolet Cruze, the upcoming Honda Civic.  All of those are very fuel efficient.  Very good small cars.”  

Still, Peterson says  SUVs remain the leading segment in the auto sales market.

“The largest segment of vehicles still selling is Sport Utility Vehicle.  Now most of those are cross-over SUVs.  So they’re much more fuel efficient than the old gas hog SUVs that we had before.   If you think about sales, SUVs are king, followed by small cars, followed by mid-sized cars.”   

Peterson says the last time gas prices spiked over $4 a gallon, many drivers traded in gas guzzling SUV’s for smaller, more fuel efficient cars. But, he says many of those drivers expressed buyers’ remorse, after missing their larger, more powerful rides.

Ford's global small car, the Ford Fiesta, has received the equivalent of a five-star safety rating in virtually all the regions of the world in which it is sold - China, New Zealand, Australia, Europe, and the United States.   The subcompact car also received a "Top Safety Pick" award from the Insurance Institute for Highway Safety, which nonetheless warns drivers that in general, larger vehicles are safer vehicles.   

General Motors factory workers will get a record amount in profit-sharing checks this year.  The automaker's 48,000 UAW hourly workers will get at least $4,000.  That's more than twice the company's previous record for hourly worker profit-sharing  - $1,775 in 1999.

Police in Detroit

Detroit Mayor Dave Bing is expected to reveal his plan for getting police officials to live in Detroit this morning. As Michigan Radio's Sarah Hulett reports:

Detroit had a residency requirement until 1999, when the state Legislature outlawed it. Now more than half the officers on the police force live outside the city limits. Mayor Bing has said he believes neighborhoods are safer when the cops who patrol them live there too.

Not all police officials agree with Mayor Bing and say they can live outside city limits and still be effective for the residents of Detroit.

Michigan Radio's Sarah Cwiek will have more Mayor Bing's proposal later today.

A replacement for the Michigan State Fair?

The Michigan State Fair was canceled in 2009 after budget cuts and declining attendance. Now the Associated Press is reporting that another cast aside in Michigan might fill the gap.

The AP reports that the "Great Lakes Agricultural Fair" would be held in and around the Pontiac Silverdome and would be run without any state funding. From the AP:

Oakland County Executive L. Brooks Patterson and U.S. Rep. Gary Peters are expected to be among those on hand Monday to unveil plans for the Great Lakes Agricultural Fair…The annual festival would feature a farm market, live animals and musical performances.

Ford to increase production

If the amount of Super Bowl ads from car makers didn't clue you in, here's another sign that automakers are expecting much better sales this year. The Detroit Free Press reports that Ford Motor Company plans to boost factory production in the U.S.:

Ford Motor Co. says it will increase U.S. factory production by 13% in the first quarter due to higher sales. Ken Czubay, vice president of U.S. sales, says Ford is studying additional shifts at plants that are now running on overtime. The Dearborn-based automaker said retail sales to individual buyers rose 27% in January. Global marketing chief Jim Farley said to expect further increases through the year.

Ford Motor Company is recalling nearly 365,000 F-150 pickup trucks in Canada, the U.S. and Mexico. The problem is faulty door handles that could lead to the doors flying open in a crash.

The F-150 is the best-selling vehicle in the U.S. Most of the recalled trucks were made in the 2009 and 2010 model years.

The National Highway Traffic Safety Administration says a spring in the interior door handle can break, which means the door may not latch properly. So the door could potentially fling open if the truck is hit on the side.

Ford says there have been no crashes or injuries tied to the problem. Ford is also dealing with a large and expensive recall of nearly 600-000 older model Windstar minivans. That one is for corrosion in the axles that could cause the axles to break.