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Careers: Ford Names New Design and Labor Chiefs .....................................................................................................
Ford Issues Recall for Focus E.V. and Ambulances .......................................................................................................7
Corporate News: Lower Gas Prices Drive Auto Sales ....................................................................................................8
Corporate News: GM Tries to Curb Discounting ...........................................................................................................10
Jeffrey I. Brodsky...........................................................................................................................................................12
Mitsubishi, Audi and Ford to Recall Vehicles for Various Problems..............................................................................14
Corporate News: Camry Falls Off Recommended List --- Consumer Reports Puts Lexus, Toyota, Acura Atop
Rankings; Crash Test Penalizes... ................................................................................................................................15
Cross-Country Run Ends For 1930 Ford Model A ........................................................................................................17
Earnings: Global Car Firms Ride Profit Gains ...............................................................................................................19
Take Ford For a Spin Abroad ........................................................................................................................................21
Ford enjoys a strong third-quarter report.......................................................................................................................22
Ford gets its motor running: 3Q income at $1.3B..........................................................................................................24
Robust Earnings From Ford and Southwest Bolster Shares.........................................................................................26
Ford Maintains Earnings Streak and Raises Profit Forecast for the Year.....................................................................28
What to watch ; Profit reports to shed light on autos, housing ......................................................................................30
Ahead of the Tape .........................................................................................................................................................31
Leadership In Information Technology (A Special Report) --- Car-Part Designers Step on the Gas: Thanks to
technology, auto makers can now... ..............................................................................................................................33
Ford's Alan Mulally: Be nice, realistic, visionary ; Auto chief sees tech's role growing .................................................35
Corporate News: China Car Sales Jump, Giving Lift To Foreign Makers .....................................................................38
GM Cuts Costs for the Long Haul .................................................................................................................................40
Microsoft CEO Search Reveals Board Rifts ..................................................................................................................42
OFF DUTY --- Gear & Gadgets -- Rumble Seat: Ford Fiesta ST: The Biggest Bang for the Buck ...............................44
Corporate Watch ...........................................................................................................................................................47
Corporate News: South Africa's Troubles Hit Car Makers ............................................................................................49
Honk if You Love the Mass-Produced Automobile ........................................................................................................51
Two Media Mainstays Expand Their Video Presence ...................................................................................................53
Two Media Mainstays Expand Their Video Presence ...................................................................................................55
Corporate News: Ford Bucks U.S. Sales Drop --- GM, Toyota and Honda Post Declines on Fewer Selling Days,
Holiday Shift ..................................................................................................................................................................57
Hot, hot, hot Aug. auto sales cool in September ; GM, Honda, Toyota, Nissan, VW, Kia all off ...................................59
Page 1 of 199 © 2020 Factiva, Inc. All rights reserved.

Corporate News: Cars, Cable in Spectrum Row --- FCC to Consider Whether Airwaves Can Be Shared for Wi-Fi,
Auto Needs....................................................................................................................................................................61
No Traction: Europe's Car Makers Spin Their Wheels..................................................................................................63
Will China Buy Small Audis? --- German Car Makers Hope to Convince Chinese That Luxury Doesn't Mean Large .....
67
Ford's No. 2 Steps Into the Limelight ............................................................................................................................69
Corporate News: Car-Parts Makers Agree to Pay $740 Million in Fines.......................................................................71
Companies Admit They Fixed Prices Of Car Parts .......................................................................................................72
Ford puts extra hot sauce in feisty new little Fiesta ; ST is latest pixie speed demon...................................................74
If You Like Music, or Online Video, There May Be a Ford in Your Future ....................................................................76
It's the SUV's World Now --- Consumers Around the World Want to 'Ride High'; Sales Even Surge in Europe...........79
VW's $1 Billion U.S. Bet is Sputtering ...........................................................................................................................81
Corporate News: Toyota Seeking To Regain Ground In U.S. Market...........................................................................83
U.S. Car Sales Soar To Pre-Slump Level .....................................................................................................................85
Vehicle Sales Show the U.S. Shifting Gear...................................................................................................................87
Trouble Finding a New Car? Shortages Begin to Appear .............................................................................................88
Corporate News: Toyota to Restyle Hybrids --- Future Models Will be Sportier, Offer Faster Acceleration .................90
Your Earrings Remind Me of Grandma's Gran Torino ..................................................................................................92
Corporate News: Cummins in Engine Pact With Nissan ...............................................................................................94
U.S. Car Plants Shift to Top Gear .................................................................................................................................95
Ford will cut estimate of C-Max's mileage Dell's earnings drop amid PC sales slide....................................................98
Corporate News: Ford Cuts Hybrid's Fuel Claim.........................................................................................................100
U.S. to Bring Gas Mileage Rules to Era Of Hybrids ....................................................................................................102
A Coupelike Sedan Suitable for Caligula ....................................................................................................................104
Corporate Watch .........................................................................................................................................................106
Tesla's Stock Is Outrunning Its Superfast Electric Car................................................................................................108
A Jersey Spin in a Fiesta.............................................................................................................................................110
Carmakers in U.S. Report Strongest July Sales Since 2006 ......................................................................................112
Corporate News: July New-Car Sales Sizzle, Rise 14% --- Retail Demand Jumps as 2014 Models Roll Onto Dealer
Lots; Toyota, Honda Soar as Slower Fleet Purchases Ding Rivals ............................................................................114
Corporate News: Corporate Watch .............................................................................................................................115
Strong Sales Push Chrysler's 2nd-Quarter Net Up 16% .............................................................................................117
Earnings: Europe Takes Less Of a Bite Out of GM.....................................................................................................119
Detroit has a reason to smile ; Automakers are doing fantastic ..................................................................................121
Ford's quarterly profits smash expectations ; Profitability 'is pretty broad-based' .......................................................122

Sales in U.S. And Asia Help Propel Profit at Ford.......................................................................................................124
Autos Roar Ahead As Economies Idle ........................................................................................................................126
Business Technology: Mining Silicon Valley's Culture --- Big Companies Set Up Outposts in Search of New Ideas but
Some Falter .................................................................................................................................................................128
Wanted: Techie auto workers ; Ford recruits 'aggressively' ........................................................................................130
Ahead of the Tape .......................................................................................................................................................132
The Game: Daddy, Could You Tell Me What a Truck Driver Was? ............................................................................134
Corporate News: Ford, Toyota Halt Venture --- Auto Makers Will Go Separate Ways on Hybrid Development for
Pickups, SUVs.............................................................................................................................................................136
Ford Clips Toyota's Wings in California --- U.S. Auto Makers Win Over Import-Friendly Buyers With New Hybrids,
Snazzy Designs, Technology ......................................................................................................................................137
In the Car, I Need a Spot for... --- Auto Makers Challenge Designers to Build Smarter Storage Nooks; Put the Glove
Compartment to Work .................................................................................................................................................139
Big Brother watches teen drivers; Parents turn to tech to monitor speed, routes, phone usage ................................142
Corporate News: Car Fortunes Diverge --- In Europe, Ford's June Sales Snapped Back While GM's Fell................144
Ram 1500 is tops on 'CR' list ; 'Consumer Reports' says pickup is refined, but able to work .....................................146
Franchised dealers deliver best results .......................................................................................................................148
Ford F-250 Leads List As Top Target of Thieves ........................................................................................................149
Midsize SUVs are a hot spot in hot market ; Auto experts and a family put 6 to the test............................................150
How we did the SUV Challenge ..................................................................................................................................152
Car Sales Pace at 5-Year High ...................................................................................................................................154
A Revitalized Car Industry Cranks Up U.S. Exports....................................................................................................156
F-150 more American than Camry ; Toyota bumped from No. 1 spot ........................................................................158
Family Tree Blossoms at Ford --- Founder's Great-Great Grandchildren Join the Business; 'There Are No
Guarantees,' Says Bill Ford Jr.....................................................................................................................................161
Ford Brings Back the Dial............................................................................................................................................163
Corporate News: Chevrolet, GMC Shine in J.D. Power Quality Survey......................................................................164
Race is on for tinier engines ; Ford plans first modern 1-liter engine for U.S..............................................................166
Corporate News: Ford to Add Back Dashboard Buttons After Complaints .................................................................168
A Sudden Outbreak Of Annoying Noises ....................................................................................................................169
Rough Road Ahead, but a Robot Driver Takes It in Stride..........................................................................................171
Is Ford struggling to hang onto quality edge? ; Recalls cast shadow over successful makeovers .............................174
Aiming for the Hybrid's Sweet Spot .............................................................................................................................176
Business Technology -- 3-D Printing: Barbies, Auto Parts Hot Off the Press .............................................................179
New Exchange Is Formed For Trading Patent Rights .................................................................................................181
Trucks light up May auto sales ....................................................................................................................................183

Ford Showing Its Vigor as Industry Recovers .............................................................................................................184
Behind Surge In Auto Sales, Signs of Lost Momentum ..............................................................................................186
Ahead of the Tape .......................................................................................................................................................188
OFF DUTY --- Gear & Gadgets -- Rumble Seat: Ford C-Max Hybrid Energi: The Bawdy Electric .............................190
American love affair with SUVs continues ; Ford Motor might bring another small one to U.S. market......................192
Home & Digital -- Eyes on the Road: Pickup Drivers Still Work Hard, but in Comfort.................................................194
Investors Spread Their Housing Bets..........................................................................................................................196
Corporate News: News Corp. Split-Up Gets Board Approval .....................................................................................198

Careers: Ford Names New Design and Labor Chiefs
Careers: Ford Names New Design and Labor Chiefs

By Mike Ramsey
541 words
6 November 2013
The Wall Street Journal
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B6
English
(Copyright (c) 2013, Dow Jones & Company, Inc.)
Ford Motor Co. named a new global design chief, a North American manufacturing chief and a labor-affairs
leader.
Tuesday's announcement included the latest in a series of retirements of executives who weathered the
2008-2009 recession, when Ford's stock price was near $1 a share. The moves promoted several executives who
worked closely with operating chief Mark Fields, the heir apparent to Chief Executive Alan Mulally. Mr. Mulally is
expected to leave at the end of next year.
Chief among the changes was the appointment of Moray Callum, 54 years old, as vice president of design,
succeeding J Mays, 59, who has been in charge of Ford design for 16 years. Mr. Callum most recently was head
of Ford's North American design operations. He had been the chief designer at Japanese partner Mazda Motor
Corp. during the early 2000s, when Mr. Fields was president of Mazda.
Ford's global design chief has significant impact on the company's products, crafting their look and feel.
Mr. Callum is the younger brother of Ian Callum, the chief of design for Jaguar. He will report to Raj Nair, global
product development chief and be responsible for Ford and Lincoln designs world-wide.
The Dearborn, Mich., auto maker also said it would create a new operating unit that would focus on increasing
sales in the Middle East and Africa. Jim Benintende, who was director of Ford export operations and global
growth initiatives, was named president of the business unit, which will be based in Dubai.
Jim Tetreault, vice president of North American manufacturing and Marty Mulloy, vice president of labor affairs,
also are retiring.
Bruce Hettle, 52, executive director for global vehicle operations manufacturing engineering, will take over for Mr.
Tetreault.
Bill Dirksen, 53, was promoted to succeed Mr. Mulloy. Mr. Dirksen had been executive director of U.S. labor
affairs.
Mr. Tetreault, 58, has held his job for the past five years, overseeing the overhaul of several of Ford's key
factories, including the Flat Rock, Mich., assembly plant, and facilities in Louisville, Ky., and Kansas City, Mo.
Mr. Mulloy, 57, led negotiations with the United Auto Workers union in critical 2007 and 2011 contract
negotiations. The talks led to historic agreements that created a union-run health-care trust fund for retirees and
lowered wage costs at the company.
The retirements are effective Jan. 1.
Ford also named Steven Armstrong, 49, as president of Ford for South America, a new position. He previously
had been president of Ford in Brazil. He will report to Joe Hinrichs, Ford's president for North and South America.
The new Middle East and Africa unit reflects Ford's belief in the region's potential. "Ford and Lincoln sales have
grown 60% in the Middle East over the past four years, and we expect total industry sales in the combined Middle
East and Africa region to increase nearly 40% to around 5.5 million units by 2020," said Stephen Odell, president
of Ford for Europe, the Middle East and Africa.

Mr. Benintende will begin in the new position Jan. 1 and report to Mr. Odell.
License this article from Dow Jones Reprint Service
Document J000000020131106e9b600015

Ford Issues Recall for Focus E.V. and Ambulances
Business/Financial Desk; SECT

Ford Issues Recall for Focus E.V. and Ambulances
By CHRISTOPHER JENSEN
381 words
2 November 2013
The New York Times
NYTF
The New York Times on the Web
English
Copyright 2013 The New York Times Company. All Rights Reserved.
Following an investigation by the National Highway Traffic Safety Administration, Ford says it will recall about
2,500 of its 2012-14 Focus Electric because of a power-loss problem.
Ford told the safety agency that a software issue in the powertrain control module could cause a loss of power to
the front wheels. However, the automaker said the steering and brakes would work normally and that it was not
aware of any accidents related to the defect.
Ford told N.H.T.S.A. that by the middle of August it had received 16 reports from Focus Electric owners who had
experienced the problem. The company's critical review group was given the task of reviewing the problem at that
time. Ford decided on Sept. 5 to refer the issue to its customer satisfaction forum because of a ''low occurrence
rate.''
But the next day, the agency said it would investigate 12 consumer complaints that it had received about the
power loss. Those complaints included one owner being stranded on a highway in what she thought was a
hazardous location.
On Sept. 10, four days after the agency announced its investigation, the Ford customer satisfaction forum
''reviewed the concern and recommended further analysis of the reports from the field.'' Ford says that analysis,
including further reports of problems, led to the recall. Ford was ''following our process. As we were conducting
our evaluation, N.H.T.S.A. opened its investigation,'' Kelli Felker, a Ford spokeswoman, wrote in an email.
Ford described the recall as voluntary. However, once a manufacturer is aware of a safety problem it must --
within five business days --inform the agency of its plan for a recall or face a civil fine.
In a second action, Ford will recall about 3,100 Super Duty ambulances from the 2011-12 model years for a
problem that could shut down the 6.7-liter turbocharged V8 diesel engines. The automaker said a problem with an
exhaust-gas temperature sensor could cause the engine to stop ''and not be restarted for at least one hour.'' The
automaker said it was not aware of any accidents or problems for patients related to the problem.
Document NYTF000020131102e9b20008e

Corporate News: Lower Gas Prices Drive Auto Sales
Corporate News: Lower Gas Prices Drive Auto Sales

By Jeff Bennett and Neal E. Boudette
527 words
2 November 2013
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English
U.S car shoppers brushed off Washington's fiscal battles last month and, emboldened by steady gas prices,
bought more trucks and sport-utility vehicles and boosted the Detroit Three auto makers over their rivals.
General Motors Co. led the way with a 16% year-over-year increase followed by Ford Motor Co. with 14% and
Chrysler Group LLC at 11%. Their gains outpaced those of Japanese rivals Toyota Motor Corp. and Honda Motor
Co., which mostly sell cars. Sales fell 18% at Volkswagen AG, which doesn't sell pickups in the U.S.
"We have seen a shift from cars in general over the last few months to the small-utility segment," said Ford Vice
President John Felice. "It has been a near-term trend for about the past quarter."
The latest results underscored the importance of stable gas prices and low interest rates to the auto industry's
recovery. The seasonally adjusted annual sales pace for October was 15.2 million vehicles, up from 14.4 million a
year ago but down from August and September's pace, said researcher Autodata Corp.
Industry executives and dealers said the turmoil in Washington led to some purchase deferrals early in the month,
but shoppers quickly returned to showrooms following the 16-day partial government shutdown.
"There was this uncertainty -- is the U.S. going to pay?" said Darryl Holter, chief executive of the Shammas
Group, which operates seven dealerships in the Los Angeles area. "It creates an atmosphere of uncertainty and
fear. But once it was done, people came back."
Results also show the Detroit Three auto makers largely holding off their Japanese rivals despite a recent
weakening of the yen against the dollar. Detroit car makers have invested heavily in technology to boost the fuel
efficiency of their larger cars, pickups and SUVs. With regular unleaded gasoline hovering between $3.25 and
$3.50 a gallon in recent months, consumers are more comfortable buying those vehicles, executives said.
Consumers are "choosing products based on their assumptions that gas prices will remain roughly stable," said
GM economist Mustafa Mohatarem.
Detroit's gains weren't limited to trucks. GM and Ford highlighted gains for their midsize sedans. Ford boosted
sales of its Fusion by 71% from a year earlier, and GM improved sales of its redesigned Malibu by 64%. GM
boosted sales of its large Chevrolet Impala sedan by 40%.
GM North America chief Mark Reuss said on Friday the many newer vehicles in his portfolio are generating price
and volume gains.
Toyota's sales overall rose 9% but its top-selling Camry slipped 2.6% in October, and sales of its subcompact
Scion brand fell by 16%. Sales of the Toyota Prius hybrid dropped by nearly 7%. Nissan Motor Co.'s U.S. sales
rose 14%, lifted by strong sales of its trucks and SUVs.
Chrysler's sales showed a similar pattern, with sales of its Jeep Grand Cherokee SUV up 20% and up 18% for
Ram pickups.
---
John Kell contributed to this article.

Document J000000020131102e9b20003p

Corporate News: GM Tries to Curb Discounting
Corporate News: GM Tries to Curb Discounting

By Jeff Bennett
893 words
1 November 2013
J
B3
English
After years of grooming customers to expect a few thousand dollars off sticker prices on even its latest models,
General Motors Co. said it is shifting course and promising to shun lavish discounts when it comes to peddling its
newest pickup trucks.
On Friday, the Detroit auto maker is expected to report October U.S. sales that reflect the highest average sales
prices in its history. Analysts estimate GM collected $34,672 on each vehicle sold last month, compared with Ford
Motor Co.'s $33,986 on each vehicle.
Sales of its Chevrolet Silverado and GMC Sierra large pickup trucks are expected to exceed 50,000 vehicles
combined, up from about 46,000 last month, a GM executive said.
"We don't have to put our truck on sale to sell it," Chevrolet Global Brand Chief Alan Batey said in an interview on
Thursday. "Whether we lose a couple of points of market share in a given month because someone is liquidating
isn't our concern. We aren't going to get into that dogfight."
Of course, it is still early in the auto industry's 2014 model launches. Analysts say GM can afford to be tightfisted
now but may not remain so as competition increases. Rival Ford is still a year away from releasing its next
generation pickup, and its existing F-series has outsold GM so far this year.
Overall, October U.S. auto sales are expected to climb 14% over a year ago, to 1.21 million cars and light trucks,
according to researcher TrueCar Inc. The month's volume is projected to be 9.5% higher than September.
Some GM dealers are unhappy with GM's no discounting stance. They say Ford currently is offering as much as
$9,000 in incentives on its 2013 models, hurting their sales.
"There are people sitting on the fence especially when the competition is offering big discounts," said Danny Hill,
owner of Classic Chevrolet Buick GMC in Granbury, Texas. "But [prospective customers] are starting to come
down. They are starting to understand the new pricing."
GM has dispatched up to 60 trainers across the country to spend more time with Chevrolet dealers to counter the
demand for sales incentives and other discounts. They are advising dealers to spend more time talking about
features such as quiet and fuel-economy.
Mr. Hill, talking from the cab of his Silverado, recounted how the auto maker gathered dealers at a local racetrack
to show off its trucks' features and allow them to test drive the vehicles.
"What concerns the dealers is when they see that their major competitor is discounting at levels never seen,"
GM's Mr. Batey said. "We have told the dealers to slow down the conversation and act like business people
rather than sales people, talk about the different features such as two years of free maintenance rather than just
focus on price. Those that have are now selling their pickup truck at price levels they have never seen before."
Getting a premium price for its new pickup trucks is critical to Chief Executive Dan Akerson's overall plan to lift
GM's profit margins. He wants the company to achieve 10% operating margin by mid-decade, putting it on par
with Ford.
This week the auto maker turned in a third-quarter operating margin of 9.3% compared with 7.7% a year ago.
Much of that increase came from higher prices in North America for its trucks and new models such as the
Chevrolet Impala sedan.
"It is very un-Detroit like," Morgan Stanley analyst Adam Jonas said regarding GM's truck prices. "In the truck
market you usually have to make hay while the sun shines. It is a good move as long as the strategy is consistent
and the volume they are achieving, although smaller, gets them where they need to be. I think in the end, GM will
blink first."
Ford's discounting may make GM's hard line on pricing difficult to sustain. With its switch to 2014 model F-series
trucks just getting under way, Ford dealers are heavily discounting the 2013 models to clear inventories. As a
result, analysts say Ford likely will notch its sixth straight month of more than 60,000 F-series vehicles sales when
it discloses October sales.
GM's Mr. Batey contends Ford is only pulling ahead its own sales and not taking sales from Silverado and Sierra.
Ford officials declined to comment on GM's pricing strategy.
"We have been consistent on our incentive spending and we continually achieve strong transaction prices," said
Ford sales analyst Erich Merkle. Ford began turning down the incentive spending when Chief Executive Alan
Mulally came on board in 2006 although it took the auto maker almost a year to break the habit, he said.
GM said its consumers will see the benefits of no discounts when it comes to resale value.
The biggest challenge says Mr. Jonas comes next year when Ford is expected to launch its all-new aluminum
styled truck followed the following year by Chrysler Group LLC and its new Ram pickup.
"Will the ghosts of old GM come back then? We will have to wait and see," Mr. Jonas said.
Document J000000020131101e9b10002k

Jeffrey I. Brodsky
THE 30-MINUTE INTERVIEW

Business/Financial Desk; SECTB
Jeffrey I. Brodsky
By VIVIAN MARINO
980 words
30 October 2013
The New York Times
NYTF
Late Edition - Final
8
English
Mr. Brodsky, 56, is the president of Related Management, a division of the Related Companies that manages the
developer's 45,000 rental units, from affordable to work force to luxury, and more than six million square feet of
commercial and retail space in 19 states.
Interview conducted and condensed by
VIVIAN MARINO
Q. You joined Related in 1982. What was your first job there?
A. I was a development officer. We were looking at acquiring troubled assets and aggregating the funding
necessary to create affordable housing. I was doing that for the first three or four years, then I became part of the
property management group.
I had first worked with my dad for three years -- he was a very small affordable-housing developer -- and I met
Steve Ross through that connection and ultimately Steve asked if I would join Related.
Q. Before that, you were an engineer.
A. I went to work for Ford Motor Company in Detroit in the late '70s during the oil crisis, when people were
standing on line for gas, and when Pintos were blowing up. So that wasn't a great career choice.
Q. So what specifically does Related Management do?
A. If you want to be as simplified as possible, we collect the rent and make sure the building is maintained. We
think of ourselves, however, as brand- and value-enhancing. So the goal is to take whatever there is that's given
to us and enhance it over time and add to the value of our asset.
Q. Under your leadership you've added a few amenities and services, like free bicycle rentals.
A. That's part of the wellness commitment and there are many others. About 70 percent of the luxury brand has
the bikes, and the residents are loving that. It actually started in our work force brand about three years ago.
We have a number of amenities where we think people are framing what they believe is a sense of community in
the apartment building, and that might be Internet lounges and roof terraces and libraries. And then you have our
services which are delivered in a proprietary way through things like personal assistants and tech concierges.
Q. Was it your idea to institute a smoking ban in all your rentals?
A. I'd like to say that it was an organizational commitment. We needed somebody to push it and I think I was
definitely a person who's tried to do that. We initiated it actually in 2009 and test-marketed it and found it to be
extremely well-received and so we went national with it this year.
Q. Has it been easy to enforce?

A. It really isn't as difficult as it sounds. If you are a noisy neighbor, everybody would know. With smoking it's the
same. You become aware of it, you have the conversation. The vast majority of people understand, and, frankly,
it's not causing us any stress between residents.
The worst-case scenario has never occurred, and that is that we have to go to court and ask you to abide by the
terms of the contract you signed or leave.
Q. What do you say to people who complain that their rights are being violated by this rule?
A. If, for example, I was entirely libertarian and I said, you can do anything inside your apartment that is legally
your option to do, I can understand that. However, smoking cannot be contained to your apartment, and so you
are compromising somebody else. We have an obligation to address that person's needs.
We're doing this as a commitment that follows the brand, so wellness is smoke-free.
Q. Do you see the no-smoking rule eventually being put in place in your condominiums?
A. We managed 3,000 units of condos and we actually met with a board in Boston to help facilitate those
discussions. And one of the boards in Boston just the other day voted on this: 60 percent of their residents voted
to become a smoke-free building. They need 75 percent, but this was after two weeks of discussions, so it's very
possible that they're moving in that direction.
Q. So what is your occupancy rate portfoliowide?
A. We're almost exclusively fully occupied except for new buildings where we're in the middle of lease-up. So
vacancy rates are under 3 percent throughout the country.
Q. And the range of rental rates?
A. Oh my goodness! We have the most diverse portfolio in the United States. The affordable programs are
subsidized rents and if their income is close to zero, they pay zero. And then, of course, our highest-income
residents are paying full price and some are paying as much as $20,000 a month.
Q. What percentage of Related's portfolio is affordable?
A. About 26,000 units of 45,000, so it's a significant portion. We're now the sixth-largest owner of affordable
housing in the United States -- probably something that's not so obvious about Related.
Q. What kinds of amenities do the affordable buildings get?
A. You need to be best in class no matter what class -- and we have a lot of classes. The more you pay the more
you get. Look, affordable housing programs are not designed to provide for extreme levels of luxuries. Many of
them will have clubhouses, playgrounds, fitness and computer centers and a whole bunch of other things, but not
as exceptionally designed as we have in some of the other facilities.
Q. Do you live in a Related property?
A. I'm a Long Islander. I like my little piece of grass.
(PHOTOGRAPH BY CHESTER HIGGINS JR./THE NEW YORK TIMES)

Document NYTF000020131030e9au0005n

Mitsubishi, Audi and Ford to Recall Vehicles for Various Problems

Mitsubishi, Audi and Ford to Recall Vehicles for Various Problems
By CHRISTOPHER JENSEN
381 words
29 October 2013
The New York Times
NYTF
English
Mitsubishi, Audi and Ford will recall vehicles for a variety of problems, according to reports posted on the National
Highway Traffic Safety Administration's website. The agency is also investigating fires in Jeep Liberty models and
sunroofs that shatter on Kia Sorentos.
The Mitsubishi recall covers about 10,000 Lancer Evolutions from the 2008-13 model years because the clutch
master cylinder could fail, preventing the driver from shifting in or out of gear, according to the automaker's report
to the safety agency.
Audi will recall about 3,600 S6s and S7s from the 2013-14 model years because of possible fuel leaks. In its
report to the agency, Audi says it first received customer complaints about a gasoline smell in April. A subsequent
investigation found that ''manufacturing tolerance issues'' could allow a fuel line to be damaged.
The Ford recall covers about 23,000 of its 2012-13 C-Max and Focus electric vehicles equipped with push-button
start. The automaker told N.H.T.S.A. that it would add an audible ''key-in-the-ignition'' chime when the door was
opened.
The investigation into 2012 Jeep Liberty models was prompted by two complaints from owners who said the
driver's door caught fire, the flames requiring them to escape through the passenger door. In addition to the fire,
the two owners reported ''erratic function of the windows and door locks resulting in them activating on their own
while the fire was occurring,'' N.H.T.S.A. investigators wrote. Investigators said in their report that the fires
apparently began in the area of the master power window switch.
Honda and Toyota have recalled several million vehicles for fire hazards caused by power-window switches.
N.H.T.S.A. also reported that 64,000 Kia Sorentos from the 2011-13 model years are being investigated after the
agency received 15 complaints that the cars' glass sunroofs had shattered unexpectedly. In 13 of those cases the
vehicles were moving. There was one injury from flying glass, which was described as minor. Hyundai, Kia's
parent company, had recalled 19,600 Veloster compacts from the 2012 model year for the same problem.
Document NYTF000020131029e9at0002w

Corporate News: Camry Falls Off Recommended List --- Consumer Reports Puts Lexus, Toyota, Acura Atop Rankings; Crash Test Penalizes...
Corporate News: Camry Falls Off Recommended List --- Consumer Reports Puts Lexus, Toyota, Acura
Atop Rankings; Crash Test Penalizes Perennial Favorite
By Joseph B. White
654 words
29 October 2013
J
B3
English
Consumer Reports magazine no longer recommends that shoppers buy Toyota Motor Corp.'s top-selling Toyota
Camry midsize car and three other vehicles because of poor scores in a new Insurance Institute for Highway
Safety crash test.
The influential magazine's latest reliability survey delivered a blow to Ford Motor Co. Scores on nearly two-thirds
of the 34 Ford and Lincoln models were rated "much worse than average" by respondents to the annual survey.
Jake Fisher, the magazine's head of auto testing, said Monday that problems with infotainment systems and
transmissions hurt Ford among owners surveyed by the magazine.
"Two or three years ago, Ford was up there with the Japanese competition," Mr. Fisher said. But in the
magazine's 2013 reliability survey, the Ford brand ranked 27th out of 28 brands surveyed, just ahead of BMW
AG's last-place Mini.
The top-ranked brand in the survey of "predicated reliability" was Toyota's Lexus, followed by Toyota's namesake
brand and Honda Motor Co.'s Acura luxury brand. Volkswagen AG's Audi brand moved to fourth place.
Consumer Reports' decision to drop its recommendation for the Camry was a surprise because the sedan, the
best-selling car in the U.S. this year, has long been a favorite of the magazine's readers and editors.
Consumer Reports has eight million subscribers and doesn't accept advertising. Auto makers covet
recommendations from the magazine as a way to stand out from the crowd.
Mr. Fisher said in a presentation on Monday to the Detroit Automotive Press Association that the magazine's
editors decided that they no longer would award recommendations to models that fared poorly in any of the crash
tests run by the National Highway Traffic Safety Administration or the Insurance Institute for Highway Safety, an
independent organization funded by the insurance industry.
For the first time, Mr. Fisher said, that policy includes the IIHS's small overlap crash test, a simulation of a violent
front-end crash involving only a small section of the front end, roughly the headlights and fender. In such a crash,
the impact's force can miss the strongest crash absorbing structures in a car's front end, transmitting more force
to the passenger compartment.
The recently redesigned Camry was one of four vehicles Consumer Reports dropped from its recommended list
after scoring poorly on the Insurance Institute's small offset crash. The others are the Toyota RAV 4, the Toyota
Prius V and the Audi A4.
Toyota said in a statement that the company is "looking at a range of solutions to achieve greater crash
performance."
Mr. Fisher said Toyota plans to retest the Camry in December, and a spokesman for the Insurance Institute
confirmed that the company has asked for a retest in December and is making engineering changes to the car.
An Audi spokesman said company engineers have taken the A4's results from the IIHS crash test and are
working to make improvements in the near future on the brand's cars.
Consumer Reports' harsh assessment of Ford's new-vehicle reliability was the latest in a series of unflattering
reviews of the No. 2 U.S. auto maker's new technology from independent quality rating groups.
Ford spokesman Mark Schirmer said Ford has taken steps to improve the performance of its My Ford Touch and
Sync multimedia systems, and pointed to Consumer Reports data showing that only 10% of owners of 2013 Ford
Explorer sport-utility vehicles complained about multimedia systems in Consumer Reports' surveys, down from
more than 20% for owners of 2011 Explorers.
Mr. Fisher also said a 10% rate of complaints "is still ridiculously high." Other manufacturers have complaint rates
of about 3%, he said.
Document J000000020131029e9at0000c

Cross-Country Run Ends For 1930 Ford Model A
THE WHEELS BLOG

Automobiles; SECTAU
Cross-Country Run Ends For 1930 Ford Model A
By BENJAMIN PRESTON
572 words
27 October 2013
The New York Times
NYTF
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Some marvelous success stories began with embarrassing failures. Thomas Edison, Soichiro Honda, even Henry
Ford all faced defeat, but went on to become great.
That's how Rod Wade, an Australian, is looking at his failed effort to drive a 1930 Model A Ford across the United
States -- from New York to Los Angeles in about 60 hours. The trip, which began on Staten Island on Oct. 14,
was a tribute to H. Nelson Jackson and Sewall K. Crocker's cross-country drive in 1903.
Michael Flanders, also from Australia and Mr. Wade's co-driver and mechanic, were making decent time after
solving a puzzling engine cooling problem. But when the 40-horsepower flathead 4-cylinder engine's crankshaft
cracked near Amarillo, Tex., on Oct. 15, their run was over.
For now.
''It's a bit of an anticlimax, but we'll do it again,'' Mr. Wade said in a telephone interview. ''It's a challenge.''
They had run into trouble earlier, in Indiana, when the top of the radiator became red hot and the bottom cool. It
took awhile to fix, but eventually they found a blockage in the cooling system and continued on their way.
Everything was going fine until Amarillo.
Mr. Wade had made this kind of long-distance run before, with much better results. The car completed the Peking
to Paris rally over the summer. Along with John Bell, the co-driver, Mr. Wade finished 28th out of 35 finishers in
the pre-1941 Vintageant category.
Before beginning their trip across the United States, Mr. Wade and Mr. Flanders had taken the old Ford, which
was named Tudor Rose, to a workshop in New Jersey and installed a new engine, just to be safe.
''Because we set off to do this with all original equipment, we didn't go for a modern crankshaft on the rebuilt
engine,'' Mr. Wade said. ''We tried to do with what was available in 1930, and it can be sort of hit or miss.''
So with the car on its way back to New Jersey for repairs after the crankshaft fiasco, they continued west -- in a
rental car.
''It was a gray one, that's all I know about modern cars,'' Mr. Wade said. ''It was a Volkswagen, I think, and it was
real smooth and quiet compared to the Model A. Any car would be quiet after that, I guess.''
Mr. Wade said he hoped to try again during the last week of November. Cooler temperatures at that time of year,
he said, would be better for the engine anyway. He said they would have a 1988 Plymouth police car running
alongside as a support vehicle.
''We'll be racing not only against the clock, but against the weather as well,'' he said. ''If there are icy roads, it's no
go. You can't do a challenge like this on icy roads.''
Although Mr. Wade and Mr. Flanders arrived at the Pacific Coast minus a triumph, Mr. Wade said they were still
happy to be there.

''It's such a lovely place, we don't want to leave,'' he said.
This is a more complete version of the story than the one that appeared in print.
Michael Flanders, left, and Rod Wade started their trip in New York City. (PHOTOGRAPH BY VINTAGE
ADVENTURER)
Document NYTF000020131028e9ar000h2

Earnings: Global Car Firms Ride Profit Gains
Earnings: Global Car Firms Ride Profit Gains

By Mike Ramsey, Christine Tierney and In-Soo Nam
1,115 words
25 October 2013
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Global auto makers Ford Motor Co., Daimler AG and Hyundai Motor Co. all reported improved third-quarter
profits and higher revenue, lifted by rising demand for new vehicles.
The auto industry has faced significant challenges since the 2008-2009 financial crisis -- particularly in Western
Europe, where sales plummeted during 2011 and 2012 as the euro-zone debt crisis rattled consumers. Earlier
this year, there were signs that growth was slowing in the Chinese auto market, the world's largest.
Yet, at least during the three months ended Sept. 30, the world's consumers are confounding concerns about a
car-buying retrenchment. Ford and Daimler both boosted their full-year sales and profit outlooks. Hyundai was
less bullish.
Daimler said Thursday that its third-quarter earnings rose 53% to 1.9 billion euros ($2.6 billion), bolstered by
record sales and solid pricing for new Mercedes-Benz models.
The German maker of premium cars and heavy trucks predicted a further profit increase for the fourth quarter,
excluding proceeds from asset sales this year and last.
Mercedes-Benz sales hit a new quarterly record for the three months ended in September, rising 14% to 395,446
vehicles. Sales in China, where Mercedes last year revamped its marketing and distribution activities, rose 38%.
Sales increased sharply in other emerging markets, and gained in the U.S. and Western Europe.
In Dearborn, Mich., Ford boosted its full-year profit target after reporting pretax profit of $2.6 billion, up 19% from
a year earlier and well ahead of the consensus of analysts' predictions. Ford made $1,683 in operating profit per
vehicle it delivered in the third quarter, up from $1,335 a year earlier.
Ford's third-quarter earnings declined 22% to $1.27 billion because of pension and employee-buyout costs. But
those costs aren't likely to recur, the company said.
The vehicle maker raised its full-year operating-profit forecast to more than $8 billion, ahead of 2012.
Revenue rose 12% in the latest quarter compared with a year earlier, and Chief Executive Alan Mulally reaffirmed
his goal for Ford to expand global sales to eight million vehicles a year by the middle of the decade from six
million now -- an implied average annual growth rate of between 10% and 15%.
Hyundai, the dominant South Korean auto maker, said Thursday its third-quarter net profit rose 3.9% from a year
earlier to 2.25 trillion won ($2.13 billion) after sales rose in China. It was Hyundai's first quarterly profit increase in
a year. Operating profit rose 1.7% to 2.01 trillion won, while sales increased 6% to 20.82 trillion won.
Still, Hyundai executives said that they need to rebuild the auto maker's brand image to boost sales amid a
growing threat from less-costly Chinese cars on the one hand and more-expensive European luxury brands on
the other.
"We'll redouble efforts to enhance Hyundai's image as a provider of high-end and environmentally friendly
automobiles," Kim Yeung-tae, a Hyundai vice president, said during a conference call after the earnings release.
The company gave no details of its plans.
The prospect of steady growth in vehicle sales is spurring big auto makers to step up investments in new models,
which in turn can drive increased demand.
Ford has invested nearly $5 billion in plants in China to try to catch up to market leaders Volkswagen AG and
General Motors Co. Sales of Ford Focus compact cars and newly imported Ford Edge and Explorer sport-utility
vehicles boosted profits from Asia to $126 million, nearly triple year-earlier results.
Ford incurred a $228 million loss in Europe in the latest quarter, but that was less than half the deficit of a year
earlier, reflecting the effects of cost-cutting, stronger demand and refreshed models.
"We are starting to see it in Asia-Pacific where more of the top-line growth is flowing to the bottom line," said Bob
Shanks, Ford's chief financial officer. "Especially in growth. Europe is making great progress and clearly gets us
to a profit by 2015."
Daimler is benefiting from a new model offensive launched by CEO Dieter Zetsche, who has been under pressure
from investors dissatisfied with the auto maker's lackluster performance compared with two German rivals, BMW
AG and Volkswagen's Audi luxury brand.
Daimler predicted record sales at Mercedes for all of 2013 and said that demand for its new compact A-class
model is so strong that it has contracted with Finnish production company Valmet Automotive to build additional
cars.
The product offensive has helped Mercedes-Benz increase its profit margins this year from a dismal 3.3 % in the
first quarter. With shipments of high-end S-class sedans headed to main markets in the fourth quarter, "some
investors were hoping this would mean margins near 10%" in the fourth quarter, Max Warburton, an analyst at
Bernstein Research, said in a report. "But Daimler's guidance is much more cautious, implying a Mercedes
margin of only 7% to 7.5%," he added.
Daimler forecast global auto-sales growth of about 3% this year, and set a target for earnings before interest and
taxes of about 7.5 billion euros from continuing operations.
Hyundai executives were less optimistic, reflecting in part the increasing competitive pressure on the company in
its home market.
Hyundai posted a 4.9% drop in operating profit for the first nine months of the year, and analysts are forecasting
that the company is likely to report its first earnings decline since 2008 this year. In a written statement, Hyundai
warned of a slowdown in global sales during the current quarter "due to a weak U.S. recovery and sluggish
demand in emerging economies."
Hyundai, the world's fifth-largest auto maker when combined with affiliate Kia Motors Corp., faces growing
challenges as foreign rivals encroach on its home turf.
Free-trade deals that have halved tariffs on foreign cars in South Korea helped push up imported autos to 10% of
total sales for the first time last year, compared with less than 2% a decade earlier.
The auto maker has just one model scheduled for introduction to the domestic market this year: a revamped
version of its premium Genesis sedan that might be released next month. The model will be sold overseas
starting next year. The new Genesis will compete in South Korea with luxury imports such as BMW's 3 Series and
Daimler's Mercedes-Benz C-Class.
Document J000000020131025e9ap0003l

Take Ford For a Spin Abroad
Heard on the Street

Take Ford For a Spin Abroad
By Justin Lahart
349 words
25 October 2013
J
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[Financial Analysis and Commentary]
Ford Motor just did something it hasn't done in over two years: turn an overall profit outside North America.
The auto maker said it earned 45 cents a share in the third quarter, better than the 41 cents it made a year ago
and the 38 cents analysts had forecast. The big driver was, once again, Ford's North American business, which
generated $2.3 billion in pretax profit.
But the bigger news came from elsewhere. Pretax profit in South America was $159 million, up from $9 million a
year ago; in Asia it rose to $126 million, from $45 million. Combined, that was enough to offset lower European
losses, for a net gain of $57 million. That isn't much, but at least the direction is now right.
With Asian auto makers investing heavily in markets like Brazil, Ford's chances of higher profits in Latin America
may be limited. Emerging Asia, where it is building new plants in a bid to gain on Volkswagen and General Motors,
is another story. For the first nine months of this year, its market share in China has grown to 4%, from 3.2% in
2012.
But in the nearer term, Europe could provide the biggest oomph. Even though industrywide sales in the third
quarter were roughly equal to a year earlier, Ford's losses in Europe came to $228 million versus $468 million a
year ago -- an indication of how much progress it has made on costs. European car sales only recently appear to
have troughed and are more than 20% below their precrisis levels. For Ford, even a little improvement in Europe
could go a long way.
With little apparent ceiling room left on sales and competition fierce, it is hard to see Ford's North American
business doing much better than it is now. But its overseas operations could help it become a far more profitable
company in a year or two.
Document J000000020131025e9ap0000w

Ford enjoys a strong third-quarter report
A-Section
Ford enjoys a strong third-quarter report
839 words
25 October 2013
The Washington Post
WP
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English
Copyright 2013, The Washington Post Co. All Rights Reserved
Ford proved it in North America. Now it's proving it in the rest of the world: New vehicles, combined with cost cuts,
can turn the business around.
The second-largest U.S. automaker raised its full-year profit guidance Thursday as it reported a strong third
quarter that saw improving sales worldwide. Ford's regions outside North America saw a combined profit for the
first time in two years, and every region reported market share increases.
Dearborn, Mich.-based Ford Motor earned $1.3 billion, down 14 percent from a year ago. The decline was due to
special items, including a $250 million charge for restructuring in Europe and a $145 million charge for a pension
buyout program in the United States.
Without those one-time costs, Ford reported a pretax profit of $2.6 billion, a third-quarter record for the company.
Ford sold 1.5 million cars and trucks in the quarter, up 16 percent. Revenue rose 12 percent, to $36 billion.
Shares rose 1.4 percent, to $17.76.
Ford, which almost went bankrupt in the middle of the last decade, restored its North American operations to
profitability by closing plants, laying off workers, selling non-core brands such as Jaguar, and using the savings to
invest in much-improved vehicles, such as the Fusion sedan and Explorer SUV.
Ford is now taking its playbook to other markets. In Europe, the company halved its third-quarter loss to $228
million. The company closed two plants in England in July and is introducing 25 new products by 2017 in an effort
to stimulate sales. Among the first are the Fiesta subcompact and B-Max minivan, which were strong sellers in
the third quarter.
In China, Ford's new Kuga and EcoSport SUVs helped increase sales by 51 percent during the quarter, and its
profits doubled to $126 million in Asia despite a sales slowdown in India.
l Samsung Electronics, Asia's biggest technology company, posted record third-quarter earnings on increased
sales of cheaper Galaxy smartphones and a rally in memory-chip prices. Net income, excluding minority interest,
rose 25 percent to $7.6 billion in the third quarter, the South Korean company said in a regulatory filing Friday.
l Bank of America will cut about 3,000 jobs by the end of the year as the number of refinancing applications and
troubled loans has fallen. The country's second-largest bank laid off 1,200 employees this week, primarily from a
unit that handles mortgage origination, company spokesman Terry Francisco said. The bank plans to make the
bulk of the remaining reductions in its unit that handles troubled mortgages, such as foreclosures or loan
modifications.
l Southwest Airlines and United Continental Holdings made more money in the third quarter as higher airfares
bolstered revenue, capping a strong week of earnings for major U.S. airlines that bodes well for the current
period. Southwest had net income of $259 million, compared with $16 million a year earlier. Its average fare rose
11 percent, to $159.39. United earned $379 million, up from $6 million a year earlier. A gauge of the average fare
paid per mile flown rose about 2 percent, to 15.96 cents.
l The number of people seeking unemployment benefits dropped 12,000 to a seasonally adjusted 350,000 last
week. Weekly applications have been inflated for the past three weeks, largely because California has been
processing a huge number of applications that were delayed because of a computer upgrade. The 16-day partial

federal government shutdown has lifted claims this month because a number of government contractors were laid
off temporarily.
l Average U.S. rates on fixed mortgages dropped this week to their lowest levels in four months, a positive sign
for the housing recovery. Mortgage buyer Freddie Mac said the average rate on the 30-year loan fell to 4.13
percent from 4.28 percent. The average on the 15-year fixed loan declined to 3.24 percent from 3.33 percent.
l Wal-Mart Stores plans to open up to 110 new stores in China in the next three years while the world's largest
retailer seeks to make the business there more profitable. Last year, Wal-Mart announced the completion of its
increased investment in a fast-growing Chinese online company called Yihaodian. Wal-Mart now has a stake of
about 51 percent in Yihaodian.
l Twitter has set a price range of $17 to $20 per share for its initial public offering, the company said in a Thursday
filing with the Securities and Exchange Commission. That sends the potential value of the company, which will list
on the New York Stock Exchange under the ticker symbol "TWTR," to $11.1 billion. Twitter said it is looking to
raise around $1.4 billion with its stock market debut.
l 8:30 a.m.: September durable-goods orders released.
l Earnings: United Parcel Service.
WP20131025digest1025
Document WP00000020131025e9ap00027

Ford gets its motor running: 3Q income at $1.3B
MONEY
Ford gets its motor running: 3Q income at $1.3B
Chris Woodyard; Fred Meier
Chris Woodyard and Fred Meier, USA TODAY,
445 words
25 October 2013
USA Today (Newspaper)
USAT
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© 2013 USA Today. Provided by ProQuest Information and Learning. All Rights Reserved.
Ford Motor racked up strong profits in the third quarter, driven by continued strength in North America and smaller
operating losses in Europe.
Net income was $1.3 billion, or 31 cents a share, in the quarter compared with 41 cents a share in the quarter a
year ago, Ford reported Thursday.
Excluding special charges of $498 million -- primarily costs for European restructuring and for Ford's lump-sum
pension-buyout program -- Ford had pre-tax earnings of $2.6 billion, or 45 cents a share, beating analysts'
expectations of 38 cents. Automotive revenue in the quarter was $33.9 billion.
Shares closed up 24 cents, or 1.37%, at $ 17.76.
Ford also raised it full-year guidance, saying it now it expects its full-year pre-tax profit to beat 2012, up from
"equal to or higher," and said it now expects automotive operating margins to be higher than last year, up from
"about equal."
"After a strong start to the year, Ford showed no signs of slowing down in the third quarter, with a 10%
improvement in sales volume coupled with a more than respectable 2% bump in transaction prices," said Alec
Gutierrez, senior analyst at Kelley Blue Book.
The company said it was profitable in all regions except Europe, where it cut losses more than in half.
"North America continues to achieve strong profits and we saw significantly improved results outside North
America," said Bob Shanks, Ford's chief financial officer, in a statement.
"We substantially reduced our losses in Europe, set a record third-quarter profit in Asia-Pacific-Africa and saw a
$150 million improvement in South America."
In North America, Ford posted an operating profit of $2.3 billion and margin of 10.6%.
In Europe, it cut its loss to $228 million from $468 million a year earlier and gained market share.
The automaker now expects to lose less than $1.8 billion on the year in the economically struggling region.
In its Asia-Pacific-Africa division -- which includes China, where Ford is making a major push -- operating
earnings rose to $126 million from $45 million a year ago.
New products pushed results in South America to pre-tax earnings of $159 million before taxes.
That's up from just $9 million a year ago.
Ford said it contributed $1.1 billion in the quarter to its funded pension plans worldwide, including about $700
million to its U.S. plans, as it continues its plan to cut its pension risks.
photo Evan Sears, Cars.com

Document USAT000020131025e9ap00001

Robust Earnings From Ford and Southwest Bolster Shares

Robust Earnings From Ford and Southwest Bolster Shares
By THE ASSOCIATED PRESS
595 words
25 October 2013
The New York Times
NYTF
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English
A dose of strong corporate earnings from Ford, Southwest Airlines and some others helped push the stock
market higher on Thursday.
This has been one of the busiest weeks on Wall Street for corporate earnings, with roughly a third of the
companies in the Standard & Poor's 500-stock index reporting their financial results.
So far, corporate earnings have come in pretty much as most money managers expected. Companies are
reporting bigger profits, but most of the growth has come from cost-cutting, a trend that has not changed very
much since the financial crisis.
''We're in a slow-growth economy and companies need to do everything to boost earnings,'' said Brian Reynolds,
chief market strategist at Rosenblatt Securities.
The Dow Jones industrial average rose 95.88 points, or 0.62 percent, to close at 15,509.21.
The S.& P. 500 added 5.69 points, or 0.33 percent, to 1,752.07, about two points below its nominal record high of
1,754.67 that it reached on Tuesday.
The Nasdaq composite index gained 21.89 points, or 0.56 percent, to 3,928.96.
Among companies reporting earnings, Ford rose 24 cents, or 1.37 percent, to $17.76, after the automaker earned
an adjusted profit of 45 cents a share -- a record for the third quarter -- as sales rose 12 percent, to $36 billion.
Wall Street analysts had expected Ford to earn 37 cents a share, according to FactSet.
Southwest Airlines rose 61 cents, or 3.72 percent, to $17.02, after the carrier reported sharply higher earnings,
with an adjusted profit of 34 cents a share, up from 13 cents a year earlier.
But AT&T dropped 65 cents, or 1.84 percent, to $34.63, after the telecommunications company reported revenue
that fell slightly short of Wall Street's expectations, even though it had an adjusted profit of 66 cents in the third
quarter, a penny above analysts' forecasts.
Among the stocks on the move, Visa rose $4.02, or 2 percent, to $202.91, after the payment processing company
raised its quarterly dividend by 21 percent, to 40 cents a share.
Xerox plunged $1.12, or 10 percent, to $9.61, after the company cut its full-year outlook and missed analysts'
estimates for its financial results.
In after-hour trading, shares of Microsoft and Amazon jumped after the two technology giants, reported financial
results that beat analysts' expectations.
With the S.& P. 500 trading near a nominal record high and corporations finding it difficult to increase their sales,
several market watchers have said they are not sure how much further stocks can go from here.
There are signs that stocks are getting expensive. Investors are currently paying more than $16 for every $1 of
earnings in the S.& P. 500, up from $14 at the beginning of the year.

''We're at this stage where we need to start to see the fundamentals improve,'' said Quincy Krosby, a market
strategist with Prudential Financial.
In the bond market, interest rates ticked higher. The yield on the Treasury's 10-year note rose to 2.52 percent,
from 2.50 percent late Wednesday, while its price slipped 6/32, to 99 27/32.
Still, the 10-year note's yield remains near its lowest point since July.
CHART: The Dow Minute by Minute: Position of the Dow Jones industrial average at 1-minute intervals
yesterday. (Source: Bloomberg)
Document NYTF000020131025e9ap0006j

Ford Maintains Earnings Streak and Raises Profit Forecast for the Year

Ford Maintains Earnings Streak and Raises Profit Forecast for the Year
By JACLYN TROP
808 words
25 October 2013
The New York Times
NYTF
4
English
DEARBORN, Mich. -- Ford Motor said on Thursday that its net income fell 22 percent in the third quarter, to $1.27
billion, as the company took charges related to revamping its European operations and its United States pension
obligations.
Still, Ford, the country's No. 2 automaker behind General Motors, beat analysts' expectations by setting a record
for third-quarter pretax profit of $2.6 billion, up $426 million, a performance that led Ford to raise its profit forecast
for the year. It was the company's 17th consecutive profitable quarter.
The $498 million in special items included $250 million for charges related to plant closures in Europe and $145
million as part of Ford's voluntary lump-sum pension payout program for salaried retirees in the United States.
Per-share profit was 31 cents.
''We continue to expect strong results for the full year,'' Ford's chief executive, Alan R. Mulally, said in a
conference call on Thursday. The automaker posted a combined profit for regions outside North America for the
first time since the second quarter in 2011. A $159 million pretax operating profit in South America beat Wall
Street's expectations, while a $126 million profit in Asia-Pacific, though a third-quarter record for the company,
came in below analysts' estimates.
''It was a really, really great quarter,'' Bob Shanks, Ford's chief financial officer, told reporters at its Dearborn
headquarters. The company's performance was ''encouraging from a number of perspectives,'' he said, with
growth in wholesale volume, revenue and market share in North America, South America, Europe and
Asia-Pacific.
Ford's market share in South America, where Mr. Shanks said inflation in Venezuela and Argentina could pose a
problem, grew more than a full percentage point to 9.5 percent. The automaker raised its full-year forecast for
South America. It now expects to turn a profit or break even.
''The overall environment in South America remains uncertain,'' Mr. Shanks said.
Ford now expects to record a pretax profit and an automotive-related operating margin higher than last year's.
Previously, the company said it expected its performance to be on a par with 2012.
''The progress and the direction is what's really exciting,'' Mr. Shanks said.
But the fiscal standoff in Washington and the deferment of a long-term decision on the federal budget until early
next year sent consumer confidence downward this month, Mr. Shanks said.
''Clearly, I think they were affected to some extent,'' he said. ''It's not great that it's a kick-the-can process. It's one
of the areas we're concerned about to some extent.''
Ford's revenue rose 12 percent, to $36 billion, with its strongest results in North America and the Asia-Pacific
region, where the company reported a 3.7 percent market share, a third-quarter record.
Ford's sales rose 31 percent in the Asia-Pacific region for the first nine months of the year, with most of that
growth coming from China, Ford's second-biggest market after the United States. David L. Schoch, group vice
president and president of Ford Asia Pacific, said the automaker hoped to double its market share in China to 5
percent this year.
The company continued to lose money in Europe, with a pretax loss of $228 million for the quarter, though that
was 51 percent less than a year ago, suggesting that the losses are easing there, Mr. Shanks said.
''All the leading indicators indicate that it has stabilized,'' he said. Ford said this quarter that it planned to introduce
at least 25 new vehicles in Europe by 2017.
Over all, Ford has changed course from the days when Mr. Mulally mortgaged the automaker's assets to borrow
more than $23 billion in a last-ditch effort to avoid bankruptcy, analysts said.
That turnaround was symbolically completed last month when Standard & Poor's became the last of the three
major credit ratings agencies to confer investment-grade status on Ford's debt, which the agency had rated at
junk-bond levels for the last eight years.
''It's hard to overstate how much they've done for cost reduction since 2009,'' said Dan Picciotto, a corporate
ratings analyst with S.& P.
Ford is in a more stable position after working to close its gap in underfunded pensions and reduce incentives on
new vehicles sold at dealerships, Mr. Picciotto said.
''But it's all been done in the context of a growing market,'' Mr. Picciotto said. ''If there is a downturn, how does
Ford operate in a different scenario?''
Alan R. Mulally, chief of Ford, which posted its 17th consecutive profitable quarter on Thursday. (PHOTOGRAPH
BY VINCENT YU/ASSOCIATED PRESS)
Document NYTF000020131025e9ap00055

What to watch ; Profit reports to shed light on autos, housing
MONEY
What to watch ; Profit reports to shed light on autos, housing
Adam Shell
Adam Shell, @adamshell, USA TODAY
257 words
24 October 2013
USAT
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Earnings season rolls on today with key reports from automaker Ford, homebuilder PulteGroup, sofware giant
Microsoft and online retailer Amazon.com.
The latest profit reports will provide a glimpse into the impact of higher interest rates on auto sales and home
purchases. How much money Amazon made last quarter will also provide some insight into the size of the impact
that the uncertainty caused by the political gridlock leading up to the 16-day government shutdown had on
consumer spending habits.
The third-quarter earnings season so far has been solid, but far from spectacular. Of the 160 companies that
have reported so far, 66% have beat expectations, slightly above the 20-year average of 63%, according to
Thomson Reuters.
And 22.5% have fallen short of analyst forecasts, a bit above the 21% average. Analysts expect profit growth of
2.6% compared with last year's third quarter.
Another storyline that remains intact is the dearth of top-line revenue growth. S&P 500 companies are on track to
grow revenue by 2.1%, vs. the same time last year. Only 46% of companies have topped estimates; 61%
normally beat them.
It seems as if for every big earnings upside surprise, such as aerospace giant Boeing's 25-cent
earnings-per-share beat Wednesday, there is a big miss. Heavy-equipment maker Caterpillar, for example, fell
short of analyst projections by 23 cents.
Document USAT000020131024e9ao00003

Ahead of the Tape
Ahead of the Tape

Ahead of the Tape
By Spencer Jakab
418 words
24 October 2013
J
C1
English
The Road Forward Looks Better for Ford
The iconic blue oval never would have worked as a bank logo anyway.
Luckily for Ford Motor Co., which reclaimed full rights to its logo last May as it climbed out of a debt hole, that
won't happen. As it unveils third-quarter results Thursday, though, Ford's ability to sock away cash is getting less
attention than it did back when the company's situation looked precarious.
On the face of it, Ford's balance-sheet repair seems to have stalled. In late 2006, just before the financial crisis
would have made it impossible, Ford borrowed a whopping $24 billion, mortgaging all its assets, to finance a
turnaround plan.
That helped it become the only major U.S. auto manufacturer to avoid bankruptcy in spring 2009. But it also left
Ford with $11.1 billion in net automotive debt after U.S. sales plunged by 43% year over year in the second
quarter of 2009.
Today, Ford's automotive balance sheet is vastly stronger, with $9.9 billion in net cash. While that is unchanged
since early 2012, the company has made chunky contributions to its pension plan -- some $3.4 billion in 2012 and
$2.8 billion through the first half of this year -- even as it doubled its quarterly dividend to 10 cents a share.
Results through September also might suggest lost momentum. Ford is expected to report earnings of 39 cents a
share compared with 41 cents a year earlier.
Peek underneath the hood and things look better. Its money-losing European operations are recovering. Vehicle
sales in the region were up 4.6% last month, capping off eight consecutive months of retail market-share gains in
the region.
Meanwhile, North American year-over-year unit sales for the three months of the quarter were up by 11%, 2%
and 6%, respectively. September marked the best such month since 2006 and the 26th consecutive month of
increasing sales. That good news should translate into a solid quarter and perhaps another lift to earnings
guidance.
Ford's stock still is below its 2011 postcrisis high, though. Investors don't seem to be giving Ford enough credit for
the financial flexibility it has achieved. Management, which lived through a near-death experience, still
appreciates the true definition of liquidity: something that is always there, except when you need it.

Document J000000020131024e9ao0001h

Leadership In Information Technology (A Special Report) --- Car-Part Designers Step on the Gas: Thanks to technology, auto makers can now...
Leadership In Information Technology (A Special Report) --- Car-Part Designers Step on the Gas: Thanks
to technology, auto makers can now conceive and test designs much more quickly -- and cheaply
By Mike Ramsey
1,092 words
21 October 2013
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English
Ford Motor Co. engineer Kevin Tallio holds up a twisty series of loops made of hardened sand and declares that
the object -- a mold for a new engine part, a cylinder head -- was an impossibility not long ago.
Mr. Tallio, a senior engine developer at Ford, is taking part in a revolution in vehicle design that has swept the
auto industry. Advances in computer-aided engineering and big investments in computing power have given
manufacturers new tools to create designs and the ability to test their ideas in a fraction of the time and at far less
cost than they could before.
The result: Many more design ideas are being conceived and tested than ever before, and the best are being
adopted quickly, helping manufacturers improve the fuel efficiency and the performance of cars, trucks, buses
and motorcycles.
"This new process is allowing us to do a lot of innovation," says Nand Kochhar, executive technical director of
computer-aided engineering at Ford.
Car makers are using computers to run through dozens of design possibilities in the time it once took to produce
a single prototype.
Only a few years ago, it might have taken as long as eight months to get from the idea for a new cylinder head to
the building of a prototype, and it would have cost millions of dollars, Mr. Tallio says.
The time and expense involved in developing new parts discouraged vehicle makers from looking at many daring
or innovative designs that could yield small gains in fuel economy, because a failure could be so costly.
Today, the part was created in a computer simulation that came up with the most efficient design possible.
Engineers then altered that design to account for manufacturing constraints and tested the revised design virtually
in models that used decades of data on material properties and engine performance as a guide. Ford then
created the mold to make a real part that could be bolted onto an engine for further testing.
The entire process took days instead of months and cost thousands of dollars instead of millions -- savings that
make design risks worth taking. "It's like a parachute for our ideas," says Mr. Tallio.
It was a parachute for the Ford Explorer in 2010. When Ford was preparing to launch the latest version of the
sport-utility vehicle, there was a problem with the brake rotor. Because of its ability to virtually design and test a
part and quickly produce a prototype, a new brake rotor was created within a week, and the launch of one of the
company's most important vehicles was saved, company spokesman Jake Dylik says.
A more recent product of the new design process is a 1.5-liter, four-cylinder engine that Ford will introduce in
China this year. Designers were able to quickly develop and test a prototype that has the exhaust manifold --
which collects exhaust from the engine's cylinders -- built into the engine, instead of being bolted on. That helps
make the engine as efficient and powerful as the larger engine it will replace. The smaller engine will allow drivers
to avoid an expensive tax penalty on larger engines, but with no sacrifice in performance.
The U.S. federal mandate for greater fuel efficiency is driving the efforts by vehicle makers to make their design
processes more efficient. Recently toughened regulations in the U.S. now require new cars and trucks to have
roughly double the fuel efficiency of today's vehicles by 2025. That is causing manufacturers to invest billions of

dollars in various means to cut the weight of their vehicles, make them more aerodynamic and improve the
efficiency of their engines.
Since 2000, car makers have been talking about ditching physical prototypes as computer simulations of
real-world conditions improved. But the gap between the digital and the actual proved wider than initially thought.
Much more data needed to be collected and crunched before parts could be reliably designed and tested digitally.
That process has accelerated in the past four or five years. Decades of data on the costs, performance and safety
of various materials and designs have been digitized so they can be weighed by design programs.
Today a vehicle can be built, run through snow banks, started in frozen or hellishly hot conditions and crashed
repeatedly -- all inside a vast network of computers. "We can install the engine-management software into the
computer model and run the engine" to see how it performs with newly designed parts under a wide variety of
conditions, says Bob Trecapelli, Ford's global director of digital innovation development and deployment.
To take advantage of those advances, car makers have made massive investments in computing power.
Ford, for example, has increased its computing power by about 50% every year for at least eight years, says Mr.
Kochhar.
In Dearborn, Mich., where Ford is based, there are several multistory buildings stacked floor to ceiling with
computers to run the company's engineering programs around the world. And it doesn't stop there.
Ford has arrangements with the Oak Ridge National Laboratory -- the world's most powerful computing array -- to
boost the auto maker's computing power when huge calculations are required.
Meanwhile, advanced software is giving auto makers a whole new universe of designs to work with. The software
offers up the most efficient design possible, based on massive amounts of data, often creating shapes human
engineers would be unlikely to imagine.
Altair Engineering Inc. sells design software to every major auto maker in the world. The software often comes up
with elaborate, spindly, asymmetrical designs that then must be modified into something that is more easily
manufactured and is compatible with the rest of a vehicle's design.
That's where Ford's expanding computing power comes in. Hau Thai-Tang, the global purchasing chief for Ford,
says the company is adding Cray Inc. supercomputers to its array for the purpose of modifying the designs the
Altair software suggests -- in a hurry. "We can put in a set of constraints, throw it in the Cray overnight, and it will
spit out the most efficient solution," he says.
---
Mr. Ramsey is a staff reporter in The Wall Street Journal's Detroit bureau. He can be reached at
michael.ramsey@wsj.com.
Document J000000020131021e9al00009

Ford's Alan Mulally: Be nice, realistic, visionary ; Auto chief sees tech's role growing
MONEY
Ford's Alan Mulally: Be nice, realistic, visionary ; Auto chief sees tech's role growing
Mike Snider
Mike Snider, @mikesnider, USA TODAY
1,861 words
14 October 2013
USAT
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College students packed an auditorium on the University of Georgia campus here this month seeking words of
wisdom from Ford CEO Alan Mulally.
He passed along sage advice from his parents. "One thing I learned from (them) was that it's nice to be important,
but it's more important to be nice," he told 425 students in Tate Student Center's Grand Hall.
People skills and aptitude for teamwork are critical for students as they prepare to enter the workforce, he said.
"Be terrific at the skill you're doing right now, be open to the possibility of expanding those skills, and then just
enhance and learn and develop your working-together skills," Mulally said. "Be true to yourself and your values
and be accountable for actually getting things done."
That simple but solid counsel has served Mulally well. As an aerospace engineer and executive at Boeing, he
helped the aircraft company take off with development of the 777 jetliner.
Arriving at Ford in 2006, Mulally, 68, helped steer the automaker through a restructuring and led it through the
Great Recession while its Detroit rivals landed in bankruptcy court. Today, he's one of the most sought-after
CEOs in the U.S., with persistent rumors that Microsoft might woo him away before his planned 2014 departure
from Ford.
Mulally touched on that issue and many others, including globalization and in-vehicle technology, during the 16th
USA TODAY CEO Forum, held Oct. 1 in cooperation with the university's Grady College of Journalism and Mass
Communications, Terry College of Business, the College of Engineering, the Student Government Association,
the University Union Student Programming Board and the Division of Student Affairs.
At the question-and-answer session, Mulally was asked what would persuade him to leave Ford for Microsoft by
Holly Beale, a senior in information systems management who's been offered a job with Microsoft when she
graduates.
"Congratulations. They are a great company," he said. "With respect to Microsoft, I love serving Ford, so I have
nothing new to announce besides serving Ford."
Then he invoked another bit of parental advice: to always be open to possibilities. "I never really thought I would
leave Ford," he said, just as he hadn't planned to leave Boeing. "When (then-Ford CEO and current executive
chairman) Bill Ford called, I knew I was having trouble, because I didn't say 'No' right away."
When he got to Ford, Mulally did a reality check on where the carmaker was then -- a philosophy that students
could apply to their own plans, he said. "The most important thing is to simultaneously deal with reality -- really
the way it is, not the way you wished it could be or you hoped it could be," he said. "But also have a vision about
where you want to go."
He sold the Jaguar and Land Rover brands in 2008, Volvo two years later, and, through those same years, shed
Ford's ownership stake in Mazda to focus on the core Ford and Lincoln brands. He committed the company to
"quality, fuel efficiency, safety, really smart design like seamlessly connecting to the Internet, and also," Mulally
said, "to be the most affordable, which was (company founder) Henry Ford's original vision."

Ford financed its overhaul -- and avoided needing government aid to survive the financial crisis in 2009 the way
General Motors and Chrysler did -- with $23.6 billion in private credit that Mulally arranged in 2006, just months
into the job, by mortgaging the entire company. Ford reported a profit in 2009 and is on a string of 16 consecutive
profitable quarters.
A new companywide accountability process has helped identify problem areas sooner than was the case in the
past, Mulally said. "Every week, we meet with the entire team worldwide, and we review the status against the
plan."
Highlights of the chat with Mulally, edited for space and clarity.
Q: What was it like going from Boeing to an automaker?
A: At kind of the highest level, (the two industries) probably have more similarities than they're different. Most of
them are very, very sophisticated vehicles. We design (planes) for the traveling public so you go point to point
non-stop. Same with automobiles. I remember, when we walked out on stage in Dearborn (Mich.), and Bill Ford
introduced me to all of the press, one of the journalists said, "Mr. Mulally, with all due respect, you're not a car
guy, and, you know, we're in trouble here. And what does that mean to us?" Because it's such a complicated
industry starting with the vehicles themselves.
I kind of rubbed my chin, trying to buy myself some time to think of an answer, and I said, "Well, I really agree with
you that automobiles are very, very sophisticated. As a matter of fact, the average automobile has around 10,000
parts. They're very, very sophisticated. I might point out that the 777 has 4 million moving parts, and it stays in the
air."
Q: Technology has been very important at Ford. What is in the future for connected vehicles?
A: Because of the Internet of things, we're all going to be connected. Instead of inventing the technology, we're
using all of the (current) smartphone devices. When you bring your smartphone into the car, then we allow you to
use that smartphone. You provide the voice activations so you can keep your hands on the wheel, your eyes on
the road and yet use your smartphone through voice, and you can operate not only your connection with the
Internet, but you can also manage your apps.
The next step is that we're going to end up with embedded modems in the car, and now the car will really be
another instrument on the Internet. That philosophy, keeping the driver as the center of the attention, is probably
the most important thing we can do to remove distracted driving and making drivers better drivers.
I think you'll have a relationship with your Ford store like your Apple store, where you'll be able to flash (upgrade)
the car every couple of months, (and) it will have all of the latest applications, latest upgrades.
Q: Talk about the importance of EcoBoost technology and the risks involved with that strategy.
A: It was probably one of the most significant breakthroughs in engine and propulsion technology. What EcoBoost
is is an internal- combustion engine but also using direct fuel injection and (a turbocharger). You run at higher
temperatures at higher burner pressure rates, but it allows you to burn more in a clean way and improve fuel
efficiency by over 25%. You can reduce the CO2 by nearly 15%. Another neat thing is, you increase the torque at
the lower (engine revolutions). When you're driving, you just have this wonderful driving experience, plus you get
all of the benefits of fuel efficiency.
In terms of the risks is that at the time, that technology was very expensive. But we knew that we could increase
the scale and improve the costs of it, and get the real benefit worldwide. Now, within a few years, all of our
vehicles will have this EcoBoost technology.
Q: There have been reports that younger people may not want to buy cars as much as Baby Boomers have. How
is Ford targeting Millennials?
A: I just saw a student in the new Fiesta, and, my gosh, they're just the neatest vehicles. But it used to be, in the
United States, that if you had a smaller vehicle, it's going to be considered to be cheap because it wouldn't have
all of the features, and it wouldn't have the technology, and it wouldn't have the fuel efficiency and the quality.
Q: In your time as CEO, Michigan and northern Ohio have had some of the highest unemployment rates in the
country. What is Ford's commitment to helping people who helped build Ford?

A: The most important thing that we can do and we're doing is to create an exciting, profitably growing Ford. We
are competing with the best companies in the world right here in the United States. That wasn't true seven years
ago. In our case, we've announced that we're going to be hiring nearly 15,000 new employees within the next
couple of years, and great salaried jobs, great hourly jobs and great careers.
Q: How will Ford compete internationally where companies in other countries can offer vehicles at lower prices?
A: We believe that we can serve maybe three-fourths, 80% of the market, but we are not making vehicles at the
very small, lowest end. It's just not our competency. There's a tremendous market all around the world for
vehicles around the Fiesta size, a B (subcompact) size. So we compete on the B size all the way up through the
larger vehicles.
When you look at automobiles worldwide, about 30% of all the vehicles sold over the next few years are going to
be in the Americas, North and South America. About 30% will be in Europe, Russia and Africa, and 40% will be
Asia Pacific, led by China. In China this year, the industry will probably sell 21 million vehicles. In the U.S., it will
be around 16 million. In Europe, around 13 million. You can just see the impact Asia Pacific is going to continue
to have.
Ford is going to focus on the Fiesta size and the larger vehicles. The Chinese love the smaller SUVs, just like the
rest of the world. It's probably the fastest-growing segment around the world. I think we're really well-positioned.
We're increasing our production as fast as we can.
Q: What else is in the future for Ford and the auto industry?
A: We're going to see a lot of improvement in internal combustion, whether it's diesel or (gasoline), and new
materials, integrated electronics, the aerodynamic improvements, system integration, so a lot of improvements. I
think we're going to see more biomass fuels. I think we're going to see more natural-gas vehicles -- we're going to
have one out there -- but I also think we're going to see more electrified vehicles and more hybrids, then all of the
electric vehicles that have a much larger battery.
You can imagine a world where you have a hydrogen tank and you mix the hydrogen with platinum, and water
comes out of the tailpipe, electricity goes to the new high-efficiency battery, and now we're actually using our
energy in a clean way. As we develop our energy policies in the United States to generate our energy clean, then
I think we're going to really move to a world that all of us want, and that is a sustainable future.
photo Photos by Michael A. Schwarz, USA TODAY

Document USAT000020131015e9ae00038

Corporate News: China Car Sales Jump, Giving Lift To Foreign Makers
Corporate News: China Car Sales Jump, Giving Lift To Foreign Makers
649 words
14 October 2013
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English
SHANGHAI -- New car sales in China in September increased at the fastest pace in eight months, boosting
results at major foreign auto makers including BMW AG, Ford Motor Co. and Nissan Motor Co.
China's car sales totaled 1.59 million vehicles last month, an rise of 21% from the year-earlier period, the China
Association of Automobile Manufacturers said on Friday.
Analysts say seasonality and very low year-earlier sales among Japanese auto makers contributed to the strong
results. Sales generally increase before the Oct. 1 National Day holiday and Japanese car makers' sales were
gutted in September last year because of tensions during a territorial conflict between China and Japan.
Lin Huaibin, a managing director at market-research firm IHS in Shanghai, said the results show the auto industry
is on track to meet annual growth targets. Most analysts expect growth this year of between 10% and 15% over
2012.
"China's car market has fared better than expected. Given the stabilizing economy and improving consumer
confidence, I think it's easy for the industry to meet growth expectations," Mr. Lin said.
During an interview before the sales data came out, Patrick Steinemann, the managing director and co-head of
Asia Industrials at Bank of AmericaMerrill Lynch, said that China's auto-industry rebound is likely to give way to a
"bit lower" growth than the high double-digit levels seen five years ago.
Bank of AmericaMerrill Lynch estimates passenger-vehicle sales in China will increase by 16% next year and by
15% in 2015.
Slowing growth is leading to greater discounting.
"There is more competition when growth is lower, and this has resulted in pricing pressure," Mr. Steinemann said.
China's auto-sales figures are based on wholesale data and not retail figures.
Among the major suppliers here, General Motors Co. said it sold 277,647 cars, up 14% from a year earlier, while
Ford posted a 61% gain to 96,111 cars, Audi AG said its sales increased 28% to 45,530 and BMW reported that
its sales rose 21% to 35,804.
Geely Automobile Holdings Ltd., whose parent also owns Swedish brand Volvo Car Corp., said it sold 43,027
cars last month, down slightly from 43,055 a year earlier.
Earlier this week, Nissan said its September sales in China rose 83% to 117,100 cars, Toyota Motor Corp. said it
sold 72,100, up 63% and Honda Motor Co. said its sales in China more than doubled to 73,990.
In September last year, Toyota, Nissan and Honda -- Japan's three biggest auto makers by volume -- reported
declines of greater than 30%.
The tensions have allowed Ford to outsell Toyota and Honda in China through September this year. Sales were
also boosted by seasonal factors. "September is a good month for car sales because local consumers tend to
increase spending ahead of the weeklong National Day holiday," said Harry Chen of Guotai Junan Securities.
The fourth quarter is usually the peak season for car sales, accounting for as much as 30% of sales for the whole
year during the past four years, according to data from CAAM.
In the January-September period, China's automobile sales including both passenger and commercial vehicles
rose 13% to 15.88 million cars, CAAM said.
In the first three quarters of this year German brands took first place in the Chinese car market with a combined
share of 19.8%, up from 18.6% in the year-earlier period. They were followed by the Japanese, with a 15.4%
share, down from 18.24%. U.S. auto makers' share rose to 12.5% from 11.5%. The share of Chinese brands fell
to 39.89% from 40.55%.
-- Rose Yu, Colum Murphy and Yajun Zhang
Document J000000020131014e9ae0002k

GM Cuts Costs for the Long Haul
GM Cuts Costs for the Long Haul

By Jeff Bennett
927 words
14 October 2013
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For years, General Motors Co. pounded out hoods, fenders and doors for its Tahoe and Yukon sport-utility
vehicles at plants in Ohio and Michigan and shipped them to its assembly plant in Arlington, Texas.
On Monday, the auto maker officially opens a $200 million metal-stamping plant adjacent to the Arlington factory
that reduces that travel to about 20 feet from machine to welder. Estimated savings: about $40 million a year in
shipping costs.
The new plant, is part of a broader rethinking of logistics by GM Chief Executive Dan Akerson, who is anxious to
close the company's profit margin gap with rival Ford Motor Co.
His aim is to lift GM's North American margins to 10% from about 8% now, a feat that would generate hundreds of
million of dollars in new profit.
"We spend billions a year on logistics," Mr. Akerson said. "Think about that, billions. Any savings I can get by
cutting my logistics bill goes right to my bottom line and makes us more competitive. I've told our teams that we
need to make this a priority to look across the organization and take the steps to cut the costs."
Having cut labor costs and closed unprofitable plants during the 2008/2009 recession, GM now sees logistics as
representing the biggest potential opportunity to squeeze new profit from operations.
For its second quarter ended June 30, crosstown rival Ford earned $2,830 for each car it shipped in North
America -- $387 more per vehicle than GM did during the same period. Ford's 10.4% operating margin and $2.3
billion operating profit overshadowed GM's 8.4% operating margin and $1.98 billion pretax profit in the region.
Co-locating parts-making and auto assembly promise higher quality and greater profit. GM and other auto makers
say they can no longer put up with parts that arrive scratched or dented and have to be repaired. Workers at the
Arlington plant had to waste time trying to buff out imperfections caused by travel, GM said.
"We as an industry chased labor costs for years because that was the only thing we thought we could control,"
said Tim Leuliette, CEO of parts maker Visteon Corp. "Now, with the reset of labor costs, especially in the U.S.,
more efficiency in the plants and the importance of quality, we can finally evolve."
Mr. Leuliette points to his own company's plans, which include building more production facilities in Russia to
supply car makers there. Last month the company's Halla Visteon Climate Control unit opened its first plant in
Togliatti, Russia, to build cooling, heating and air conditioning units for local producers such as OAO AvtoVAZ.
"They have finally all wised up," said John Henke, chief executive of consultants Planning Perspective Inc., which
conducts an annual survey of auto maker and supplier relationships. "But unless all of them stick with it, the
savings won't amount to peanuts. I can't tell you how many times we see new people on the executive level come
in and change things."
Mr. Henke said the drive to co-locate factories intensifies the cost pressures on the parts suppliers. "Those auto
makers who are just trying to cut costs and not working with the parts makers will lose," Mr. Henke said. "They
will lose out on the latest advancements and financial savings. Then all the logistic changes in the world won't
mean much."

Other suppliers are expanding their facilities to cut shipping costs. Japanese auto parts maker Denso Corp. is
investing $1 billion in the U.S. over the next four years to expand its North American operations. It is the largest
maker of products such as automobile radiators and air-conditioning systems in the world.
Chrysler Group LLC encouraged suppliers to locate near its isolated Belvidere, Ill., plant where it expanded
production for the Dodge Dart while Volkswagen AG in 2011 created a supplier park next to its Chattanooga,
Tenn., factory.
"The best way to describe logistics is waste," said GM manufacturing chief Tim Lee. "It is moving productive
materials from point A to point B. It has no value and guess what; it doesn't mean anything to the customer. If you
can squeeze that waste of the system then you can tactically improve your profit margins."
Mr. Lee, like Mr. Leuliette, said U.S. labor contracts that set lower wages for new auto industry workers allows
GM and parts makers to restructure production in ways that were impossible before.
"When you blend the cost rates today, manufacturing, especially in the U.S. is more variable than fixed," Mr. Lee
said. "You can now make businesses cases to put production in plants you couldn't before.
The new plant is staffed by union workers who transferred from other plants or the nearby assembly factory, at a
variety of wage levels.
In addition to moving its own production, GM purchasing chief Grace Lieblein is encouraging parts makers to
move or build new facilities closer to GM assembly plants. For example, interior trim pieces in the 2013 Chevrolet
Malibu comes from three suppliers -- with some pieces traveling from 700 miles away -- to the car's production
lines in Kansas City, Kan.
Ms. Lieblein is negotiating to have one of the suppliers, which she declined to identify, build a plant closer to the
Fairfax location. In exchange, the supplier will get a larger share of production.
Document J000000020131014e9ae0001n

Microsoft CEO Search Reveals Board Rifts
Microsoft CEO Search Reveals Board Rifts

By Shira Ovide, Spencer E. Ante and Joann S. Lublin
1,083 words
12 October 2013
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Microsoft Corp.'s search for a new chief executive is exposing divisions of opinion among directors over the
38-year-old company's future direction and what it needs in its next leader.
Directors on Microsoft's CEO search committee have approached at least two Microsoft executives and at least
eight outsiders to gauge their interest in the job, according to people familiar with the matter. Those people said
the outsiders include Ford Motor Co. Chief Executive Alan Mulally, Oracle Corp. President Mark Hurd and Nokia
Corp. executive Stephen Elop, already scheduled to join Microsoft when it completes the acquisition of Nokia's
cellphone unit, expected early next year.
Some of the candidates were approached for the first time as recently as last week, the people familiar with the
matter said. One of those people said search-committee members had begun more formal one-on-one interviews.
This person said Microsoft's full board has yet to meet any prospects.
The candidate roster reflects a board wrestling with a central question: whether Microsoft's next leader should be
a person steeped in technology who can spearhead product innovation, or an expert at running a large and
sprawling organization.
The decision will shape Microsoft's immediate future, and determine whether the company focuses more on
building products to compete against rivals such as Google Inc. and Apple Inc. or on making the company run
more efficiently.
Behind the debate is a crucial insight: There may not be a perfect candidate for the job.
"The idea of finding a CEO who is a visionary in everything is probably not realistic," one person familiar with the
search process said.
As they weigh the merits of choosing either type of CEO, directors also are assessing how the rest of Microsoft's
executive team could balance out any shortcomings of the next CEO. Microsoft directors are working in tandem
with an executive-recruiting firm.
Microsoft's board is tackling the historic task of picking only the third CEO in the company's history, and likely the
first without ties to Microsoft's founding team. It isn't unusual for directors to keep open minds about the right type
of leader in the preliminary stages of hunting for a new CEO.
The successor for current CEO Steve Ballmer will have to grapple with a different technology landscape than
when Mr. Ballmer took over from Bill Gates in January 2000. The computing world has drifted away from
Microsoft's strengths in personal computers and traditional software, and the Redmond, Wash., company has
fallen behind rivals in technologies such as smartphones and Internet-based software.
Other outsiders who have been approached about the job include Charles Phillips, a former Oracle president now
heading business-software firm Infor, and Paul Maritz, an ex-Microsoft executive now running corporate-software
firm Pivotal.
Current Microsoft executives Tony Bates and Satya Nadella also have met with at least one board member about
the CEO position, said one of the people familiar with the search process. Mr. Bates didn't respond to a request
for comment. Mr. Nadella declined to comment.

Not all the executives approached about the Microsoft CEO post are current candidates for the job. Mr. Hurd, for
example, has said he plans to stay at Oracle.
People familiar with the search process have said directors believe it would be best to move quickly to identify Mr.
Ballmer's successor. These people have said the board hoped to have a pick within four to six months -- which
would time a CEO pick around the end of this year or in early 2014. In August, Mr. Ballmer announced he
planned to retire within a year or when the board found his successor.
Mr. Mulally has emerged as the most intriguing candidate. The 68-year-old Ford CEO has no prior experience in
information technology. But the one-time Boeing Co. executive, who still maintains a home in the Seattle area, is
close personally to Mr. Ballmer and has served as a frequent adviser to the Microsoft CEO, including on a
sweeping reorganization announced in July.
Mr. Ballmer has been promoting Mr. Mulally's candidacy, according to people familiar with the search process.
But it is unclear how much influence Mr. Ballmer still wields on the nine-member board.
There is an interesting historical parallel: Ford Executive Chairman Bill Ford Jr. was instrumental in luring Mr.
Mulally from Boeing in 2006. Mr. Gates still has great sway in the board room as Microsoft's chairman, co-founder
and largest individual stockholder. But it is unclear how he feels about Mr. Mulally's candidacy.
People familiar with the situation said Microsoft directors are considering CEO candidates from outside the
technology industry, such as Mr. Mulally, because such executives can help groom younger Microsoft executives
who are considered not yet ready for the CEO post.
In response to speculation about a move to Microsoft, Mr. Mulally has said that he is committed to staying at Ford
through the end of 2014 at least.
"There are no changes from what we announced last November," said Ford spokesman Jay Cooney. Last
November, Ford promoted Mark Fields to chief operating officer and handed some of Mr. Mulally's duties to him.
Ford's board met this week, but a person familiar with the board said there was no formal discussion about Mr.
Mulally's future with the company.
John W. Thompson, the head of Microsoft's CEO search committee, and other board members, have been
meeting with Microsoft stockholders to solicit their views on the CEO search, according to people familiar with
those discussions.
Many of Microsoft's biggest investors are restless over what they perceive as the company's drift. Microsoft's
share price has fallen roughly 40% during Mr. Ballmer's nearly 14-year tenure. In August, Microsoft agreed to add
a representative of activist investor ValueAct Capital Management to the board early next year.
Microsoft shareholders have expressed enthusiasm for the next CEO to be a seasoned operational expert such
as Mr. Mulally, in part because they assume those types of executives would be more willing to slim down the
company, redirect resources away from less profitable parts of the company and increase cash returns to
stockholders, according to people familiar with those discussions.
---
Mike Ramsey and John D. Stoll contributed to this article.
Document J000000020131012e9ac0003l

OFF DUTY --- Gear & Gadgets -- Rumble Seat: Ford Fiesta ST: The Biggest Bang for the Buck
OFF DUTY --- Gear & Gadgets -- Rumble Seat: Ford Fiesta ST: The Biggest Bang for the Buck
By Dan Neil
1,358 words
12 October 2013
J
D12
English
It's that you have to look at it, day after day. Most people get up, do their thing and walk out to their car or truck.
Maybe it has a place of honor in a multicar garage or maybe it sits bereft in a parking deck as gray as the skies.
But there it is. Every morning, the moment recurs when we possess our automobile all over again. That's me,
that's my ride. Turdblossum.
"Man, I need a new car," you think. Which means you have to go to a dealership, which also means you get to be
a schmuck. It can't be helped.
The following paragraphs constitute all I know about the retail car-buying experience. Consumers make the
process needlessly antagonistic and stressful. People come into car dealerships in fits of near-delusional
paranoia, convinced that everybody's trying to rip them off. They will wave a printout from Edmunds.com or Kelley
Blue Book like it was a machete. They will scream and throw themselves to the ground just to get free floor mats.
I dare you: Stand a post for one day in a busy car dealership. The public = nuts.
The irony is that many people, begrudging the sales doofus his meager dimes, give away dollars.
Car buyers routinely drive off the lot having spent way more money on wheels, horsepower, seats and audio than
they ever intended. And the sales people don't have to do anything but hand over the paperwork. "The Audi S7
with the executive rear seating? Yes, sir, Mr. Neil! Right away!" Clap, clap!
In retail sales, upselling is free money.
Meet the King of the Upsell: the 2014 Ford Fiesta ST, a hot-hatch version of the company's megaselling global
subcompact, now in its seventh generation.
Sure, you walked into the dealership figuring on spending about $15,000 on the base five-door hatchback, but
now the sales guy drops the ST on you. Boom! You love it. Because: fun.
The ST scampers around town like a randy squirrel. Its 1.6-liter, four cylinder is turbo-boosted to the stars (21 psi)
and redlines at over 6,000 rpm. It is shod with overachieving 17-inch Bridgestone Potenzas and -- OMG! -- it's got
an old-school six-speed manual transmission.
The Fiesta is one of the world's best-selling cars. Engineered by Ford of Europe, it is basically the official car of
every public servant, barmaid and shopkeep in the United Kingdom.
Fiesta vacated the U.S. market in 1980 and returned in 2010. Ford moved the tin to the tune of 57,000 sales in
2012.
So there is absolutely nothing wrong with the Fiesta in its less highly contented form: seven air bags, heated
outside mirrors, Bluetooth and plug-and-play media with voice recognition, power windows and doors with keyless
entry.
But if you want to stave off long-term ownership ennui, the ST is the way to go.
Now, there's a face you could wake up to in the morning.

The ST package lowers the ride height a half-inch, stuffs the wheel wells with the big hex-motif alloy rims, and
wraps special aero bodywork around the rocker panels, front and rear lower fascia. The blacked out, flush-fit grille
and thick eyeliner around the headlamp assemblies actually give the ST a touch of the exotic. The Fiesta ST's
taut modernist bod, bandy proportions and unsmiling, on-task visage help it avoid the box-office poison of
cuteness. Think of it as a hot-hatch Aston Martin.
But the abacus beads have moved, alas: The Fiesta of your dreams costs nearly $25,000, and that's without the
sunroof.
The optional Recaro partial-leather seat package takes a huge bite ($1,995) but the deep, bolstered buckets are
so slaggingly futuristic and supportive, you can't give them up. It's nice that the Recaro package also includes
heated front seats.
The navigation system adds $795. The painted gray 17-inch rims with the thrombo red brake calipers, that's an
additional $375.
Of course you're going to spend the money, because you are only flesh and blood and because there are
favorable lease terms available. I'm here to say, it's OK. Give in. Live a little.
As a happy consequence of the company's One Ford global strategy, the U.S. market will get the ST in its full
Euro-spec brattiness (the company's past practice with the Focus ST has been to offer North America
dialed-down versions).
The ST is almost exactly as sold overseas, with the heavy-breathing turbo stoking the all-aluminum 1.6-liter in-line
four, whipping up 77 hp more (197 hp) than the base car. Max torque almost doubles, to 214 pound-feet at 3,500
rpm, but the car feels cammy and eager anywhere north of 2,200 rpm.
Pin the throttle, grab a gear and the ST (2,742 pounds with the manual) takes off like a hooked trout, chuffing its
front tires and flickering the traction-control indicator until you either shift or blow through the fuel cutoff point.
The combination of big turbo boost and the small, lightweight crank gives the engine a deep suddenness, an
eagerness to spool up. Even at low rpm, the engine pulls, and a sturdy, resonant exhaust note fills the car, a
hummingbird on performance-enhancing drugs.
In the interests of turbo (and warranty) preservation, the engine-control module dials back maximum boost after
20 seconds, but you need only a light lift of the throttle to reset the turbo timer, so the effect is practically
unnoticeable.
Shuffling through the short lower gears, drivers will find plenty of use for the car's brake-based torque vectoring
on the front axle, helping put more power to the ground when accelerating out of corners.
The Fiesta ST's electric steering is satisfyingly responsive, even a wee edgy with a surprising amount of tactile
feedback from the front tires. The steering wheel is small and feels racy. The steel foot pedals are right where you
want them for heel-and-toe footwork. Driving position is just excellent.
The donor car's front-strut, rear-beam suspension has been modified in the expected ways: Damping and spring
rates are up, front and rear, with a smaller front antiroll bar putting a little more danciness in the Fiesta's hinder.
The Fiesta ST has what you might call entertaining body roll, like an old Alfa. And when the tiny hampster blood
boils at 5 grand in this car and she's got a front wheel off the ground, I defy you not to smile.
You can dive into a tight 35-mph curve, and when the front tires really start to complain, breathe off the gas
gently, and the car will come around with a sweet, catchable trailing-throttle oversteer. When the little hood is
pointing in the right direction, lay on the coal. The Fiesta ST claws away like a cat escaping a water pistol.
It is all about shelf life. How many times can you walk out to the same car in the morning without being
overwhelmed with boredom? The Fiesta ST costs more, but it will keep owners smiling a lot longer. That makes it
a bargain.
---
2014 FORD FIESTA ST
Base price: $22,195 (including delivery)

Price, as tested: $24,985
Powertrain: Turbocharged and intercooled direct-injection 1.6-liter, 16-valve, transverse-mounted in-line four with
variable valve timing; six-speed manual transmission; front-wheel drive with brake-based torque vectoring
Horsepower/torque: 197 hp @ 6,000 rpm/214 pound-feet at @ 3,500 rpm
Length/weight: 160.1 inches/2,742 pounds
Wheelbase: 98.0 inches
0-60 mph: < 7 seconds
EPA fuel economy: 26/35/29 mpg, city/highway/combined
Cargo capacity: 10 cubic feet (behind second-row seats)
Document J000000020131012e9ac00007

Corporate Watch
Corporate Watch
704 words
10 October 2013
J
B6
English
FORD
Car Maker Drives
For 5% Share in China
Ford Motor Co. likely will account for 5% of new vehicle sales in China by the end of this year, doubling its market
share in the world's largest auto market since the beginning of 2012, a top executive said.
The auto maker has outlined plans to build 10 assembly and powertrain plants in Asia between 2011 and 2015,
and is considering additional plants to meet growth in the region, David Schoch, group vice president of
Asia-Pacific, said on Wednesday.
Volkswagen AG held the largest share of Chinese sales at the end of 2012 with 18.2% and General Motors Co.
was second with 14.6%.
Ford began selling a trio of new sport-utility vehicles this year, the Explorer, EcoSport and Kuga, that have helped
to push up Ford's sales 51% through September this year. After racking up losses in Asia-Pacific because of
heavy investments in new plants, the company has turned the corner and now is forecasting a profit in Asia for
the year.
-- Mike Ramsey
---
COSTCO
Earnings Rise 1.3%
On Same-Store Sales
Costco Wholesale Corp.'s quarterly earnings increased 1.3% as the wholesale club reported same-store sales
growth in both its domestic and international businesses.
However, results fell short of analysts' expectations. A shaky economy has encouraged shoppers in recent
periods to make bulk purchases at Costco's warehouse clubs, which can be less expensive than other outlets.
Costco also sells its gasoline for less than area pumps, which has contributed to higher traffic at its clubs. Costco,
like many other retailers, has faced rising costs for merchandise, though these costs increased only slightly in the
latest period.
For the quarter ended Sept. 1, Costco reported a profit of $617 million, or $1.40 a share, up from $609 million, or
$1.39 a share, a year earlier. Total revenue edged up 0.8% to $32.49 billion.
-- Nathalie Tadena
---
J.C. PENNEY
Saks CEO Stephen Sadove

To Join Retailer's Board
Saks Inc. Chairman and Chief Executive Stephen Sadove will join J.C. Penney Co.'s board following the
completion of Saks's takeover by Hudson's Bay Co., succeeding current board member Geraldine Laybourne,
who is stepping down.
His appointment comes as two high-profile directors, William Ackman and Steven Roth, the chief executive of
Vornado Realty Trust, have left Penney's board in recent months. The company was expected to appoint a new
director with retail experience as it seeks help with its turnaround and to stem a steep slide in sales.
Luxury retailer Saks disclosed last month that Mr. Sadove planned to leave the company following its merger with
Hudson's Bay. The deal, valued at about $2.8 billion, is expected to close by year's end. Mr. Sadove's election to
Penney's board is effective upon his leaving Saks.
-- Nathalie Tadena
---
ARIAD
FDA Action Casts Doubts
On New Leukemia Drug
Ariad Pharmaceuticals Inc. said the U.S. Food and Drug Administration has placed a hold on enrolling new
patients in clinical trials of its leukemia drug Iclusig after new study data raised concerns about the drug's safety
profile.
The regulatory action casts uncertainty over the ultimate market potential for Iclusig, which was approved in
December to treat two rare types of leukemia in patients who have failed other therapies. The company was
planning to use study data from the trial to help expand the number of patients treated with the drug.
The company said it would aim to lower the dosing of Iclusig so that it could continue to enroll patients into the
study. Ariad shares plunged 66% to close at $5.83 Wednesday. The drug is projected to achieve $62.1 million in
sales this year, according to aggregated analysts' estimates collected by FactSet.
"We anticipate that the clinical hold that the FDA has enacted will be temporary and will allow us to institute
modification to initial doses and to doses for patients already undergoing therapy," said Ariad Chief Medical
Officer Frank G. Haluska on a conference call with analysts.
-- Joseph Walker and Ben Fox Rubin
Document J000000020131010e9aa00030

Corporate News: South Africa's Troubles Hit Car Makers
Corporate News: South Africa's Troubles Hit Car Makers

By Devon Maylie
799 words
5 October 2013
J
B3
English
JOHANNESBURG -- Global auto makers are the latest casualties in the continuing clashes between corporate
South Africa and organized labor that have racked the nation's mining, construction and brewing industries.
More than 40,000 workers producing auto components in South Africa, everything from radiators to air
conditioners, have been on strike for nearly a month demanding higher wages. That strike follows a separate
three-week work stoppage at the auto producers themselves. As a result, the continent's hub for auto
manufacturing has produced few cars of late.
In September, South Africa's vehicle exports plunged 75% from a year ago. The auto industry as a whole is losing
around $60 million a day, according to the National Association of Automobile Manufacturers of South Africa, an
industry group.
"You would be hard pressed to find another country where strikes stop work in the motor industry for almost two
months," said Leo Kok, a spokesman for Toyota Motor Corp.'s South African business.
South Africa has styled itself as a springboard for businesses that seek to reach the continent's emerging middle
class. The country has the strongest manufacturing base in Africa, but the labor turmoil is causing financial pain
and logistics headaches. Some auto makers say they are rethinking expansion plans in the country.
Toyota said strikes have cut its production by about 13,000 vehicles in the last seven weeks. Ford Motor Co. says
the walkouts cost it 10,000 vehicles, or 16% of annual production. BMW AG says South Africa was passed over
for a new vehicle line not yet announced, since the labor unrest means the country can't be counted to deliver the
cars on time.
Overall, the nation's auto production fell by 45,000 vehicles in August, according to investment bank Investec PLC.
"Buyers don't care about the reasons for a strike," said BMW's South Africa managing director Bodo Donauer. "It
is the reputation of South Africa as a reliable destination at stake."
Unions say workers are still underpaid and more needs to be done to make up for the decades of harm done by
white minority rule, before South Africa became a multiracial democracy in 1994. Auto components workers are
demanding a double-digit wage increase this year, but haven't provided a specific target. The union agreed to a
separate 11.5% increase last month with workers at the auto makers. Manufacturing workers in the country make
about 12,975 rand ($1,295) a month, according to government data.
"We refuse to be threatened by the major automobile manufacturers. . .that they will shift production elsewhere
because our demands are unrealistic," according to a statement by the National Union of Metalworkers, the
biggest union in the auto sector, last month. "We refuse to be treated like cheap laborers."
Around 36,000 people are currently employed by car makers, a sector that accounts for about 7% of the country's
economic output.
South African companies have long had a fractious relationship with labor, but unrest has become more frequent
and more violent in recent years. The unions have significant influence on government decisions. The ruling
African National Congress is aligned with labor groups under the umbrella organization Congress of South African
Trade Unions.

The unions played a key role in fighting apartheid policies and the alliance between the unions and ruling party
has contributed to government's limited intervention during lengthy strikes. There were a record number of strikes
in 2012; many of them erupted after 34 people were killed by police while staging an illegal "wildcat" strike at
platinum producer Lonmin PLC's Marikana mine.
South Africa's executives say the pay raises later awarded to the Marikana miners -- between 10% and 22% --
changed the dynamics of wage negotiations across industries.
Labor leaders have vowed to fight for dramatically higher wages, as a way to lure new union members or prevent
erosion of the current rolls.
The higher pay demands have rippled across South African industry. Workers at brewery SABMiller PLC went on
strike this week to demand higher wages and miners at world's largest platinum producer Anglo American
Platinum Ltd. downed tools over a company plan to cut jobs.
The unrest is also undermining government efforts to rev up growth and reduce the nation's 25% unemployment
rate. South Africa's economy is growing at its weakest rate in four years.
The labor unrest in the past year led the International Monetary Fund this week to warn that South Africa isn't on
the best path toward job creation. The government and the IMF both predict GDP growth of 2% this year, down
from 2.5% in 2012.
Document J000000020131005e9a50002c

Honk if You Love the Mass-Produced Automobile
Honk if You Love the Mass-Produced Automobile

By Randal O'Toole
931 words
5 October 2013
J
A11
English
Monday, Oct. 7, will mark the 100th anniversary of the opening of Henry Ford's moving assembly line for
producing the Model T. This innovative production system allowed Ford to double worker pay while cutting the
price of his cars in half, making it possible, for the first time, for auto workers to buy the cars they built.
Time magazine lists the Model T among its "50 worst cars of all time" because "the consequences of putting
every living soul on gas-powered wheels" were (supposedly) so negative. The Obama administration seems to
agree with that bleak summation. Its recent strategic plan for the Department of Transportation focuses
exclusively on such negative consequences, which allegedly include the high dollar cost of driving, poorly
designed cities, greenhouse gases and obesity. The "Livable Communities" section of the plan, for instance, says
that Americans drive too much because cities are designed to make us "auto dependent," and the plan's goal is to
rebuild cities to induce people to drive less.
In fact, many of the supposed negative costs of cars are purely imaginary, while others are rapidly declining. Each
year's crop of new cars is safer, more fuel-efficient and less polluting than before. Department of Energy data
show that in 1970 cars used twice as much energy per passenger mile as did mass transit. Today, they are
practically tied, and in a few years driving will use less energy and emit less pollution than public transit.
For more than 60 years, Americans have consistently spent around 9% of their personal incomes on driving, even
though per-capita miles have tripled since 1950. According to data from the Bureau of Transportation Statistics --
counting both user costs and subsidies -- public transportation costs nearly four times as much per passenger
mile as driving, while Amtrak costs well over twice as much.
The costs of driving are overwhelmed by the benefits of mass-produced automobiles, benefits largely ignored by
the Obama administration and various anti-auto groups. Ford democratized mobility: Today, 91% of American
households have at least one car, and 96% of commuters live in a household with at least one car. Curiously,
Census Bureau statistics indicate that more than 20% of commuters who live in carless households still get to
work by driving alone (apparently in borrowed cars).
By tripling urban travel speeds, autos gave workers access to better jobs and employers access to a wider pool of
workers, contributing to a huge increase in worker productivity. Per-capita GDP has increased by nearly nine
times in the last century, and autos are responsible for a large share of that increase.
Automobiles relieved people of the need to live in cramped tenements that were within walking distance of their
jobs. By giving workers access to cheap, unregulated land at the urban periphery, cars contributed to a 50% rise
in homeownership rates since 1940. Cars also gave everyone access to a huge variety of low-cost consumer
goods. In 1913, the average grocery store had fewer than 500 products for sale; today, the average is more than
20,000. Without cars, modern retailers from Krogers to Whole Foods, Wal-Mart to Costco, and Tru-Value to
Restoration Hardware simply could not exist.
Cars were an essential ingredient in both the civil rights and women's rights movements. The Montgomery bus
boycott succeeded because enough blacks owned cars that they could share rides to work with former bus riders.
Women's rights became a certainty when enough families owned two cars so that both spouses could drive to
work.
Although cars are often blamed for urban sprawl, in fact they have preserved far more productive farm and forest
land than urban areas have consumed. Before cars, trucks and tractors replaced animal power, farmers devoted
close to a third of their land to relatively unproductive pasture. Since 1913, close to 200 million acres of that
pasture has been converted to productive crop or forest land. By comparison, all the low-density suburbs in
America occupy well under 100 million acres.
Mass-produced automobiles gave low- and moderate-income people access to forms of recreation previously
available only to the rich. For example, in 1912, fewer than one out of 4,000 Americans visited Yellowstone Park;
last year, it was more than one out of 100. Autos greatly contributed to human health and safety. Thanks to paved
streets and automotive technology, fire departments and paramedics save hundreds of thousands of homes and
thousands of lives each year.
When Hurricane Katrina struck the Gulf Coast in 2005, New Orleans had the second-lowest per-capita auto
ownership of any major city in America. As documented in news reports at the time, a result of the immobility was
tragedy as hundreds of people died and tens of thousands were stuck in the city. When Hurricane Rita hit
Houston a few weeks later, autos allowed four million people to evacuate with almost no casualties.
Personally, I hate to be behind the wheel of a car and look forward to driverless cars. But as an economist, I
realize that the mass-produced auto is one of the greatest inventions in history. Instead of trying to reduce driving,
we should encourage it while continuing to make it safer, cleaner and more energy efficient.
---
Mr. O'Toole is a senior fellow with the Cato Institute and author of "Gridlock: Why We're Stuck in Traffic and What
to Do About It" (Cato, 2010).
Document J000000020131005e9a50001z

Two Media Mainstays Expand Their Video Presence
ADVERTISING
By STUART ELLIOTT
995 words
3 October 2013
The New York Times
NYTF
2
English
TWO companies that are mainstays in legacy media are expanding their presence in online video, producing
more original Web series as they follow consumer eyeballs and advertiser dollars.
One media company, Meredith, plans to add five online video series in 2014 to the one such show it now creates,
which is being renewed for another round of episodes. The other company, Scripps Networks Interactive, is
introducing scores of Web series as well as a Web site on which to watch them, Ulive. The ''live'' in ''Ulive'' is
pronounced to rhyme with ''give,'' to underscore that the online videos are in the lifestyle realm, devoted to
subjects like food, health and home.
Ulive will also archive two decades' worth of video clips from Scripps Networks Interactive cable channels like the
Food Network, HGTV and Travel Channel.
Meredith is beginning to seek sponsors for its six Web series: the renewed ''Lords of the Playground'' along with
the newcomers like ''Baby Sleep 911,'' ''How We Broke the News'' and ''Rosie to the Rescue.'' Scripps Networks
Interactive, which is also looking for marketers to buy commercial time during its shows, has signed the Ford
Motor Company as what it calls the ''launch sponsor'' for Ulive; the deal includes branded content in the form of a
series, ''One Tank Adventure,'' featuring products like the Ford Escape integrated into videos.
''What we've been trying to do is to connect with our customers on relevant topics that are personalized,'' said
Erica Bigley, digital marketing manager at the Ford Motor Company in Dearborn, Mich.
That kind of ''contextually relevant content'' can produce ''a higher opinion of our brand'' among consumers, Ms.
Bigley said, than ''marketer-forced messaging'' -- i.e., traditional pitches. ''We don't want to force them to visit
ford.com to watch content about decorating,'' she added.
The sponsorship of Ulive is among numerous forays into online video by Ford Motor. Another example is an
online reality competition series, ''The Rider Challenge,'' sponsored by the 2014 Ford Fiesta and produced by
Live Nation Entertainment.
The goal of Ulive is ''optimizing the video experience, especially life style video,'' said Jeff Meyer, a longtime
Scripps Networks Interactive executive who is president of Ulive, based in San Francisco.
''The sites that aggregate video tend to have higher engagement levels,'' he added, than sites that ''have a lot of
masters to serve by offering a lot of reasons for consumers to go there'' in addition to video like recipes and
articles.
The expansion into original online video at Scripps Networks Interactive echoes an increase in the amount of
original programming on its cable channels. For the 2013-14 season, executives said in April, the channels will
add 52 new shows. Plans call for Ulive to present ''around 70 original series,'' Mr. Meyer said. The first will be
''Bonkers Awesome!,'' featuring a food blogger, Joy Wilson, known as Joy the Baker, and ''What Will the Maid
Think?,'' featuring Bert Kreischer, who hosts a series on Travel Channel, ''Trip Flip.''

The Web series coming from Scripps Networks Interactive will be available for viewing on about 40 other sites in
addition to ulive.com, Mr. Meyer said, through RealGravity, an online video syndicator and publisher that Scripps
Networks Interactive acquired last year.
Executives from Meredith are to discuss their ambitions for original online video -- to be introduced under the
umbrella title of Meredith Originals -- at the 2013 annual conference of the Association of National Advertisers,
which is to begin in Phoenix on Thursday and continue through Sunday.
Each Web series will run for 12 or 24 episodes, based on sponsorship levels, and will be distributed through the
Meredith Digital Network of sites. Advertisers will be guaranteed 2.5 million video streams, said Nancy Weber,
chief marketing officer at the Meredith National Media Group, over the 12 or 24 weeks.
A cornerstone of Meredith Originals was the arrival in April of Laura Rowley as vice president for video production
and product at the Meredith National Media Group, based in New York; she had been executive producer for
original video and partnerships at The Huffington Post.
''Meredith has more than 1,000 helpful videos in the informative-solution space'' with contentlike recipes and
parenting tips, Ms. Rowley said, which can be watched on the Web sites of its magazines like Better Homes and
Gardens, Family Circle and Ladies' Home Journal.
''We really wanted to move into a new area,'' she added, producing ''storytelling videos'' in the Web series format
''to offer a great experience.''
For instance, ''instead of a baby-sleep expert telling you what to do,'' Ms. Rowley said, the online video series
''Baby Sleep 911'' will ''follow a baby-sleep consultant into parents' homes.'' The series was developed based on
data from ''our audience development team,'' she added, which analyzed ''what women are searching for, where
they're going on our sites.''
Like Scripps Networks Interactive, Meredith will give advertisers an opportunity to integrate products into
episodes of Web series, Ms. Rowley said, in what she called a ''tasteful, subtle'' fashion. As an example, she
suggested, a package of Pampers diapers ''would be on the changing table in the background'' of a scene.
Richard Porter, president for media sales at the Meredith National Media Group, estimated that digital advertising
as a percentage of revenue for Meredith ''has tripled in three years,'' to about 17 percent.
''Video has become an important part of the digital ecosystem,'' he said, as advertisers seek to replicate online
the ''sight, sound and motion'' of television commercials.
The episodic nature of the Web series plays to Meredith's strengths, Mr. Porter said he believed, because ''when
you think about it, the magazine business is kind of episodic.''
Joy Wilson, known as Joy the Baker, in her Web series, ''Bonkers Awesome!'' on the Web site ulive.com.;
Meredith is behind ''Rosie to the Rescue,'' a series offering parenting tips.
Document NYTF000020131029e9a30009j

ADVERTISING
By STUART ELLIOTT
1,070 words
3 October 2013
The New York Times
NYTF
2
English
CORRECTION APPENDEDTWO companies that are mainstays in legacy media are expanding their presence in
online video, producing more original Web series as they follow consumer eyeballs and advertiser dollars.
One media company, Meredith, plans to add five online video series in 2014 to the one such show it now creates,
which is being renewed for another round of episodes. The other company, Scripps Networks Interactive, is
introducing scores of Web series as well as a Web site on which to watch them, Ulive. The ''live'' in ''Ulive'' is
pronounced to rhyme with ''give,'' to underscore that the online videos are in the lifestyle realm, devoted to
subjects like food, health and home.
Ulive will also archive two decades' worth of video clips from Scripps Networks Interactive cable channels like the
Food Network, HGTV and Travel Channel.
Meredith is beginning to seek sponsors for its six Web series: the renewed ''Lords of the Playground'' along with
the newcomers like ''Baby Sleep 911,'' ''How We Broke the News'' and ''Rosie to the Rescue.'' Scripps Networks
Interactive, which is also looking for marketers to buy commercial time during its shows, has signed the Ford
Motor Company as what it calls the ''launch sponsor'' for Ulive; the deal includes branded content in the form of a
series, ''One Tank Adventure,'' featuring products like the Ford Escape integrated into videos.
''What we've been trying to do is to connect with our customers on relevant topics that are personalized,'' said
Erica Bigley, digital marketing manager at the Ford Motor Company in Dearborn, Mich.
That kind of ''contextually relevant content'' can produce ''a higher opinion of our brand'' among consumers, Ms.
Bigley said, than ''marketer-forced messaging'' -- i.e., traditional pitches. ''We don't want to force them to visit
ford.com to watch content about decorating,'' she added.
The sponsorship of Ulive is among numerous forays into online video by Ford Motor. Another example is an
online reality competition series, ''The Rider Challenge,'' sponsored by the 2014 Ford Fiesta and produced by
Live Nation Entertainment.
The goal of Ulive is ''optimizing the video experience, especially life style video,'' said Jeff Meyer, a longtime
Scripps Networks Interactive executive who is president of Ulive, based in San Francisco.
''The sites that aggregate video tend to have higher engagement levels,'' he added, than sites that ''have a lot of
masters to serve by offering a lot of reasons for consumers to go there'' in addition to video like recipes and
articles.
The expansion into original online video at Scripps Networks Interactive echoes an increase in the amount of
original programming on its cable channels. For the 2013-14 season, executives said in April, the channels will
add 52 new shows. Plans call for Ulive to present ''around 70 original series,'' Mr. Meyer said. The first will be
''Bonkers Awesome!,'' featuring a food blogger, Joy Wilson, known as Joy the Baker, and ''What Will the Maid
Think?,'' featuring Bert Kreischer, who hosts a series on Travel Channel, ''Trip Flip.''

The Web series coming from Scripps Networks Interactive will be available for viewing on about 40 other sites in
addition to ulive.com, Mr. Meyer said, through RealGravity, an online video syndicator and publisher that Scripps
Networks Interactive acquired last year.
Executives from Meredith are to discuss their ambitions for original online video -- to be introduced under the
umbrella title of Meredith Originals -- at the 2013 annual conference of the Association of National Advertisers,
which is to begin in Phoenix on Thursday and continue through Sunday.
Each Web series will run for 12 or 24 episodes, based on sponsorship levels, and will be distributed through the
Meredith Digital Network of sites. Advertisers will be guaranteed 2.5 million video streams, said Nancy Weber,
chief marketing officer at the Meredith National Media Group, over the 12 or 24 weeks.
A cornerstone of Meredith Originals was the arrival in April of Laura Rowley as vice president for video production
and product at the Meredith National Media Group, based in New York; she had been executive producer for
original video and partnerships at The Huffington Post.
''Meredith has more than 10,000 helpful videos in the informative-solution space'' with contentlike recipes and
parenting tips, Ms. Rowley said, which can be watched on the Web sites of its magazines like Better Homes and
Gardens, Family Circle and Ladies' Home Journal.
''We really wanted to move into a new area,'' she added, producing ''storytelling videos'' in the Web series format
''to offer a great experience.''
For instance, ''instead of a baby-sleep expert telling you what to do,'' Ms. Rowley said, the online video series
''Baby Sleep 911'' will ''follow a baby-sleep consultant into parents' homes.'' The series was developed based on
data from ''our audience development team,'' she added, which analyzed ''what women are searching for, where
they're going on our sites.''
Like Scripps Networks Interactive, Meredith will give advertisers an opportunity to integrate products into
episodes of Web series, Ms. Rowley said, in what she called a ''tasteful, subtle'' fashion. As an example, she
suggested, a package of Pampers diapers ''would be on the changing table in the background'' of a scene.
Richard Porter, president for media sales at the Meredith National Media Group, estimated that digital advertising
as a percentage of revenue for Meredith ''has tripled in three years,'' to about 17 percent.
''Video has become an important part of the digital ecosystem,'' he said, as advertisers seek to replicate online
the ''sight, sound and motion'' of television commercials.
The episodic nature of the Web series plays to Meredith's strengths, Mr. Porter said he believed, because ''when
you think about it, the magazine business is kind of episodic.''
Correction: October 12, 2013, Saturday
This article has been revised to reflect the following correction: The Advertising column on Oct. 3, about the
increasing Web presence of the Meredith and Scripps Networks Interactive media companies, quoted incorrectly
from comments by Laura Rowley, vice president for video production and product at the Meredith National Media
Group. She said Meredith had ''more than 10,000 helpful videos in the informative-solution space'' -- not 1,000
videos.
Joy Wilson, known as Joy the Baker, in her Web series, ''Bonkers Awesome!'' on the Web site ulive.com.;
Meredith is behind ''Rosie to the Rescue,'' a series offering parenting tips.
Document NYTF000020131012e9a30000b

Corporate News: Ford Bucks U.S. Sales Drop --- GM, Toyota and Honda Post Declines on Fewer Selling Days, Holiday Shift
Corporate News: Ford Bucks U.S. Sales Drop --- GM, Toyota and Honda Post Declines on Fewer Selling
Days, Holiday Shift
By Jeff Bennett, Neal E. Boudette and Christina Rogers
789 words
2 October 2013
J
B2
English
General Motors Co. filled its dealer showrooms last month with refreshed versions of the Chevrolet Silverado and
GMC Sierra large pickups, but archrival Ford Motor Co. still won big in the latest round of their battle for
dominance in one of the industry's most lucrative markets.
Ford outsold GM by more than 14,500 pickups in September, boosting sales of its F-series line by 9.8% from a
year earlier, in part by offering trucks at lower prices. GM, by contrast, sought to defend higher prices for its
redesigned 2014 Chevrolet Silverado and GMC Sierra pickups, and suffered a sales decline of about 8% from the
same month a year ago.
Overall, Ford sold 60,456 F-series trucks last month to GM's combined 45,944 trucks. It is the fifth consecutive
month that Ford has sold more than 60,000 pickup trucks. The last time Ford achieved such a streak was from
May through September 2006.
Ford's strong truck sales helped the auto maker sharply narrow the gap with GM in total light vehicle sales. In
September, GM sold 187,195 cars and light trucks. Ford was only 2,743 behind. GM's market share for the month
fell to 16.4%, down from 17.7% a year ago.
The Ford vs. GM truck battle stood out in a glum month overall. Total U.S. sales of cars and light trucks fell 24.2%
last month, to 1.14 million vehicles, according to market researcher Autodata Corp.
Industry executives said September sales were depressed because the Labor Day weekend occurred early in the
month, and many cars sold during sales promotions tied to that weekend were counted in August rather than
September.
"August was huge for the industry, but a lot of it was because August got an extra weekend," said Beau
Boeckmann, vice president of Galpin Motors in Southern California. He said consumer demand remains strong.
Among the major auto makers GM sales fell 11%, while Ford sales rose nearly 6% over a year ago. Chrysler
Group LLC said it sold 143,017 vehicles last month, up 976 from a year earlier.
The leading Japanese auto makers reported weaker sales. Toyota Motor Corp. sales slipped 4.3%, Nissan Motor
Co.'s fell 5.5%. and Honda Motor Co.'s were off nearly 10%.
The contrast between GM and Ford in the pickup market highlights how vital that distinctively U.S.-focused
market is to the two global giants.
Auto makers make between $7,000 and $10,000 in operating profit on each large pickup truck sold, and demand
for the vehicles has rebounded since 2008 as gas prices have stabilized and the housing and oil and gas
industries have accelerated.
Ford has been the top-selling pickup truck manufacturer in the U.S. for three decades, but this year GM geared
up to take a run at its crown, launching redesigned Silverados and Sierras.
September's results suggest that GM could have trouble gaining market share and boosting prices at the same
time. Dealers said GM's truck sales decelerated because it heavily discounted the remaining inventory of the
older trucks. That made the 2013 models look like better deals than the new, which have few sale incentives,
these dealers said.
GM wants to keep prices firm. Average transaction prices are up about $3,000 year-over-year and $800
month-over-month, said GM spokesman Jim Cain. But on Tuesday, GM told dealers it will offer $1,000 off the
2014 Silverado and an additional $500 on some higher-priced packages. The move was first reported by trade
paper Automotive News.
Doug Scott, Ford truck marketing manager, said the Dearborn, Mich., auto maker has added F-150 discounts this
year to compete with the 2013 Silverado and Sierra.
Part of Ford's truck gains stem from sales to buyers looking to spend under $30,000, he said. Many of those
customers were hurt in the financial crisis, but are now looking for new, affordable trucks.
For those customers, Ford took its base F-150 and added touches to enhance its appearance. This year, trucks
that sell for under $30,000 make up about 10% of F-150 sales. In 2013 it was between 3% and 4% of total sales,
Mr. Scott said.
"These are people who were credit-challenged and we thought a lot of them would be coming back into the
market as the economy improves," he said.
---
John Kell contributed to this article.
Document J000000020131002e9a20003j

Hot, hot, hot Aug. auto sales cool in September ; GM, Honda, Toyota, Nissan, VW, Kia all off
MONEY
Hot, hot, hot Aug. auto sales cool in September ; GM, Honda, Toyota, Nissan, VW, Kia all off
Fred Meier; Chris Woodyard
Fred Meier and Chris Woodyard, USA TODAY,
516 words
2 October 2013
USAT
FINAL
B.6
English
After months of breakneck gains, the auto industry saw 4.2% fewer sales in September amid mixed fortunes by
individual car brands.
General Motors saw sales fall 11% compared with the same month last year, more than analysts expected.
Japan's Big 3 -- Toyota, Honda and Nissan -- also all reported declines.
But GM's Detroit rivals Ford and Chrysler Group beat the industry decline: Ford had a 5.7% sales gain, and
Chrysler eked out a 0.7% gain.
At the extremes, Subaru continued its sizzling pace with a 14.1% gain, while South Korea's Kia took a spill, down
21%. German luxury brands Mercedes-Benz and BMW did well, but Lexus was off slightly.
Overall, it was a rough month for the mainstream import automakers. In addition to Japan's Big 3, the biggest
European seller in the U.S., Volkswagen Group, was down overall.
Despite the mix of winners and losers, auto industry leaders say they think the results more reflected two fewer
sales days in September compared with the year before rather than a halt to the momentum that powered the
industry all year.
Also, the big Labor Day sales weekend fell in the August sales totals this year.
Calling it "altogether a decent month," Nissan's Fred Diaz says, "I don't see any reason to see that auto sales still
aren't on a strong footing and that we won't have momentum going into the fourth quarter."
In explaining the slide, GM pointed to a 27% drop in fleet sales. GM was hurt, too, by a surprising slide in sales of
its redone 2014 Chevrolet Silverado and GMC Sierra. GM sold down its 2013s, and 2014s are just now available
in all configurations, with some in tight supply. Chevrolet sales chief Don Johnson said in a conference call that
GM is "in the heart of our launch" of the trucks.
An analysis by Edmunds.com also shows that Ford increased its sales incentives on the rival F-150 pickup, by
27.2% to $4,707, while Chevrolet cut discounts on Silverado 29.8% to $3,886 on average.
Analysts don't sound worried. "Looking ahead," says Kelley Blue Book analyst Alec Gutierrez, "GM is well
positioned to get back on a growth trajectory; however, market share will remain hard fought in nearly every
category."
As for Ford, it had the best September since 2006. It sold more than 60,000 F-Series pickups for a fifth
consecutive month. The redone Fusion midsize sedan also continued its strong year, with sales up 62%. Fiesta
subcompact was up 29% -- and Ford said the cars are building sales in markets where Ford was weak.
"We're particularly encouraged by the strength of the Fusion and Fiesta, especially in coastal markets," said Ken
Czubay, U.S. sales head.
Chrysler also was boosted by trucks, with Ram brand up 8%.

photo Jeff Kowalsky, Bloomberg News
Document USAT000020131002e9a20000e

Corporate News: Cars, Cable in Spectrum Row --- FCC to Consider Whether Airwaves Can Be Shared for Wi-Fi, Auto Needs
Corporate News: Cars, Cable in Spectrum Row --- FCC to Consider Whether Airwaves Can Be Shared for
Wi-Fi, Auto Needs
By Ryan Knutson and Shalini Ramachandran
734 words
1 October 2013
J
B2
English
The auto and cable industries are in a jam over a lane of wireless spectrum.
Car companies want the airwaves -- currently reserved for them -- to allow vehicles to communicate with each
other as well as infrastructure such as stoplights, making road traffic flow more smoothly. But in meetings with the
Federal Communications Commission as recently as last week, the cable and technology industries have argued
that more spectrum is needed for Wi-Fi service, as existing channels become increasingly congested.
Ultimately, the decision will be up to the FCC, which oversees spectrum allocation. The government shutdown
derailed plans for a Tuesday hearing in front of the House subcommittee on Communications and Technology
that had hopes of finding a solution.
The debate pits auto makers such as General Motors Co. and Ford Motor Co. against cable companies such as
Comcast Corp. and Time Warner Cable Inc. It also shows the challenges facing the federal government as it tries
to allocate airwaves to the growing number of industries finding new ways to put it to use.
Microsoft Corp. and Google Inc. -- concerned that slower Web connections will mean fewer consumers can
access their services -- also want auto companies to share the spectrum.
"Enabling additional Wi-Fi access in the 5 GHz band in the near term is critical to meet rapidly expanding Wi-Fi
demand," Comcast wrote, referring to the spectrum at issue, in a filing with the FCC dated Sept. 25.
The capability, also known as vehicle-to-vehicle communications, has been on the drawing board for years and is
separate from the effort involving cellular carriers to connect cars to the wider Internet. Like Wi-Fi, the signals will
be sent over spectrum that companies can use free as long as they don't create interference.
There are roughly 30,000 road fatalities each year in the U.S. The National Highway Traffic Safety Administration
estimates that connected cars could reduce the number of accidents not involving an impaired driver by 80%.
The U.S. Department of Transportation is currently running a $25 million trial for connected cars in Ann Arbor,
Mich., with about 2,800 vehicles.
The NHTSA is expected to make a decision before the end of the year on whether cars should be required to use
the technology.
The government assigned spectrum in an upper slice of the 5 gigahertz spectrum band for automotive use in
1999. The high frequency band isn't useful for cellphones but works well with short-range communications. Earlier
this year, however, the FCC sought feedback on the idea that car companies share the spectrum with Wi-Fi.
The proposal, part of a broader effort by the FCC to unlock 35% more spectrum for unlicensed use like Wi-Fi, was
met with strong opposition from the car companies, which say sharing the airwaves could cause interference with
connected car systems and hurt safety.
Cable companies say it should be possible for both industries to use the spectrum without causing interference.
The cable companies argue that a lower portion of the 5 gigahertz band, currently not being used by auto makers,
should be made available for broader Wi-Fi use immediately while sharing with car companies is sorted out.

Without the extra spectrum it will be difficult to roll out a new global Wi-Fi standard that could allow for "gigabit
Wi-Fi," which would dramatically increase speeds, cable companies say.
If the FCC doesn't act, car companies will retain exclusive rights over the spectrum, and those wanting to use it
for Wi-Fi will have to look elsewhere. A decision isn't imminent, people familiar with the FCC's thinking said.
Millions of Americans rely on Wi-Fi for Internet access, and cable companies have staked their wireless futures
on it as customers spend more time watching video on mobile devices.
The cable industry is hoping to hang on to their customers' attention after they leave the house by offering Wi-Fi
hot spots across the country as a free add-on for broadband subscribers.
Last year, five large cable companies struck an agreement to share their hot spots. There are already more than
150,000 such sites available to subscribers.
Document J000000020131001e9a10003f

No Traction: Europe's Car Makers Spin Their Wheels
No Traction: Europe's Car Makers Spin Their Wheels

By Vanessa Fuhrmans
2,085 words
1 October 2013
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A1
English
Sergio Felice embodies a woeful present for European auto makers. He may also reflect a dim future.
Growing up in Italy, the 41-year-old bank consultant says, "it was always important to have a nice car." Now living
in Barcelona, he had been saving up to buy an Audi TT. Then Europe's economic distress pushed him to
reorganize his financial priorities, and owning a car is no longer one of them.
Even when better times return, he says, he probably won't buy a car until he is in his 60s. He uses public
transportation, a motorbike and car-sharing services, he says, and "I prefer to put the money I don't spend on a
car in a retirement plan."
Behind Mr. Felice's shift in driving habits lie trends that present Europe's car makers with a hard prospect:
Whenever the Continent crawls back from its debt-crisis ravages, its auto market likely won't.
Europe's largely unprofitable auto sector already is among the biggest industrial casualties of the crisis. New-car
registrations in Europe have fallen to nearly a two-decade low. Most mass-market car makers are losing money
on the Continent. Moody's Investors Service Inc. estimates that PSA Peugeot Citroen, General Motors Co.'s
Opel, Fiat SpA and Ford Motor Co. will lose a combined 4.9 billion euros ($6.6 billion) in the region this year.
Some industry executives and consultants warn that Europe's economic crisis isn't just sparking a temporary
downturn in car sales, but is also accelerating a more fundamental decline in consumer appetite for cars -- a
decline that may presage more plant closings, job cuts and economic pain well into a broader recovery.
A combination of factors -- rising fuel prices, more-durable vehicles, the car's decline as a status symbol and
fewer youth getting licenses, among them -- has made buying new cars less of a habit for Europeans.
While some of those factors are playing out in the U.S., where auto sales have roared back to pre-slump levels,
there is one difference: America's driving-age population is still growing, while the number of driving-age
Europeans is projected to shrink.
"Europe is going to be tough for a long time," says Carlos Ghosn, chief executive of Nissan Motor Co. and
Renault SA. Renault has said it plans to cut 7,500 jobs by 2016, or 17% of its French workforce, after an 18%
drop in its European sales last year.
Even when consumer confidence rebounds, he says, Europe isn't likely to see the growth of years past. As in
other developed markets, he says, autos have become less relevant among younger Europeans because of
smartphones and other products that connect people.
IHS Automotive, an auto-industry forecaster, predicts European passenger-car sales will climb to 14.7 million
vehicles in 2020, 8% short of their 2007 peak, from an estimated 12.2 million this year.
Some car makers see a glimmer of hope, arguing that sales have fallen so far in six years that Europeans will fuel
a modest recovery when they replace aging cars. The average car age in Europe's top five markets climbed to
8.7 years in 2012 from 7.9 years in 2009, according to the Roland Berger Strategy Consultants.
"It is likely some pent-up demand is building," says Ellen Hughes-Cromwick, Ford's chief economist, and "that will
be an important feature going forward."

Executives at car makers such as Peugeot and Daimler AG have said they see signs the market is stabilizing and
could improve next year.
And it is too early to tell exactly what Europe's auto market will look like in better times, given that the overall
economy still remains weak. The euro zone, on the whole, saw its first growth since 2011 in the second quarter of
this year, as the currency bloc's economy expanded 1.1% on an annualized basis.
European manufacturers with big sales abroad say fast-growing emerging markets will more than offset Europe's
stagnation. Volkswagen AG, in particular, aims to dethrone Toyota Motor Corp. as the world's biggest car maker
within five years on the back of growing sales in China and other developing countries. While VW's European
sales also have declined, the company has managed to gain market share in the region.
Any European forecast counting on a broad rebound is too rosy, says Jean-Marc Gales, a former Peugeot
executive and head of a Brussels-based umbrella group for European automotive suppliers.
"At best," he says, Europe "is stabilizing. But moving up? I don't see it because of structural trends, and they're
not going away overnight."
More than any other of those structural trends, demographics is working against Europe. In the U.S., the
population aged 15 to 65 is set to expand well past 2020, according to United Nations data.
The same population in Europe, in contrast, appears to have peaked in 2011, because of decades of declining
birthrates, and the U.N. projects that it will contract 1.4% over the next decade.
A 2012 Morgan Stanley report projected that Europe's aging population alone could depress sales by 400,000
cars a year over that period.
"People may become optimistic as soon as some indicators improve and they start thinking, 'My job is safe, and I
can invest in a car,' " says Mr. Gales, the former Peugeot executive. "But demographics don't change, and they
are not positive for most European countries."
European youth who are coming of driving age also are less inclined to operate and own cars.
Across much of the developed world -- including in the U.S. -- fewer young adults have been getting their drivers'
licenses than in previous decades, according to a study by the University of Michigan Transportation Research
Institute.
But many young adults in Europe appeared to be turning away from cars faster than youth in the U.S. even
before the crisis. In Europe's biggest markets -- Germany, France and the U.K. -- the under-30 crowd used cars
for a smaller proportion of their total travel as of the mid-2000s than they did in the previous decade, according to
research by BMW AG's Institute for Mobility Research; Americans under 30 used cars for about the same
proportion of their travel over roughly the same time period, it found.
"Owning a car just isn't so important for my generation," says Angus Ross, a 28-year-old restaurant interior
designer from the U.K. now living in Paris.
Though Mr. Ross considered himself a "real car nut" in his youth and initially studied automotive technology, he
says he probably won't consider owning one until his 40s. "For my dad, a car was always a kind of status thing,
but they really just bore me."
Such shifts have been especially pronounced in crisis-stricken parts of Europe, where unemployment has stolen
legions of entry-level car buyers. But even in car-adoring Germany, Europe's strongest economy and largest car
market, the share of new cars bought by those under 30 fell to 2.7% of total auto sales in the first half of 2013
from nearly 6% in 1999, government data show; the population size of that age group remained roughly the same
over that time.
Even before the crisis, young Germans' attachment to cars appeared to be waning. Among households of people
aged 18 to 34, 72% owned one or more cars in 2008, down from 80% in 1998, according to German-government
data analyzed by the BMW research group.
Europeans, like Americans, also have been driving fewer miles per year since the mid-2000s, reducing wear and
the need to replace cars as often.

Such factors will suppress car sales "until there is a big change in European demographics or a significant shift in
technology," such as electric cars, says Stefano Aversa, co-president of AlixPartners LLP, a global consulting
firm.
Europe's dense public-transportation system has made it easy for Europeans to forgo owning cars. So has a
surge in car-sharing services, from companies such as Avis Budget Group Inc.'s Boston-based Zipcar Inc. and
ride-sharing networks such as Paris-based Blablacar that offer an option to drivers who don't want to own cars.
One such driver is Mr. Felice of Barcelona, who sometimes turns to Zipcar for business trips in and around the
city. Before he moved to Barcelona from Manchester, England, in 2003, he had owned a car for much of his
adulthood, including a Fiat Tipo hatchback. He saved money in recent years to buy a sportier car, an Audi TT.
Once the crisis hit, he changed his mind. Though his bank-consulting work hasn't suffered, he says, he realized
"in bad times, you need to be prepared."
Now, between his motorbike and the car sharing, he realizes he does fine without owning a car. A couple of
weekends a month, he escapes town in a Mercedes A-Class he rents from a local woman he located through a
startup that links car owners with people who want to rent. "I still get to have a car whenever I want," he says.
Some auto executives suggest that Europe's aging population and economic woes mean its car market may
come to look like that in Japan.
There, decadeslong economic stagnation and a declining driving-age population have suppressed annual car
sales to 30% below their 1990 peak. Hakan Samuelsson, Volvo Car Corp.'s CEO, in an interview early this year,
said Europe's aging population means not only little growth for its car market long-term but will make it harder to
tackle public deficits and reignite growth.
In many ways, "Europe resembles Japan in the early '90s," he said.
As in Japan, most European auto makers have been slow to restructure. GM, Ford and Chrysler Group LLC
closed multiple U.S. plants during the financial crisis, partly under pressure from the federal government. By
contrast, European governments and unions have tried to prevent plant closings to save jobs.
But with a factory-capacity glut already -- and Europe's demographic and other long-term challenges --
AlixPartners's Mr. Aversa predicts the industry will likely have to cut capacity equal to another five to seven plants
in Europe over the next five years. Even that, he says, would fall short of the roughly dozen factories it would
need to shut to be profitable.
Some union leaders agree that the combination of trends may mean their workers' pain will continue past any
modest recovery. One of them is Guido Nelissen, an economic adviser to Belgium's ACV-CSC Metea, one of
three unions that represent auto workers in Belgium, which has already lost two of its four auto factories since the
euro crisis.
In 2010, Ford agreed to produce its next-generation Mondeo and two other models at the 49-year-old plant in
Genk, Belgium. But as Ford's European sales plummeted, in October 2012 it announced two plant closings in the
U.K. and said it would shut the Genk plant next year. Some Genk workers reacted by torching cars, smashing
windows and storming a building.
"It is just a huge blow -- this is my second family," says Ugur Alkis, a worker at the plant since he was 19. Now
aged 46 and with three children, he says he is at "a dangerous age," too young for an early retirement package
but "at a point when the job market doesn't want you anymore."
"For a long time we were able to stop plant closures with proposals to share the pain across European plants,"
says Mr. Nelissen. "But when there is too much pain, someone has to die."
Mr. Nelissen says the probability of anemic economic growth for years -- as well as younger Europeans' waning
appetite, or ability, to buy cars -- is likely to push auto makers to pursue more consolidation and possibly further
cuts.
"Some industry forecasts are pretty optimistic because they are based on demand from all of these postponed
purchases, but I'm not so sure," he says. "Even if there is a little boom, it will be only a temporary pickup."
---

Ilan Brat, David Pearson and Benjamin Schenkel contributed to this article.
Document J000000020131001e9a100023

Will China Buy Small Audis? --- German Car Makers Hope to Convince Chinese That Luxury Doesn't Mean Large
Will China Buy Small Audis? --- German Car Makers Hope to Convince Chinese That Luxury Doesn't Mean
Large
By Colum Murphy
804 words
1 October 2013
J
B8
English
SHANGHAI -- German luxury auto makers are speeding up plans to offer a wider selection of small cars and
sport-utility vehicles in China, hoping to lure Chinese consumers unable to afford a larger luxury car, or affluent
buyers who want a less-expensive second car.
Small luxury cars are still an oxymoron to many wealthy Chinese, but industry executives say the risks -- including
lower profit margins -- are worth it because of the growth expected in compact, premium-brand vehicles.
Producing smaller made-in-China luxury cars in China means Audi AG, BMW AG and Daimler AG can avoid
import duties of 25%, allowing them to sell the cars more cheaply. Almost all imported cars also face a value
added tax of 17%. Local production fits with China's policy goals of promoting the country's auto industry.
Audi has moved fast. It plans to start production of its compact A3 sedan later this year in the southern city of
Foshan. In April, Audi launched the Q3, a China-made compact SUV, that the company said has boosted its first
half sales.
Its push to get small "is based on our analysis that this will be one leading growth segment in the luxury market in
China in the future," said Dietmar Voggenreiter, Audi China's president.
Audi estimates sales of luxury compact vehicles in China rose by 29% during the first half of this year,
significantly higher than the 11% overall growth for the luxury car market. Audi sales in China during the same
period grew 18%.
In 2012, compact luxury car sales in China totaled 136,000. By 2015, that number could reach 400,000 cars, or
about 20% of the total Chinese luxury market, said Lin Huaibin manager, China vehicle sales forecasts at
researcher IHS Inc.
Keeping pace with Chinese growth is critical for the German auto makers, particularly as demand in Europe is
expected to remain depressed for several more years. China accounts for more than 50% of their earnings,
Sanford C. Bernstein estimated in a recent report.
"German brands have established a dominant presence in the market and in consumers' minds," said Chris
Bonsi, chief executive of Greater China for TNS, a marketing-research and consulting company. "But it is harder
to get incremental growth."
The German premium car makers have around 80% of the market for luxury cars in China. BMW and Daimler are
chasing Audi with plans to expand Chinese production of small vehicles. BMW now builds its compact X1 sport
utility in China and analysts predict BMW will produce its 1-series sedan in China from 2017. The auto maker
declined to comment.
Daimler is launching globally a new generation of small A-Class vehicles, including a CLA sedan and a GLA sport
utility. Production of the GLA compact sport-utility vehicle is to start in about 18 months.
Smaller vehicles with smaller displacement engines are "very desirable" products in China, said Hubertus Troska,
the member of Daimler's Board of Management responsible for China. "We will address this."
However, moving down market comes with risks. Affluent Chinese car buyers have tended to equate bigger with
better.
"If BMW and the likes roll out cheaper lineups that look like its expensive ones, I will stop buying the brand," said
BMW owner Harry Tu. "I don't want people to think that I spent 200,000 yuan ($32,680) to buy the car when
actually I spent two million yuan."
Smaller cars also mean lower prices and tighter margins. Audi's Q3 retails from around 285,000 yuan, or roughly
20% less than a made-in-China Q5. A BMW's X1 costs about 242,000 yuan, significantly lower than the BMW X3,
which starts around 523,000 yuan.
Karsten Engel, CEO of BMW's China region, estimated profit margins could erode by between 1% and 2%
annually as the trend toward smaller premium cars takes hold.
Audi's Mr. Voggenreiter said a move to lower price segments wouldn't hurt his brand's exclusivity, and would pull
new buyers from mass-market rivals. "We know that there are many prospective customers in the huge, general
compact car market who think about upgrading to premium," he said.
Some of the contenders in the crowded second tier of China's luxury market also see an opportunity in smaller
vehicles.
"In China people are becoming more and more aware of the pollution and congestion challenges," said Lex
Kerssemakers, senior vice president for product strategy at Volvo Car Corp., which is owned by China's Zhejiang
Geely Holding Group Co.
---
Lilian Lin in Beijing and Rose Yu in Shanghai contributed to this article.
Document J000000020131001e9a100009

Ford's No. 2 Steps Into the Limelight
Ford's No. 2 Steps Into the Limelight

By Mike Ramsey and Joann S. Lublin
1,196 words
30 September 2013
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English
Mark Fields, Ford Motor Co.'s chief operating officer, has a clear path to becoming the auto maker's next chief
executive, and there are signs the company is preparing him for a more public role.
Standing on a stage before dawn in Detroit on Friday, Mr. Fields told his audience that he was excited and
honored to be chairman of the United Way's fundraising drive in southeastern Michigan. Last year that post was
held by Chrysler Group LLC CEO Sergio Marchionne. When Ford was approached about offering a top executive
to run the campaign, Mr. Fields was the man.
Though Alan Mulally has said he is committed to staying on as Ford's CEO through 2014, news reports have
suggested that he may be courted by software giant Microsoft Corp., which is seeking a new leader to
reinvigorate it. That could put the 52-year-old Mr. Fields in Ford's top job sooner than anticipated.
The executive, who became Ford's No. 2 in December, has spent nearly a year on a global tour of the company's
operations, visiting China, South America and Europe to check on the progress of plant construction and product
rollouts. "It is incredibly energizing to go around the world and see this community of Ford folks," Mr. Fields told
reporters Friday.
At Friday's kickoff event for the United Way campaign, Mr. Fields said Microsoft's reported interest in Mr. Mulally
wasn't a distraction, and that he wasn't planning on taking the helm at Ford soon.
"I am absolutely focused on my chief operating job, running the day-to-day operations, working with the team to
drive operational excellence. That is my sole focus," he said.
Until Friday, Ford largely had kept Mr. Fields away from public events and hadn't made him available for
interviews. It's a smart strategy for a CEO-in- waiting, said Jeffrey Sonnenfeld, a senior associate dean at Yale
School of Management.
"When they are not totally shielded, problems happen," Mr. Sonnenfeld said, adding that acting like a CEO before
you gain the title "always leads to collegial envy and public confusion."
In the past year, Mr. Fields has made his influence felt at Ford mostly by running the company's business-plan
review meetings, held every Thursday.
These meetings are "core to changing the culture at Ford," Mr. Fields said. In an interview early this year at the
Detroit auto show, he said he hoped the meetings, a tradition Mr. Mulally brought from Boeing Co. when he joined
Ford in 2006, would become a permanent fixture.
During the sessions, which have been cited for opening up the flow of information, bosses from various areas of
Ford give status updates, assigning their projects a color: green for go; yellow for concerns and red for stop. The
idea wasn't initially a hit, because Ford executives didn't want to admit problems. Mr. Fields is credited with being
the first to buy into it.
Gary Johnson, who runs Ford's Asia-Pacific manufacturing, said Mr. Fields, then head of North American
operations, sent ripples through the company in an early meeting when he disclosed that the launch of the Ford
Edge SUV was off-track. "Edge is red," Mr. Johnson said in an interview in China in April, recalling the meeting.
"I'll never forget it. In the old days, if you said that, you were a dead man walking."
Mr. Mulally, however, rewarded Mr. Fields with applause and other company executives quickly fell in line.
The New Jersey native, with a Harvard M.B.A and an intense focus on operations and performance metrics, was
a fast riser.
In 2000, Ford put him in charge of Japanese auto maker Mazda Motor Corp., in which it then owned a controlling
stake.
Mazda raced ahead during his tenure, and he was tapped to run the division that included Jaguar and Land
Rover, then later Ford's European operations, before he was brought back to North America in 2005 by then-CEO
William Ford Jr. His mission was clear: to make North American operations profitable.
He had a brusque, straightforward style. In a 2006 interview, he talked about trying to use fear to change an
intransigent culture. But he has said in later years that he has had to soften his approach to be more
collaborative.
His 2005 restructuring plan, "The Way Forward," didn't go far enough, so he was forced to deepen the cuts he
envisioned. Early in his tenure as North America chief, he was criticized for using Ford's private jet to commute
from Detroit to his home in Delray Beach, Fla., while pushing through painful plant closings and mass-firings of
salaried workers.
In 2006, Mr. Ford handed the CEO job to Mr. Mulally and became executive chairman. Few expected Mr. Fields
to survive. But Mr. Mulally left Mr. Fields in charge of North America operations, which have roared back to
profitability, lending Mr. Fields new credibility as he followed through on his restructuring efforts behind the
scenes.
Ford's North American business now regularly produces record profit.
In 2008, Ford posted a companywide loss of $14.6 billion, most of it in North America. The following year, by
contrast, the company had a $2.7 billion profit, led by North America. Ford now is straining to meet demand for its
vehicles, and has hired nearly 10,000 new workers in the past few years.
Like Mr. Mulally, Mr. Fields is big on using metrics. And while he doesn't have an engineering background, he
likes to get involved in product development.
For the coming 2015 Mustang, which will shed the current model's retro styling in a bid to boost its global appeal,
Mr. Fields helped get designers more leeway to improve the proportions of the vehicle by widening and lowering
it, even though it required major engineering changes, according to a person involved in the conversation.
Mr. Fields is more likely than Mr. Mulally to kid around and "bust your chops," as one executive put it. In an
interview last spring, he joked that he had to remember not to drink too much liquid before running the weekly
business meeting because he could no longer excuse himself.
At a recent dinner, Mr. Fields went around the room of more than a dozen people, recalling when he had met
each person, surprising and impressing the group, said one person there.
While Mr. Fields now runs all Ford's daily operations, the company's chief financial officer, chief legal counsel and
human-resources chief report to Mr. Mulally.
Mr. Sonnenfeld, the Yale senior associate dean, who knows Mr. Fields well, thinks he is content to be operating
chief until his time comes. "There's no evidence that Mark is frustrated," he said. That's partly because "he is
doing very well," Mr. Sonnenfeld added. "He is doing a lot of the heavy lifting on the car designs and refinement.
He's the car guy.""
Document J000000020130930e99u00017

Corporate News: Car-Parts Makers Agree to Pay $740 Million in Fines
Corporate News: Car-Parts Makers Agree to Pay $740 Million in Fines

By Brent Kendall
475 words
27 September 2013
J
B5
English
WASHINGTON -- Nine more Japan-based companies have agreed to plead guilty to fixing prices on new-car
parts and will pay more than $740 million in criminal fines, the latest moves in a yearslong antitrust investigation
that has spanned the globe.
The U.S. Justice Department said the companies were involved in conspiracies -- some lasting a decade or
longer -- to fix prices on more than 30 different parts sold to major auto makers including Honda Motor Co.,
Toyota Motor Corp., Chrysler Group LLC, Ford Motor Co. and General Motors Co.
"As a result of these conspiracies, Americans paid more for their cars," Attorney General Eric Holder said
Thursday. He said the price-fixing schemes affected more than 25 million cars purchased by U.S. consumers,
although he and other officials declined to offer any dollar estimates on how much Americans allegedly overpaid.
With Thursday's agreements, 20 companies, mostly from Japan, have agreed to plead guilty to antitrust violations
and pay more than $1.6 billion in criminal fines. The Justice Department also has charged 21 executives. Many
already have been sentenced to U.S. prison terms of a year or longer.
On Thursday, Hitachi Automotive Systems, a unit of Japan's Hitachi Ltd., agreed to pay a $195 million fine for
fixing prices on alternators, fuel injection systems and several other parts. It said it has taken steps to strengthen
compliance with antitrust laws.
Mitsubishi Electric Corp. agreed to pay $190 million for fixing prices on starter motors, ignition coils and
alternators. A Mitsubishi Electric spokeswoman said the company cooperated fully in the investigation and is now
"focused on moving forward."
The department said parts makers agreed during conversations in the U.S. and Japan to rig bids, fix prices and
allocate parts supplies, while taking several steps to keep their conduct secret.
General Motors voiced deep concerns about the admissions from auto-parts makers, saying it was evidence of an
unacceptable "culture of anticompetitive activity among a cross section of suppliers."
Ford said it was continuing to monitor the Justice Department investigation, while Toyota said it took violations
seriously. Honda said it has cooperated with the probe and expects its suppliers to observe the law. Chrysler
declined to comment.
The Justice Department's long-running auto-parts investigation has focused on price fixing in an array of
products, from instrument panels to air bags and steering wheels. Its first charges came in 2011.
The probe has expanded over time as implicated auto-parts companies have come forward with evidence of price
fixing in other previously undiscovered schemes.
"As we have uncovered each auto part conspiracy, we have continued to find more and more parts that are
involved," Mr. Holder said.
Document J000000020130927e99r0003o

Companies Admit They Fixed Prices Of Car Parts

Companies Admit They Fixed Prices Of Car Parts
By JACLYN TROP
1,083 words
27 September 2013
The New York Times
NYTF
1
English
In an expanding global antitrust investigation, nine Japanese automotive suppliers, along with two former
executives, have agreed to plead guilty to conspiracy and pay more than $740 million in criminal fines for fixing
the price of auto parts sold in the United States and abroad, the Justice Department said Thursday.
The pleas were the latest in what the Justice Department said was its largest criminal antitrust investigation, one
that has involved the authorities from Asia to North America to Europe and has now resulted in $1.6 billion in fines
since 2011.
More than a dozen separate conspiracies involving more than 30 kinds of parts affected sales to Chrysler, Ford
and General Motors, as well as the American subsidiaries of Honda, Mazda, Mitsubishi, Nissan, Subaru and
Toyota.
''These international price-fixing conspiracies affected more than $5 billion in automobile parts sold to U.S. car
manufacturers,'' Attorney General Eric H. Holder Jr. said in a statement. ''In total, more than 25 million cars
purchased by American consumers were affected by the illegal conduct.''
Hitachi Automotive Systems and Mitsubishi Electric paid the biggest fines, $195 million and $190 million. The
Justice Department said the two companies' price-fixing schemes lasted from at least January 2000 through
February 2010.
The parts included seat belts, radiators, windshield wipers and air-conditioning systems, Mr. Holder said. The
Justice Department said that while the price fixing increased the cost of cars for consumers, there was no way to
determine exactly how much.
The two former executives -- Gary Walker, an American, and Tetsuya Kunida, a Japanese national working for
American subsidiaries of Japanese companies -- also pleaded guilty for their involvement in the scheme, in which
executives met in person and colluded on the phone to rig bids, fix prices and allocate the supply of parts, the
Justice Department said.
Mr. Kunida was sentenced to 12 months and a day in an American prison. He pleaded guilty to a felony charge of
fixing the price of products sold to Toyota and other automakers from at least November 2001 until May 2012.
Mr. Walker was sentenced to 14 months. The Justice Department said he engaged in a conspiracy to fix the
prices of seat belts sold to Honda, Mazda, Nissan, Subaru and Toyota from at least Jan. 1, 2003, through
February 2010.
Each man is to pay a $20,000 fine.
Twenty companies and 21 executives have been charged so far in the Justice Department's investigation. Each
company has pleaded guilty or agreed to do so, the Justice Department said. All but four of the 21 executives
have been sentenced to prison or have entered into plea agreements that call for prison sentences.
The actions on Thursday underscored a willingness of countries to cooperate as business relationships become
more international.

''Twenty years ago, a case of this size would have been inconceivable,'' said Spencer Weber Waller, a professor
at the Loyola University Chicago School of Law and director of its Institute for Consumer Antitrust Studies. ''We
often fought with these countries against the application of U.S. antitrust laws, but now they themselves are more
stringent in applying their own antitrust laws.''
Scott D. Hammond, assistant attorney general of the Antitrust Division's Criminal Enforcement Program, said that
some of the conspiracies announced on Thursday were originally discovered by the Japan Fair Trade
Commission.
As for the price fixing, Professor Waller said it ''appears to be one of the longest-running international cartels that
has come to light.''
General Motors called the price fixing among suppliers unacceptable. ''We are greatly concerned by the large
number of suppliers in the automotive supplier sector who have pled guilty to serious criminal price-fixing
charges,'' it said in a statement.
Ford said it was monitoring the investigation and would not comment further.
Toyota said in a statement that it ''expects its suppliers to provide the company with quality parts at competitive
prices, while complying with all applicable laws in the markets where they do business.''
It also said: ''We are committed to supporting free and fair competition among suppliers, and we have code of
conduct guidelines in place that we expect suppliers to meet. We take any violations of these guidelines
seriously.''
Hitachi will pay its $195 million fine in connection with charges that it conspired with other companies to rig the
prices of auto parts it sold to General Motors, Ford, Honda, Nissan and Toyota in the United States and other
countries.
In a statement, Hitachi said it would institute measures to prevent such actions in the future and was ''committed
to ensuring to comply with all applicable antitrust laws or competition laws.''
Mitsubishi will pay its $190 million fine on charges that it conspired to fix the prices of auto parts like starter
motors, alternators and ignition coils it sold to Chrysler, Ford, General Motors, Honda, Nissan and Subaru.
''We've cooperated fully with the Department of Justice and have concluded our discussions,'' Mitsubishi said in a
statement.
The charges were filed in United States District Courts in Cincinnati, Detroit and Toledo, Ohio.
''These enforcement actions send a clear and consistent message to all who would take advantage of
consumers,'' Mr. Holder said.
Mitsuba Corporation will pay $135 million on charges that it fixed the price of parts sold to Chrysler, Honda,
Nissan, Subaru and Toyota. The company also agreed to plead guilty to one count of obstruction of justice,
because of orders from a high-level United States-based executive to destroy evidence, the Justice Department
said.
Jtekt Corporation will pay $103 million and NSK Ltd. will pay $68.2 million. The remaining companies will pay
lesser amounts, including a fine of $14.5 million for Mitsubishi Heavy Industries Ltd., which pleaded guilty to
rigging prices for compressors and condensers, and a fine of $13.75 million for T.RAD Company, which sold
radiators and devices that warm the automatic transmission fluid.
Valeo Japan, which sold air-conditioning systems, will pay $13.6 million. Yamashita Rubber will pay $11 million
for fixing the price of automotive antivibration rubber products.
As the investigation expands, Mr. Holder said, the Justice Department will continue to look into price fixing in the
automotive industry. ''Our work isn't done,'' he said.
Attorney General Eric H. Holder Jr. announcing that nine Japanese firms and two executives agreed to pay fines
of $740 million. (PHOTOGRAPH BY KRIS CONNOR/GETTY IMAGES) (B4)
Document NYTF000020130927e99r00063

Ford puts extra hot sauce in feisty new little Fiesta ; ST is latest pixie speed demon
MONEY
Ford puts extra hot sauce in feisty new little Fiesta ; ST is latest pixie speed demon
Chris Woodyard
Chris Woodyard, @ChrisWoodyard, USA TODAY
893 words
25 September 2013
USAT
FINAL
B.7
English
The pocket rocket is back.
Or so hopes Ford, which has brought a souped-up version of its subcompact car from Europe to the U.S. with
hopes that a new generation of younger drivers will want a wake-up call when it comes to the idea that driving can
be fun.
The new car is the Fiesta ST, which Ford made available for test drives here earlier this month. This ST version of
the smallest car Ford sells in the U.S. joins the slightly larger, compact Focus ST as the bad little boys of the Ford
lineup.
Together, they will be part of a cadre of hotter small cars that represent a resurgence of a narrow category that
saw its start in the U.S. with the likes of the Volkwagen GTI a generation ago and the hot-rod craze that later
swept up models such as the Honda Civic and Mazda3.
All share a few characteristics. Like all small cars, they are easy to maneuver in crowded cities, relatively cheap
to buy and relatively frugal at the pump, even in pumped-up form. They're usually stripped down to the
performance essentials.
But like muscle cars and more dedicated performance vehicles, they invite sporty driving and are often happily
pushed to the red line of their tachometers -- smoking tires and all.
Besides the STs, Fiesta and Focus, the category has seen new entrants recently, including the subcompact
Chevrolet Sonic RS and Fiat 500 Abarth model of the small city car. They join more longstanding models such as
the Mini Cooper, Subaru WRX and the aforementioned VW, Honda and Mazda.
"You've got a lot of people (who want a car) that is small enough to drive around town, but give them sort of a
pleasure for driving," says Jim Pickering, managing editor of Sports Car Market and American Car Collector
magazines. "It's got to get their gears turning."
Fiesta is aimed at turning the gears in the hearts of enthusiasts with its turbocharged engine. It's a 1.6-liter,
four-cylinder EcoBoost delivering 197 horsepower, 77 more horsepower than the conventional Fiesta that arrived
in the U.S. market three years ago. Fiesta ST's power still falls below Focus ST at 252 horsepower, but makes up
for some of it with its smaller size and lighter weight.
Fiesta ST is capable of zero to 60 miles per hour in a crisp 6.9 seconds, Ford says. Top speed is 137 mpg, but
the car still gets a respectable 26 mpg in the city, 35 on the highway.
Driving impressions
In the hills north of Santa Monica, the Fiesta ST's fun factor can be put fully on display. The Fiesta ST cranks out
a ton of power and responds well to being thrashed around curves.
The ride is comfortable, yet firm, even on broken pavement. Steering is tauter than a standard Fiesta. Through it
all, the cabin remains so quiet that Ford engineers added a system to bring pleasing engine sounds to drivers'
ears.
To keep Fiesta at its fighting weight of 2,742 pounds, Ford has winnowed down the five-door hatchback to its
essence. Want an automatic transmission? Sorry. It comes in a six-speed manual only, exactly what an
enthusiast would demand. There are few options. One is probably what will prove to be the most popular: $1,995
Recaro racing seats, which glue the driver and front passenger into place for tight turns.
From the business perspective, Fiesta ST is a model citizen for Ford's policy of trying to sell as many of its
vehicles in different markets around the world. Because the ST was developed in Europe and is on sale in many
countries, it doesn't need huge volumes to succeed in the U.S. "We're answering the No. 1 question" asked by
enthusiasts, says Seema Bardwaj, the ST marketing manager, "Why can't we have this here?"
As the rowdy little brother to Focus ST, Fiesta ST is likely to draw a younger buyer. Ford officials downplay the
notion that Fiesta ST will steal a lot of sales from Focus ST.
With a starting price of $22,195, including $795 in delivery charges, Fiesta comes in about $2,000 less than
Focus ST. Tim Smith, who works on engineering for ST vehicles, says the cars have different personalities and
that Focus comes across as slightly more mature.
Those who follow small performance cars see how cars like Fiesta ST can revive the segment. Enthusiasts
became hooked on cars like the hot Hondas of the 1990s. Many are sticking by small cars, and when it comes to
the segment, "I don't think it's going to die anytime soon," Pickering says.
But automakers need to tread carefully, says Jeff Palmer, a founder of the Temple of VTEC, a site devoted to
Honda performance cars. Buyers are quick to see through false claims about performance. "You need to make
sure the product has credibility," he says. And automakers need to remember, too, that a lot of these buyers have
limited budgets. "It's a price-sensitive market," he adds.
photo Ford
Document USAT000020130925e99p00011

If You Like Music, or Online Video, There May Be a Ford in Your Future
CAMPAIGN SPOTLIGHT
If You Like Music, or Online Video, There May Be a Ford in Your Future
By STUART ELLIOTT
1,310 words
16 September 2013
The New York Times
NYTF
English
As viewers get ready for another new television season, they are also being asked to look beyond the traditional
sources for new series and watch shows online.
A case in point is ''The Rider Challenge,'' a reality competition show being sponsored by the Ford division of the
Ford Motor Company to help sell the 2014 Fiesta subcompact. Plans call for 18 episodes of ''The Rider
Challenge'' to begin on Sept. 30 and run into November. The episodes, each five minutes long, will be available
on a section of a Web site belonging to the producer of the show, Live Nation Entertainment.
A teaser video to promote ''The Rider Challenge'' is going live this week. The clip sets up the premise of the
show: Six teams, each composed of two people, will compete against each other in a race to find must-have
items that five musical acts specify in their contract riders, also known as backstage riders or tour riders -- the
requests (or demands) that performers make as conditions for their concerts at an arena, theater or stadium.
''Would you have what it takes?'' the teaser asks, presenting snippets of scenes from the webisodes in which
contestants rush around and make remarks like ''I'm scared that they're going to be there before we are,'' ''We're
already far behind'' and ''Wide open, buddy.''
The teams will drive new Ford Fiestas as they seek the rider items, with the color of each car matching the
T-shirts worn by the members of each team.
Perhaps the most famous -- or notorious -- rider of them all was that of the rock band Van Halen in the 1980s,
which insisted that the bowls of M&M's provided backstage for them be picked clean of brown ones. The bands
taking part in ''The Rider Challenge'' represent a variety of contemporary musical acts: Fall Out Boy, Fitz and the
Tantrums, Kid Cudi, the Lumineers and Edward Sharpe and the Magnetic Zeros.
''The Rider Challenge'' represents the entry of Live Nation Entertainment into the realm of content marketing, also
known as branded content and branded entertainment. The goal of content marketing is to keep consumers
around for the advertisers' pitches by incorporating them into what is being watched, read or listened to rather
than following the traditional model of interrupting the content with commercials or ads.
Content marketing is a modern-day version of what advertisers did from the 1920s through the 1960s on radio
and television, when they wove product peddling into the plots of shows. Ford Motor took part through programs
like ''The Ford Television Theater'' and ''The Lively Ones.''
Ford Motor has also been supporting more recent efforts at content marketing, like ''American Idol,'' which
features Ford cars in episodes along with the products of two other sponsors, AT&T and Coca-Cola. The budget
for ''The Rider Challenge"is estimated at $5 million.
It is no coincidence that ''The Rider Challenge,'' like ''American Idol,'' is focused on music. ''Our Fiesta target really
loves music,'' said Crystal Worthem, brand content and alliances manager at the Ford division of Ford Motor in
Dearborn, Mich., referring to first-time car buyers, predominantly millennials, consumers in their teens through
around age 30.
Previous partnerships between Ford and Live Nation involved ''sponsoring a concert tour, sponsoring a venue,''
Ms. Worthem said. ''There was more infrastructure, trucks on the road with cars.''

The Web series answers the challenge of ''how do you take that type of engagement to millions of people instead
of thousands,'' she added. ''It takes that relationship into our sweet spot right now, branded content.''
''It was important for us to have a mix of different types of artists and different genres,'' Ms. Worthem said,
because the millennial generation, also called Generation Y, likes a broad range of musical styles.
Also, many millennials prefer to listen to up-and-coming bands along with -- or even instead of -- ''top talent,'' she
added.
There is a discovery element to the choice of musicians, Ms. Worthem says, in that Ford and Live Nation hope
viewers of the Web series ''may discover an artist they may not have in their rotation'' of favorite performers.
''The Rider Challenge'' is under the aegis of a division at Live Nation Entertainment known as Live Nation Media
and Sponsorship. ''We launched in January, as we relaunched livenation.com, which had been an e-commerce
site,'' said Russell Wallach, president of the division.
The Web site was made over, Mr. Wallach said, because content was ''the No. 1 thing a lot of our bands were
looking for.''
''We wanted to create this robust place for music fans to come to not only buy tickets but also to see videos,
photo galleries and custom content with artist interviews and performances,'' he added.
The new division is intended to build upon the ''branded events'' that Live Nation has created for years for
marketers like Bud Light, Pop Tarts and Samsung, Mr. Wallach said.
In discussions that began in December, ''we originally had this idea for a music version of the M.L.B. Fan Cave,''
he said, referring to an initiative by Major League Baseball that offers fans experiences in person, online and in
social media. The centerpiece is a building in Lower Manhattan, called the Fan Cave, where fans selected by the
league watch every game played during each baseball season.
That idea was discarded, Mr. Wallach said, because ''nobody would want to sit in a room and watch live
concerts,'' adding, ''Concerts are all about the experience of going to a show.''
After that, the concept morphed into one that would be focused on ''bands on the road,'' Mr. Wallach said. Then
''we got together with Ford, and Ford suggested it would be more interesting if we created it more in the vein of a
reality competition,'' he added.
''Fans who go every year to see live concerts, for the most part, never get to see what's going on behind the
scenes,'' Mr. Wallach said. ''This is about giving them a bit of an insight.''
Mr. Wallach's division then ''refined the idea, fine-tuned it,'' he added, ''figuring out who the artists would be and
how to market the show, using all the collective assets'' of Ford and Live Nation, in realms that include paid,
earned and owned media channels.
Mr. Wallach said he is pleased enough with how ''The Rider Challenge'' is turning out that ''we're already looking
at the next version of this,'' which may not be on livenation.com.
The division has ''two or three other shows we're working on,'' he added, that are also in the vein of taking
''portions of the incredible content and experience happening at a live event and sharing that with millions and
millions of people who aren't there.''
The grand prize for the winning team in ''The Rider Challenge'' is a Ford Fiesta and what is called a Live Nation
Ultimate Access Pass, offering all-access entrance to all the concerts that Live Nation stages for a year.
The Ford division is incorporating into the Web series another marketing campaign for the Fiesta, known as the
Fiesta Movement, which recruits 100 young drivers -- ''agents,'' in the campaign's parlance -- to help introduce the
car through blogs and other social media.
Several agents will be part of the Web series in cameo roles, Ms. Worthem said, ''serving as a 'lifeline''' to the
teams trying to ''finish fulfilling their missions.''
â–

If you like In Advertising, be sure to read the Advertising column that appears Monday through Friday in the
Business Day section of The New York Times print edition and on nytimes.com.
Document NYTF000020130916e99g0008j

It's the SUV's World Now --- Consumers Around the World Want to 'Ride High'; Sales Even Surge in Europe
It's the SUV's World Now --- Consumers Around the World Want to 'Ride High'; Sales Even Surge in
Europe
By Joseph B. White
1,031 words
10 September 2013
J
B1
English
Big auto makers are using this week's Frankfurt auto show to launch a new generation of sport-utility vehicles
aimed at consumers from Shanghai to San Jose who are paying premium prices to ride tall.
Sport-utility vehicles started out as a distinctively American automotive idea, starting with World War II Jeeps and
evolving into the hulking, gas guzzling trucks that dominated U.S. highways during the late 1990s. During the past
decade, SUVs evolved from modified pickup trucks into modified cars, but many kept the boxy, utilitarian profiles
of the originals.
Now, auto makers are experimenting with the formula again, looking to cash in with SUVs that are small, sleekly
aerodynamic and, in most cases, more profitable than the sedans that share their mechanical underpinnings.
The only common denominator defining the new generation of SUVs is "you sit up high, in a command seating
position, that makes you feel superior," says Ford Motor Co. group vice president of design J Mayswhose
company led the 1990s SUV boom in the U.S. with its comparatively large Explorer and Expedition models.
Wu Jian, 29, a college teacher from Jiangsu province, says he plans to buy a Peugeot 3008 SUV for 180,000
yuan ($29,407).
"China's roads are becoming more and more crowded. You will enjoy a wide-field of view when riding an SUV,"
says Mr. Wu. When buying a car, he says, "safety is more important than fuel efficiency." But he says he doesn't
want a big vehicle such as a BMW X5, Audi Q7 or Buick Enclave. "They are oil guzzlers," he said.
In Europe, where the overall market has been slumping, SUV sales have risen by about 6.7% a year between
2007 and 2013, and will likely reach about 2.8 million vehicles this year, says John Hoffecker, a managing
director with the consulting firm AlixPartners.
"Every category has been down [in Europe] with the exception of SUVs," Mr. Hoffecker says.
Today, one of Ford's most popular models in Europe is the EcoSport, a tiny SUV built on the chassis of the
company's Fiesta subcompact car. The EcoSport is taller, offers more cargo space and starts in the U.K. at GBP
15,995, or $25,000, about GBP 6,000 more than a Fiesta.
General Motors Co.'s Mokka small SUV (sold as the Buick Encore in the U.S.) has done so well in Europe that
GM recently said it would move production to Spain from Korea next year.
At the Frankfurt show, Nissan Motor Corp.'s Infiniti brand will show a prototype for an aerodynamic, compact
vehicle called the Q30 that merges the "sportiness of a coupe, the roominess of a hatch and the higher stance of
a crossover," the company says.
Infiniti chief Johan de Nysschen says sport utilities will be key products for the brand's effort to expand globally,
including in Brazil and China. Infiniti offers four SUVs currently, but could have more, including a model even
smaller than the Q30 concept.
The high end of SUVs will be well-represented. Toyota Motor Corp.'s Lexus brand, which is expected to display at
Frankfurt a prototype of a compact SUV smaller than its current RX model. And Daimler AG's Mercedes-Benz
plans to officially unveil at Frankfurt its entry in the small, luxury SUV segment, the Mercedes GLA, which the

company plans to eventually also produce in China, the world's largest car market, where it is trying to catch up to
Volkswagen's Audi and BMW AG.
Audi is highlighting its Q3 compact SUV as part of a revamped family of compact A3 models including a sedan,
hatchback, plug-in and convertible.
"It's 100% acceptable to take an SUV to places where affluent people go," says Scott Keogh, head of Audi's U.S.
operations. "That's the big leap that happened" since the late 1990s, when most luxury brands still focused almost
exclusively on sedans, coupes and wagons.
Audi expects to sell almost 40,000 of its Q5 midsize SUVs in the U.S. this year, Mr. Keogh says. A new
generation of that model will be built in Mexico starting in 2016, and Audi will add the Q3 to its U.S. lineup next
year. Audi has already launched a Chinese-built version of its compact Q3 SUV.
Even Jaguar, the British car brand that had been content to leave the SUV business to its corporate sibling Land
Rover, is signaling in Frankfurt that it is prepared to follow Porsche AG and Fiat SpA's Maserati brand into the
luxury SUV segment.
Mass market auto makers are also expanding their SUV offerings in Europe.
South Korea's Kia Motors Corp, maker of the popular Sportage SUV, is unveiling at Frankfurt a concept for a
compact SUV called the Nero.
There are potential long-term risks to relying heavily on SUVs. Regulators are leaning on car makers to sharply
cut vehicle carbon dioxide emissions, demands that translate to requirements that vehicle fleets average more
than 50 miles a gallon for many large markets. The U.S. government has set a fleet average fuel economy target
of 54.5 miles a gallon by 2025. Europe has proposed even more stringent CO2 limits.
While today's SUVs are generally lighter and more fuel efficient than the Explorers and Hummers of the 1990s,
they often don't get the same mileage as a similar car.
BMW's X3 SUV with a 2.0 liter four cylinder engine is rated at 24 miles per gallon in combined city and highway
driving, while a BMW 328i sedan with a similar engine is rated at 26 mpg, or about 8% better.
One way auto makers can keep selling SUVs is to offer electric and hybrid cars that boost the fleet fuel-efficiency
average, and electrified vehicles will share the spotlight with SUVs at many Frankfurt show displays.
---
Rose Yu and Gilles Castonguay contributed to this article.
Document J000000020130910e99a0002j

VW's $1 Billion U.S. Bet is Sputtering
VW's $1 Billion U.S. Bet is Sputtering

By Neal E. Boudette
944 words
7 September 2013
J
B1
English
CHATTANOOGA, Tenn. -- After three years of strong gains, Volkswagen AG is scrambling to halt an unexpected
U.S. sales slump and get its ambitious American expansion back on track.
The company's VW brand is ramping up discounts to pare slow-moving inventories, especially for its redesigned
Passat sedan, which is made here. The company also is phasing in a new engine that should give VW cars both
more power and better gas mileage. Soon VW will launch a new Jetta compact with a sportier ride and next year
a completely redesigned Golf hatchback.
"We're a little behind where we want to be," said Frank Trivieri, executive vice president of sales for Volkswagen
of America. "But we can make up ground."
The moves come after a series of U.S. setbacks this year. Sales of VW-brand cars doubled between 2009 and
2012, but have fallen 1.3% so far this year. The overall U.S. market is up 9.6% this year. Rivals like Honda Motor
Co. and Ford Motor Co. brought out new models that leapfrogged the Passat and Jetta in features, technology
and fuel economy.
Because of the sluggish sales, a move to ramp up production at Volkswagen's gleaming $1 billion Chattanooga
plant backfired, and 500 contract workers were let go after less than a year on the assembly line.
In July, Chief Executive Martin Winterkorn flew from Germany to smooth relations with frustrated dealers
gathered at a resort outside of Washington, D.C. The company also "hit the reset button" on its internal sales
target for VW-brand vehicles, say dealers who attended the meeting. For the remainder of 2013, company
executives confirmed, Volkswagen is aiming for each VW dealership in the U.S. to sell at least one more car a
month than a year earlier.
"It's like a football game, and we were ahead, but now it's tied and it's halftime and they're regrouping," said Jeff
Williams, owner of a VW dealership in Lansing, Mich. Mr. Williams said he came away from the meeting
encouraged.
Volkswagen's difficulties in the U.S. threaten Mr. Winterkorn's global expansion strategy, known as Mach 18. The
plan calls for the auto maker to pass General Motors Co. and Toyota Motor Corp. to become the world's largest
auto maker by 2018. VW is close to its goal thanks to rapid growth in China and rising sales of its Audi luxury
cars.
A key part of the Mach 18 plan calls for increasing annual VW-brand sales in the U.S. to 800,000 cars by 2018,
roughly double the 2012 total of 438,000 vehicles. For the first eight months of 2013, however, sales of VW-brand
cars have slipped 1.3% from the same period a year ago, at 282,913 vehicles. Toyota and Honda, two prime
targets for the VW brand, have boosted their name-brand sales by 7% and 8.6%, respectively. Last month
provided a contrast. Toyota's August sales rose 23% and Honda's 27%, while VW-brand sales fell 1.6%
Volkswagen doesn't break out profitability by region, but executives said in the past that the company expected to
make money in North America by 2012 or 2013, once U.S. sales rise above 400,000 vehicles a year. Volkswagen
has for years lost money in North America, at times as much as $1 billion a year because of the euro's strength
against the dollar. Building more vehicles in the U.S. aims to solve that issue.
Volkswagen officials said the company isn't backing off the VW brand's 2018 sales target.

At the July meeting with dealers, Mr. Winterkorn promised VW would fill a big gap in VW's U.S. product lineup by
launching a midsize sport utility. That model may not arrive before 2015, however.
Volkswagen may disclose at the Frankfurt auto show next week where it will assemble the vehicle. The fact that
Passats aren't selling well enough to keep its only U.S. factory running full speed could give the plant an edge in
the competition to build the new model. The United Auto Workers union, which has looking to organize foreign
auto plants, on Friday said it met Aug. 30 with VW management about setting up a German-style labor council.
Just a year ago, the Chattanooga factory was running 20 hours a day, six days a week. Volkswagen hired a crew
of 500 workers to boost output.
VW had redesigned the Passat, a family sedan, to sell at a lower price in the American market, cutting costs by
using interior plastics and other materials that were cheaper than those used in the European Passat. The
American model also got a simpler, lower-cost suspension that delivered a less precise ride. Similar cost-cutting
was applied to the American version of the Jetta.
"I can see where they cut a lot of corners," says Joey Sidener, a 20-year-old in Phoenix who bought a 2011 Jetta.
"They took away the [European] suspension, the steering, the electronics."
After his Jetta was wrecked in an accident, he bought a 2009 Passat -- not the version of the car made in
Chattanooga but an older one that had most of the same components as the European Passat.
So far this year, Passat sales in the U.S. have grown 3%. But Accord sales are up more than 17%. "The market
has become very, very competitive," VW's Mr. Trivieri says.
Document J000000020130907e9970003t

Corporate News: Toyota Seeking To Regain Ground In U.S. Market
Corporate News: Toyota Seeking To Regain Ground In U.S. Market

By Mike Ramsey
869 words
6 September 2013
J
B5
English
Toyota Motor Corp. is rebooting its strategy in North America, giving local executives more say over product and
production decisions after more than three years of losing market share in the U.S. to rivals.
Chief Executive Officer Akio Toyoda earlier this year overhauled the company's regional management, assigning
Jim Lentz, the area's former top sales executive, operating responsibility over its North American operations. Mr.
Lentz is using his authority to push for more distinctive styling for key U.S. models.
Later this month, Toyota will start an early test of its new approach when it starts promoting a redesigned and
more fierce-looking Corolla, the first major update in six years of a staid compact that propelled its U.S. sales in
the 1970s and 1980s.
Mr. Lentz said Toyota's recent decision to move production of the Lexus ES 350 luxury sedan to the U.S. shows
top executives' willingness to listen more to its North American managers. They have gained more influence in
the wake of recalls beginning in 2009 following complaints of sudden acceleration that hurt the company's
reputation and sales.
The Lexus ES is sold almost entirely in North America, but it has always been made in Japan. Building Lexus
cars in Japan has been a source of pride for the company, and moving production to the U.S. was politically
sensitive despite the profit risks posed by fluctuations of the yen against the U.S. dollar. Soon after getting his
expanded new role, Mr. Lentz pushed to get the ES made in the U.S.
"Within 30 days we put together our final proposal . . . and went to the board. In Toyota terms, for us to do this
within 30 days, is lightning speed," Mr. Lentz said during an interview. "We had all the challenges figured out. The
board had a few questions, not many, and the program was approved." First U.S. production of the vehicle is
scheduled to begin in 2015.
Toyota's North American operation has gained complete control for the first time over the designs of several
models that sell well in the U.S., including the Avalon sedan, the Venza wagon and the Tundra pickup. U.S.
executives are getting broader design influence on other vehicles, such as the FJ Cruiser, Tacoma pickup and
Sienna minivan. In the past, key design decisions were all made in Japan.
One of Mr. Lentz's biggest challenges, say analysts, is preventing Toyota from following the path taken by
General Motors in the 1980s, when the largest U.S. auto maker began losing members of the baby-boom
generation to Toyota, Honda Motor Co. and other foreign upstarts.
Mark Hogan, a former GM executive named to Toyota's board earlier this year, says the company must get more
U.S. consumers excited about its cars.
The new Corolla marks an effort to cultivate younger buyers who have embraced Honda's new Civic, Ford Motor
Co.'s Focus, General Motors Co.'s Cruze and Hyundai Motor Co.'s Elantra. The Corolla laid the foundation for
Toyota's growth in the U.S. market following the gasoline price shocks of the 1970s.
""We are very pleased with all the styling they've been working on . . . I think it will attract a more youthful buyer,"
says Larry Kull, owner of a New Jersey Toyota dealership.
But the average age of the Corolla new-car buyer today is 58 years old, higher than the industry average of 55. In
2005, the median age of Toyota buyers was 51 years old. Toyota now ranks near the bottom when it comes to
attracting new buyers from rival makes, according to data from auto researcher R.L. Polk & Co.
Toyota is still a highly profitable and powerful force in the U.S. The company reported $5.63 billion in overall profit
in the quarter that ended June 30. In the U.S., Toyota rebounded last month to take a 15.4% share of sales, and
surpassed Ford to become the month's second largest seller.
However, the aging of Toyota's U.S. customer base has coincided with a drop in market share from a high of 17%
in 2009 to 14.4% this year. Ford and Hyundai have begun luring midsize car buyers with their flashy Fusion and
Sonata sedans, respectively. Ford has also made inroads in the hybrid segment with models such as the C-Max
hybrid wagon.
"There is no doubt about Toyota's quality, durability and reliability," said Mr. Hogan. "But they have been pretty
passive on design execution."
Mr. Lentz said car shoppers will see changes soon.
"Buyers are becoming more emotional about their purchases," he said. "They want cars that are more fun to
drive, with better styling."
Mr. Lentz said customers should see the influence of North American designers in the new look of the Avalon
introduced late last year. The large sedan, priced at about $31,000, is lower, wider and sportier looking than the
previous Avalon -- and is outselling the prior model two to one.
Document J000000020130906e9960000l

U.S. Car Sales Soar To Pre-Slump Level
U.S. Car Sales Soar To Pre-Slump Level

By Neal E. Boudette and Jeff Bennett
1,110 words
5 September 2013
J
A1
English
The U.S. auto industry has shifted into high gear with new-car buyers snapping up vehicles last month at a pace
not seen since before the financial crisis.
Low interest rates and slow-but-steady job growth are encouraging consumers to trade in cars and trucks that
average about 11 years old, say auto makers, which are adding production capacity and overnight shifts to satisfy
demand.
All told, buyers purchased 1.5 million vehicles last month, up 17% from a year ago, with nearly all major auto
makers reporting double-digit sales gains. The demand has customers scrambling for certain models and colors,
and prices climbing on hard-to-find cars including Nissan Motor Co.'s compact Sentra, Ford Motor Co.'s Fusion
sedan and Subaru's Forester wagon.
The faster-than-expected rebound in the U.S. is a bright spot for U.S. and other car makers coping with slumping
demand in Europe and uncertainty in some big developing markets. Strong sales helped lift the Dow Jones
Industrial Average nearly 100 points on Wednesday. General Motors Co. shares rose 5% and Ford shares
climbed 3.5%.
August's sales translated to an annualized pace of 16.09 million vehicles, up from December 2007's about 16
million. Some 17.4 million vehicles were sold in 2000.
"It was just phenomenal. The market is real strong right now," said Doug Waikem, owner of seven dealerships in
Massillon, Ohio, a rust-belt state hard hit during the recession five years ago. "It hasn't been like this since the
'80s," Mr. Waikem said.
Asian and European car makers also had strong showings. Toyota Motor Corp., Honda Motor Co. and Nissan
reported gains of 23%, 27% and 22%, respectively. Germany's BMW AG said sales of its luxury cars and
sport-utility vehicles soared 36% over a year earlier.
Automotive website TrueCar.com estimates car companies spent an average of $2,477 on sales incentives last
month, down 2.6% from a year ago and the lowest level since January.
While the sales pace returned to prerecession levels, the U.S. auto industry looks nothing like its old self. GM,
Ford and Chrysler Group LLC are now much leaner. GM employs about 212,000 people in the U.S., about 31,000
fewer than in 2008. Ford's workforce here is about 171,000, down 42,0000 from five years ago. Before Chrysler
was split off from its German partner, Daimler AG, it employed 83,000. Today, its payroll is about 65,000.
The three auto makers combined have closed more than two dozen auto-assembly, stamping, engine and
transmission plants across the Midwest and in Canada. Health care costs for retired union workers, which once
added about $2,000 to the cost of a car, are now born not by the companies but union-controlled trusts. Union
wages have also fallen. New hires started at about $14 an hour, half of what veteran workers make.
Detroit auto makers abandoned brands such as Pontiac, Saturn, Hummer and Mercury. GM and Chrysler
dropped more than 2,000 dealers from their sales networks, and all three companies stopped profit-denting
practices such as dumping cars into rental car fleets and stuffing dealers with cars and trucks that consumers
didn't want.

As a result, the Detroit Three can now make money at lower sales volumes, and on lower-priced vehicles. A
decade ago, all three companies struggled to make money when Americans were buying more than 16 million
cars a year regularly. Now they say they can make money with sales below 12 million vehicles a year.
Because of their dramatically lower fixed costs, they are now able to put money into designing and building stylish
and well-equipped small cars. Ten years ago, GM, Ford and Chrysler sold hardly any subcompacts at all. Last
month, GM sold 11,354 Chevrolet Sonics -- beating the combined total for the Toyota and Honda models in that
category. GM makes the Sonic at a plant in Orion, Mich., where labor costs were cut because GM was able to
staff with new workers hired at the lower, $14 wage.
With car volumes soaring and home builders and others again snapping up high-margin pickup trucks, the Detroit
auto makers are ringing up profits unimaginable five years ago.
In the past three years, for example, GM has rung up a combined $18.8 billion in profit, and Ford has notched
$32.5 billion.
GM Chief Economist Mustafa Mohatarem said on Wednesday he expects the strong monthly sales rate to push
overall U.S. sales above 15.8 million for the year. Until now, most auto makers have held their full-year 2013 U.S.
sales forecasts to between 15.3 million and 15.5 million. Stronger sales forecasts could lead auto makers to order
increased production during the balance of the year.
On Wednesday, Ford said it plans to produce 785,000 cars and trucks in the fourth quarter, an increase of
50,000, or 7%, from a year ago.
Toyota, which outsold Ford to rank No. 2 among U.S. auto suppliers, said August was its best month in the U.S.
in more than five years. Imports are taking back share lost in the wake of the 2011 Japanese earthquake. Import
brands held 56.1% of sales last month, up from a low of 49.9% in June 2011.
GM said brisk sales of pickup trucks, Cadillacs and Buicks pushed its sales to 275,847 vehicles, 15% more than a
year ago.
Ford's sales increased 12% to 220,404 cars and light trucks. The total included a staggering 71,115 F-series
pickup trucks. The company hadn't sold that many pickup trucks in one month since 2006. In contrast, GM sold
61,620 pickups.
Chrysler, meanwhile, reported sales of 120,161 vehicles, up 11%. Its sales have risen for 41 months in a row.
The smallest of the Detroit Three benefited from a 31% jump in sales of Ram pickup trucks and sport-utility
vehicles such as the Jeep Grand Cherokee and Dodge Durango.
Ford economist Ellen Hughes-Cromwick said U.S. sales are being driven by low interest rates that are helping to
keep loan payments stable even on higher priced cars, and by job gains.
Ms. Hughes-Cromwick also said consumers appear to be unconcerned about rising tensions in the Middle East
and the prospect of American military action against Syria.
---
Mike Ramsey contributed to this article.
Document J000000020130905e9950003e

Vehicle Sales Show the U.S. Shifting Gear
Heard on the Street

Vehicle Sales Show the U.S. Shifting Gear
By Justin Lahart
286 words
5 September 2013
J
C10
English
[Financial Analysis and Commentary]
Car dealers had a very good August. That may signal the U.S. economy is finally getting dealt a better hand.
General Motors, Ford Motor, Toyota Motor and Chrysler Group on Wednesday all reported a big increase in
light-vehicle sales last month, to an annualized 16.1 million, according to Autodata, the strongest since October
2007. WardsAuto had expected 15.7 million, while Kelley Blue Book was looking for 15.6 million, suggesting that
a late-month lift boosted sales.
Demand looks set to stay strong this year, with dealers running short of some vehicles. Ford plans to raise output
by 7% year over year in the fourth quarter to 785,000 vehicles.
Car sales aren't the only signal of a pickup in the economy. Weekly jobless claims have dropped to their lowest
levels since 2007, raising the odds that August's employment report on Friday will be strong. Tuesday's report
from the Institute for Supply Management showed manufacturing activity has picked up strongly since its
springtime slowdown. Morgan Stanley economists liken that move to the rebound in the second half of 2003,
when the economy began expanding strongly after two slow years.
With the fiscal drag from tax increases and public-spending cuts receding, and home-price and stock-market
gains making households feel more secure, the recovery may now stop being so disappointing. That would
hasten the pace at which the Federal Reserve starts scaling back its support. But an economy that has begun
firing on all cylinders should be able to handle that.
Document J000000020130905e9950001y

Trouble Finding a New Car? Shortages Begin to Appear
Trouble Finding a New Car? Shortages Begin to Appear

By Neal E. Boudette
750 words
3 September 2013
J
B1
English
Ford Motor Co. launched U.S. production last week of the auto maker's hot-selling Fusion sedan at a factory in
Michigan, a move that highlights a broader problem for auto makers: They are short of the cars U.S. consumers
want to buy.
At Dublin Nissan in Dublin, Calif., owner Taz Harvey started August with one Sentra on his lot. The car was
redesigned for 2013 and sales have since soared with its improved fuel economy luring shoppers.
"I sell five or six a month and normally have 15 to 20 in stock," Mr. Harvey lamented.
It is a similar story for Mike Rouen in Woodville, Ohio. His Chrysler Dodge Jeep store outside of Toledo has a half
dozen Jeep Wranglers and about the same number of Grand Cherokees. "I can sell more than that in a month,
and it's tough. We're having a hard time getting enough Jeeps," he said.
On Tuesday auto makers are expected to report U.S. car and light-truck sales rose about 14% in August, to more
than 1.4 million vehicles, even as spot shortages dog Subaru, Ford and Honda Motor Co.
For consumers, limited supplies of popular models mean bargain prices are harder to come by, even during the
annual summer clearance sales. Automotive information website TrueCar.com estimates car companies spent an
average of $2,477 on sales incentives last month, a decline of 2.6% from a year ago and the lowest level since
January.
The appearance of spot shortages signals a new phase for the U.S. auto industry's recovery. Over the past three
years, as sales rose from the bottom of their 2009 trough, car makers have had little trouble keeping the market
supplied, even as more and more shoppers streamed into showrooms.
Now, they are facing a delicate balancing act as supply and demand converge. Expanding plants is expensive
and can backfire if sales growth slows. But tight inventories can temper an auto maker's growth by nudging prices
higher and causing shoppers to turn to competitors.
"Manufacturers are in a precarious situation," said Karl Brauer, a senior director at Kelley Blue Book, which
provides auto sales data for dealers and car buyers.
"The shortages we're seeing now aren't yet severe, but [car makers] have to predict where they are going to be
six to 18 months from now."
At Silko Honda in Raynham, Mass., Adam Silverleib began August with only enough Accords and Civics to last
about half the month. He has been resupplied to keep sales rolling, and even the last of his 2013 models are
being snapped up.
Ford is feeling pinched by shortages of its Fusion after a flashy redesign. Ford is struggling to make enough of
them, and in July Fusion sales fell 12%. The company warned the issue will linger for another couple months, too.
"We could have sold more if we had more," said Joe Hinrichs, Ford's group vice president of the Americas.
Ford said it has been selling all the Fusions it has on dealer lots in just two weeks, when the average for most
cars is two months.

The combination of strong demand and tight supplies is pushing up Fusion prices. In July, Fusions on average
sold for $26,137, 13% more than a year ago, according to TrueCar, an auto shopping website. Likewise, Accord
and Sentra prices are up 5.4% and 2.2%, respectively.
For now, higher prices don't seem to be deterring buyers, analysts said. Because of low interest rates, consumers
are able to get affordable monthly payments even on slightly more expensive vehicles.
According to dealers, other cars in tight supply include the Toyota Corolla, Chevrolet Impala, Honda Odyssey,
and Subaru Forester. Inventories of the Corolla have thinned because Toyota is phasing out an older version of
the car. Subaru's two main Japanese factories are running at full capacity and demand has outstripped supplies
of the redesigned Forester.
The Impala, made by General Motors Co., is affected by a similar issue. The car was recently redesigned and the
new version has drawn a lot more buyers than the old one.
A GM spokesman said Impala inventories are improving because the company was for a time only making
models with six-cylinder engines, but now is making versions with four- and six-cylinder engines.
Document J000000020130903e99300031

Corporate News: Toyota to Restyle Hybrids --- Future Models Will be Sportier, Offer Faster Acceleration
Corporate News: Toyota to Restyle Hybrids --- Future Models Will be Sportier, Offer Faster Acceleration
By Mike Ramsey
647 words
29 August 2013
J
B5
English
Toyota Motor Corp. outlined plans to spruce up future hybrid gasoline-electric models to be sportier looking and
more fun to drive in a push to attract new customers and counter upstarts such as Tesla Motors Inc.
Toyota on Wednesday said its next Prius hybrid will be lighter, offer better driving characteristics and about 10%
better fuel economy improvements than the current model.
Executives also said they are working on more sporty hybrids, but gave no specifics, indicating only that its hybrid
lineup, which includes models in its Toyota and Lexus brands, would be less frumpy in the future and use electric
motors to generate fast-accelerating cars that still get good fuel economy.
Toyota outlined its plans at an event outside of Detroit that displayed its global hybrids and tried to counter some
of the attention that Ford Motor Co. has gained with its hybrid offerings, and that Tesla has received for
descriptions of future, lower-cost plug-in electric cars.
Toyota's push also is part of a wider effort by Chief Executive Akio Toyoda to add "waku-doki," Japanese for
heart-pumping exhalation, to its vehicles in order to change the company's image from one with practical and
bland offerings to more energetic and youthful brands.
Toyota is the top seller of hybrid vehicles, offering 22 models globally that feature the electric-gasoline engine
combination.
The next generation Prius will have a smaller motor, lighter chassis and a more energy-packed battery. Toyota is
aiming for a 10% or better fuel economy improvement over the current Prius, which gets 50 miles a gallon in
combined city and highway driving.
Toyota is developing a new version of its plug-in Prius that will have longer all-electric range and the ability to
recharge wirelessly through induction. That Prius will have a lower center of gravity and better driving dynamics,
said Satoshi Ogiso, Toyota's global chief of product planning.
In the U.S., hybrids account for 16% of total sales. That compares with 3% for Ford and 2% for Honda Motor Co.,
Nos. 2 and 3 in hybrid sales behind Toyota.
Toyota gets most of its hybrid-vehicle sales from the Prius line, which has the highest fuel economy of any
gasoline-electric vehicle in the U.S. First introduced in 1999, the vehicle family has become among Toyota's top
sellers globally.
"Hybrids are 16% of our sales but frankly we think it should be much higher," said Bob Carter, Toyota's group vice
president of North American operations.
Toyota has a minority interest in Tesla, and the Palo Alto, Calif.-based company provides powertrains for Toyota's
electric RAV4. Toyota board member Mark Hogan, who attended Wednesday's event, said the partnership with
Tesla has been good, but he didn't know whether it would be developed further.
Ford has been targeting Toyota and Honda both in hybrids and in other categories, with advertising and by stated
intentions. The U.S. brand has had some success, gaining share in coastal states.
Hybrids have been common in the U.S. since the early 2000s but have never been a big piece of the market. This
year the market share has reached less than 4%, and is still among the highest rates it has ever been.
Since 2009 Toyota's U.S. market share has slipped from a peak of 17% to around 14.2% this year through July.
Next week, Toyota will begin selling a redesigned longer, wider Corolla that gets 42 highway miles a gallon.
Executives at the event said the styling reflects the company's direction.
Toyota said it is aiming to achieve a 15% market share overall in the U.S. in the short term.
Document J000000020130829e98t0002r

Your Earrings Remind Me of Grandma's Gran Torino
DESIGN
Automobiles; SECTAU
Your Earrings Remind Me of Grandma's Gran Torino
By MARY M. CHAPMAN
866 words
25 August 2013
The New York Times
NYTF
7
English
DETROIT -- With its layers of colors and psychedelic swirls, fordite resembles jasper or Mexican crazy lace. And
though fordite is crafted into eye-catching jewelry, it is not a gemstone -- rather, it is dried paint that built up, layer
upon layer, in factories that built automobiles long ago.
And because many of the plants that produced it have been razed or mothballed, jewelry made of this material --
known as enamel slag or ''rough'' -- has nostalgic appeal.
''It's a fun and interesting piece of history, a slice of Americana,'' said Cindy Dempsey, an Illinois jeweler and
designer who has been working with fordite for nearly a decade. ''I've had people look at a piece and say, 'That
looks like a piece of the Ford Fairlane that I used to have.' ''
The material was created through automakers' now-defunct practice of spray painting cars by hand. Overspray in
the painting bays gradually accumulated on the tracks and skids on which vehicles rested while they were
painted. Over time, myriad colorful layers would build up in the ovens where the cars' paint was hardened under
high heat.
Eventually, the built-up paint had to be removed. No one can say how and when the byproduct first left the plants,
but Ms. Dempsey said it was likely that some pieces were simply pocketed as curios.
James Pease, who worked in the trim department at a Ford plant in Dearborn, Mich., in 1967, recalls contractors
cleaning paint booths during model changes. ''I remember all the beautiful colors of the chunks, and such a wide
variety,'' he said.
Ms. Dempsey, 46, remembers seeing raw fordite in the mid-1970s. A family friend who worked for one of the
Detroit automakers told her that her vividly painted Pet Rocks -- a fad product in the 1970s -- resembled pieces
from the plant where he worked. He brought a chunk and showed it to her.
''It was probably a hundred layers thick,'' Ms. Dempsey said. ''He said, 'We call it paint rock.' ''
She used sandpaper to showcase the paint lump's colors, then topped the finished stone with varnish. It became
the prototype for her later creations.
Paint slag has been around in quantity since the 1920s, according to the Ford Motor Company. Why it's called
fordite is unknown, although it refers to a byproduct at all old auto plants, not just Ford's. (The material is also
called Detroit agate and motor agate.)
As with gemstones, there are many varieties. Unlike gemstones, the types tend to be classified -- by those in the
know -- by the factories they came from.
The big auto companies stopped producing the raw material for fordite when the painting process was automated,
starting in the late 1970s. Cars and trucks are now painted in an electrostatic process that essentially eliminates
overspray.
Fordite's hardness is the reason it can be cut and polished, said Kevin Gauthier, a stonecutter and jewelry
designer who owns Korner Gem in Traverse City, Mich., and has worked with fordite more than 30 years. In the
old paint process, the combined single application of paint, primer and hardener made slag ''like a rock,'' he said.
Now, machines apply primer followed by color and several layers of clear coat.
Much of the old paint contains lead, jewelers acknowledge, but they say it isn't harmful unless consumed.
However, some states, including California, are restricting the sale of jewelry that contains dangerous lead levels.
(For adults, the limit is 60,000 parts per million, according to the state's Department of Toxic Substances Control.)
Mr. Gauthier says fordite jewelry is most popular with people over 40, particularly those with ties to Michigan.
''Some people only collect certain colors because that's their favorite car,'' he said.
Miranda Leaver, an Internet entrepreneur and former Detroit area resident, recently bought two rings through
etsy.com -- one aqua and one orange, colors especially popular in the 1950s and '60s. The orange one ''screams
muscle car,'' she said, adding that her rings get a lot of attention in North Carolina, where she now lives.
''When I explain what they are, folks get very enthused,'' she said.
In working with the raw material, Ms. Dempsey first slices it to check for patterns, then trims what she doesn't
need and shapes the rough piece with a grinder. Next, she polishes the surface and tests for jewelry-quality
strength. She makes about 500 of the pieces a year and sells them for $70 to $300. Ms. Dempsey figures she's
one of about 10 fordite jewelers in the nation.
The material is a finite resource, but Ms. Dempsey has been hoarding it for years and has a few suppliers.
''People call from all over to talk about where the plants were and where the landfills were and where all that
waste material would have been,'' she said with a chuckle. ''They just lament the fact they can't get in there.''
A SLICE OF DETROIT: A pendant of fordite, made of layer upon layer of dried paint from old auto factories.
(PHOTOGRAPH BY URBAN RELIC DESIGN)
Document NYTF000020130825e98p00031

Corporate News: Cummins in Engine Pact With Nissan
Corporate News: Cummins in Engine Pact With Nissan

By James R. Hagerty and Mike Ramsey
347 words
20 August 2013
J
B4
English
Cummins Inc. plans to disclose on Tuesday an agreement to supply Nissan Motor Co. with a diesel engine for its
Titan pickup trucks, people familiar with the matter said.
The Columbus, Ind.-based company earlier said it would announce a job-creating engine project. A
spokeswoman for the company declined to provide details.
Cummins currently supplies diesel engines for some Chrysler Group LLC pickup trucks from a factory in
Columbus.
Nissan last year sold 21,576 Titan full-size pickups in the U.S. and a handful in Canada and the Middle East. The
truck has struggled against models from General Motors Co., Ford Motor Co. and Chrysler, which dominate the
full-size pickup market. In 2012, the Detroit companies sold just over 1.5 million full-size pickups in the U.S.
The decision to use a Cummins diesel engine in the Titan line comes a few months after Nissan hired former
Chrysler Ram brand chief Fred Diaz to be Nissan's U.S. sales chief.
The deal also marks a new effort by Nissan to expand in the truck market. In early 2008, Nissan had said
Chrysler would let it buy its RAM truck platform for the next version of the Titan in exchange for allowing Chrysler
to use a compact car design. However, that pact fell apart when Chrysler slid toward bankruptcy.
Cummins was developing a diesel engine for Chrysler's light-duty Ram 1500, but the contract was voided in
Chrysler's 2009 bankruptcy. When Chrysler decided to restart the diesel program for its light-duty truck, it used an
engine from parent Fiat SpA instead of reviving the Cummins engine.
Cummins' financial performance recently has been hurt by weaker engine demand from heavy-duty truck makers
and manufacturers of mining and construction machinery.
Cummins is the largest supplier of heavy-duty truck engines in North America, accounting for about 40% of the
market.
---
Bob Tita contributed to this article.
Document J000000020130820e98k0001c

U.S. Car Plants Shift to Top Gear
U.S. Car Plants Shift to Top Gear

By Christina Rogers
1,323 words
17 August 2013
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DETROIT -- More U.S. auto plants are cranking out cars around the clock like never before, a change that is
driving robust profit increases at Detroit's Big Three.
After years of layoffs, plant closures and corporate bankruptcies, U.S. auto makers and parts suppliers are
pushing factories to the limits. At General Motors Co., Ford Motor Co. and Chrysler Group LLC, more flexible
union agreements now allow the companies to build cars for 120 hours a week or more while paying less in
overtime pay.
Nearly 40% of car factories in North America now operate on work schedules that push production well past 80
hours a week, compared with 11% in 2008, said Ron Harbour, a senior partner with the Oliver Wyman Inc.
management consulting firm.
"There has never been a time in the U.S. industry that we've had this high a level of capacity utilization," he said.
The Detroit auto makers closed 27 factories following the financial crisis as GM and Chrysler went through
government-led bankruptcies. But U.S. vehicle sales have roared back from the trough of 10.4 million in 2009.
In July, U.S. car and light truck sales ran at an annualized pace of 15.8 million, up from a 14.2 million pace a year
ago. Auto sales hit a peak rate of 17.5 million in 2005. The industry had 925,700 employees that year. Last year,
the workforce stood at 647,600.
The combination of rising sales and tight production capacity helped Detroit auto makers last year generate the
second-highest profit in the industry's history. Ford's North American auto operations racked up $4.77 billion in
pretax profit during the first half of this year, while GM North America reported $3.4 billion in earnings before
interest and taxes.
But fresh from a near-death experience during the recession, auto makers are reluctant to put money into bricks,
mortar and machinery that could become a drag on profits if car sales fall. Volkswagen AG's new $1 billion
Chattanooga, Tenn., factory recently cut 500 workers after sales of its new Passat sedan swooned.
So instead, car makers are squeezing as much as they can out of the factories and the people they have.
For Detroit's auto makers, changes in union labor contracts have been critical to running factories harder.
Through a series of agreements negotiated with the United Auto Workers union, the Detroit Three now can
schedule work at night and on weekends without paying as much in overtime as they would have in the past.
Adding a third shift, as many plants have done, also reduces overtime. Overtime pay also starts after 40 hours a
week, not after eight hours a day as in the past. On top of those savings, a newly hired Big Three factory worker
now earns about $15 an hour versus $28 an hour for veteran workers, under postrecession labor pacts.
In Toledo, Ohio, Chrysler is building all the Jeep Wranglers it can and dealers say they are still short on the
hot-selling model. The plant has been running nearly round the clock, churning out about 800 Jeep Wranglers a
day and using overtime to staff production lines 20 hours a day, six days a week for the past two years.
Temporary workers fill in when regular employees aren't available.
Workers don't even have to leave the factory to get a bite to eat; there are three Subway locations there.

Toledo factory managers recently changed break schedules to squeeze out even more production. Instead of
shutting down the assembly line eight times a day for routine breaks, they have hired extra workers to fill in during
breaks, so the line doesn't stop running.
The result: about 70 more Wranglers a day. With a starting price of $22,295 each for the vehicle, that is $1.6
million or more in additional revenue a day.
"We've been able to raise the output of the plants without buying a lot of hardware," said Scott Garberding,
Chrysler's manufacturing chief.
Stretching workers and plants can only go so far.
James Spizzirro, 33 years old, a worker at Hyundai Motor Co.'s Montgomery, Ala., factory, said the South Korean
auto maker's decision last year to add a third shift came as a relief. Before that, he was working 10-hour-a-day
shifts with overtime.
"It was very grueling," he said. "You make great money but the toll it takes on the body, and the time away from
family gets hard to deal with."
Hyundai's decision to hire an additional 800 workers boosted the plant's yearly production to about 385,000
vehicles, about 150,000 more than two years ago when the factory ran two shifts a day. The factory's 33 parts
suppliers also created extra shifts and hired about 700 workers.
Finding the right employees to do the physically intensive work can be a challenge. "People who know how to
build cars have disappeared," says Chrysler Vice President Mauro Pino. At its Toledo plant, Chrysler recently
hired about 1,200 to build a new Jeep, "all of them were new to the industry," he said.
Of those who applied for the work, 70% were rejected, mostly because they couldn't pass initial assessment tests,
Mr. Pino said.
GM is running six of its U.S. plants through the night on three-shift schedules. Last year, GM produced 3.24
million vehicles in North America compared with 4.52 million in 2007 -- when it had five more assembly factories.
Ford has gone a step further, adding a fourth crew of workers at some engine and transmission plants to keep
those factories running 152 hours out of the 168 hours in a week.
The techniques have helped expand production by 600,000 vehicles during the past 15 months -- the equivalent
of about three assembly plants, says James Tetreault, Ford's vice president of North America manufacturing.
Ford doesn't plan to build a new North American assembly plant, he says.
"In an ideal world, we'd like all our plants to run around the clock, 365 days a year," says Mr. Tetreault. "That
would be a financial dream. But we don't know how to do that yet."
Many component suppliers are stretched to the hilt trying to build enough parts to keep up with new-vehicle
orders. The auto industry is now building about the same number of vehicles as it did in 2007, but with about
100,000 fewer employees, said Neil De Koker, president of the Original Equipment Suppliers Association.
"For some suppliers that's a real challenge, especially if you're a smaller, family-owned company," Mr. De Koker
said. "They have to ask, 'Should I invest $5 million and take the risk the market won't turn.'"
The big Japanese auto makers aren't following the round-the-clock trend. Honda Motor Co. and Toyota Motor
Corp. run two shifts a day and offer workers overtime as needed to increase output. If a particular model is in
short supply, the two can add production to plants that build multiple models on the same line.
Mike Robinet, a senior analyst for consultants IHS Automotive, says auto makers relying on multiple shifts will
soon have to invest in plant expansions or new factories to avoid missing out on sales.
"We are bumping up against the edge," he says.
But Ford's Mr. Tetreault says there are always new ways to crank out more cars from existing plants. "We didn't
think we could run plants 120 hours [a week] and now we're doing it pretty routinely," he said. "As a
manufacturing guy, I never say we're maxed out."
---

Jeff Bennett contributed to this article.
Document J000000020130817e98h0003r

Ford will cut estimate of C-Max's mileage Dell's earnings drop amid PC sales slide
A-Section
Ford will cut estimate of C-Max's mileage Dell's earnings drop amid PC sales slide
828 words
16 August 2013
The Washington Post
WP
FINAL
A12
English
Copyright 2013, The Washington Post Co. All Rights Reserved
Ford will lower the advertised fuel-economy ratings on its C-Max hybrid by up to seven miles per gallon, the
company said Thursday, following complaints from consumers and industry experts that the model's actual
mileage fell short of claims.
Because discrepancies between advertised mileage ratings and real-world mileage affect a number of
manufacturers, especially of hybrid gasoline-electric vehicles, the Environmental Protection Agency said
Thursday that it plans to update its labeling regulations.
The EPA said the 2013 Ford C-Max would be relabeled under its new ratings system to reflect estimated fuel
economy of 40 miles per gallon on the highway, 45 mpg in the city and 43 mpg combined. Previously, the C-Max
was rated at 47 mpg highway, city and combined.
Ford said it will send checks to C-Max customers to make up the difference in fuel costs - $550 to owners and
$325 to lessees.
The EPA said it tested the C-Max after receiving consumer complaints that the vehicle did not achieve the labeled
mileage.
The move is a blow to the second-largest U.S. automaker, which has touted its superior fuel efficiency and has
been vocal in its desire to overtake Toyota as the leader of the U.S. hybrid segment.
Dell's woes worsened during its most recent quarter as the slumping personal computer maker resorted to
rampant price cutting to slow a sales decline driven by a growing reliance on smartphones and tablets to connect
to the Internet and perform other technological tasks.
The discounting contributed to a 72 percent drop in Dell's fiscal second-quarter earnings.
The disheartening results announced Thursday could help Dell's board persuade more of the company's
stockholders that they're better off accepting a buyout offer from a group led by chief executive Michael Dell
rather than risk further financial deterioration in the months ahead.
After Dell's report came out, ISI Group analyst Brian Marshall advised shareholders to "take the money and run"
in a research note that referred to a 1976 song by the Steve Miller Band.
Shareholders are scheduled to vote on Michael Dell's $24.8 billion bid Sept. 12.
The proposal faces fierce resistance from two major Dell stockholders, billionaire Carl Icahn and investment fund
Southeastern Asset Management, who contend that the Round Rock, Tex., company is worth more than the
$13.88 per share being offered by Michael Dell and his main ally, Silver Lake Partners.
l Federal investigators found no initial evidence that a UPS cargo jet suffered engine failure or was burning before
it clipped trees at the end of a runway and slammed into a hillside, killing the two crew members on board,
officials said. UPS on Thursday night identified the victims as Capt. Cerea Beal, Jr., 58, of Matthews, N.C., and
First Officer Shanda Fleming, 37, of Lynchburg, Tenn. In an e-mail, the company said the Jefferson County, Ala.,
medical examiner had confirmed their identities. Robert Sumwalt, a member of the National Transportation Safety
Board, said investigators hope to get additional evidence from data and voice recorders that were pulled from the
plane's burned-out tail section earlier in the day.
l Average rates on U.S. long-term fixed mortgages remained steady for a second straight week. Mortgage buyer
Freddie Mac said Thursday that the average on the 30-year loan remained unchanged at 4.4 percent. That is a
full percentage point higher than in early May, when rates neared record lows. Still, rates remain low by historical
standards. The average on the 15-year fixed loan edged up to 3.44 percent from 3.43 percent.
l The Cayman Islands said it has reached an agreement with the United States to provide information on
accounts held by American citizens to comply with a sweeping U.S. law designed to combat tax evasion. The
British Caribbean territory, considered the world's sixth-largest financial center and a major haven for mutual
funds and private equity, said the texts of the new pacts will be made public once an official signing ceremony is
held.
l Former press baron Conrad Black is banned from acting as a director of a U.S. company and must pay $4.1
million in restitution in a settlement with the Securities and Exchange Commission. The settlement ends a
long-standing lawsuit over Black's dealings as the head of the Hollinger media empire. The final judgment by the
SEC, announced Thursday, followed Black's appeal of an October 2012 judgment that ordered him to pay $6.1
million. He was released from U.S. prison more than a year ago after serving a sentence for fraud and obstruction
of justice.
l 8:30 a.m.: Housing starts for July and second-quarter productivity data released.
WP20130816digest0816
Document WP00000020130816e98g0003d

Corporate News: Ford Cuts Hybrid's Fuel Claim
Corporate News: Ford Cuts Hybrid's Fuel Claim

By Mike Ramsey
805 words
16 August 2013
J
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English
Ford Motor Co. said Thursday it would cut the fuel-economy rating for its C-Max hybrid, following an investigation
by the U.S. Environmental Protection Agency that triggered a broader review of the mileage claims for
gas-electric hybrid vehicles.
Ford will cut the C-Max hybrid's fuel economy rating to 43 miles per gallon in combined city and highway driving
from 47 mpg. The company said it also will send refund checks for $550 to customers who bought a C-Max.
Customers who leased the car will get refunds of $325.
Ford is facing lawsuits over the C-Max's mileage from some disappointed customers, company officials said
during a briefing Thursday afternoon. It isn't clear how much the refund will cost the company. Ford has sold
about 32,000 C-Max hybrid models. The company said it is making improvements to boost the mileage of 2014
C-Max hybrids, but didn't say what the mileage rating for the car will be.
The EPA, in a statement, said Ford based the original mileage claim for the C-Max on testing performed with a
Ford Fusion hybrid, which has a different body shape, but uses the same engine, transmission and is in the same
weight class. This was allowed under current EPA regulations.
The C-Max's new, lower mileage rating is based on tests done with that car. The EPA didn't propose any
reprimand or punishment for Ford.
"This is allowable under our regulations," said Chris Grundler, director of the EPA's Office of Transportation and
Air Quality, in an interview. "What we know now is that even small changes on high-fuel-economy vehicles
produce big differences in the results."
Toyota Motor Corp., which uses similar hybrid powertrains in different models, tests each model individually, Mr.
Grundler said.
The EPA recently tested a number of hybrid models to determine whether the agency's existing procedures for
estimating mileage were realistic, Mr. Grundler said. "What we found is the results for hybrids were very close to
the label. This is strictly a question of whether or not the Ford C-Max should have been tested separately." The
agency plans "to take a very careful look at how manufacturers group vehicles for labeling purposes," he said.
Ford's mileage claims for the C-Max hybrid have been a sore spot for the No. 2 U.S. auto maker since late last
year, when buyers began complaining that the car didn't achieve its rated mileage in ordinary driving. In July, Ford
announced a free software upgrade for 77,000 C-Max, Fusion and Lincoln MKZ hybrids to improve fuel economy.
Questions about the C-Max arose after Korean auto makers Hyundai Motor Co. and Kia Motors Corp. lowered
mileage figures on a host of vehicles following numerous complaints by customers that the vehicles didn't achieve
their targets.
In November, the EPA made Kia and Hyundai restate the mileage on 900,000 vehicles sold from 2010 through
2012. The companies offered to pay consumers for the difference in fuel costs over the period.
The separate controversies put a spotlight on the system that allows auto makers to largely certify their own
mileage claims for their vehicles.
The EPA directly tests only about 15% of the cars sold annually to see if they attain producers' stated mileage
figures. EPA officials review test materials from auto makers to detect deviations from proper procedure. One
problem with testing hybrids in a lab setting is that a hybrid's operations can be made to look better on the test in
a way that gasoline engines can't.
Other hybrid car manufacturers said they were prepared to work with whatever new procedures the EPA requires.
"If there is a relabeling that is needed, then we will work with (the government) and make that happen," said
General Motors Co. North America president Mark Reuss. The Chevrolet Volt plug-in hybrid is currently rated at
37 miles per gallon running on gasoline alone. But the car can operate for up to 35 miles on battery power alone.
The decision to restate the C-Max's mileage is a blow to Ford's efforts to compete with GM and Toyota for
consumers who want high-mileage hybrid cars. Toyota is the top seller of hybrids, primarily because of the
popularity of its Prius lineup. Ford has climbed to No. 2 in the segment within the past year thanks to the
introduction of the C-Max and Fusion hybrids.
"Toyota is fine with the current system, but supports any action taken by the EPA to provide good information to
our customers on fuel economy," said John Hanson, a Toyota spokesman.
Document J000000020130816e98g0003i

U.S. to Bring Gas Mileage Rules to Era Of Hybrids

U.S. to Bring Gas Mileage Rules to Era Of Hybrids
By BILL VLASIC
939 words
16 August 2013
The New York Times
NYTF
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English
DETROIT -- Federal regulators are planning changes to vehicle fuel-economy ratings after the Ford Motor
Company said Thursday that it was cutting the miles-per-gallon rating on one of its popular hybrid models.
The Environmental Protection Agency said it would update its labeling rules -- which date to the 1970s -- to
resolve disparities among the growing number of hybrid and electric vehicles on the market.
''E.P.A. welcomes this emerging trend and will be working with consumer advocates, environmental organizations
and auto manufacturers to propose revised fuel-economy testing regulations to ensure that consumers are
consistently given the accurate fuel economy information on which they have come to rely,'' the agency said in a
statement.
The move comes as more consumers and analysts are challenging the accuracy of government fuel-economy
stickers on new models. At the same time, automakers are pushing to improve fuel economy as strict new
government mileage standards are phased in.
In Ford's case, the automaker said it would reduce the stated fuel economy of its C-Max hybrid utility vehicle to 43
miles per gallon from 47 miles per gallon in combined city and highway driving.
A Ford executive said Thursday that the company was voluntarily reducing the rating, and would offer cash
payments to C-Max owners as reimbursement for additional fuel consumption.
Raj Nair, Ford's head of global product development, said that reducing the rating would allay the concerns of
consumers who are not achieving the previously stated fuel-economy number.
''We are taking actions with our popular C-Max hybrid so that customers are even more satisfied with their
vehicle's on-road fuel efficiency performance,'' he said.
Ford said it would make a good will payment of $550 to any customer who bought the current C-Max model and
$325 to consumers who leased one.
Industry analysts said Ford had to address the growing concerns over the reliability of its fuel-economy claims.
''Ford wouldn't take such a drastic step if it didn't feel that it was absolutely necessary, even if it's just to protect its
image,'' said John O'Dell, green-car analyst at the auto-research site Edmunds.com.
It is not clear how much the consumer campaign will cost Ford, the nation's second-largest automaker behind
General Motors.
Mr. Nair said the company had sold about 32,000 C-Max hybrids since it was introduced last year.
Like most conventional hybrids, the C-Max hybrid is alternately powered by a gasoline engine and a battery. The
system allows the vehicle to consume considerably less fuel than a car equipped solely with a gas engine.
The current fuel economy rules specify that automakers can use the same fuel-economy numbers for similar-size
vehicles equipped with the same engines and transmissions.

The government requires automakers to test the fuel economy of the biggest-selling model in a specific category.
In its midsize hybrid class, for example, Ford tested the Fusion sedan version because it was the top seller.
When the Fusion hybrid achieved 47 miles per gallon in combined city and highway driving, Ford was allowed to
apply that rating to the C-Max hybrid as well.
But consumers and automotive publications have questioned whether the C-Max hybrid could achieve that rating.
Ford also faces several lawsuits that challenge the vehicle's fuel-efficiency claims.
Mr. Nair said that many variables can affect the real-world fuel economy of a hybrid vehicle, including weather
conditions and driving behavior. ''With hybrids, there is a lot more variability,'' he said.
He added that it was difficult to make an exact comparison between the C-Max, a utility vehicle with a chunky
design, and the sleeker-looking Fusion passenger car.
Ford expects to improve the C-Max hybrid's fuel efficiency when a revamped version of the vehicle is introduced
at the end of this year.
In the meantime, the company hopes the cash payments to consumers and its revised mileage sticker will defuse
the controversy surrounding the C-Max.
''Our actions enhance Ford's commitment to fuel-economy leadership, Mr. Nair said.
The competition among auto companies on fuel-economy claims is intense, particularly as more hybrid models
and electrified vehicles are introduced.
Last year, the South Korean automakers Hyundai and Kia had to back down on inflated fuel-economy claims after
the government found the companies had submitted flawed test results.
Automakers are also rapidly changing their vehicle fleets to meet more stringent government fuel-economy
requirements in the future. Besides bringing out more hybrids and electric models, the companies are shrinking
the size of regular gas engines and trimming weight wherever they can.
But the emphasis on fuel economy also comes at a time when consumers are becoming more sophisticated and
aware of vehicle performance -- including gas-mileage targets. On newer electric and hybrid models, for example,
drivers can see on the dashboard display exactly how many miles per gallon the vehicle is achieving.
The E.P.A. did not specify a time frame for proposing changes to fuel-economy labeling requirements. But the
agency said revisions were necessary because of the rapid pace of innovation in the industry, particularly for
hybrid models.
''These vehicles are more sensitive to small design differences than conventional vehicles because advanced,
highly efficient vehicles use to so little fuel,'' the agency said.
Ford said it would cut the stated fuel economy on its C-Max hybrid to 43 miles per gallon. (PHOTOGRAPH BY
FORD MOTOR) (B3)
Document NYTF000020130816e98g0007l

A Coupelike Sedan Suitable for Caligula
BEHIND THE WHEEL | BMW 6 SERIES GRAN COUPE

Automobiles; SECTAU
A Coupelike Sedan Suitable for Caligula
By JOHN PEARLEY HUFFMAN
1,337 words
11 August 2013
The New York Times
NYTF
1
English
SANTA BARBARA, CALIF. -- It's the screwiest name on any new car, a name that seems swiped from the
mid-1970s heyday of the Ford Gran Torino Brougham, the Dodge Royal Monaco Brougham and the Oldsmobile
Delta 88 Royale Brougham.
More shocking, it's on a BMW, a company generally known for rationality. But there the name is, discreetly
appearing in chrome in the quarter windows of each rear door: Gran Coupe.
There's plenty of space to add ''Brougham,'' and BMW should. At $111,995, the as-tested price of a 650i Gran
Coupe, it darn well ought to be a Brougham.
The Gran Coupe is an extension of BMW's longstanding 6 Series line of two-door coupes and convertibles. But
it's really not a coupe at all -- rather, it's its own four-door thing. The front sheet metal is carried over from the 6
Series coupe, but the wheelbase is stretched more than four inches, to 116.9 inches. That, incidentally, is the
same wheelbase as the 5 Series sedan with which the 6 Series shares most of its structure, chassis, suspension
and drivetrain components.
The Gran Coupe is BMW's tardy response to the low-slung Mercedes CLS and the handsome Audi A7, both
squashed four-doors styled with lower roofs and radically raked windshields. Underneath, these Germans don't
differ much from their makers' more conservative, more conventionally proportioned sedans. But the styling
influence of the CLS is also apparent in mainstream sedans like the Kia Optima, Ford Fusion and Toyota Avalon.
In the United States, the Gran Coupe is offered as a 640i with a 315-horsepower twin-turbocharged 3-liter straight
6, as a 650i with a 445-horsepower twin-turbo 4.4-liter V-8 or as an M6 with a version of that twin-turbo V-8
fortified to produce 560 horsepower. All-wheel drive is optional on the 640i and 650i.
My 650i test car had the M Sport package, a giant glass roof and other options that knocked the sticker up from
the $87,395 base price for the 2013 model.
But while the CLS and A7 are merely sexy, the Gran Coupe is as decadent as red satin sheets on a giant round
bed under a mirrored ceiling. The Mercedes and Audi try to seduce you, but this fantastic looking BMW is ready
for a weekend at Caligula's. It is, by far, the most exuberantly and boisterously styled car in BMW showrooms
today.
The Gran Coupe is 2.8 inches lower than its sibling 550i sedan. So getting into the car is best done by putting
your rump on the seat first and then jackknifing your body a bit to duck under the roof. Depending on the length of
your legs, the swivel into a perfectly shaped seat can either be graceful or a slam of your Allen Edmonds cap-toe
oxfords into the door.
Once inside, the base of the windshield seems 1.6 kilometers away, but the driving position is nearly perfect. The
leather-covered M Sport steering wheel is thick rimmed, beautifully shaped and perfectly placed in relation to the
paddle shifters of the 8-speed automatic transmission. Ahead of you is a straightforward circular tachometer and
speedometer. Throw in some discreet carbon fiber trim and loads of high-quality leather -- driving environments
don't come any better looking.

But then you grab for the shifter and the illusion is shattered. BMW's bizarre shifter operates with counterintuitive
imprecision: you push forward to get into reverse, you engage Park by pushing a button on the shifter itself and,
just to unlock the wand, you need to use your thumb to hold down a button on the side.
Of course it's all-electronic; the problem is that it feels electronic, too. There's no sense that the shifter is
physically attached to the car.
That sense of electronic distance between car and driver is amplified by BMW's now-entrenched iDrive system for
controlling subsidiary systems including navigation, entertainment and communications. Though iDrive has
improved through the years, it's still not something that operates intuitively. You could drive this car through a
three-year lease without ever mastering the intricacies of the social-networking apps built into the system.
Press the Start button and the V-8 quietly whirs to life. There's a rumble in its exhaust note that's obvious from
outside the car, but so subdued inside that you don't notice it unless you're listening for it. There's plenty of
throttle travel in the pedal, so it's easy to keep the engine running at low speeds where, around town, the huge
amount of torque (a constant 480 pound-feet from 2,000 to 4,500 r.p.m.) allows all those gears in the
transmission to do most of the work.
Dip further into the throttle, however, and the car rips through the atmosphere as if it could churn the nitrogen in
the air into butter. In testing by Car and Driver, a 650i Gran Coupe with all-wheel drive dashed to 60 m.p.h. in only
4.6 seconds.
BMW lumps its fuel saving technologies under the Efficient Dynamics label, including brake-energy regeneration
that charges the battery when the car is decelerating and a start-stop system that shuts down the engine when
the car isn't moving. While the brake energy system works invisibly, start-stop does not. Take your foot off the
brake to resume driving, and the starter can be heard spooling, whirring and cranking back to life. The start-stop
can be turned off, but its default setting, each time you restart the car, is on.
The E.P.A. rates the 650i Gran Coupe at 17 miles per premium-grade gallon in town, and 25 on the highway. If
your foot is heavy, your numbers will suffer.
Leave the adjustable suspension in comfort mode and the Gran Coupe offers a reasonable ride and easygoing
manners. Get into the Sport or Sport Plus modes and your coccyx starts to feel road imperfections as if they were
embedded in the seat. Riding on the 20-inch M Sport wheels (18s are standard), the road grip feels almost infinite
diving into a corner, no matter the suspension setting. There's not enough road feel through the steering, but the
rack is perfectly weighted and precise.
Concede all that, and there are still three big problems with this car. First, it may look great, but the 5 Series does
everything the Gran Coupe does while offering more interior room. With the low roof, the back seat can feel truly
claustrophobic, and the stingy legroom will have even fifth-graders complaining.
Second, the electronic barriers BMW has erected in this car keep the driver from developing a direct, mechanical
connection to it. Like so many current cars, the Gran Coupe seems to think it's smarter than the driver. It never
seems to fully commit to sharing all it knows.
Finally, the Gran Coupe is too expensive. Not expensive because it's a luxury BMW (that's a given), but in relation
to alternatives from BMW itself. The 650i Gran Coupe starts at $89,325 for 2014 while the hugely capable,
mechanically similar 550i sedan starts at $64,825. That huge $24,500 difference -- the price of a Honda Accord
sedan -- is hard to justify.
The looks of the Gran Coupe promise an automotive orgy. But like so many orgies, this one lacks intimacy.
NAME GAME: An extension of the 6 Series line, the Gran Coupe is not a coupe. (AU1); COMMAND CENTER:
With a thick-rimmed M Sport steering wheel, perfect driving position and discreet carbon-fiber trim, the Gran
Coupe's interior is among the best on the market. (PHOTOGRAPHS BY BMW OF NORTH AMERICA) (AU5)
Document NYTF000020130811e98b00040

Corporate Watch
Corporate Watch
393 words
8 August 2013
J
B5
English
JET AIRWAYS
Indian Carrier Orders
50 Boeing 737 Max Planes
Jet Airways (India) Ltd. has ordered 50 Boeing Co. 737 MAX planes valued at as much as $5.37 billion at current
list prices, joining other Indian carriers expanding capacity to keep up with a potential rise in travel demand.
Boeing and Jet Airways haven't officially announced the deal, which marks the first 737 MAX order from India, but
a person familiar with the matter said the order was placed two months ago. Depending on the type of aircraft, the
deal is estimated to cost between $4.1 billion and $5.37 billion, though airlines usually negotiate purchases below
list prices. The companies could make an announcement on the deal shortly, the person said.
-- Santanu Choudhury
---
FORD MOTOR
New Work Shifts Increase
Vehicle-Making Capacity
Ford Motor Co. has boosted its North American vehicle making capacity by 600,000 vehicles during the past 15
months, and can keep expanding output without building a new factory, its North American manufacturing chief
said Wednesday.
"There is a misconception that we are bumped up against our max capacity and. . .will have to build another
plant," Ford Vice President of North America Manufacturing James Tetreault said on the sidelines of an annual
automotive conference. "There are always ways of increasing production by analyzing constraints and breaking
those constraints whether they are in our plants or our suppliers."
By cutting new deals with the United Auto Workers to change traditional work patterns and adding shifts, the
company has over the past 15 months hired 8,000 people, and added 600,000 units of capacity.
-- Jeff Bennett
---
CARGILL
Quarterly Earnings Soar
As Drought's Effects Fade
Cargill Inc.'s quarterly earnings soared on strength in grain handling and food ingredients, as the company
overcame the lingering effects of a historic U.S. drought.

The privately held company on Wednesday reported a profit of $483 million for its fiscal fourth quarter ended May
31, up from $73 million a year earlier. The results capped a fiscal year in which earnings nearly doubled.
Cargill's fourth-quarter revenue increased 4% to $35.4 billion.
For the full fiscal year, earnings were $2.31 billion, up from $1.17 billion. Full-year revenue increased 2% to
$136.7 billion.
-- Ian Berry
Document J000000020130808e98800031

Tesla's Stock Is Outrunning Its Superfast Electric Car
Tesla's Stock Is Outrunning Its Superfast Electric Car

By Mike Ramsey
908 words
7 August 2013
J
B1
English
Tesla Motors Inc. Chief Executive Elon Musk doesn't run his Silicon Valley electric-car maker by traditional auto
industry rules, and investors are so far rewarding him by putting a value on the company that defies easy
comparisons.
Tesla will report second-quarter results Wednesday, and most analysts are forecasting a 17-cent-a-share loss. In
an industry where strategy is driven by the quest for economies of scale, Tesla is tiny. It delivered just 1,400
Model S electric sedans in July, according to researcher Autodata Corp., or about 1% of Ford Motor Co.'s U.S.
sales for the month.
Yet Tesla's share price has more than quadrupled in the past year, to $142.15 on Tuesday. That gives it a market
value of about $17.15 billion, a quarter of Ford's, and about 70% more than Fiat SpA -- majority owner of Chrysler
Group LLC.
Despite its small size, the Palo Alto, Calif., company has become among the auto industry's most closely
followed. General Motors Co. CEO Dan Akerson recently ordered a team of GM employees to study Tesla and
the ways that it could challenge the established business model.
Even Wall Street analysts who are enthusiastic about Tesla's prospects have put target prices on the company's
shares that are much lower than their current market price.
A Tesla spokesman wouldn't comment on the stock price on Tuesday ahead of disclosing June quarter results.
But Mr. Musk and other company officials have said in the past that they foresee a Tesla that is building 400,000
or 500,000 cars a year, and can achieve a market capitalization of as much as $43 billion by 2022. That is the
level at which Mr. Musk can collect a chunk of stock under a multi-step compensation plan adopted by Tesla's
board last year.
Most car companies are judged on the results they can deliver in the near term. Tesla investors are buying on
results that probably won't exist until sometime in the next decade. And even that is only if it can deliver flawless
manufacturing execution, continued annual growth and crack through the consumer concerns about driving range
and upfront costs that have restrained demand for all-electric vehicles so far.
Analysts are expecting the company to lose 68 cents a share this year and earn 50 cents a share next year,
according to Zacks Investment Research. By that 2014 projection, its forward price/earnings ratio is 289,
compared with Ford's P/E of just under 10 and Toyota Motor Corp.'s P/E of less than 1, both based on 2014
earnings projections, according to Zacks.
Tesla's P/E ratio is more akin to Internet stocks than car makers. Supporters say that is because the company's
electric-vehicle sales strategy is disruptive and the auto maker possesses groundbreaking technologies.
Deutsche Bank recently raised its target price for the company's shares to $160. The bank estimates Tesla will be
able to achieve operating profit margins of 20% -- or about twice that of BMW AG in its most recent quarter -- as it
ramps up sales and spreads costs over a larger number of vehicles.
"We expect [Tesla] to reach at least 200,000 units by near the end of the decade, which implies about 5% of what
we calculate as the addressable market of comparable vehicles in terms of capability and price," the bank said in
a note to investors last month.

Tesla sold 8,931 vehicles this year through June, according to Autodata. In contrast, Porsche delivered 81,565 of
its big ticket and high margin vehicles globally during the same period.
Wall Street analysts assume that Tesla will sell around 100,000 of the company's "Gen 3" models -- electric
sedans that are expected to start at about $35,000 when available in late 2016. Investors are counting on Tesla
being able to deliver a car that competes against luxury sports cars such as the BMW 3 Series and Audi A4 -- and
not similarly-priced electric cars.
Established luxury brands also are planning to challenge Tesla with plug-in models of their own, such as the
BMW i3 and a Cadillac ELR plug-in hybrid.
Many analysts say the shares currently are overpriced based on their sales and profit projections. Adam Jonas of
Morgan Stanley says Tesla's shares should be trading at about $109.
"We argue that Tesla cannot be valued on traditional near-term multiple metrics like traditional auto companies,"
Mr. Jonas said.
Barclays senior analyst Brian Johnson is pegging Tesla at $90 a share. He thinks that Tesla, at a minimum, can
sell about 50,000 Model S and Model X vehicles a year around the globe, making it is successful "niche luxury car
maker." But that should only get Tesla to about $60 a share in value.
To be worth $90 a share, Tesla has to make a credible entry-level luxury car that he thinks will be priced at
between $42,000 and $45,000. "They are going to have to do in five years what it took Audi decades to do --
break into the volume entry-level luxury market."
Today's stock price, he said, reflects investors who believe Mr. Musk "is the next Henry Ford."
Document J000000020130807e9870003m

A Jersey Spin in a Fiesta
WHEELS
Automobiles; SECTAU
A Jersey Spin in a Fiesta
By BENJAMIN PRESTON
1,097 words
4 August 2013
The New York Times
NYTF
4
English
Ford gave us an opportunity to take its 2014 Fiesta for a spin Tuesday morning; great timing, considering it would
have been Henry Ford's 150th birthday. From the brief interaction I had with the car, the new Fiesta turned out to
be a capable, if somewhat predictable, economy car. But there was one thing that set it apart from its competition:
styling.
Ford can make all the claims it wants about the car's fantastic fuel economy -- when equipped with the plain-Jane
1.6-liter engine and an automatic transmission, the E.P.A. estimates that the Fiesta gets 30 miles per gallon in the
city and 40 m.p.g. on the highway -- and up-to-date gadgetry, but what first caught my notice was the bold colors
available on the car. A line of Fiestas sat on a breakwater in Atlantic Highlands, N.J., Tuesday, their bright red,
brilliant blue and electric green paint popping out against the harbor's blue-gray water.
The undoubtedly Aston Martin-esque grille that made its debut on the 2013 Ford Fusion has found its way to the
Fiesta's previously unremarkable front fascia. It makes a difference, and Ford seems to know that, making sure
the chromed luxury sports car hint is the leading edge of even the base Fiesta. The alphabet soup Ford uses to
distinguish various Fiesta trim levels was a little confusing (S, SE, Titanium, ST), but the bottom line seemed to
be that the ST, which was not available for testing Tuesday, is the one you want.
Luckily, Ford kept our short driving loop away from hills and freeways. I say that because performance on the
Fiesta's base, naturally aspirated 120-horsepower 1.6-liter 4-cylinder engine in the car I tested recalled the days,
30 years ago, when economy cars got great gas mileage because they lacked power. John Davis, chief engineer
for Ford's North American small-car lineup, and also my back-seat passenger, said the Fiesta topped out at about
113 miles per hour, speed-wise. Just as well, as its suspension and wheels aren't designed for high speed. But
getting up to such a clip wouldn't be easy. The 1.6 is just fine, and about what anyone could reasonably expect
from an economy car, but it wasn't really what I'd call sprightly. Mr. Davis told me its peak power comes at about
the 5,000 r.p.m. range, and in normal city driving, it's difficult to keep a car's mill wound up that high.
With Mr. Davis in the back seat, I felt a little self conscious about driving the Fiesta I'd been assigned into the
upper reaches of its r.p.m. range. Doing so isn't the way most placid suburban motorists behave, and because we
were in a placid suburban environment, I decided to follow suit. And in normal traffic, on normal roads, not having
a ton of power didn't matter. The little car did everything it was supposed to in coastal New Jersey's mellow late
morning traffic. Which is to say, it got me from one place to another without breaking down or otherwise
embarrassing me.
Now that I've stated the obvious about the base-engine's mild performance, I'll move on to note that the manual
transmission-equipped car I tested was fun to drive. It was small, and at about 2,700 pounds, relatively light,
making cornering fast and fun. There was a bit of a lag to the car's electric-assist steering, but once I got used to
how it responded to a quick jerk to one side or the other -- the delay had surprised me when, five minutes after
sliding behind the wheel, I had to swerve to avoid running over some shoes that had been spilled onto a
40-m.p.h. thoroughfare -- it was O.K.
The car's interior was delightfully simple, with an updated version of the three-main-knob control layouts that used
to be common on cars in the '90s. The center stack appeared uncluttered, and although the 6.5-inch MyFord
Touch infotainment center screen was affixed to the top of the dash in what looked to be the manner of an
afterthought, it was simple enough to use.
The sedan version, which I did not drive, managed to look a bit more elegant than its hatchback sibling, and its
cargo space, although not as tall as the hatchback's, was much larger than I expected it to be. Mr. Davis told me
that although the sedan looked longer than the hatch, they had the same dimensions. For front-seat passengers,
space was adequate, although I can't imagine larger drivers and/or passengers being especially comfortable in a
Fiesta. A car full of six-footers might also be a tight squeeze. But for my narrow, not especially tall frame, the
driver's and passenger's seats were comfortable and supportive. Although here's a thought for window-sill arm
hangers: the Fiesta's sills are high and make a casual arm drape an awkward, high chicken wing affair.
For someone who needs a little runabout, or something that could take two people and some luggage on long
trips for little money, the Fiesta seems like it would be fine. Even if, on base lower-end models, there's nothing
inside to remind the driver of its exterior attractiveness, the Fiesta is comfortable, and stepping out at the end of a
drive, bright colors, nice lines and that astonishing grille are sure to make a person feel good about the car.
Still, I'm looking forward to trying out the 123-horsepower 1.-liter EcoBoost and the ST Fiestas that Ford officials
kept talking about on Tuesday. Ford told me that the ST would cost more than $21,000 to start; about $6,000
more than the base Fiesta sedan (which includes little besides wheels and seats, and only comes in boring
colors), according to the Ford Web site. After getting online and building the Fiesta I'd entertain owning -- the one
with the 197-horsepower engine, Molten Orange paint and Recaro partial leather seats -- the little car left its
econo-roots as the price climbed to nearly $26,000.
The 2014 Ford Fiesta. (PHOTOGRAPH BY FORD MOTOR)

Document NYTF000020130804e9840002u

Carmakers in U.S. Report Strongest July Sales Since 2006

Carmakers in U.S. Report Strongest July Sales Since 2006
By JACLYN TROP
772 words
2 August 2013
The New York Times
NYTF
3
English
American automakers, buoyed this year by robust sales in pickups, said on Thursday that smaller cars and
midsize sedans were helping to spur growth in the industry to levels not seen since before the recession.
General Motors, the nation's largest automaker, posted the largest overall increase, of 16 percent, with
double-digit sales growth for all four of its brands -- Chevrolet, Cadillac, G.M.C. and Buick. The Ford Motor
Company and the Chrysler Group each said sales rose 11 percent last month on the strength of pickups and
smaller, more fuel-efficient cars.
Over all, it was the strongest July since 2006 for the industry, with sales rising 14 percent, to 1.3 million vehicles.
At that rate, 2013 sales for the industry would be 15.7 million vehicles, up from 14.1 million last year.
''For G.M., July was the most well-balanced month of the year from a retail sales standpoint; trucks were hot, but
so were small cars and family vehicles,'' said Kurt McNeil, vice president for G.M.'s United States sales
operations. ''Our experience shows that the difference between good sales and great sales in a slow-growth
economy is how many new products you have to offer, and we are starting to hit our sweet spot.''
G.M. reported healthy sales of both 2013 models and 2014 models, especially of the newly redesigned Chevrolet
Silverado pickup and the Impala midsize sedan.
With new styling and the chance to get a lower price on an older model, ''you're really attracting a broad range of
customers into the showroom,'' said Donald Johnson, G.M.'s vice president for Chevrolet sales and service.
Sales of the Impala rose 38 percent, helped by its No. 1 ranking last week in Consumer Reports. It was the first
time in 20 years that the magazine had given an American sedan the top spot.
''This is the segment I love to watch,'' said Michelle Krebs of Edmunds.com. ''It is such a vicious battlefield, and an
important one, as it is the biggest single segment in the business.''
Toyota said its sales rose 17 percent, while Honda reported an increase of 21 percent and Nissan 11 percent.
Volkswagen was the only brand to report a drop in sales, of 3.3 percent.
As in recent months, pickups were especially popular in July as a recovery in housing and energy, coupled with
pent-up demand, drew shoppers into dealerships, the automakers said.
Sales for G.M.'s trucks rose 44 percent. Ford said its F-Series sales rose 23 percent, and Chrysler's Ram brand
reported a 31 percent sales increase.
Shoppers also sought out small cars as they downsized and put more emphasis on fuel efficiency, said Erich
Merkle, Ford's United States sales analyst.
Sales of Ford's small cars, including the Focus, the Fiesta and the C-Max, rose 32 percent for the best month
since 2000. G.M. said that sales of the Cruze compact rose 70 percent, and Chrysler said that the Dodge Dart,
with 6,064 sold, was a bright spot for the company.
''Baby boomers are becoming empty nesters and their need for size isn't quite what it used to be,'' Mr. Merkle
said.
He added that younger customers who were looking to buy their first new car were opting for smaller models.
Ford would have sold more of its midsize Fusion sedan and Escape utility vehicle if not for an inventory shortage.
The automaker is increasing capacity at its plants in the fall.
Though sales for the midsize segment were expected to be up over all for the year, the industry had some mixed
results, said Alec Gutierrez, senior analyst at Kelley Blue Book.
''The Honda Accord, Nissan Altima and Toyota Camry each enjoyed solid growth this month, while the Chevrolet
Malibu, Ford Fusion and Chrysler 200 saw year-over-year declines,'' Mr. Gutierrez said. ''The Fusion has been
limited by low inventory, while the Malibu and 200 are each awaiting updates that should help to drive additional
demand.''
The Chrysler Group said that sales of its Fiat and Jeep brands held steady at 2 percent as it prepared to unveil
the new Jeep Cherokee later this year. Dodge sales rose 18 percent, led by the Durango utility vehicle and the
Dart, while sales for the Chrysler brand fell 4 percent last month.
Chevrolet Cruze; Ford Fusion CHARTS: How the Industry Fared; How the Automakers Fared; Most Popular Cars
and Trucks (Source: MotorIntelligence.com)
Document NYTF000020130802e98200037

Corporate News: July New-Car Sales Sizzle, Rise 14% --- Retail Demand Jumps as 2014 Models Roll Onto Dealer Lots; Toyota, Honda Soar as Slower Fleet Purchases Ding Rivals
Corporate News: July New-Car Sales Sizzle, Rise 14% --- Retail Demand Jumps as 2014 Models Roll Onto
Dealer Lots; Toyota, Honda Soar as Slower Fleet Purchases Ding Rivals
By Mike Ramsey and Christina Rogers
554 words
2 August 2013
J
B3
English
New car sales in July accelerated to a pace near that of 2007, when the industry and the U.S. economy were
riding high before the global financial crisis struck.
The top four auto sellers in the U.S. posted double-digit year-over-year gains. General Motors Co., the largest
U.S. auto maker, posted a 16% increase, while Ford Motor Co. and Chrysler Group LLC each reported 11% sales
gains for the month. Toyota Motor Corp., the third-largest seller this year after Ford, posted a 17% gain.
New car and light truck sales in July rose 14% to 1.3 million, according research firm Autodata Corp., putting the
seasonally adjusted annualized sales rate at 15.67 million units. Annual sales last exceeded 16 million in 2007.
The auto industry has been the most consistently improving area of the U.S. economy for the past several years.
Auto and auto-parts makers have added hundreds of thousands of jobs as car and light truck demand rose from
the industry's recent nadir in 2009.
Auto sales are getting a boost from low interest rates and gains in housing construction and energy exploration
and production. Pickup truck sales, which are tightly related to new housing starts, have jumped this year.
GM said July sales of its full-size GMC Sierra and Chevrolet Silverado pickups were up 44% from a year earlier.
Ford's F-series pickup sales were up 23%, while Chrysler's Ram pickup notched a 31% gain.
There is even some evidence that auto makers can't keep up with demand. Hyundai Motor Co. has said it is
producing at maximum capacity and has lost some sales because of inventory constraints.
Adam Silverleib, vice president at Silko Honda in Raynham, Mass., offered a similar tale. "We were challenged
with inventory and had a low days supply, especially CR-V and Accord models. I just physically ran out of
product," he said.
Honda Motor Co.'s July sales jumped 16%, pushing it past Chrysler into fourth place for the month. Toyota's jump
in deliveries moved it past No. 2 Ford for the month in the U.S. for the first time in several years.
GM sales rose to 234,071, Toyota's hit 193,394 while Ford's light-vehicle sales climbed to 193,080. Honda's sales
rose to 141,439 and Chrysler sales increased to 140,102. Nissan Motor Co. said its U.S. sales rose 11% in July
to 109,041 units. Volkswagen AG's U.S. unit said its VW brand sales fell 3.3% as demand for its Golf, Eos and
Jetta small cars cooled. Fuji Heavy Industries Ltd.'s Subaru brand said sales in July jumped 43% to 35,994.
BMW AG said U.S. sales of its BMW brand vehicles rose 139% to 24,043, Daimler AG posted a 22% gain in
sales of its Mercedes-Benz cars to 23,648, and Volkswagen AG's Audi unit posted an 12% increase to 13,064
vehicles.
---
Neal E. Boudette contributed to this article.
Document J000000020130802e9820003o

Corporate News: Corporate Watch
Corporate News: Corporate Watch

516 words
2 August 2013
J
B3
English
FOUR SEASONS
Luxury Hotel Chain Names
Real-Estate Hand as CEO
Four Seasons Hotels & Resorts on Thursday named a veteran real-estate executive as its president and chief
executive, tapping an outsider to lead a global expansion that has moved slower than the company expected.
Allen Smith, currently CEO of Prudential Real Estate Investors, will take over as Four Seasons chief in
September, the luxury-hotel company said. The announcement comes six months after longtime Four
Seasonsexecutive Kathleen Taylor was dismissed as CEO.
The chain was taken private at the market's peak in 2007 by founder and Chairman Isadore Sharp, Bill Gates's
Cascade Investment and Saudi Prince Alwaleed bin Talal's Kingdom Holding Co. at the price of $3.4 billion. Since
then, the investors, namely Cascade, have been concerned about Four Seasons's pace of growth, people familiar
with the matter said.
Mr. Smith and a spokesman for Four Seasons declined to comment.
Four Seasons's choice is the latest example of a major hospitality company looking outside the industry for
leadership, as hotels increasingly rely on top executives with marketing, real estate or other business experience
to grow their brands.
-- Craig Karmin and Kris Hudson
---
FORD
Car Maker, U.S. Settle
For Delayed Recall
Ford Motor Co. agreed to pay $17.35 million to settle a regulator's complaint it took too long to recall vehicles that
could have a defect causing unintended acceleration.
The Dearborn, Mich., U.S. auto maker last year recalled 423,000 Ford Escape sport-utility vehicles because they
could have a flaw that caused the accelerator pedal to stay depressed after drivers took their foot off it. The recall
came after the National Highway Traffic Safety Agency opened a preliminary investigation into the defect.
Ford agreed to pay NHTSA, but denies that it broke any laws. The agreement doesn't release Ford from civil or
criminal liability, the document says.
"We take the safety of our customers seriously and continuously evaluate our processes for improvements," Ford
said in a statement.
-- Mike Ramsey
---
H&M
Clothing Chain Launches
Online Shopping in U.S.
Hennes & Mauritz AB launched online shopping in the U.S. Thursday in a bid to keep pace with rivals cashing in
on the growing preference of consumers to purchase goods online.
The U.S. is the Swedish company's second largest market behind Germany and its e-commerce plan has been
marred by delays, raising questions about its ability to respond to wider strategic shifts. H&M first committed to
offering its line of cheap fashionable clothing to American online shoppers in early 2011.
While the world's second largest retailer remains profitable, Chief Executive Karl-Johan Persson is pushing into
more markets via online and physical stores in order to offset economic malaise in Europe and sluggish
same-store sales.
The company will charge a flat rate of $5.95 for shipping, although it is currently offering free shipping for the first
half of August.
-- Jens Hansegard
Document J000000020130802e98200037

Strong Sales Push Chrysler's 2nd-Quarter Net Up 16%

Strong Sales Push Chrysler's 2nd-Quarter Net Up 16%
By BILL VLASIC
592 words
31 July 2013
The New York Times
NYTF
5
English
DETROIT -- Chrysler said on Tuesday that second-quarter net income increased 16 percent, to $507 million,
mostly as a result of improved sales of core products like Jeep sport utility vehicles and Ram pickup trucks.
Chrysler, the third-largest American automaker behind General Motors and the Ford Motor Company, also
reported quarterly revenue of $18 billion, a 7 percent improvement from the period a year earlier.
Sergio Marchionne, the chief executive of both Chrysler and its Italian parent, Fiat, said the American automaker
benefited from increased shipments of models like the Jeep Grand Cherokee.
''Chrysler Group is poised for a very strong performance in the second half of the year,'' he said.
The company said it sold 643,000 vehicles worldwide in the second quarter, up 10 percent from the second
quarter of 2012.
In the United States, Chrysler reported an 11.4 percent market share, up slightly from 11.2 percent in the period a
year earlier.
Mr. Marchionne said that new products, including the introduction of a smaller Jeep model, would help sustain
Chrysler's momentum in the American market.
''The timing of product launches and capacity increases causes this year's performance to be biased in the
second half,'' he said.
For the full year, Chrysler reiterated earlier forecasts of at least $72 billion in revenue, and net income of $1.7
billion to $2.2 billion.
The positive performance comes as Fiat and Chrysler move closer to completing a full merger of the two
companies. While Fiat owns 58.5 percent of the American company, it is hoping to acquire the remaining shares
later this year from a retiree health care trust.
A full merger of the companies would allow for more integration of their operations and finances. Mr. Marchionne
has said it could be accompanied by a new stock offering to help finance global growth plans.
Chrysler's results helped Fiat post a net profit of 435 million euros ($578 million) in the second quarter, up from
239 million euros in the period a year earlier.
Fiat said its revenue for the quarter was 22.3 billion euros ($29.6 billion), a 4 percent increase from the second
quarter of 2012.
Without Chrysler's contribution, Fiat said it would have lost 247 million euros in the quarter, about the same as in
the period a year earlier.
Mr. Marchionne said that no agreement had yet been reached between Fiat and the health care trust on a price
for the 41.5 percent stake the trust holds in Chrysler.

Although Fiat can apply Chrysler's profits to its financial results, the Italian automaker cannot access the
American company's cash reserves.
At the end of the quarter, Chrysler said it had $11.9 billion in cash, a slight decrease from the $12.1 billion it
reported a year ago.
Chrysler's turnaround has accelerated since it paid off the last of its government loans two years ago.
The second-quarter results were the company's eighth consecutive profitable quarter.
The profits were depressed slightly by a $151 million charge related to Chrysler's recall and customer service
action on 2.7 million older-model Jeeps. Last month, the company said it would add trailer hitches to some older
Jeeps to help protect against fires caused by rear-end collisions.
Ram pickup trucks, which sold well, and Dart sedans at a Dodge dealer in Littleton, Colo. (PHOTOGRAPH BY
DAVID ZALUBOWSKI/ASSOCIATED PRESS)
Document NYTF000020130731e97v00042

Earnings: Europe Takes Less Of a Bite Out of GM
Earnings: Europe Takes Less Of a Bite Out of GM

By Jeff Bennett
615 words
26 July 2013
J
B5
English
General Motors Co. turned in stronger than expected earnings on Thursday as U.S. sales of pickup trucks
bolstered the auto maker's North American results and better cost controls pared losses in Europe.
However, the Detroit auto maker's profit fell 24% and it lags rival Ford Motor Co. in key financial measures,
especially in North America, prompting Chief Executive Dan Akerson to call for accelerating cost-cuts.
Ford's North American operation delivered higher operating margins and more cars and trucks -- 823,000
compared with 809,000 at GM. World-wide, GM delivered 2.5 million vehicles in the second quarter compared
with 1.7 million at Ford.
Mr. Akerson last month created a new service group to streamline back office processes from human resources
to real estate. Its goal is to cut costs by more than 30% over four years. "We are in the early stages but over the
next year or two we have strong ambitions to reduce our costs," said Mr. Akerson.
One of Mr. Akerson's targets is the profitability gap between GM and Ford in North America. GM reported a $1.98
billion second quarter pretax profit in North America. But Ford generated $2.33 billion or about 16% more than
GM, because its North American operating margin was 10.4% compared with GM's 8.4%.
"I think the gap is an important issue for investors because when they see Ford performing better than GM, some
are going to buy Ford shares," said Morningstar senior equity analyst David Whiston.
GM plans to close the profitability gap as newer vehicles such as the Chevrolet Silverado pickup and Impala
sedan gain traction.
"We have closed the gap this quarter relative to where we have been," Chief Financial Officer Dan Ammann said.
"We are at the very beginning of our launch cycle so a lot of new product has yet to come in. We have a full gap
closure plan over the next couple of years."
For the quarter, earnings fell to $1.41 billion, or 93 cents a share, which reflect preferred dividends, compared
with $1.85 billion a year earlier. Excluding some costs, GM earned 84 cents a share, exceeding the
76-cents-a-share analysts' estimate. Revenue rose 4% to $39.1 billion from $37.6 billion a year earlier.
One source of pressure on Mr. Akerson is the gap between GM's current share price and the price the
government would need to recover the $18.1 billion remaining under the U.S. bailout. This week, a government
watchdog said the U.S. Treasury would have to sell its remaining GM shares at $95.51 to break even. GM was off
six cents at $37.08 in 4 p.m. trading in New York on Thursday.
In Europe, GM narrowed its loss to $110 million from $394 million a year ago. The auto maker has reduced
stocks of unsold cars, tightened controls on spending and begun reducing worker costs.
Mr. Ammann said GM Europe's results may be softer through the second half of the year, but the division should
produce a full year-over-year improvement. He said the company is pleased with operations in China, its second
largest market after the U.S.
GM also signaled Thursday that it plans new action to boost profits in its international operations beyond GM
Europe, which generated another loss. GM's biggest hit came in its International Operations, where pretax profit
dropped to $228 million from $627 million for the same time period a year earlier.

Document J000000020130726e97q0003o

Detroit has a reason to smile ; Automakers are doing fantastic
MONEY
Detroit has a reason to smile ; Automakers are doing fantastic
Chris Woodyard
438 words
26 July 2013
USAT
FINAL
B.1
English
In an industry weary of hearing the drumbeat of bad news, Detroit's automakers finally can pause to celebrate.
Profits are up, hiring shingles are out, customers are lined up at dealerships and even frequent critics are hailing
the quality of some shiny models. And it's a bright spot for a city that desperately needs one, coming as it does
against an otherwise dreary backdrop, the bankruptcy filing of the Detroit city government.
General Motors reported earnings Thursday that beat analysts' expectations, following Ford Motor's similar good
news the day before.
Even more impressive, Consumer Reports, which for years bashed American cars while lauding Japanese
makes, declared Thursday that the 2014 Chevrolet Impala is the best sedan in the land. It was the first time in
more than two decades that a Detroit Three car had captured the top spot.
For auto-industry watchers, this is one of those rare moments when the stars are aligned. Sales of high-profit
pickups have fueled much of the comeback, but industry veterans say automakers now recognize that quality and
fuel efficiency in all models are vital.
"The domestic auto industry is in full renaissance," says Bob Lutz, a retired top executive from GM, Ford and
Chrysler and long one of the Detroit Three's most colorful advocates. "Now, with an absolute focus on product
excellence you will never see another marginally good car."
Indeed, GM CEO Dan Akerson told USA TODAY last week that his "proudest day" was when J.D. Power and
Associates recently lauded GM for having moved up dramatically in its Initial Quality Study.
The comeback is paying off for investors. Stock prices of GM and Ford have almost doubled in the past year and
are trading near their 52-week highs.
The Detroit Three's good fortunes stand in sharp contrast to developments in the city itself, which a week ago
became the largest city to file for bankruptcy protection in U.S. history. Only GM is based in Motown itself; Ford
and Chrysler have their headquarters in the suburbs.
The domestic auto industry's success is due to smart leaders, the best CEOs since the halcyon days of Henry
Ford, says William George, a Harvard Business School professor who delved into the industry for a case study
titled The Big 3 Roar Back.
"They are investing for the long term in better cars, better factories and more efficient labor use," he says. And
their most important contribution? "Better quality."
Contributing: Fred Meier
photo AP
Document USAT000020130726e97q00008

Ford's quarterly profits smash expectations ; Profitability 'is pretty broad-based'
MONEY
Ford's quarterly profits smash expectations ; Profitability 'is pretty broad-based'
Chris Woodyard
500 words
25 July 2013
USAT
FINAL
B.2
English
Powered by record profits in North America, Ford Motor said Wednesday that its second-quarter net income
increased 18.5% compared with a year ago, to $1.2 billion, or 30 cents a share.
On an adjusted basis without one-time charges, Ford earned $1.8 billion, or 45 cents a share, a 52.4% increase.
That easily beat analysts' estimates of 37 cents a share, according to S&P Capital IQ.
The surge came on revenue of $38.1 billion, up 12.5%. In addition, Ford surprised Wall Street by saying it
expects to do better in the second half than it had earlier forecast. And it says it may exceed last year's full-year
pre-tax profits.
"There's improvement right across the business," says Ford Chief Financial Officer Bob Shanks. The profitability
"is pretty broad- based." Ford shares closed Wednesday at $17.37, up 2.5%
North American results were the driver, with a record quarter. Pre-tax profits in North America were $2.3 billion,
up 13.4%.
Market share increased 0.9 percentage points to 16.5%. Sales would be even more vigorous if production can be
increased for the Explorer SUV, Fusion sedan and F-150 pickup, the company said.
Shanks says tight inventories will ease as Ford adds a third shift to its Claycomo, Mo., pickup plant; another
production line and shift at its Flat Rock, Mich., plant for Fusion; and increases capacity at its Chicago plant for
Explorer.
Ford says it is expecting that U.S. sales industrywide this year could reach 16 million. If that mark is achieved, it
would be the first time since the better years of the last decade.
The automaker says the performance of all its units around the world increased from a year ago, but Europe
remains unprofitable. Ford lost $348 million there for the quarter before taxes. Ford says it expects its European
unit to return to profitability by "mid- decade."
Analysts were encouraged by the European numbers.
"The results provide some comfort that breakeven in Europe is achievable," wrote Barclays analyst Brian Johnson
in a note to investors after the results were announced.
Besides mirroring growth in auto sales around much of the world - - especially China, becoming a big growth
market for Ford after a late start -- executives also pointed to the success of their strategy of selling as many of
the same models as they can in different markets around the world.
The One Ford strategy avoids having to design different vehicles for different countries.
"Our strong second quarter with improved results in every region around the world is another proof point that our
One Ford plan is continuing to deliver and is building momentum," said Ford CEO Alan Mulally in a statement.
Ford says its automotive operating margin improved to 6.4%, up 1.5 percentage points from last year.
Document USAT000020130725e97p0000b

Sales in U.S. And Asia Help Propel Profit at Ford

Sales in U.S. And Asia Help Propel Profit at Ford
By JACLYN TROP
725 words
25 July 2013
The New York Times
NYTF
3
English
DEARBORN, Mich. -- The Ford Motor Company said on Wednesday that its net income rose 19 percent in the
second quarter, to $1.2 billion, as it reported record sales in North America and Asia and reduced losses in
Europe.
Ford surpassed analysts' expectations by reporting global revenue of $38.1 billion, an increase of 15 percent from
the same quarter a year ago. Pretax operating profit was $2.6 billion, up $726 million.
Strong sales in North America continued to carry the company as it lost money in Europe and restructured its
operations there and invested heavily in China. It was the 16th consecutive profitable quarter for Ford.
Ford said its market share grew in its four crucial global markets: Europe, South America, Asia Pacific Africa and
North America, where it grew nearly a full percentage point to 16.5 percent.
''Our One Ford plan continues to deliver profitable growth around the world,'' Alan R. Mulally, the company's
president and chief executive, said in a statement.
Ford's shares rose 2.5 percent to close at $17.37.
The record sales in North America, as well as the gradually improving European market, prompted Ford to raise
its full-year outlook, which now calls for pretax profit to equal or surpass 2012.
''We've already blown past what we did last year,'' Robert L. Shanks, chief financial officer, told reporters at Ford's
headquarters here.
The automaker reported a pretax loss of $348 million in Europe but said that was an improvement from both the
second quarter of last year and the first quarter of this year. Ford said it expected to lose $1.8 billion in Europe
this year, less than the $2 billion it had previously projected. Daimler, which makes Mercedes-Benz cars, also
reported improvement in Europe, with net income more than doubling from the period a year ago.
Ford's European market share increased this quarter to 8.1 percent from 7.6 percent, a significant development
''because the industry is down, and our retail share is up in a down industry,'' a company spokesman, Jay Cooney,
said.
Ford managed to increase its market share in Europe with the introduction of new models of the Kuga small utility
vehicle, the Ranger pickup and B-Max compact crossover, Mr. Shanks said.
''I think the industry is still under a dark cloud because, as a whole, it still hasn't taken out the excess capacity
there,'' Mr. Shanks said.
In Europe, Ford said it would focus on retail sales at the expense of the fleet market, and expected to bolster its
bottom line after closing two plants in Britain this week and another, in Genk, Belgium, late next year.
In the Asia Pacific region and China, in particular, Ford said it recorded its highest pretax profit of any quarter.
Over all, the region's pretax profit was $177 million, in contrast to a $66 million loss in the second quarter last
year. Market share grew one percentage point, to 3.6 percent.

Ford also reported that its market share in China surged to 4.3 percent, from 2.8 percent, its best quarterly figure
there ever.
The automaker is investing heavily in China, adding jobs, plants and new vehicle models. Ford introduced three
small to medium-size utility vehicles during the first four months of the year, and plans to introduce five plants,
add 300 dealerships and double its work force by 2015.
South America also returned to profitability, fueled by the popularity of the Ranger and EcoSport models, Mr.
Shanks said. Pretax profits there totaled $151 million, compared with $5 million last year. Ford's market share
grew slightly to 9.6 percent, from 9.4 percent.
The quarter's results also prompted Ford to raise its expectations for sales in the United States, Europe and
China this year. It projects that the industry is on track to sell 15.5 million to 16 million vehicles in the United
States. As a sign of this confidence in North America, Ford on Tuesday said it would hire 800 more salaried
workers this year.
Ford Fusions at a lot in Pennsylvania. The automaker's North American sales reached a record. (PHOTOGRAPH
BY KEITH SRAKOCIC/ASSOCIATED PRESS)
Document NYTF000020130725e97p0004t

Autos Roar Ahead As Economies Idle
Autos Roar Ahead As Economies Idle

By Mike Ramsey
1,004 words
25 July 2013
J
A1
English
DEARBORN, Mich. -- Ford Motor Co.'s 19% rise in profit on zooming sales shows how demand for new cars has
emerged as a rare bright spot in the murky global economy.
In the U.S., a recovery in new home construction and an oil-exploration boom is fueling demand for pricey new
pickups. Overall vehicle sales are up 8% this year as American drivers swap rides that are on average 11 years
old.
Elsewhere, emerging middle classes in China, India and South America equate a new vehicle with status and
economic mobility. Demand for new cars is such that some cities in China are issuing new licenses plates by
lottery to keep demand in check.
While unemployment remains stubbornly high in the U.S. and depressingly so in Europe, the auto industry is
hiring new workers and investing in overseas factories. Global car and light truck production is expected to hit
some 100 million vehicles by 2015, from about 80 million vehicles this year, says researcher IHS Automotive.
"This is a growth industry," Ford Chief Executive Alan Mulally said in an interview on Wednesday. The business
can outpace the world's average growth in gross domestic product -- about 2.5% -- by five percentage points, he
estimated, because of the need for mobility.
The chief executive of luxury car maker Daimler AG said on Wednesday he expects global car sales to grow
between 2% and 4% this year on continued gains in the U.S. and "continuing significant expansion of the Chinese
market."
General Motors Co. is scheduled to release its second-quarter results on Thursday and Wall Street is forecasting
revenue of $37.71 billion, up from $37.61 billion a year ago.
Ford's second-quarter results beat most Wall Street forecasts with profit of $1.23 billion, up from $1.04 billion a
year earlier. Sales rose 15% to $38.1 billion. The auto maker raised its full-year profit forecast as losses in
recession-wracked Europe eased and Asian and South American earnings raced ahead.
Its results stood out in a quarter when average revenue growth for the 500 largest U.S. public companies is
projected to rise only 1.6%, according to Thomson Reuters. That slow growth reflects the modest pace of
recovery in the U.S., Europe's persistent slump, cooling in China and India, and uneven conditions in South
America.
In the U.S., auto makers have outperformed the overall economy for the past several years. Auto output
accounted for nearly 20% of the growth in the U.S. GDP since the second quarter of 2009, said Ford economist
Ellen Hughes-Cromwick.
Underpinning Ford's success is a strategic turn that began when Mr. Mulally took over the company in 2006. For
most of the 1990s and early 2000s, the auto maker had focused on its profitable pickup truck and sport-utility
vehicle franchises in the U.S., leaving gaps in its product lines in Europe and Asia.
Mr. Mulally endorsed a product plan aimed at fielding a "complete family" of vehicles in major markets --
competing for sales and revenue in segments where Ford previously had no presence. That decision "opened up
another opportunity for us," Mr. Mulally said.

For instance, its Kuga sport-utility, known as the Escape in North America, evolved from separately designed
products sold in Europe and the U.S. to a single product sold around the world. Within the past year, Ford
launched new versions of the Escape and the Kuga that are virtually identical. It also went on sale this year for
the first time in China.
In Europe, where the overall market is set to shrink for the sixth year, Ford is gaining market share and has halted
its own sales slide thanks to the Kuga and a family of small vehicles -- including a commercial van, a
micro-minivan and a pint-size sport utility -- all derived from the basic architecture of its Fiesta subcompact.
Ford isn't alone in pushing to make its vehicles around the world more similar under the skin, the better to reap
savings from economies of scale. However, Ford has gone further with the strategy than most rivals and recently
hit a hot streak with its styling.
"Today was a neat inflection point, where all of the businesses around the world were improving on the revenue
side and the margin side," Mr. Mulally said. Ford's goal is to have a third of its sales in North America and equal
shares in Asian-Pacific Africa and Europe, he said.
Ford still relies heavily on North America, which produced a $2.33 billion pretax profit in the second quarter, up
from $2.01 billion a year ago. But evidence of its plan working is apparent far from home. In South America profit
last quarter jumped to $151 million from $5 million a year earlier on strong demand for its newest models.
Ford's second-quarter earnings in Asia rose to $177 million, reversing a $66 million loss in the region a year ago.
Car sales in China, the bulk of its Asian market, jumped 47% in the first half of the year.
Such gains reflect a payoff from belated investments aimed at catching up with rivals GM, Volkswagen AG and
Hyundai Motor Co. in Asia's emerging economies. It has built seven new plants in China in the past several years
and another is under construction under a $5 billion investment plan.
Like many auto makers, Ford continues to lose money in Europe, where the sovereign debt crisis has much of the
region in recession. But its pretax loss narrowed in the second quarter to $348 million from a $404 million loss a
year ago.
"The improvement in Europe is incredibly encouraging," says Ford Chief Financial Officer Bob Shanks.
The car maker is closing three plants in Western Europe, including two in the U.K. that stop operating this week.
Document J000000020130725e97p0003c

Business Technology: Mining Silicon Valley's Culture --- Big Companies Set Up Outposts in Search of New Ideas but Some Falter
Business Technology: Mining Silicon Valley's Culture --- Big Companies Set Up Outposts in Search of
New Ideas but Some Falter
By Rachael King and Steven Rosenbush
761 words
25 July 2013
J
B5
English
In roughly the past two years, Target Corp., General Electric Co., Ford Motor Co., Johnson & Johnson and other
big companies have opened outposts in or near Silicon Valley in search of ideas and exposure to new
technologies not likely to be created in places like Fairfield, Conn., or Detroit.
Such companies spent decades watching from the sidelines as Silicon Valley startups developed into some of the
fastest-growing and most influential companies of their time. Not surprisingly, companies from around the world --
including retailers and old-line industrial giants -- ventured to California to tap some of Silicon Valley's culture
based on risk taking, speed, innovation and both hypercompetition and collaboration.
Some of the efforts have paid off with increased e-commerce sales, entries into new markets and faster
new-product development. But for every company like auto maker BMW AG that reaped benefits from early
partnerships with firms such as Apple Inc., there are companies like Barnes & Noble Inc. that have struggled to
capitalize on their Northern California investments.
The companies that achieved success learned to insinuate themselves into the region's ecosystems, taking
advantage of what others created but also adding innovations of their own. They figured out ways to successfully
collaborate and strike partnerships, and, most critically, devised ways to transmit what they learned throughout
their organizations.
"We take our ideas and socialize them into the rest of the company," says Darren Liccardo, head of the BMW
Group Technology Office in Mountain View, Calif. Members of the 30-strong research group often spend two to
three years working in Munich, Germany, so they can exchange ideas with colleagues. And staff from Germany --
from rank-and-file engineers to BMW's chief executive and board members -- regularly visit the Silicon Valley
office.
Companies that have had difficulty taking advantage of their westward treks -- AOL Inc., Motorola and Lucent
Technologies come to mind -- often have had legacies of closed networks or proprietary technological standards,
which can weigh on efforts to adapt.
Lucent ended up merging in 2006 with French rival Alcatel. The new company, Alcatel-Lucent SA, said Lucent's
old efforts in the area were too long ago to comment on, but that it has successful operations in Silicon Valley
today.
Motorola Mobility, now owned by Google Inc., said the recent establishment of its Advanced Technologies and
Products Group in Sunnyvale, Calif., make its 10-year-old Silicon Valley presence more important than ever.
An AOL spokesman said that the company has embraced open networks and technical standards and that its
Palo Alto, Calif., team is helping to propel growth.
Wal-Mart Stores Inc. in April 2011 acquired a software startup called Kosmix that became the genesis of
@WalmartLabs, the research and development arm of the retailer's e-commerce division. With Kosmix and
subsequent acquisitions, the company gained expertise in new data, mobile, search and social technologies. The
labs helped develop a new search engine for Walmart.com, and the company is now seeing almost 20% more
"conversions" -- or actual purchases -- because of that capability, says Ravi Raj, vice president of product
development for @WalmartLabs.

Mr. Raj oversees Goodies, a new social shopping business that was built from the ground up in six months.
Shopycat is a Facebook app of Walmart's that recommends gifts for friends and family based on their likes and
activity.
Ford doesn't look at its Silicon Valley office as a satellite. "It is organically and organizationally part of Ford's
greater global Research and Innovation operations," says K. Venkatesh Prasad, senior technical leader for open
innovation, who splits his time between the company's Dearborn, Mich., headquarters and its year-old, 10-person
research lab in Palo Alto.
Companies that stumble in Silicon Valley are often unwilling to give up their affinity for closed networks or
proprietary systems. After Barnes & Noble came to Silicon Valley to develop its Nook e-reader in 2009, it initially
limited the apps to its Nook color devices, instead of making them compatible with all apps in the Google Play
store, said Ross Rubin, principal analyst at Reticle Research.
That was a problem because the bookseller limited its audience to the small group of Nook users.
Barnes & Noble said it is very proud of the Nook, and that it regards its Silicon Valley efforts as very successful.
Document J000000020130725e97p0001k

Wanted: Techie auto workers ; Ford recruits 'aggressively'
MONEY
Wanted: Techie auto workers ; Ford recruits 'aggressively'
Chris Woodyard; Alisa Priddle
Chris Woodyard and Alisa Priddle, USA TODAY,
776 words
24 July 2013
USAT
FINAL
B.3
English
As the auto industry continues its strong recovery, Ford Motor said Tuesday it is boosting planned hiring of
engineers, software workers and other salaried employees by 36%, adding 800 jobs to bring the total they will
hire this year to 3,000.
About 80% of the new hires will be engineers and information technology workers needed to design the next
generation of high- tech vehicles.
"The vast majority of these jobs are new," says Felicia Fields, group vice president of human resources for Ford.
It's a huge counterpoint to the recession days of 2006 to 2009 when Ford laid off or lost 13,000 salaried
employees, as well as 40,000 hourly workers.
But hiring won't be easy now. The greatest need is for workers with electronics and digital skills, reflecting how
the auto industry is being driven by developments in infotainment systems and electronic controls and safety
systems. And Fields says there already is a lot of competition for workers with such skills, much of it from Silicon
Valley.
"It's a new breed of engineer" that they seek, says Andrew Smart, a director of SAE International, the association
for automotive engineers. "The skill set is changing, especially with the amount of electronics in the vehicle."
It's a real recruiting challenge because in the end, automakers are looking for a special combination of skills that
relatively few professionals possess. "It's not just talent," Fields says. "It's the right talent."
So Ford is kicking off an ad campaign for new hires. "We're aggressively recruiting. It's a muscle we haven't used
in a while," Raj Nair, Ford's global product development chief, who oversees about 20,000 Ford engineers,
designers and suppliers around the world, told the Detroit Free Press. "The specialties we are having trouble
filling are software, electric and electronic. There's a lot of demand for that talent."
Says Nair, "We are tapping into more undergraduates and graduates coming out of the schools."
At the University of Michigan-Ann Arbor, traditionally a top source of automotive engineers, students grasp that
the industry is undergoing a tech-driven revolution, says David Munson, dean of the engineering school. "There
has never been a more exciting time in the auto industry."
To try to head off a shortage of engineering talent, General Motors and Ford both are involved in programs for
high school students in math and science. "We do see a general weakness in STEM (science, technology,
engineering, math) performance of students from U.S. high schools. It hasn't hit us yet, but it is something we see
on the horizon," Nair says.
GM's Jennifer Ecclestone says high school and college students are encouraged to go into fields that can lead to
engineering or science careers through competitions it sponsors, such as one to build a hydrogen fuel-cell car.
Only about a third of high school students who show promise in math and science pursue related careers.
Chevy bets on wild colors
Small cars just seem to lend themselves to wild paint jobs.

But purple? Or pink? For its smallest cars, Sonic and Spark, Chevrolet is plumbing the depths of customer taste
for colors like, well, plum.
For 2014, Chevy's Sonic subcompact will be offered in a series of limited edition wild colors, starting from August
through October with Deep Magenta Metallic, described by Chevy as a "chromatic plum" color. Others might tag it
for what it is: purple.
Chevy is going bold because about one-third of Sonic buyers say a cool paint job is an "extremely important"
factor in their choice.
And Chevy is being just as creative for its smaller car, Spark, which already offered some standout colors. Out
went Inferno Orange and in came Techno Pink.
Chevrolet says it looks everywhere for color ideas -- fashion, consumer products and high-end furniture. But even
when a color appears popular, it can be a risk for a car.
Katherine Sirvio, GM senior design manager in charge of Chevy colors and trim globally, initially didn't want to
include pink as a color when Spark launched in South Korea three years ago.
"We shied away from pink, because it's kind of a cliche" as a lure for female buyers, she says.
But after surveying personal electronics and home appliances there, she changed her mind. Sure enough, nearly
one out of four Sparks sold in South Korea is pink.
Priddle also reports for the Detroit Free Press.
photo Sam VarnHagen, Ford Motor, via Wieck

Document USAT000020130724e97o0000t

Ahead of the Tape
Ahead of the Tape

Ahead of the Tape
By Spencer Jakab
429 words
24 July 2013
J
C1
English
Ford's New-Car Smell Doesn't Come Cheap
Motown may be down, but the industry from which that nickname sprang is anything but out.
Ford Motor Co., the only one of Detroit's "Big Three" that didn't fall hard enough to file for bankruptcy protection,
has had a rebound even more impressive than its brethren. It is now more valuable than General Motors Co. and
Chrysler Group LLC combined, based on market and estimated values, with a little more than half of their unit
sales.
Wednesday's second-quarter results should add to investors' cheer. Consensus expectations for earnings of 36
cents a share, up from 26 cents a year earlier, look beatable. And guidance has nowhere to go but up.
Sales in the U.S., Ford's major profit center, rose 13.1% year to date through June. Even Europe, a financial
black hole for it and most competitors at the moment, looks better. Ford's unit sales there last month were 6.4%
higher, even as the entire market fell 6.5%.
The domestic market continues to drive profits, though. Helped by greater credit availability and a revival in home
construction, car sales in June rose to nearly 16 million at a seasonally adjusted annualized rate, the best since
late 2007.
Homes and autos are practically joined at the hip. Morgan Stanley notes that there has been an 89% correlation
between U.S. housing starts and light-vehicle sales since 1980. The relationship is even stronger when it comes
to pickup-truck sales -- a strong point for Ford, whose F-Series was the top-selling U.S. vehicle last month.
The good news has some observers astounded that Ford's stock trades at a mere 10.7 times the next 12 months'
forecast earnings. But Ford was far cheaper a year ago, trading below 6.5 times.
Today, following an 85% rally in its stock since then and a slight pullback in expected profit, it isn't particularly
enticing for an auto maker. The business is notoriously cyclical and, in most places, is in the sweet part of the
cycle.
Ford's own median forward price/earnings ratio over the past 20 years -- counting only the instances that number
was positive -- was 8.7 times. That includes the late 1990s, when operating margins and return on equity were far
higher than today.
Don't just look at the sticker price -- consider the total cost of ownership.

Document J000000020130724e97o00026

The Game: Daddy, Could You Tell Me What a Truck Driver Was?
The Game: Daddy, Could You Tell Me What a Truck Driver Was?
By Dennis K. Berman
991 words
24 July 2013
J
B1
English
And then one day, man went the way of the mule.
Some 5.7 million Americans are licensed as professional drivers, steering the country's vast fleets of delivery
vans, UPS trucks and tractor-trailers.
Over the next two decades, the driving will slowly be taken on by the machines themselves. Drones. Robots.
Autonomous trucks. It's already happening in a barren stretch in Australia, where Caterpillar Inc. will have 45
self-directed, 240-ton mining trucks maneuvering at an iron-ore mine.
Most of the hubbub around autonomous technology has focused on passenger vehicles, notably Google's
promotional wonder, the Google Car. Ford Motor Co. Chairman Bill Ford Jr. says self-driving cars will hit roads by
2025. But commercial uses are where the real money and action lie: rewiring a massive part of the U.S. economy
while removing tens of billions in costs from a commercial fleet that today numbers 253 million trucks.
Ubiquitous, autonomous trucks are "close to inevitable," says Ted Scott, director of engineering and safety policy
for the American Trucking Associations. "We are going to have a driverless truck because there will be money in
it," adds James Barrett, president of 105-rig Road Scholar Transport Inc. in Scranton, Pa.
Economic theory holds that such basic changes will, over time, improve standards of living by making us more
productive and less wasteful. An idle truck with a sleeping driver is, after all, just a depreciating asset. But
watching a half-decade of lagging U.S. employment, it's hard not to feel a swell of fear for those 5.7 million
people, a last bastion of decent blue-collar pay.
A world without truck drivers may eventually be a better one. But for whom?
At least better for trucking-company owners, who today grapple with driver shortages of as much as 15%, in
addition to perennial hassles of fuel costs, regulations and crummy margins. "Holy s---," exclaims Kevin Mullen,
the safety director at ADS Logistics Co., a 300-truck firm in Chesterton, Ind. "If I didn't have to deal with drivers,
and I could just program a truck and send it?"
Roughly speaking, a full-time driver with benefits will cost $65,000 to $100,000 or more a year. Even if the costs
of automating a truck were an additional $400,000, most owners would leap at the chance, they say.
"There would be no workers' compensation, no payroll tax, no health-care benefits. You keep going down the
checklist and it becomes pretty cheap," adds Mr. Barrett of Scranton, who says he can't find enough drivers.
Drivers call this nonsense. "People come up with these grandiose ideas," says Bob Esler of Taylor, Mich., who
has been driving a truck since 1968. "How are you going to get the truck into a dock or fuel it?"
Of course, the real costs are hard to peg. Most experts on autonomous vehicles say that at least initially, the robot
trucks will have to run on roads separate from regular vehicles, or via embedded roadside beacons. That won't be
cheap.
And then there is the primary issue of safety -- of the cargo and people on the roads. Most in the industry believe
that machines should eventually become better drivers than humans. It is going to take a long time to prove the
case to governments and the public. But a payoff awaits. The U.S. government estimates the costs of truck
collisions at $87 billion a year, with 116,000 people either killed or injured in truck and bus crashes.

Safety is why so-called "closed-course" uses, which keep automated trucks away from the public, are happening
first. That brings us back to that Australian mine, in a scorched, wretched area called The Pilbara.
It's where Caterpillar is today running six automated model 793f mining trucks. Stuffed with 2,650 horsepower and
more than 25 million lines of software code, they haul away layers of rock and dirt, up and down steep grades.
Traditionally, these trucks would require four drivers to operate 24 hours a day.
Today the trucks use guidance systems to run on their own, only monitored by "technical specialists" in a control
room miles away. If an obstacle appears in its path, the trucks have enough onboard brain power to decide
whether to drive over or around it.
In addition to safety risks, human drivers "will often make judgments, most good, but some bad, and those
inconsistencies can lead to problems," says Ed McCord, the Caterpillar executive in charge of the program.
Automated trucks never flinch, he says. "If it's supposed to be in fifth gear coming down a grade, it will be in fifth
gear every time.
Eventually there will be 45 of these trucks on site, eliminating most of the need for 180 driving positions,
according to Mr. McCord. The fewer remaining jobs, he said, pay better but be more technical -- at their core,
about software.
"The manufacturing job of today is a technician's job," adds Mr. McCord, who started his career 40 years ago
demonstrating hydraulic excavators. "The manufacturing job of yesterday was pure labor."
That's a worthy way to understand the future of the truck driver, if we can even use that term. Just imagine, for
instance, a supermarket "driver" who rides inside an automated truck, delivering packages and selling services
instead of worrying about red lights and right turns.
This changes the nature of work itself -- from hard skills to soft skills. It makes today's Teamsters into tomorrow's
concierges.
One day, your grandchildren will be wondering, as they do about the rotary phone and the VCR. "Truck driver!
What was that?"
What will you tell them?
---
Email dennis.berman@wsj.com Twitter @dkberman
Document J000000020130724e97o0001t

Corporate News: Ford, Toyota Halt Venture --- Auto Makers Will Go Separate Ways on Hybrid Development for Pickups, SUVs
Corporate News: Ford, Toyota Halt Venture --- Auto Makers Will Go Separate Ways on Hybrid
Development for Pickups, SUVs
By Mike Ramsey
512 words
24 July 2013
J
B6
English
Ford Motor Co. and Toyota Motor Corp. are scrapping a partnership to jointly develop a hybrid, gasoline-electric
powertrain system for light-duty trucks after two years of work.
The split comes as Ford is gaining share of hybrid gasoline-electric vehicle sales, and hiring engineers to develop
new vehicles, including more hybrids. Ford said its own hybrid drive system for pickups and large SUVs would be
available by the end of the decade.
Toyota dominates sales of the U.S. hybrid vehicle market through its Prius line. Ford has gained ground in
hybrids during the past year with its C-Max gasoline-electric versions of its Fusion and Lincoln MKZ sedans.
On Tuesday, Dearborn, Mich.-based Ford said its second quarter sales of hybrid vehicles rose fivefold from a
year ago to more than 24,000 vehicles, to a 16% share of the U.S. electrified vehicle market.
Building a pickup truck or sport-utility vehicle with a hybrid system could help meet coming federal fuel economy
standards. That is particularly important to Ford, which is the top seller of full-size pickup trucks in the U.S. and so
far has held Toyota's efforts to gain significant share in the large pickup segment at bay.
"We know what it takes to build world-class hybrids, and we now will build and leverage that expertise in-house,"
said Raj Nair, group vice president of Ford's global product development. "By continuing to develop a
rear-wheel-drive hybrid system on our own, we can extend our advanced hybrid technologies to new vehicle
segments."
Ford and Toyota announced a feasibility study for collaborating on a light-duty truck hybrid system in August
2011. Both companies said today they continue to evaluate the possibility of working together on next-generation
standards for telematics and will consider other areas, Toyota said in a statement.
Separately, Ford said it would hire 3,000 white-collar workers in the U.S. this year, 800 more than previously
anticipated and primarily in technical fields. So far this year, Ford has hired about 1,500, about 80% of which are
in information technology, engineering and software design.
Ford said it is also hiring 200 "electrification engineers" and expanding research facilities to increase development
of hybrids.
"We have about 1,500 positions to fill by the end of the year," said Felicia Fields. Ford is launching a new
advertising campaign using social media to help recruit worker.
Hiring by auto makers has been a bright spot in the U.S. over the past four years. According to the Bureau of
Labor Statistics, auto parts companies, parts suppliers and auto dealers have added 220,000 jobs since the
summer of 2009.
The automotive industry has accounted for nearly 20% of the growth in total gross domestic product during that
four-year period, said Ellen Hughes-Cromwick, Ford's chief economist.
Document J000000020130724e97o0000f

Ford Clips Toyota's Wings in California --- U.S. Auto Makers Win Over Import-Friendly Buyers With New Hybrids, Snazzy Designs, Technology
Ford Clips Toyota's Wings in California --- U.S. Auto Makers Win Over Import-Friendly Buyers With New
Hybrids, Snazzy Designs, Technology
By Mike Ramsey
958 words
18 July 2013
J
B1
English
For decades, car shoppers in America's coastal states largely spent their money on Japanese and European
imports over Ford Motor Co. and other U.S. brands.
But that is changing for Ford, highlighting the success its new models are having with consumers looking to buy
small and medium size passenger cars.
Sales of the 2013 Fusion, redesigned last year with a lengthy list of technology features and a grille that echoes
the luxury Aston-Martin sports car, are up nearly 18% over a year ago for the first half of 2013.
Through June, Ford is on pace to sell 300,000 Fusions this year, making it one of Detroit's most successful new
sedans since the original Taurus set styling in midprice cars on its ear during the late 1980s.
The success of the Fusion, C-Max hybrid wagon and the redesigned Ford Escape sport utility have helped lift
Ford's share of retail sales by nearly 2 percentage points on the East and West coasts compared with five years
ago, according to data supplied by R.L. Polk & Co. Retail excludes sales to rental and other fleet buyers. In
California, which imports first conquered three decades ago, Ford's comeback is turning heads.
Frank Calamia, 60, who lives in Monterey, Calif., was shopping for a Mercedes GLK when his wife convinced him
to drive an Escape with the top-end "Titanium" package that includes electronic parking assistance and
high-intensity headlights.
"I reluctantly took this thing out for a test drive and it blew me away," Mr. Calamia said. "This was very responsive
when I was driving it -- when you floor it, it throws you in the back of the seat."
In Northern California, Ford converts have pushed volume up 35% this year, said Tim Paulus, owner of The Ford
Store in Morgan Hill, Calif. Ford's overall U.S. sales rose 13.4% through June, compared with the overall market's
8.4% increase.
"To be honest, I wasn't sure in Northern California they would give us a chance, no matter how good the product
was," Mr. Paulus said. Today, he is selling between 30 and 40 Ford Fusions a month and his used car lot is
stuffed with customer's castoff Hondas and Toyotas.
Ford's share gains began about five years ago when the Dearborn, Mich., auto maker began releasing new cars
with more fuel efficient engines, European-derived styling and mobile-phone-based entertainment systems.
California is a critical battleground for auto makers because it accounts for 1 in 10 new car sales in the U.S. and
because it is home to some of the richest and most culturally influential consumers in the country.
Bill Fay, chief of the Toyota brand in the U.S., said he isn't too concerned by Ford's coastal efforts. The company
said Ford is spending nearly twice as much as Toyota is on incentives in California.
Ford is still playing catch up in the state, despite its recent gains. Toyota's California retail market share -- the
share of sales made to consumers at dealerships -- was 19.2% during the first five months of 2013, according to
Polk, Ford's share was 9.5% and General Motors Co.'s Chevrolet brand held a 5.9% share in the Golden State,
both through May, Polk calculates.

Ford knew it had to try something different to get attention. In San Francisco, where it has no dealerships, the
company installed pop-up stores on Market Street, using the temporary installations to host casting calls for
independent films and to run fitness programs, and displaying Ford vehicles for visitors to inspect.
Ford has increased advertising spending in coastal markets, and shut down underperforming outlets to give more
successful dealers an incentive to invest in their stores.
Jim Farley, Ford's global vice president of sales and marketing, said improving business on the coasts, where
cars and crossovers make up most of the sales, is important for a company that has long relied heavily on sales
of large SUVs and pickups in the heartland.
"When you look at the demographic changes in the U.S. the population changes are happening on the coasts,
and the income levels are generally higher in the metro areas there," he said. "For brands like Ford, it is critical to
do well there."
Mr. Farley was a senior marketing executive at Toyota's U.S. sales arm during the 1990s and early 2000s before
joining Ford. He said Ford's bets on improving fuel economy, styling and multimedia technology are paying off
with consumers who once shun the brand.
"We took a lot of time on proportions so that our cars would look more attractive," Mr. Farley said.
John Mendel, sales chief for American Honda, said competition for coastal buyers is intensifying. "The playing
field has been raised for everybody," he said.
Part of Ford's gains in California are with its hybrid, gasoline-electric vehicles. The Toyota Prius remains the
top-selling car in California, where Ford has countered with hybrid versions of the Fusion and the C-Max station
wagon, which competes with Toyota's Prius V wagon.
Erin O'Malley-Minchell, 35, turned in her Prius a few weeks ago for a red C-Max "Energi" -- a plug-in hybrid. She
was getting ready to get another Prius when her father asked her to test drive a Ford.
"I loved my Prius, but when I test drove the Ford, it was insane -- I loved it," she said.
Document J000000020130718e97i0002j

In the Car, I Need a Spot for... --- Auto Makers Challenge Designers to Build Smarter Storage Nooks; Put the Glove Compartment to Work
In the Car, I Need a Spot for... --- Auto Makers Challenge Designers to Build Smarter Storage Nooks; Put
the Glove Compartment to Work
By Christina Rogers
1,349 words
18 July 2013
J
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English
Car makers can design marvels of engineering, like vehicles that self-park and brakes that sense a crash. But
creating the perfect spot for a handbag or a cellphone? That is challenging.
"We realize there does need to be a solution out there and there isn't really a good one," says Chris Shinouskis,
an engineer at General Motors Co., of the bag problem.
Ms. Shinouskis, whose title is "Engineering Specialist for Storage," is one of a handful of engineers and designers
in the auto industry whose job is to keep tabs on the ever-growing array of items people bring into their cars, and
then carve out cubbies and compartments to hold them.
Adding storage can at times be a hard-fought battle, especially as cars today come crammed with high-tech
safety, information and entertainment systems, all of which require space-hogging wiring and hardware.
But buyers are demanding it, especially as they spend more time on the road and bring more items in the car with
them to stay plugged into their lives --things like pricey tablets that they don't want sliding off the front seat.
And it's not just a matter of convenience. Unsecured items can easily roll under the driver's feet or become
projectiles during a sudden stop or crash.
Whether she plops her purse on the front passenger seat or jams it between her seat and the door, Tina Parker, a
teacher in Detroit, says she worries that, in an abrupt stop, "everything will go flying." Ms. Parker, 45, who says
she travels frequently in her 2003 Nissan Altima, hasn't figured out an ideal cellphone spot either. She usually
stows it in one of the two center-console cup holders, she says, but when she has a coffee in the other, a quick
braking means that "my phone gets a little splash."
About 65% of new-car buyers said interior storage is "very" or "extremely important" when making a purchase
decision, according to a recent survey by Strategic Vision, a San Diego-based research firm.
Customers are particularly charmed by storage spaces that are thoughtfully placed and somewhat unexpected,
such as a cubby or pop-out tray embedded in the dashboard that melds visually with the interior design, says
Alexander Edwards, president of Strategic Vision.
"It's a little feature. It doesn't cost a lot of money. And yet it has the ability to be that unique, innovative item that
seals the deal between two different vehicles," he says.
Complicating the storage challenge is the fact that it can take up to four years to develop or completely redesign a
model, while the technology world moves much faster. By contrast, Apple Inc. offered four generations of its iPad
tablet, plus a Mini version, in less than three years. Plus, items like cellphones are anything but standard in their
dimensions.
Back in 2007, when Ford Motor Co. was developing its current-generation Explorer -- and the first iPhone had just
launched -- Matt Rutman, a Ford engineer and storage specialist, was adamant that the new SUV needed a
place, right above the shifter, for mobile-phone storage and charging.
The phone bin needed to be next to the multimedia console, a place designers often call "Manhattan real estate"
because it's the best spot for placing features within the driver's reach. He made his case to stylists and other

engineers for a total rework of the center stack, the band of space that runs from the front seats up to the top of
the dashboard.
"I was told numerous times, it wasn't possible," says Mr. Rutman, who joined Ford eight years ago after working
as an office-chair designer and who regularly trolls tech websites to keep up on new mobile-product buzz. "So I
went back to my own computer and figured it out myself."
His solution involved redoing the ventilation system behind the dash, and moving up the video screen and
controls. That left a space for a closeable compartment big enough to hold two cellphones.
With storage space already in short supply, drivers can find it particularly frustrating when it's wasted. The glove
compartment, in particular, often becomes catchall for junk.
One company rethinking its use is Chrysler Group LLC, which has designed a glove box in its new Dodge Dart
deep enough to fit a small laptop or tablet. To make it fit, Chrysler mounted the heating and cooling unit vertically,
rather than horizontally, and moved the ducts behind the dash.
"It opens up a cavern of space that normally wouldn't be there in the glove box," says Ryan Nagode, a chief
interior designer for Chrysler Group.
Of course, each new storage solution requires extra materials and adds steps on the assembly line -- all of which
costs more. "It may be 10 cents here, 15 cents here, but in the end it adds up," Mr. Nagode says.
For inspiration, designers employ a host of methods to better gauge storage needs. At GM, Ms. Shinouskis' team
recently dispatched several members to the mall to survey the size and shapes of sunglasses.
Mr. Nagode says some of Chrysler's best storage ideas come from focus groups -- but not from the sessions
themselves. While participants are in the building, designers rove the parking lot, peering into their car windows to
see how they really use the interior space, Mr. Nagode says.
In one instance, designers noticed that a Jeep Wrangler owner had poked holes in the door handle and used
bungee cords to create a water-bottle holder. "So on the new Wrangler, we threw in a nylon netting that's
expandable," Mr. Nagode says.
New, thinner materials, more electronic parts and fewer bulky cables and components are helping open more
space for storage. Several auto makers have already ditched the parking brake and stick-style gear shift for
buttons and knobs that serve the same function, freeing up cabin space.
One problematic spot sits between the front seats and the center console, a narrow black hole prone to
swallowing up loose change, pens and the wayward french fry.
Auto-parts supplier, Johnson Controls Inc. thinks it has a solution. At the Detroit auto show in January, it showed
off a "catch bin," a U-shaped tray that fits around the armrest and into the gap where items typically fall. "It's fixing
a problem that's probably as old as the automobile," says Han Hendriks, who heads auto interiors and electronics
development for Johnson Controls.
For GM's Ms. Shinouskis, the cup holder poses a continual design challenge. Though they've been around for a
long time, they never seem to be in a good location, the size is off or they don't have good clearance, so cups get
in the way of other things, she says.
Plus, people often want their cellphone in the same spot. So on the refreshed 2014 Chevy Malibu, GM offered
both: two cup holders and two cellphone cradles, one each for the driver and the passenger.
When it comes to the purse dilemma, though, Ms. Shinouskis said her team has had some failed experiments.
Hooks didn't really work because they left the bag unsecured. Door pockets were often too small.
Because bags range from small clutches to cavernous totes, there is no one-size-fits-all solution, Ms. Shinouskis
says. Her team is trying to find ways to keep them from spilling over during a hard brake.
The other big challenge on her to-do list is a trash bin. "We talk about it," she says. "But customers' preferences
are completely different. Some people want it in the door. Others want it in a covered area."
Her own solution, she says, probably isn't that great: "I just leave plastic bags in my glove box and pull them out
when I need them."
Document J000000020130718e97i0000z

Big Brother watches teen drivers; Parents turn to tech to monitor speed, routes, phone usage
MONEY
Big Brother watches teen drivers; Parents turn to tech to monitor speed, routes, phone usage
Megan Kowalski; Jayne O'Donnell
Megan Kowalski, Jayne O'Donnell, USA TODAY
1,244 words
18 July 2013
USAT
FINAL
B.4
English
The Coker sisters of Marietta, Ga., say they don't mind if their parents electronically monitor their driving, as long
as it's done for the right reasons and it's not done secretly.
Ashley, 17, knows her father is tracking her, so she says it's OK. If she didn't know, "It would be more of a trust
thing than anything for me." Grayson, 14, won't be driving for a couple of years, but she thinks she'll be fine with
monitoring. "I would feel like it's more of a safety thing for them," she says.
Rob Coker says safety is why he keeps electronic tabs on his daughters, which he does now through the "Find
My iPhone" app. He says he will use "every piece of technology" he can to monitor them, including while they're
driving.
New cars increasingly have available technology that lets parents both spy on and set limits for their kids behind
the wheel. And there are a growing number of phone apps and aftermarket devices for parental controls.
Teen crash deaths have declined in recent years, but an average of seven teens a day still die in car crashes.
Speeding, something that can be monitored and in some cases prevented with technology, was a factor in 33% of
fatal teen crashes in 2011, the Governors Highway Safety Association reported last month.
Teens in vehicles with monitoring devices took fewer risks while driving than unsupervised teens, according to a
2009 Insurance Institute for Highway Safety study of 16- and 17-year-old drivers. IIHS President Adrian Lund
warns, however, that the technologies are effective only if parents "pay attention to the feedback."
With the iPhone app, Coker can tell where Ashley, or at least her phone, is, but not how fast she's driving or
whether she's using her phone behind the wheel. He says he uses it more at night to make sure she safely got to
where she was going.
A Ford technology offered for years, called MyKey, offers more control. "Speed is one of the things that we were
trying to give Mom and Dad a tool to help manage," says Andy Sarkisian, Ford Motor's safety planning and
strategy manager of MyKey.
It lets a parent program a car key to limit the top speed of the car. It also can be used to limit the audio volume,
and can turn off the audio if the driver or passenger unbuckles their seat belts.
Starting with 2013 models, MyKey adds a "Do Not Disturb" feature for paired phones that sends calls to voice
mail and blocks text message alerts. It also offers more speed limit choices, 65, 70, 75 or 80, with speed warnings
at 45, 55 and 65. It also can block adult shows on satellite radio.
Clare Jessey, 17, recently tried out MyKey in a 2013 Ford Fusion after her parents set her top speed for 65. That
made sense for her drives around her McLean, Va., home, but proved scary when she couldn't get the car to go
faster while merging onto a highway.
Jessey's mother, Kathryn Bucher, says she likes many MyKey features but believes it "needs to get smarter." She
says it should use GPS technology and map information to "offer continuous but varying speed controls on all the
streets and highways a teen might travel to truly offer parents the ease of mind Ford markets."

Luxury brand Infiniti, meanwhile, has a new app for its Infiniti Connection infotainment system, that makes it
easier for parents to set geographic boundaries for teens, such as highway entrances or even boyfriends' houses,
says Infiniti's Megan Gaddis, who works in vehicle connected services. Parents get a text message when the line
is crossed.
The app doesn't cap car speeds -- "Sometimes you just have to get away from something," says Gaddis -- but will
send parents a text if the speed limit they set is exceeded.
Other in-car and add-on options for teen monitoring:
OnStar Family Link. OnStar, General Motors' emergency communications system, includes a "Family Link"
service that allows vehicle owners to see the location of their vehicle on an online map and get e-mail or text
alerts with the location at a requested day and time. OnStar markets Family Link as a way for parents to track the
whereabouts of their teen drivers. OnStar is available on all 2014 GM vehicles.
Travelers Insurance IntelliDrive. This plug-in device records where and how a vehicle is driven, and policyholders
earn discounts of up to 30% at renewal, based on their mileage driven. Teens and parents can get a weekly
report of the teen's driving -- including speed, acceleration and braking and driving hours -- online. Parents can
also be notified by text or e-mail about their teen's driving habits, or if the car goes outside boundaries the parent
sets.
IntelliDrive is available in eight states -- Indiana, Alabama, Virginia, Maine, Ohio, Illinois, Connecticut and Oregon.
Progressive's Snapshot. Another plug-in device, Snapshot offers a personalized rate for policyholders based on
their driving habits. It records how often a driver slams on the brakes, as well as how many miles are driven daily
and at what time. Safer and less frequent driving means lower rates.
Snapshot isn't specifically marketed for teen drivers, but could be used to improve teen driving habits, says
Progressive's Dave Pratt. The device beeps, for example, when the driver brakes too hard. Pratt says there is
evidence this has helped people become better drivers.
Snapshot doesn't have a GPS tracker. But it's been shown to "produce an improvement, and in my opinion, it's a
nice balance of providing information about how a teen is driving that can facilitate a conversation without being
so intrusive that the teen doesn't want to have it in the car," Pratt said.
AT&T DriveMode. A free app for AT&T DriveMode. A free app for BlackBerry and Android users, DriveMode
sends automatic "out of office" replies to texts and e- mails when the vehicle is moving above 25 mph.
It also sends incoming calls to voice mail at that speed, though the user can create an "allow list." The app can be
turned off if a call needs to be made. Driving at less than 25 mph for five minutes causes DriveMode to turn itself
off.
Cellcontrol. When inserted under the dashboard, this device blocks use of cellphone applications while the car is
in motion and blocks phone functions, texts, e-mail, camera and Web access unless a hands-free headset is
detected. If Cellcontrol is deactivated, misused or removed, a text or e-mail alert is sent to a designated
administrator. Cellcontrol is available for BlackBerry and Android devices, and Windows Mobile 5 and 6.
Joseph Harris, a single father from Minneapolis, says he "fully intends" to have a tracking device installed when
his daughter, Cheyenne, 15, starts to drive.
Harris agrees with Rob Coker that it's primarily for safety, but says he'll benefit, too. "Having this tool helps to
keep what little sanity I have left after the worrying from being a father to a teenage daughter."
photo Michael A. Schwarz, USA TODAY

Document USAT000020130718e97i00006

Corporate News: Car Fortunes Diverge --- In Europe, Ford's June Sales Snapped Back While GM's Fell
Corporate News: Car Fortunes Diverge --- In Europe, Ford's June Sales Snapped Back While GM's Fell
By Friedrich Geiger and Matthew Curtin
881 words
17 July 2013
J
B2
English
Ford Motor Co.'s European sales are on the mend while General Motors Co.'s continues to shrink faster than the
region's auto market, according to the latest new-car registration data.
Ford vehicle registrations in June rose 6.9% from a year earlier, compared with a 7.2% combined decline for
GM's Adam Opel and Vauxhall brand registrations and the 6.3% contraction in Europe as a whole, according to
the European Automobile Manufacturers' Association. The association collects data on new passenger-car
registrations in the European Union plus Iceland, Norway and Switzerland.
GM's Chevrolet brand, a small player in Europe, dragged down the parent's overall business, with registrations off
23% for the month.
Opel's share of the European car market is hovering around record lows, underscoring how Europe's incumbent
mass-market car makers continue to struggle amid a multiyear slump in demand for new cars in the region. The
market share of Opel and U.K. sister brand Vauxhall stood at 6.8% in the first half, below their 6.9% share at the
end of 2012, representing a steady decline from more than 10% in the years before 2002.
The Ford turnaround is recent. Its new registrations were down 9.9% for the first half, worse than the 6.8%
decline at Opel, with GM's brands still outselling Ford. Both trailed the region's market leaders, Volkswagen AG,
PSA Peugeot-Citroen and Renault SA.
Overall, the European car market in the first half contracted 6.7% from a year earlier to 6.4 million cars.
Ford is benefiting from reduced inventories earlier in the year and from its exposure to the U.K., the auto maker's
biggest European market, where car sales continue to buck the broader European decline. The pound's relative
strength against the euro and the payouts that British consumers have received from British banks and insurers
for their marketing of financial products have British demand for new cars up 13% in June and 10% for the first
half.
Ford executives credit new models, including the B-Max, a small utility vehicle, and a redesigned Kuga utility
vehicle for helping to boost the company's sales faster than the overall market. Ford has moved to increase
production capability for the Kuga to 100,000 vehicles from 75,000 vehicles annually, said Stephen Odell,
president of Ford's European operations.
Asked whether Ford can continue to buck the downdraft, Mr. Odell said: "I don't think we can defy gravity, but I
feel very good about where we are in Europe in terms of new products and our inventory levels."
In contrast, demand in Opel's main market, Germany, has fallen sharply this year, with registrations down 4.7% in
June and off 8.1% in the first half.
The auto maker is also struggling to revive consumer interest in its cars, which suffer from an image problem
compared with rival German brands such as Audi, BMW, and Mercedes-Benz.
Opel reckons it is on a cusp of a turnaround thanks to new models which it says are gaining traction with
consumers as it has beefed up its marketing efforts in Germany and other countries. Opel spent 25 million euros
($32.7 million) on advertising for the Adam, a new compact car, alone, topping spending for all models
industrywide, according to data compiled by research firm Nielsen.

"Opel/Vauxhall consolidates its position as third-largest car brand in Europe in the first half of 2013 and stabilized
its market share. This is a clear proof for the success of our ongoing model offensive -- in a very difficult market
environment," said Opel spokesman Ulrich Weber, on the registration data.
Making Opel cars desirable again is crucial to GM's turnaround plan given it aims to invest $2.5 billion in new
models by 2015. The auto maker ranked 18th out of 25 major brands in the latest Germany vehicle ownership
satisfaction study by consultants J.D. Power.
Opel has appointed new marketing chief Tina Muller, formerly with German consumer-goods group Henkel AG.
Due to start next month, Ms. Muller will be Opel's first board-level chief of marketing strategy.
Still, the tough overall trading environment makes Opel's task that much more difficult.
"The automotive industry isn't yet out of the crisis," said Quynh-Nhu Huynh, ACEA's director of economics and
statistics. "Another 6% monthly decline [in new registrations] is alarming."
Meanwhile, GM has said it wants to raise Chevrolet's profile around the world and turn it into a strong global
brand. GM recently named Opel board member Thomas Sedran to run Chevrolet in Europe, replacing Susan
Docherty, who is leaving the company in September.
Ford and Opel have said they are heading for heavy losses in Europe this year. Peugeot and Fiat SpA of Italy,
heavily exposed to France, Italy and other Southern European markets where sales have collapsed, are also
losing money in the region with factories running well below full capacity.
---
Nico Schmidt and Marietta Cauchi contributed to this article.
Document J000000020130717e97h00038

Ram 1500 is tops on 'CR' list ; 'Consumer Reports' says pickup is refined, but able to work
MONEY
Ram 1500 is tops on 'CR' list ; 'Consumer Reports' says pickup is refined, but able to work
James R Healey; Fred Meier
James R. Healey, Fred Meier, USA TODAY
744 words
17 July 2013
USAT
FINAL
B.6
English
The Ram 1500 pickup is the best big truck, Consumer Reports says.
For how long, though? It's the best 2013, but CR notes that it will finish testing the redesigned 2014 Chevrolet
Silverado this summer, and its initial impression is that it's "a well-rounded and refined truck that will strongly
challenge the Ram in our Ratings." Too, CR points out that Ford's F-150, currently a strong contender, is
redesigned for 2015.
Ram actually finished two points behind the unusual Chevrolet Avalanche, but that didn't count because that
vehicle has been discontinued after the 2013.
For the nonce, however, Ram "now tops Consumer Reports' rankings of full-size pickups," the magazine says.
It was on top and earned CR's "Recommended" rating because it scored well in CR's testing and in crash tests,
and previous versions have had at least average reliability.
"The Ram 1500 is surprisingly luxurious and refined -- but still fully capable of doing hard work when needed,"
says Jake Fisher, director of the Consumer Reports Auto Test Center in East Haddam, Conn. "Continued interior
and powertrain improvements make the Ram a particularly well-rounded choice."
CR's test vehicle was a Ram 1500 Crew Cab four-wheel drive, with the most popular engine option, 5.7-liter Hemi
V-8, and the new eight-speed automatic transmission. The publication says it got "a class-leading 15 mpg overall"
in CR's mileage tests.
The other trucks in the ranking also got CR's "Recommended" rating, except Nissan Titan, the bottom finisher.
Setting aside the Avalanche, which scored 80, here is CR's latest rankings for 2013- model standard-duty pickups
with their total score:
Ram 1500, 78
(tie) Chevy Silverado 1500, 70
(tie) GMC Sierra 1500, 70
Toyota Tundra, 69
Ford F-150, 68
Nissan Titan, 65
Chrysler readies for new Fiat-based midsize car
Chrysler Group will switch to just one midsize sedan early next year, eliminating the aging Dodge Avenger and
retaining the Chrysler 200 name for a new, Fiat-based model.

The car company apparently believes it can unite its marketing behind a single new sedan and do a better job
challenging midsize sedan sales champions Toyota Camry, Honda Accord and Ford Fusion. Midsize cars are the
biggest slice of the new-car market, and an automaker without a serious player is leaving millions of dollars on the
table.
The Sterling Heights, Mich., factory that builds the current midsize cars will build the new 200 and maybe more
vehicles. It's being upgraded with a new flexible-manufacturing body assembly and paint facility that will be able
to build and paint any Chrysler Group model except Ram trucks and the big ProMaster commercial van.
The new body-paint complex is under construction next to the current plant. It will open late this year or early
next.
The main factory is shut temporarily for the auto industry's normal summer break. When it resumes production, it
will make carryover 2014 models of the 200 and Avenger until later this year. It also builds the 200 convertible,
which is sold overseas as the Lancia Flavia.
That brief 2014 model year for the outgoing design will allow the car company to stock up on midsize sedans to
last until the new vehicles hit the market early next year, avoiding the sales gap it endured when it discontinued
the Jeep Liberty before it had the replacement Cherokee ready.
The automaker's apparent midsize car strategy is somewhat like its strategy for its minivans -- no need to sell
essentially the same product under two names with two marketing budgets. The Chrysler Town & Country
minivan will be discontinued next year, CEO Sergio Marchionne has said, and a new-design minivan will replace
the Dodge Grand Caravan.
The Chrysler 200, previously called Sebring, had its 15 minutes of fame in Chrysler's "Imported from Detroit" 2011
Super Bowl TV ad, showing Detroit native singer Eminem proudly piloting a 200 around the Motor City.
The 200 and Avenger date to 2006. Chrysler Group has sold 136,033 of the two the first half this year, according
to Autodata. Toyota Camry sales the same period: 207,626; Honda Accord, 186,860; and Ford Fusion, 161,146.
photo GM via Wieck

Document USAT000020130717e97h0000j

Franchised dealers deliver best results
NEWS
Franchised dealers deliver best results
Peter Welch
379 words
16 July 2013
USAT
FINAL
A.6
English
Franchised auto dealers are on track to sell more than 15 million new cars and trucks this year, including a
half-million electric, natural gas, hybrid and other alternative technology vehicles. These Main Street businesses
-- the backbone of their communities -- are leading America's economic recovery. Franchised auto dealers
employ nearly a million people, provide good jobs that can't be shipped overseas and engage in robust market
competition.
For more than 100 years, automakers have contracted with franchised dealers to sell and service their vehicles
for one simple reason: It's the most efficient and cost effective way of doing so. Franchised auto dealers'
cumulative investment in land, equipment and facilities exceeds $200 billion -- expenses that auto manufacturers
would otherwise have to incur. Ford and General Motors tried owning their own dealerships and failed. These
experiments proved that factory stores did not deliver better customer service or reduce consumer costs.
A question has been raised as to whether automakers should be licensed to sell directly to consumers. A better
question is who should decide this licensing issue, and the answer is the states.
In our federal system, states have the right to license lots of important retail industries -- everything from eye wear
to alcoholic beverages. The states are best positioned to decide what level of accountability, regulation and
competition is best for their citizens.
Although all states regulate the auto retail marketplace, their approaches differ widely. Many allow automakers to
sell directly; others require a local licensee as an additional layer of accountability. This reflects the fact that,
when it comes to auto retailing, one size doesn't fit all.
It is easy to see the rationale behind state laws that foster a well-capitalized, independent dealer network. New
vehicles are expensive, generally require financing and often involve a trade- in. Consumers are better served by
multiple retailers competing for their business.
A Ford dealer's biggest competitor, for example, is usually another Ford dealer. Most buyers, according to the
Harvard Business Review, value a combination of online service, personal service and physical locations over
stand-alone Web distribution. That sounds exactly like the dealer franchise system currently in place.
Peter Welch is president of the National Automobile Dealers Association.
Document USAT000020130716e97g0005m

Ford F-250 Leads List As Top Target of Thieves
WHEELS
Automobiles; SECTAU
Ford F-250 Leads List As Top Target of Thieves
By CHERYL JENSEN
532 words
14 July 2013
The New York Times
NYTF
3
English
Being toppled from the number one spot on a list isn't necessarily a bad thing. Case in point: The Ford F-250 has
replaced the Cadillac Escalade as the vehicle most likely to be stolen, according to the Highway Loss Data
Institute.
''This list gives consumers an indication of the relative risk of their vehicle being stolen,'' said Matt Moore, vice
president of the organization.
The Highway Loss Data Institute is an affiliate of the Insurance Institute for Highway Safety and both are financd
by the insurance industry. This is the first year since 2003 that an Escalade variant has not been the vehicle with
the highest theft claim rates. The Escalade is now sixth on the list. Possible reasons for the drop include new and
improved antitheft technology as well as declining Escalade sales, according to a statement from the Highway
Loss Data Institute.
According to National Highway Safety Administration statistics, a motor vehicle is stolen every 44 seconds. The
agency also reported that only 52 percent of those vehicles are recovered and nearly half of those thefts resulted
from driver error, like leaving keys in the ignition.
The report lists vehicles from the 2010-12 model years, and the top 10 vehicles on the list are all large pickups
and S.U.V.'s. The Ford F-250 4-wheel-drive crew cab has a claim frequency of seven per 1,000 insured vehicle
years. That means that for every 1,000 insured F-250 crew cabs on the road, seven -- nearly six times the
average for all passenger vehicles -- are stolen each year. The average for all passenger vehicles is 1.2. The high
number for trucks and S.U.V.'s could be partly explained by the fact that many pickup truck theft claims are filed
because equipment has been stolen from the bed of the truck and the data does not differentiate between that
and the theft of the entire vehicle.
Following the F-250 as vehicles most likely to be stolen are the Chevrolet Silverado 1500 crew cab (6.7 per
1,000), the Chevrolet Avalanche 1500 (6.1), the GMC Sierra 1500 crew cab (6.0), the Ford F-350 crew 4WD
(5.6), the Cadillac Escalade 4WD (5.5), the Chevrolet Suburban 1500 (5.4), the GMC Sierra 1500 extended cab
(4.7), the GMC Yukon (4.5) and the Chevrolet Tahoe (4.4).
Conversely, the vehicles least likely to be stolen are small and midsize vehicles. The vehicles on the bottom of
the list, which is good in this case, are all tied with a claim frequency of 0.4 per 1,000, which means that fewer
than 1 per 1,000 are being stolen annually. They are the Dodge Journey 4WD, the Volkswagen Tiguan 4WD, the
Audi A4 sedan, the Acura RDX, the Toyota Matrix, the Lexus HS 250 hybrid 4-door, the Honda CR-V and the
Hyundai Tucson 4WD.
The Ford F-250. (PHOTOGRAPH BY FORD MOTOR)

Document NYTF000020130715e97e0000p

Midsize SUVs are a hot spot in hot market ; Auto experts and a family put 6 to the test
MONEY
Midsize SUVs are a hot spot in hot market ; Auto experts and a family put 6 to the test
James R Healey
James R. Healey, USA TODAY,
879 words
8 July 2013
USAT
FINAL
B.2
English
Auto sales are so hot this year that it's tough to single out one segment, but even amidst the commotion, midsize
SUVs show up as remarkably strong.
Vehicles such as the Jeep Grand Cherokee, Ford Edge, Hyundai Santa Fe Sport and their ilk are the latest
definition of family cars. The five-passenger utilities are the SUV equivalent of midsize family sedans, such as the
Toyota Camry, and have about the same space inside. And they make up a significant slice of the new-car
market.
"There's so much hunger for these in the marketplace. Manufacturers feel as if they can't go wrong making these
and updating them frequently," says Karl Brauer, senior director of insights at car shopping site kbb.com.
To see who's doing that best, we and our partners assembled six of the top-sellers configured under a specific
price limit for our latest head-to-head test: the Cars.com/USA TODAY/MotorWeek $38,000 Midsize SUV
Challenge. Much of the test driving was done here, near Chicago.
The idea was to see whether they live up to their hype, get decent fuel economy and have anything of the "sport"
left in them after being turned into what Brauer calls "the 21st-century station wagon." The "S" in SUV means
sport, after all.
You can see the champ and the ranking in the accompanying articles -- and see whether the family judges,
enlisted as a reality check for each Challenge, agreed with the experts.
Here's an eye-opener: Our half-dozen contenders accounted for a remarkable 3.6% of all new-vehicle sales the
first half this year. That's hefty for just six vehicles, especially when half the test group are only ho-hum on the
sales charts.
The $38,000 price ceiling was deliberately generous, quite a bit more than the average transaction price of a new
vehicle, which was $31,663 in June, according to kbb.com. Utilities usually cost a bit more to start and often go up
from there because buyers want them appointed so everybody in the family will be satisfied.
The price ceiling let the automakers, who could provide what they thought was their best configuration for the
price, deck out the entrants pretty well.
One key compromise was apparent -- whether to fit them with all- wheel drive, often a reason for buying an SUV,
or provide one with lower-priced two-wheel drive, which would let them make the vehicle a bit more lavish and
score a bit better in gas mileage testing.
The six two-row, five-passenger Midsize Challenge SUVs, in order of their sales the first half of this year:
2014 Jeep Grand Cherokee, which got drivetrain, styling and other updates for 2014, even though this generation
is only 3 years old.
2013 Ford Edge, which got drivetrain, interior and exterior updating for this year.

2014 Kia Sorento, which also got drivetrain, styling and other updates only three years into the current
generation, plus a new, high-end model that starts at about $41,000.
2013 Hyundai Santa Fe Sport, new last August and sharing hardware with corporate affiliate Kia's Sorento. A
stretched three-row version called just Santa Fe went on sale in January. It was not tested.
2013 Toyota Venza, rolled out as a 2009 model, got interior and exterior tweaks and added standard features for
this year.
2013 Nissan Murano, which has fallen off in sales, probably for lack of recent significant updates.
Because they are configured as SUVs - station wagons by another name - they have fold-down back seats to
accommodate impulse purchases at the building supply store or antique shop. Even with the seat up, cargo
space behind it is about what you get in the trunk of a full-size car.
They often have more comfortable seats than sedans and handle a family road trip better.
They can be profit machines because they use the underpinnings from sedans or other vehicles the car company
already makes, but they look nothing like them and don't compete for the same buyers. Toyota's Venza, for
instance, is based on the Camry sedan. Nissan Murano shares a fair amount with Altima.
Midsize SUVs have lost some buyers in recent years to improved compact SUVs but are making up for it by luring
buyers from full- size, three-row SUVs, which are more expensive, use more fuel and are harder to park.
"Two things happened. First, there was a backlash as consumers realized that most third rows were not truly
usable for anyone besides small children. Second, people became more realistic about their SUV size
requirements," says Jessica Caldwell, a senior analyst at car research site Edmunds.com.
"I think midsize is still something that is both profitable for automakers and is a good choice for a wide variety of
consumers," Caldwell says.
In this slice of the market, "you kind of can't make a failing SUV. If it's a car-like driving and SUV-looking vehicle,
it'll sell," Brauer says.
Document USAT000020130708e9780000w

How we did the SUV Challenge
MONEY
How we did the SUV Challenge
Fred Meier; Mike Hanley
Fred Meier and Mike Hanley, USA TODAY,
446 words
8 July 2013
USAT
FINAL
B.3
English
A lot has changed in midsize SUVs in the last 10 years. What once was a class dominated by truck-based models
has given way almost entirely to car-based vehicles, still with the high seating position and styling that helped
make SUVs popular, but with better ride and handling, fuel economy and interior space.
The class took a hit to its popularity when gas prices reached $4 a gallon the first time, but sales have roared
back. Jeep's Grand Cherokee is Chrysler's second-best-selling vehicle this year after the Ram 1500 pickup.
Ford's Edge, while not as successful as sister SUVs Explorer and Escape, still outsells Ford's largest and
smallest cars, Taurus and Fiesta.
The shift in thinking about these SUVs has resonated with shoppers and has led to even more midsize SUVs for
families to consider. Of the six in our test, the Edge and Toyota Venza weren't even around 10 years ago, while
the Kia Sorento morphed from truck- to car-based.
We set a price cap of $38,000, including destination charges, after taking into account the sales leaders in this
space, consulting with J.D. Power and Associates and looking at listing prices on Cars.com. We also told the
manufacturers that the cars had to have automatic transmissions and either turbocharged four- cylinder or
naturally aspirated V-6 engines, but otherwise they could provide what they thought was their best configuration
for the price limit.
Our $38,000 price cap resulted in a group with a range of features. And three had all-wheel drive, two had
front-wheel drive, one had rear-wheel drive. All but one, though, had a V-6 -- and Santa Fe Sport's turbo
four-cylinder produced V-6-like power numbers.
How the testing was done:
A day of driving the entrants on a carefully planned route, rotating drivers and maintaining equal loads, to observe
real-world gas mileage.
A day in which each expert drove the six entrants alone and back- to-back on the same route.
A day for the real-world family of four to go over and drive each entrant with an eye toward which features and
attributes would matter most to them in their next vehicle.
Here's how they were scored:
The experts' scores combined account for 75% of the total score; the family evaluation is 15% and the
fuel-economy ranking is 10%.
And the winner
It was close, but after all the testing, here's the ranking
Hanley reports for Cars.com
Document USAT000020130708e9780000t
Car Sales Pace at 5-Year High
Car Sales Pace at 5-Year High

By Neal E. Boudette and Jeff Bennett
946 words
3 July 2013
J
B1
English
Corrections & Amplifications
Ford Motor Co. sold 68,009 F-series pickups last month. A Marketplace article on Wednesday about U.S. auto
sales incorrectly said it sold 59,827.
(WSJ July 5, 2013)
(END)
U.S. auto sales rose at the strongest rate in more than five years in June, propelled by a surge in pickup truck
demand, lending new confidence to industry executives' belief that the nation's auto recovery has more room to
run.
Overall, auto makers sold 1.4 million cars and light trucks in June, 9.2% more than a year ago, according to
researcher Autodata Corp., and putting the industry on track to make 2013 its best sales year since 2007.
Through the first six months of the year, Americans have purchased 7.8 million cars, 7.7% more than the same
period a year ago.
"America's families are better off than they were at the beginning of the year and they believe -- with good
justification -- that the economic expansion is going to continue," said Mustafa Mohatarem, General Motors Co.'s
chief economist.
He said even moderate economic growth would keep the auto sales rate in the second half of the year at healthy
levels around the mid-15 million unit mark. June's annualized selling clip hit 15.96 million vehicles, according to
Autodata.
Mr. Mohatarem also said that so far auto makers aren't resorting to drastic price cuts to keep sales strong, a sign
of healthy demand.
The June auto numbers amplify other data suggesting that consumers are willing to spend now that many have
cleaned up their personal balance sheets. The Conference Board, a New York-based private research group,
said last week that its consumer confidence index jumped to 81.4 in June, the best reading since January 2008.
Ford Motor Co. and Nissan Motor Co. said their vehicle sales increased 13% and 12.9% last month, respectively,
while Toyota Motor Corp. and Honda Motor Co. reported gains of 9.8% and 9.7%, respectively. Chrysler Group
LLC reported an 8.2% rise and GM 6.5% growth, while Hyundai Motor Co.'s sales climbed 1.9%.
Auto makers are getting a lift from increased activity in the home-building and energy sectors, which are key
buyers of pickup trucks. Ford, GM and Chrysler combined sold 157,480 large pickup trucks in June, 26% more
than a year ago.
Doug Waikem, owner of a chain of seven dealerships near Canton, Ohio, said he sold 779 new cars and trucks in
June, in part because of the boost the local economy got from oil companies working on the region's shale oil and
gas fields.
"After years of being in the rust belt, our area is booming," Mr. Waikem said. "We've got a lot of farmers who sell
their drilling rights and come right in to buy new trucks."

Higher sales of big-ticket trucks help boost the average prices consumers pay for new vehicles, and the profits
auto makers collect. In June the average transaction price was $31,125, up $617 from the same period last year
and the second-highest level ever recorded, according to data compiled by researcher TrueCar Inc.
Earlier this year, Nissan cut the sticker prices on seven of its high sales-volume models including the Altima,
Sentra, Rogue and Murano. Fred Diaz, a former Chrysler executive hired in April to run the Nissan brand sales in
North America, said it is too early to tell if the price reductions are having a significant impact on sales.
"I think it is driving some foot traffic in the showrooms," he said Tuesday.
Mr. Diaz said price cuts appear to be helping sales of the Nissan Leaf electric car. Sales of the Leaf in June hit
2,225 cars, three times that of year-ago levels and the second highest monthly sales level so far.
Nissan has sold 9,839 Leafs this year through June 30, more than the company sold in the U.S. for all of 2012.
Earlier this year, Nissan cut the U.S. price of the Leaf by $6,400, reflecting in part savings from shifting production
of the car to a factory in Smyrna, Tenn., from Japan.
With the help of a $7,500 federal tax credit and other state tax credits, the Leaf becomes comparable in price with
a similarly sized compact car with a gasoline engine. Nissan also has offered a $199 a month lease deal on the
car.
Among German auto makers, sales of BMW AG's namesake brand rose 25% to 27,074, topping rival Daimler
AG's Mercedes-Benz unit, where sales climbed 9.8% to 24,415. Volkswagen AG's Audi brand posted a 8.2% gain
to 13,706 while sales of the company's namesake brand shrank 3% to 35,957.
In June, Ford sold 234,917 vehicles, up from 207,204 a year ago, with 35% going to fleet buyers. Sales included
59,827 F-series trucks. Fleet sales typically make slimmer profit margins for auto makers, especially sales to
rental-car companies.
GM sold 264,843 vehicles last month, compared with 248,750 a year ago, with 27% going to fleet customers. It
sold 59,827 Chevrolet Silverado and GMC Sierra pickups. Cadillac sales, helped by a new model, the ATS small
sport sedan, rose 15%, while Chevrolet sales increased 7.4%.
Chrysler sold 156,686 cars and trucks in June, buoyed by its Ram and Dodge brands.
---
Mike Ramsey contributed to this article.
Document J000000020130703e9730003a

A Revitalized Car Industry Cranks Up U.S. Exports
A Revitalized Car Industry Cranks Up U.S. Exports

By Christina Rogers and Neal E. Boudette
1,053 words
2 July 2013
J
A1
English
MARYSVILLE, Ohio -- The U.S. auto industry, in tatters just four years ago, is emerging as an export
powerhouse, driven by favorable exchange rates and labor costs in a trend experts say could affect business for
many years.
In a sign of the turnaround, Honda Motor Co., once a big importer of Japanese-made cars, says it expects to
export more vehicles from North America -- with nearly all of them coming from its U.S. factories -- than it brings
in from Japan by the end of 2014.
Last year, more than one million cars and light trucks were exported from U.S. auto plants, the highest recorded
and a more than threefold rise from 2003, according to the U.S. International Trade Administration.
More competitive labor costs and restructurings that closed unproductive factories have made American auto
plants tougher competitors in the global market. Some are also looking at U.S. production as a way to serve
booming emerging markets.
By the end of 2014, Chrysler hopes to export as many as 500,000 vehicles a year to markets outside of North
America, more than doubling the 210,000 it sent abroad in 2012. The vast majority of Chrysler's exports come
from U.S. factories.
"What's changed is our focus on our international markets," said Mike Manley, chief executive of Chrysler's Jeep.
Majority-owned by Italian auto maker Fiat SpA, Chrysler is using its parent's connections to build sales in Russia,
China and elsewhere. "We took a very different, more aggressive view on how we could grow with the existing
resources that we have," he said.
Of course, the value of automobiles coming into the U.S. is still greater than those exported. The country's auto
trade deficit was $105.5 billion last year, about double the $51 billion in auto shipments overseas.
Still, autos make up a smaller portion of the overall U.S. trade deficit -- just 14.5% of the deficit in 2012 down from
22% of the total in 1987.
The cars and trucks shipped overseas are equivalent to the annual output of three or four big assembly plants out
of the nation's about 44 total factories.
Jun Jayaraman, the head of quality at Honda's Marysville car plant, recently strode along an Accord production
line here as workers in white uniforms bolted on dashboards. "This one, right here," he said, tapping the headlight
of a white sedan. "Going to Russia."
Few manufacturers are planning a shift as dramatic as Honda. Last year, Honda exported 90,000 vehicles from
North America. It eventually aims to increase that to more than 200,000 a year taking advantage of factory
expansions and a weaker U.S. dollar. The dollar has strengthened this year, with $1 buying 99.64 yen on
Monday. But that's much weaker than the 120 yen per dollar level of 2007.
U.S.-made cars are being shipped to China, the world's largest auto market, Saudi Arabia, the second largest
destination for U.S.-made cars behind Germany, and South Korea, which now has a free-trade agreement with
the U.S. Lower fuel prices have helped the moves, although shipping costs aren't a key factor in many of the
production decisions, auto industry officials said.

At a Ford Motor Co. plant in Chicago, a quarter of its Explorer sport-utility vehicles are shipped outside of North
America. In Belvidere, Ill., Chrysler assembles Jeeps with diesel engines for European customers.
In some ways, General Motors Co. and Ford never felt the need to export from the U.S. because they were early
globalists, opening plants in Europe and elsewhere early last century. Instead, the U.S. vehicle export boom in
part is a byproduct of the government-led bankruptcies at Chrysler and GM four years ago that closed
unprofitable plants and a weaker U.S. dollar, which makes U.S.-made products more competitive overseas.
Labor agreements paved the way for the two auto makers to hire thousands of workers who earn $14 an hour,
about half that of veteran workers. Ford, which restructured without government intervention, got much the same
terms from the United Auto Workers union as its crosstown rivals.
The leaner U.S. industry also contrasts with Europe and Japan, which are struggling with too much capacity,
rising labor costs and shrinking domestic demand.
The average cost of a U.S. auto worker's pay and benefits was $38 an hour in 2011, compared with $60 in
Germany and $37 in Japan, according to the Center for Automotive Research. That's up only $3 an hour from
2007. In Germany, the per-hour compensation has jumped $14 in the same period; in Japan, it is up $12. These
trends have encouraged German and Japanese auto makers to boost exports from their U.S. factories.
Last year, BMW exported about 70% of the 301,515 vehicles it made in South Carolina. Daimler AG's
Mercedes-Benz exported about the same percentage of the 180,000 vehicles it made in Alabama last year.
In 2012, Toyota exported 124,000 U.S.-made cars and light trucks, up from 86,000 in 2011. "Because we build a
certain level of vehicles here already, it is more cost effective to send from the U.S.," said Nihar Patel, vice
president of North American business strategy for Toyota Motor Sales U.S.A.
The rise in U.S. vehicle exports is creating jobs far from the industry's heartland.
At the Port of Baltimore, logistics firm Auto Warehousing is preparing 48 acres of previously unused land to
process thousands of cars that will start arriving this fall from Toyota Motor Corp.'s Kentucky, Indiana and
Mississippi plants.
Jeeps headed for China and other markets are shipped out of the Port of Grays Harbor, Wash., 2,400 miles west
of Detroit. In the 1990s, the port was struggling as log exports fell.
"When you drive by the port, now you'll see four or five thousand vehicles ready for export," said Kevin Campbell,
a port manager for Brusco Tug & Barge Inc. "In years past, it'd be logs."
Document J000000020130702e9720002w

F-150 more American than Camry ; Toyota bumped from No. 1 spot
MONEY
F-150 more American than Camry ; Toyota bumped from No. 1 spot
James R Healey; Fred Meier
James R. Healey and Fred Meier, USA TODAY,
1,284 words
27 June 2013
USAT
FINAL
B.4
English
Ford's best-selling F-150 pickup bumped the Toyota Camry as the nation's most "American-made" vehicle in the
latest annual Top 10 listing by Cars.com.
Camry, made in Kentucky and Indiana, was No.1 in the American- Made Index from 2009-12 and Toyota still has
the most ranked vehicles, with four, followed by General Motors, with three. This year's Top 10, compiled by
Cars.com's Kelsey Mays, includes five Japanese-brand models: Camry, plus Toyota's Sienna, Tundra and Avalon
and Honda's Odyssey.
To be considered for the American-Made Index, a vehicle must have at least 75% North American content in its
federally required sticker disclosure. Other factors in the formula then include where the vehicle is assembled and
its U.S. sales (a low-selling vehicle may be built here but creates fewer jobs). More details and data at
blogs.cars.com/kickingtires.
The pickup sales boom helped put the F-150 -- the best-selling vehicle in America this year -- back on top, where
it had been before being deposed by Camry.
"Strong sales and 75% domestic-parts content propelled Ford's F- 150 to the top of the index for 2013, a rank it
held from 2006 to 2008," said Patrick Olsen, Cars.com's editor-in-chief. "(Its ranking) is a good indicator of how
pickup trucks are dominating auto sales so far in 2013, and how the domestic automakers are bouncing back.
While the assembly point and domestic parts content of the F-150 didn't change from 2012-13, vehicle sales are
responsible for bumping the F-150 to the top spot."
Such lists always re-ignite the debate over whether the definition of American-made should include:
A foreign-based automaker raking off the profits, but U.S. workers getting the jobs building the vehicles, such as
in Toyota's Kentucky plant, which builds Camry and Avalon.
A Detroit maker earning the profits from U.S. sales while some of the jobs are outside the U.S., such as in
Mexico. Ford's strong- selling Fusion, made at Hermosillo, Mexico, and, increasingly over time, also at Flat Rock,
Mich., could be an example. Only count the Michigan cars?
Or should the definition be limited to U.S.-based makers using U.S. workers in a U.S. factory, period. General
Motors' Chevrolet Traverse, GMC Acadia and Buick Enclave crossover SUVs -- all built at Lansing, Mich. --
showcase that scenario.
All-new Mazda3 shown at worldwide events
Mazda just pulled the covers off its important 2014 Mazda3 redesign.
The 3, a compact, goes on sale this fall. It's the brand's biggest seller in the U.S., outpacing the midsize Mazda6
nearly 3- to-1. And the aging current Mazda3 still is outselling the popular CX-5 SUV even though SUVs are hot
right now and the CX-5 is a new model.
The Mazda3 also is the brand's No.1 seller worldwide and, thus, events were held Wednesday in New York;
London; Melbourne, Australia; Istanbul; and St. Petersburg, Russia.
A couple things about the new 3 -- again offered as a sedan and hatchback -- that are likely to cause a stir:
Pedals are centered in front of the driver, "for added safety and comfort," says Mazda. Pedals normally are offset
to the right.
An optional clear pop-up panel on the dashboard above the speedometer displays speed, navigation directions
and other data in a head-up display Mazda calls Active Driving Display. It is meant to put "necessary information
comfortably in the driver's line-of- sight" and keep the driver's eyes up and on the road.
Mazda gave no price or fuel-economy numbers at the event.
Two four-cylinder engines will be offered in the 2014 Mazda3 in the U.S., and they are the same two now used in
the CX-5: a 2-liter rated 155 horsepower and 2.5-liter rated 184 hp. Transmissions are a six-speed manual or
automatic.
The 2014 Mazda3 hatch is about 2 inches shorter than the car it replaces, but rides on a 106.3-inch wheelbase,
which is 2.4 inches longer, and it is 1.6 inches wider for more interior room.
The bases of the windshield pillars are pulled back 3.9 inches from their position in the 2013, which should
provide a big improvement in visibility.
The car has Mazda's new Skyactiv treatment first fully used on CX- 5. It's a suite of features and technologies
designed to boost mileage and power via new engine, transmissions and chassis designs and new construction
techniques that cut weight.
The updated touch-screen infotainment system has text-to-voice technology and smartphone integration.
An expanded selection of electronic safety aids available includes blind-spot alert, lane departure warning, front
collision warning, radar-based adaptive cruise control and "Smart City Brake Support," which can brake the car at
speeds less than 19 mph when a laser detects an object ahead if the driver does not react.
VW diesel sets 78 mpg record for 48-state trek
It's not an official government rating, but it's pretty impressive nonetheless: 78 miles per gallon in a Volkswagen
Passat TDI diesel on a trek through all 48 contiguous states.
The mark was anointed a Guinness World Record, so it's more than your neighbor bragging about his eco-driving
ability.
The team of auto blogger Wayne Gerdes and electronics engineer Bob Winger ran up 8,122 miles, using 104.94
gallons of fuel, in a Passat diesel built at VW's Chattanooga factory and delivered for the drive just as it came off
the line, VW says.
They beat the old Passat TDI mark of 67.9 VW itself set in 2009. The government's official highway mileage rating
for the Passat diesel is 43 mpg.
The new mark also beats the Guinness record for gasoline- electric hybrid vehicles of 64.6 mpg, also set by
Gerdes, who is an experienced "hypermiler" -- the term for people who try to see how much mileage can be
squeezed out of a gallon in a vehicle.
The TDI drive began June 7 from VW's U.S. headquarters in Herndon, Va., and ended there June 24.
"Obviously, we employ some specialized techniques to achieve such figures, but there's no reason why owners of
TDI vehicles shouldn't be able to achieve great mileage," Gerdes says.
A key tactic, he says: Anticipate conditions. "Look for impediments or topography (such as hills) 15 to 45 seconds
ahead, rather than reacting to where you're currently driving."
Equipment specific to the mileage run: Shell ultra-low-sulfur diesel fuel; Continental PureContact with EcoPlus
Technology low- resistance tires (not a Passat factory option, but available from tire sellers and approved by
Guinness); Linear Logic ScanGauge II to precisely measure fuel economy; Motorola's Droid Razr Maxx HD phone
to meet Guinness tracking requirements.
Made in the USA

The Top 10 and their assembly locations:
1. Ford F-150 Dearborn, Mich.,
Claycomo,Mo.
2. Toyota Camry Georgetown, Ky.,
Lafayette, Ind.
3. Dodge Avenger Sterling Heights, Mich.
4. Honda Odyssey Lincoln, Ala.
5. Toyota Sienna Princeton, Ind.
6. Chevrolet Traverse Lansing, Mich.
7. Toyota Tundra San Antonio
8.GMCAcadia Lansing, Mich.
9. Buick Enclave Lansing, Mich.
10. Toyota Avalon Georgetown, Ky
photo Ford Motor Booming sales of pickups this year helped return the Ford F-150 to the top of the
American-Made Index, pushing Camry to No. 2.
Document USAT000020130627e96r00005

Family Tree Blossoms at Ford --- Founder's Great-Great Grandchildren Join the Business; 'There Are No Guarantees,' Says Bill Ford Jr.
Family Tree Blossoms at Ford --- Founder's Great-Great Grandchildren Join the Business; 'There Are No
Guarantees,' Says Bill Ford Jr.
By Mike Ramsey
1,014 words
26 June 2013
J
B1
English
Calvin Ford, 29, knew as a child where he would probably wind up working as an adult. But he took his time
getting there.
He spent his first few years after college in jobs in the Northeast and in Asheville, N.C. Then his wife landed a job
in Denver. It so happened that Ford Motor Co. had an open job there.
He applied, went through a standard new employee hiring process in Dearborn, Mich., and since January 2012
has been a zone sales manager based in Denver, working with Ford dealers in Wyoming and Idaho.
"I always knew that if I went to work at Ford, it was going to be my career," says Calvin Ford, a great-great
grandson of the company's founder.
Calvin Ford is one of seven descendants of Henry Ford now working at the car company that bears the family
name. Most are just starting their careers but a cousin, Bill Ford Jr., has been chairman since 1999 and Calvin's
father has spent 39 years at the company.
At a time when nonfamily Ford shareholders are showing signs of discontent with the Ford family's effective
control via supervoting stock, more members of the family than ever are now working at the auto maker, say
company officials. And several more young Fords could join the ranks over the next few years, family members
say.
A Ford is unlikely to run the company soon. Current Chief Executive Alan Mulally, 67, has said he plans to stay
through at least 2014. Last year, the company named Mark Fields as chief operating officer, making him the likely
successor.
A shareholder proposal this year to abolish the separate classes of stock got 33% of total share votes --
equivalent to just over half the nonfamily voting shares and the highest percentage of such proposals at Ford.
"I think the [market] value would be higher if it was one share, one vote," says John Chevedden, 67, of Redondo
Beach, Calif., a Ford shareholder who, along with his father, supported the proposal to end the Class B super
voting rights.
The global auto industry is rich with family dynasties. Descendants of Giovanni Agnelli still control Italian auto
maker Fiat SpA. Members of Germany's Quandt family have a significant stake in BMW AG. The Chung family
runs the Hyundai Motor Group in Korea and Volkswagen AG Chairman Ferdinand Piech is a grandson of
Ferdinand Porsche, founder of the German sports car company that bears his name.
At Ford, which has been a publicly-listed company since 1956, descendants of the founder maintain effective
control through Class B supervoting stock that gives them 40% of the common stock vote.
Ford Chairman Bill Ford Jr., 56, says shareholders benefit from his family's involvement, and he sees it as part of
his job to try to get family members to participate in the company's operations. Ford avoided the bankruptcies that
befell its U.S. rivals during the 2009 financial crisis and its shares have gained 47% in the past year.
"They know there is going to be someone there through thick and thin who isn't going to take a golden parachute
and run somewhere," he said.

Mr. Ford also says family members no longer have an inside track to leadership roles. He and his cousin, board
member Edsel Ford II, are members of the fourth generation. Ford family members who join the company start in
relatively low-level salaried jobs. A Ford spokeswoman said family members aren't exempt from the standard
hiring process.
"There are no guarantees for any of them," Bill Ford Jr. says.
Family-owned firms account for two-thirds of the world's businesses, but family control of a company rarely lasts
beyond three generations. Between 1% and 2% of businesses survive to three generations, and few go beyond,
said John Davis, a Harvard Business School professor.
In Ford's early years, leadership was a family affair, passing from Henry Ford, to his son Edsel and in 1945 to
Edsel's son, Henry II, who was CEO until 1979. Since then, a series of nonfamily members have run the
company, except for nearly five years between 2001 and 2006 when Bill Ford Jr. took over as CEO following the
dismissal of his predecessor, Jacques Nasser. In 2006, with the company reeling from losses, Mr. Ford ceded the
CEO title to Mr. Mulally, a former Boeing Co. executive.
The highest-ranking employee of the Ford's fifth-generation is Elena Ford, 47, who recently was promoted to vice
president of global dealer and consumer experience. Alessandro Uzielli, the son of Anne Ford and Giancarlo
Uzielli, 46, leads Ford's global brand entertainment office in Hollywood. Calvin's older brother Henry Ford III, 33,
works in marketing in Irvine, Calif.
Jody Ingle, 32, whose mother Jo Ingle is a great-grandchild of Henry Ford, is a fledgling designer at the
company's Dearborn vehicle design studios, creating interiors for vehicles.
Mr. Ingle got to shadow Bill Ford Jr. during much of 2011, discussing the decisions with his more senior relative.
Mr. Ingle, who declined to be interviewed, sat in on meetings, traveled with his cousin and got an inside look at
how the company ran.
Bill Ford Jr. says he isn't putting pressure on his four children to join the family business. He recalls that when he
was about to graduate from Princeton University, his father, William Clay Ford Sr., asked him over a game of pool
what he planned to do after he left school. Mr. Ford Sr.'s advice: Join the company only if you love it, and don't
expect to make it to the top.
Now, Bill Ford Jr. says his son, Will, is entering his senior year at Princeton. They haven't had the pool room talk
yet.
---
James Hookway contributed to this article.
Document J000000020130626e96q0003h

Ford Brings Back the Dial
TECHNOLOGY
Automobiles; SECTAU
Ford Brings Back the Dial
By JOHN R. QUAIN
340 words
23 June 2013
The New York Times
NYTF
5
English
Have the Luddites won, or has common sense prevailed?
The news that Ford is adding more physical controls to its MyFord Touch systems caused a stir among critics of
the automaker's connected-car dashboards. Ford, which has been at the vanguard of outfitting cars with apps and
touch screens, seemed to be acknowledging that it had pushed the envelope one step -- or a couple of buttons --
too far.
But Ford says the addition of volume and tuning knobs to the systems in the 2013 F-150 and the coming 2014
Fiesta is part of a continuing effort to find the right mix of controls -- voice recognition, touch screens and old-style
buttons -- that will make a majority of drivers comfortable. Ford said it wasn't planning to pull back on services or
give up on touch screens.
''It's really a function of getting customer feedback,'' said Jim Baumbick, director of global product development
quality. ''It's about finding harmony and balance.'' He said the modification process had gone on for several years.
The MyFord Touch systems have always given drivers a choice of physical controls -- like the buttons on the
steering wheel -- as well as voice and touchscreen commands. Now volume and tuning knobs are returning to the
dashboard.
The quest for an interface that can control everything from navigation to streaming music to safety systems has
led to a lot of experimentation. Automakers have tried dials (BMW) and even a vibrating joystick (Lexus). But the
public's fondness for touch screen phones and tablets may be winning the day. Cadillac, for instance, hopes its
Cue touch screen system will remind drivers of their iPads. After a year on the market, the response has been
positive, Cadillac says -- although its field research suggests that people are using the steering wheel and voice
commands more than the dashboard screen.
REACH OUT: Ford's futuristic touch screen controls will be getting some retro touches. (PHOTOGRAPH BY
FORD MOTOR)
Document NYTF000020130623e96n00043

Corporate News: Chevrolet, GMC Shine in J.D. Power Quality Survey
Corporate News: Chevrolet, GMC Shine in J.D. Power Quality Survey

By Jeff Bennett
532 words
20 June 2013
J
B3
English
General Motors Co. scored its best showing in eight years in a closely watched new-car quality survey in part by
moving more slowly than rivals in outfitting its vehicles with the latest technologies.
GM's Chevrolet and GMC finished among the top five brands in the annual J.D. Power & Associates Initial Quality
Survey which compiles the ranking based on problems owners reported during their first 90-days of ownership.
Chevrolet and GMC were the only Detroit brands to finish in the top 10 of the survey.
"Nothing energizes us more than receiving the verification of quality from our customers," said Alicia Boler-Davis,
GM vice president global quality and U.S. customer experience.
J.D. Power said GM benefited from a hybrid use of new technologies. For instance, its MyLink entertainment and
navigation system still uses a combination of buttons and knobs in addition to touch-screen and spoken
commands.
"Ironically, GM had a good year because they didn't redesign too much when it comes to the internal components
like navigation," said David Sargent, vice president of global automotive research at J.D. Power. "Any time you
redesign a vehicle and introduce something new that may have hiccups or the customer isn't ready for, you
diminish the performance."
Case in point, Ford Motor Co. which had one of its worst showings in years. It finished sixth from the bottom as its
score dropped for the third year in a row. Ford had 131 problems per 100 vehicles.
Ford has fallen in annual rankings in large part to consumer dissatisfaction with the difficulty of using its
touch-screen multimedia system, called MyFord Touch. The auto maker said on Monday it would reprise tuning
and volume knobs for the radio as it redesigns existing models.
Porsche wrestled away the top spot from Toyota Motor Corp.'s luxury Lexus brand with just 80 problems reported
for every 100 vehicles.
The quality survey, in its 27th year, has evolved from pointing out mechanical or design defects to auto makers.
With mechanical quality now running at about even between the auto makers, the survey has begun gauging
consumer reactions to technology and creature comforts.
GM's Cadillac brand underscored the change by dropping to 14th place after climbing to fourth a year earlier.
"It's a mini Ford situation," Mr. Sargent said. "They launched the ATS, XRT and XTS but customers reported
some problems with the in-vehicle CUE system. You can't get ahead of the consumer and you can't come to
market with technology that hasn't been vetted by normal people. Engineers might like it, journalists might like it
but will mom like it?"
The bottom five brands were Toyota's Scion which finished last at 161 problems followed by Fiat with a 154,
Mitsubishi with 148, Nissan with 142 and BMW AG's Mini at 135.
The study is based on responses from more than 83,000 purchasers and lessees of 2013 mode-year vehicles.
The study was conducted between February and May this year.

Document J000000020130620e96k0001s

Race is on for tinier engines ; Ford plans first modern 1-liter engine for U.S.
MONEY
Race is on for tinier engines ; Ford plans first modern 1-liter engine for U.S.
Chris Woodyard
Chris Woodyard, @chriswoodyard, USA TODAY
553 words
17 June 2013
USAT
FINAL
B.1
English
After ballyhooing ever-bigger V-8s for years, the auto industry is now jostling for bragging rights when it comes to
making usable engines as small as possible -- and thus more fuel efficient.
Lately, the attention is on a new breed of 1-liter, three- cylinder motors coming to the U.S.
Small enough for the block to fit in a suitcase, the first modern 1-liter engine for the U.S. is about to arrive in cars
from Ford Motor. General Motors plans three-cylinder engines from 1 liter to 1.5 liters in the U.S. BMW is going to
put a tiny three-cylinder in a new hybrid. Daimler, parent of Mercedes-Benz and Smart, is showing interest.
The focus on the smallest of engines reflects tightening fuel- economy rules as well as the marketing power when
gas prices surge to eye-popping miles-per-gallon totals.
"There has been a cultural shift," says Mike Omotoso, senior manager of global powertrain for analysts LMC
Automotive. "Automakers have gone from bragging about big V-8s to (promoting) gas mileage on the highway."
He forecasts that the number of engines 1 liter in size or less worldwide will rise 44% to 28.9 million by 2017. By
contrast, engines of 4 liters or more will rise about 2%, to 4.2 million.
What automakers are doing:
Ford. A 123-horsepower three-cylinder, 1-liter turbocharged engine will be offered in the Fiesta subcompact this
fall. It already is used in the larger Focus in Europe, where it has outsold expectations.
BMW. A three-cylinder engine will power the i8 hybrid sports car in the U.S. And, "We don't rule this engine out
for (another) small- car application," says Heidelinde Holzer, head of BMW powertrain integration.
GM. A $215 million investment is going into a Flint, Mich., engine plant to make three- and four-cylinder engines
as small as 1 liter. GM's smallest engine now is a 1.2-liter, four-cylinder power plant in the Chevrolet Spark
subcompact.
Daimler. The German maker has exchanged engine information with Ford, though there's no joint venture in the
works. It wanted data on Ford's three-cylinder engine as it works on its own in collaboration with Renault-Nissan.
"There is no cooperation with Ford regarding the development of internal combustion engines," Daimler said in a
statement to USA TODAY. "An informal exchange of information among (automakers) -- as described with Ford --
is very common in the automotive industry."
Beyond the 1-liter engines, an overall downsizing is underway. Nissan, for instance, hopes to squeeze a 40 mpg
highway rating from the 1.6-liter, four-cylinder engine in the new, lighter Versa Note hatchback, 6 mpg more than
the outgoing 1.8-liter engine. "It's an efficiency play," says spokesman Dan Passe.
But it's getting harder. More-efficient turbochargers have let automakers boost horsepower per liter 10% to 15%
every three years for a decade, says executive Steve McKinley of Honeywell Turbo Technologies. "There is kind
of a natural limit to downsizing."

photo Ford Motor Ford's 1-liter EcoBoost engine produces 123 hp.
Document USAT000020130617e96h00008

Corporate News: Ford to Add Back Dashboard Buttons After Complaints
Corporate News: Ford to Add Back Dashboard Buttons After Complaints

By Mike Ramsey
513 words
17 June 2013
J
B3
English
Ford Motor Co. is going back to buttons and knobs.
Punished by third-party quality reports because of the difficulty of using its touch-screen multimedia system,
called MyFord Touch, the auto maker will reprise tuning and volume knobs for the radio as it redesigns existing
models, a top Ford executive said.
It is a reversal for Ford, which has been a first-mover with installing mobile-phone-based technologies, voice
recognition and touch screens in its vehicles. The systems have been a big selling point for Ford with its vehicles,
but also have dragged down its reputation for quality.
Ford is trying to solve continued complaints about the system, which includes a touch-screen interface as well as
voice-activated controls and pairing with a smartphone.
The company wouldn't say when the redesigned entertainment system would first appear, but said all vehicles
would get the changes as models are updated or replaced.
Ford is expected to release figures on Monday that show that 80% of its buyers choose Ford vehicles with the
Sync or MyFord touch system, and they are one of the top reasons customers choose the vehicle. Buyers that
have the systems, like their vehicles more than the those who don't.
"The satisfaction is higher on the vehicles equipped with MyFord Touch than without," Raj Nair, Ford's global
product development chief, said in an interview. "We've been able to spend a lot of time with customers to find
what exactly are the areas that are bothering them."
One of the things that bothered customers was the inability to quickly change the channel or volume on the radio
through familiar knobs, he said. As Ford redesigns its vehicles, the flat control panels with add more buttons and
knobs and the main screen will become simpler.
Ford disclosed the change two days before J.D. Power & Associates releases its closely followed review of
new-car quality, its Initial Quality Survey release. The survey asks new-car buyers about things gone wrong in the
first few months of ownership. Ford's ranking plunged in 2011 and 2012 after MyFord Touch was launched.
After the 2011 survey dropped Ford from among the top auto makers to below average, the auto maker
overhauled its system and released software updates, including a major one last spring that fixed bugs,
redesigned the layout and improved the voice recognition. Another update is coming this summer, Ford said.
The upgrade was launched last year to address many of the bugs that plagued the system.
John Kissling of Topeka, Kan. says the software updates have improved the system in his 2012 Ford Explorer.
"The gal in the dash -- her name is Sophie to us -- she understands what you are saying a whole lot better than
she used to, not that we don't argue once in awhile."
(See related letters: "Letters to the Editor: Analog Buttons Versus Digital Touch Screens" -- WSJ June 22, 2013)
Document J000000020130617e96h0002z

A Sudden Outbreak Of Annoying Noises
MAINTENANCE
Automobiles; SECTAU
A Sudden Outbreak Of Annoying Noises
By SCOTT STURGIS
561 words
16 June 2013
The New York Times
NYTF
3
English
Ford F-150 pickups with clunking driveshafts and Toyotas with noisy brakes are among the mechanical maladies
covered in the latest technical service bulletins.
The bulletins, compiled by alldatapro.com, offer automakers' insights into some recurring problems with various
models. The bulletins, known as T.S.B.'s, are not recalls; they are information provided by manufacturers to
dealers' service departments and mechanics.
Unless noted, the carmakers do not offer payment assistance for these repairs beyond normal warranty
coverage. Alldata.com sells a more comprehensive version of the bulletins to consumers. Here are recent
examples:
BMW Owners of some 2012 3 Series models may want to have their coolant expansion tank checked. In T.S.B.
170113 issued on March 1, BMW said a poor contact at the electrical connector for the coolant level sensor might
lead to inaccurate readings. Replacing the tank and connector should prevent false alarms.
CHEVROLET Owners of 2012 Sonics can check on a service campaign that involves their vehicles' stabilizer bar
link. In T.S.B. 12172 issued on Jan. 28, General Motors said the stabilizer bars might have lower ball joint boots
that were subject to dirt and water intrusion. Replacing the stabilizer bar link quiets the din.
FORD Driveshafts may need to be replaced in some Ford F-150 trucks. In T.S.B. 13-3-13 issued on March 26,
Ford said that in some 2009-12 models, the rubber-bonded joint in the driveshaft center support bearing might
show signs of separation, leading to a clunk or vibration. If separation has occurred, the driveshaft assembly
needs to be replaced.
Also, finding the right seating position in some Ford Escapes could be a challenge. In T.S.B. 13-2-19 issued on
Feb. 28, Ford said some 2009-12 models might have rust on the track assembly for the power seat, which makes
moving the seat difficult. Removing the seat, cleaning off the rust and painting the track will make for smoother
moves.
KIA Some 2012 Optima Hybrids may be in need of a new purge control solenoid valve, a component of the
emissions control system. In T.S.B. SA142, issued on March 1, Kia said that the wrong part might have been
installed. Owners may be alerted to the problem by the check engine light. Installing the proper part will cure the
problem, Kia said.
LEXUS Some models will receive an extended warranty on internal engine parts according to T.S.B. CSP-ZLA
issued on April 15. Lexus said intermittent misfires and increased oil consumption in some 2006-10 IS 250 and IS
250C models and 2006 GS 300s might be tied to problems inside the engine. The bulletin is a follow-up to a 2011
T.S.B. that extended the warranty on pistons, piston rings, valve springs and related components to six years or
72,000 miles.
TOYOTA Uneven rear brake pad wear may plague some Toyotas, causing grinding or scraping noises when
slowing down. In T.S.B. SB0048-13 issued on March 25, Toyota said the problem in certain 2009-13 Corolla and
Matrix models was most likely caused by problems with the rear disc brake pads.

2009 Ford Escape (PHOTOGRAPH BY FORD MOTOR); 2012 Kia Optima Hybrid (PHOTOGRAPH BY KIA
MOTORS AMERICA)
Document NYTF000020130616e96g00049

Rough Road Ahead, but a Robot Driver Takes It in Stride
TECHNOLOGY
Automobiles; SECTAU
Rough Road Ahead, but a Robot Driver Takes It in Stride
By PAUL STENQUIST
1,220 words
16 June 2013
The New York Times
NYTF
1
English
ROMEO, MICH. -- A Ford Transit van slams its way over concrete obstacles in a test of durability here at the
automaker's proving grounds some 40 miles north of Detroit. The continuous on-road torture is punishing and
could wreak havoc on both chassis-components and a driver's spine, but this test driver doesn't mind.
That's because the driver is a robot -- a robotic autonomous device -- and it has not been programmed to
complain.
Robots have helped assemble cars since 1961, when, according to the International Federation of Robotics, a
Unimate robot on a General Motors assembly line began installing door handles. Robots have since taken over
many tedious and hazardous tasks, but it's only in recent years that they have been assigned to test-track duty.
Other automakers use robotic drivers to test vehicles in limited ways, but Ford is the only company using them in
place of human test drivers for this level of durability testing, said Dave Payne, Ford's manager of vehicle
development operations, in an interview. The automaker began running robotically controlled vehicles on its test
track in October 2012, following a development program of nearly two years.
The sight of a large van with no one at the wheel -- I had never seen a driverless vehicle navigate roads before --
bearing down on my position was a bit tense at first, but the machine's accurate course proved reassuring.
The robotic system guiding the van, developed by Ford in partnership with Autonomous Solutions of Petersboro,
Utah, depends on global positioning sensors. The GPS ability relies on the same satellites that help a smartphone
find a restaurant, but it is far more precise. Accurate to one inch, it uses correction technology similar to that
employed by systems that land airplanes.
When the plan for autonomous durability testing was approved, the proving grounds team began creating precise
maps of the test-track roads. Then inch-by-inch, turn-by-turn paths for the tests, defined by lines and arcs that
correspond to points on the road, were developed.
These were used to create instruction sets with steering, throttle and braking commands that would keep each
test vehicle on a course varying by less than an inch at any point, Mr. Payne said. Rather than one set for an
entire test, the driving instructions are divided into segments, each covering a portion of the track.
A radio system using multiple antennas uploads segment instructions to an onboard controller in each test
vehicle. The instructions are queued and become active as required by vehicle position. The controller generates
signals that operate steering, brake, throttle and gearshift as required.
Steering is done by a motor that turns a ring gear attached to the wheel; linear actuators operate the throttle,
brakes and gearshift selector.
The operation of test-fleet vehicles is overseen from a command center, where a flesh-and-blood supervisor
watches multiple monitors displaying maps that trace the path of each vehicle, live test-track video, readouts of
vehicle system vitals and more. Looking over his shoulder, I watched as GPS software traced the path of a
vehicle on one monitor, while the next monitor displayed a corresponding video.

Should a car or truck deviate from its path, the supervisor can shut it down with a push of a big red button. A
second button can shut down all robotic vehicles on the proving grounds.
Jeff Bledsoe, Ford's durability technical specialist, said the project team sampled products from several suppliers
before they found a communication system that delivered the performance necessary to relay information to test
vehicles rapidly.
The system can deliver a signal in 20 to 50 milliseconds, so a vehicle going 30 m.p.h. will travel only about a foot
in the time it takes for a message to arrive. Because the command center is sending only segment instructions
and not direct guidance, that's more than adequate.
I rode along as a robotic test driver negotiated a punishing course in a Transit van. The digitized operator
wheezed and clanked as it executed turns and guided the vehicle over substantial bumps, but it kept us on
course with reassuring accuracy.
It wasn't big on conversation but had apparently turned the radio on before I climbed in, perhaps thinking I
required entertainment. The robot's steering control was good, but its brake and throttle application were
herky-jerky -- I wouldn't want to commute with it every day -- but it delivered me safely back to the starting point.
Ford's automated durability testing project not only replaces human drivers in unhealthy and tedious assignments,
but it also can produce more reliable and consistent test results.
To evaluate the system, Ford engineers mapped loads applied to chassis parts on a specific course with human
and robotic vehicle operators. Two robots achieved results that were nearly identical, while the load graphs from a
pair of human drivers were widely divergent.
Good repeatability of test-drive routes and speeds helps ensure that the test results are comparable. And
because robotic test drivers don't take lunch, the number of bumps required to stress a part to failure can be
packed into far fewer hours than would otherwise be required.
Ford technicians have run as many as four robotic test vehicles simultaneously, and they have the capability to
run eight, crossing paths and interacting on the test track. But they have not yet mixed robot-driven vehicles with
cars and trucks driven by human drivers.
That, however, is coming.
Mr. Bledsoe said the vehicle controllers would soon be equipped to recognize other vehicles and pedestrians.
''Autonomous Solutions has developed software that makes this possible,'' he said. ''We've experimented with it,
but have more prove-out to do.''
The software employs some of the same sensors and cameras used for smart cruise control systems.
Asked how the test-track robotics project might relate to fully autonomous vehicle development, Mr. Payne said
that while the test-track system had some things in common with autonomous technology, true driverless
operation on a public road was ''a whole different animal'' in that the vehicle had to make decisions based on the
environment.
That raises the question of whether Ford is working on a fully autonomous vehicle. A Ford spokesman, Said
Deep, provided a company statement that said, in part, ''We believe that automation will act as an assistance
feature supporting the creation of better drivers, providing increasingly more capable cars that make driving safer
-- always keeping the drivers in control.''
In other words, Ford says it believes you're not going to want a robot at the wheel any time soon.
Mel Torrie, chief executive of Autonomous Systems, shows considerably more enthusiasm for autonomous
passenger cars. ''We are doing technology that would be applicable,'' he said. ''We would love to work with Ford
on that.''
ON ITS OWN: Left, Ford's robotic driver, bearing no resemblance to R2D2, is purely functional. Above, a Ford
Transit van motors over a concrete obstacle at the automaker's proving grounds in Romeo, Mich. (AU1);
WATCHFUL: Robot-driven vehicles are monitored in the command center. (PHOTOGRAPHS BY PAUL
STENQUIST FOR THE NEW YORK TIMES) (AU5)
Document NYTF000020130616e96g0003s
Is Ford struggling to hang onto quality edge? ; Recalls cast shadow over successful makeovers
MONEY
Is Ford struggling to hang onto quality edge? ; Recalls cast shadow over successful makeovers
Chris Woodyard; Meghan Hoyer
Chris Woodyard, Meghan Hoyer, USA TODAY
584 words
12 June 2013
USAT
FINAL
B.2
English
A spate of flubs by Ford Motor is raising doubt about whether quality still really is -- as Ford's tagline used to
boast -- "Job One."
Ford has won sales and accolades for making over most of its line in just a few years and for new, gas-saving
engines, but a string of recalls for its best-selling and newest models has experts saying Ford may have tried too
much. "They perhaps have more than they can chew," says Jake Fisher, director of auto testing for Consumer
Reports magazine.
On Tuesday, there were two more, albeit small, recalls. Ford said it will hunt down 20 Fusion sedans to see if they
were built with a missing retaining clip on steering systems, without which drivers could lose control. Ford also will
recall 107 of its new Lincoln MKZ sedans equipped with engine-block heaters with wires that can fray, creating a
shock hazard.
Last month, Ford recalled 500 new MKZs over engine insulation issues. Fusion was the subject of two large
recalls last year, one for coolant system leaks and one about headlights.
There's more:
Ford said last week it is recalling 465,000 of various models for fire risk from gas tanks that can leak.
Federal safety regulators this month opened an investigation into EcoBoost V-6 engines on about 400,000 2011
to 2013 F-150 pickups after 95 complaints of stumbling or stalling under acceleration. An owner lawsuit claims the
same problem in the truck and in other Ford vehicles with the engine, including Flex, Taurus SHO and Lincoln
MKT.
A recall last year lassoed 89,153 of the redesigned 2013 Fusion sedans and Escape crossovers for 1.6-liter
EcoBoost engines that could overheat, leading to fires. The risk was deemed so serious that owners were
advised to park their vehicles.
The new Escape was recalled three times soon after launch last summer for misplaced carpet padding that could
jam a pedal, a fuel- line fire risk and faulty child locks.
Ford officials say they don't see a pattern. Spokeswoman Kelli Felker says issues are dealt with "quickly and
aggressively" as they surface.
And Jim Hall, analyst for 2953 Analytics, says repeated recalls can be deceiving. Automakers have fine-tuned the
ability to find patterns in complaints and are doing more recalls or fixes, but often for fewer vehicles.
Buyers seem nonplussed. Ford sales rose 14.1% in May, more than General Motors' or Chrysler Group's,
Autodata reports. But automakers know that quality issues can nibble away at consumers over time.
Ford and Lincoln brand vehicles ranked below average on J.D. Power and Associates' 2012 Initial Quality Study
of owner experience in the first 90 days. The 2013 study is not out yet, but on Power's longer-term study on
defects after three years, both did better: Lincoln was a good seventh among brands, and Ford was about at the
industry average.
Although Consumer Reports has knocked Ford for EcoBoost engines "underperforming" on gas mileage and for
distracting infotainment controls, Fisher says it's normal to work out bugs after so many new models. "When you
change so many things at the same time, it's always expected that quality is going to suffer. They are going to
work out the issues."
photo Ford Motor Ford Fusion was redesigned for 2013.

Document USAT000020130612e96c00009

Aiming for the Hybrid's Sweet Spot
BEHIND THE WHEEL | 2014 HONDA ACCORD PLUG-IN AND 2013 FORD FUSION ENERGI
Automobiles; SECTAU
Aiming for the Hybrid's Sweet Spot
By BRADLEY BERMAN
1,728 words
9 June 2013
The New York Times
NYTF
1
English
Berkeley, Calif. -- Using electricity as an automotive fuel, to most Americans, seems as alien as powering a car by
Higgs bosons. Electricity, they'd say, might be fine for fueling exotic sport machines made by California start-ups
-- or for tiny Japanese mobility pods -- but not the family sedans of America's highways.
What, then, should we make of Ford Fusions and Honda Accords suddenly sprouting plugs and growing battery
packs? Both of these mainstream, top-selling cars have recently arrived as plug-in hybrids, expanding their
maker's existing lines of gas-only models and conventional hybrids.
You can think of a plug-in as an overachieving hybrid, a vehicle that runs largely on electrons for local miles and
then mostly on gasoline for longer trips. That combination -- a broadly appealing solution that splits the difference
between petroleum power and purely electric cars -- has the potential to make battery propulsion acceptable to
motorists put off by matters like limited driving range.
The Ford Fusion Energi, however, is less about the blending of electrons and hydrocarbons for power and more
about the car's dual nature: the ability of a handsome family sedan to switch, superhero-style, from one driving
persona to another.
When its 7.6 kilowatt-hour battery pack is fully charged -- that takes about 2.5 hours from a 240-volt source -- the
driver can invoke the car's jazzy smooth electric-vehicle self. In the first two days of a week with the sedan, I used
a button near the gearshift to select the EV Now mode, which keeps the car driving almost exclusively on its
battery. In 36 miles of driving punctuated by frequent electric top-ups, I was effectively operating a spacious
3,913-pound zero-emissions electric sedan, not using a drop of gasoline.
The car's roomy interior, comfortable ride and taut steering were a welcome change from the toylike robotic feel of
the Nissan Leaf compact E.V. that is my usual transportation. Among sedans that can operate on battery power,
in my view, the Fusion Energi is surpassed in size and style only by the Tesla Model S.
Both cars appropriated Aston Martin's signature grille to inject some James Bond flair in their four-door profiles.
But don't take the similarity too far: compared with the rip-roaring Model S, the Fusion Energi has swallowed a
dose of Xanax. It glides sedately through city streets. The acceleration on highway on-ramps is adequate, but
when driving solely on electricity, the car is not even as zippy as a Leaf.
Things change about 17 or 18 miles down the road, when Dr. Electric transforms into Mr. Combustion. With
gasoline supplying power via Ford's 2-liter 4-cylinder engine, and assisted by the electric motor and battery pack
that had been operating solo in E.V. mode, the car's output jumps to 188 horsepower. It feels like twice the
oomph.
Ford has perfected smooth transitions between gas and electric power sources, so passengers have little
evidence of the handoff. The cabin of the Ford Fusion Energi is also among the quietest I have experienced.
Close the door and you feel practically vacuum-sealed, buffered from engine noise or vibration.
Noise-cancellation technology is used to counteract any whine from electrical components.

After the switch from E.V. to hybrid operation, there is an obvious sign that hydrocarbons are powering the
Fusion: the planted feel on the road now takes on a sporty quality. It becomes a fun family cruiser, especially
shining on the highway, territory not usually associated with E.V. prowess.
An 80-mile round-trip drive between Berkeley to San Jose -- usually an anxious experience in my Leaf requiring a
55 m.p.h. pace to conserve energy -- was carefree in the Fusion Energi, which offers a total range of 620 miles.
Yet the Transformer-like shift has an impact on efficiency. There were several days early in the week when I
frequently charged throughout the day, and therefore remained all E.V. As a result, fuel economy broke past 100
miles per gallon of gas (not including the electricity you put in the battery). The E.P.A. pegs average combined
city-highway fuel at 100 m.p.g.e. A Toyota Prius plug-in, for reference, is rated at 95 m.p.g.e.
Trips that started all-electric for the first 20 miles or so but continued on for another 50 or miles registered around
75 m.p.g. And the day's travel to San Jose and back -- when I tested the limits of legal highway speeds, with
air-conditioning and audio blasting -- fuel economy was a respectable 38 miles per gallon. Over the course of 227
miles, the Fusion Energi averaged 55 m.p.g.
For all of Ford's success in turning the Fusion into a 100 m.p.g. vehicle and making it a joy to pilot, its engineers
made a critical mistake: they did not find a good spot for the E.V. battery pack, shoehorning it between back seat
and trunk, reducing the trunk space to 8.2 cubic feet, from 12. The resulting odd dimensions leave room for about
two carry-on suitcases and little else.
The 2013 Accord Plug-In, which I drove for a few days right after the Fusion, has the same problem of filling its
trunk with batteries -- an even more drastic reduction from 15.5 cubic feet in the gas-powered Accord Touring
model down to 8.6 cubic feet.
The Accord offers no mode to enforce E.V.-only driving. The battery can deliver the equivalent of 55 horsepower,
so the gas engine is programmed to come on with very little provocation. This ''blended'' approach puts the
Accord in the league of conventional hybrids like the Prius. The gas engine, electric motor, or both, are used in
whatever way the car's computer decides is the most efficient.
The combination of power and fuel efficiency is impressive: the Accord Plug-In Hybrid delivered 49 m.p.g. on my
three-day 188-mile trip around Southern California, during which I had little access to a charging plug.
With an E.P.A. rating of 115 m.p.g.e., the Accord Plug-In is the most fuel-efficient sedan in America, Honda says.
That may clinch the deal for some shoppers, but others will conclude that the exterior styling, which hardly stirs
emotions, is reason enough to shop elsewhere.
The Accord is a generic-looking car. Its interior is a hot mess of competing chromes, and the dashboard graphics
reflect a Y2K aesthetic -- not good for a high-tech car. The wheel covers, added to improve aerodynamics on the
plug-in Accord, are ultra-plastic. The charging port door wobbled on its hinge. The key fob on my test car
malfunctioned, failing to open the trunk.
The plug-in Accord is the first to use Honda's two-motor hybrid system. It takes a generation or two to calibrate
these systems for smoothness, and Honda is not there yet.
Neither is Ford, if the goal of the Fusion Energi is to win customers by bringing plug-in technology to the brand's
best-selling passenger vehicle.
A car may be perfectly executed in almost every way, but all is for naught if it is marred by one major flaw.
Engineers at Ford and Honda alike need to figure out how to offer game-changing plug-in hybrid technology in its
most popular models without shrinking the trunk in the process.
Trying to understand the economics of these plug-in vehicles could quickly short-circuit your brain, considering
the dazzling number of trim options on comparable gas versions and the available federal tax credits and state
rebates.
Here are the basics: The Honda Accord Plug-In, sold only in California and New York, starts at $40,570. After
incentives, the price is about $1,000 above the gas-only V-6 278-horsepower Accord Touring, which comes with
leather upholstery rather than the plug-in model's bland ''bio-foam'' interior.
The Ford Fusion Energi, available nationwide at select Ford dealers, is offered at $39,495. After incentives, it still
costs over $1,000 more than the 47-m.p.g. Fusion Hybrid Titanium. The Titanium model brings along sharper

18-inch aluminum wheels, a more powerful audio system and goodies like a leather-wrapped steering wheel. Gas
savings over a few years will chip away at the extra expense.
Even with at their premium prices, the Fusion Energi and Accord Plug-In Hybrid could have been satisfying to
mainstream consumers looking for a middle-of-the-road vehicle that can run on electricity. But their pipsqueak
trunks kill the deal.
PLUGGED: Both the Honda Accord Plug-In, top left, and the Ford Fusion Energi have sufficient battery capacity
make local trips entirely on electric power. While their fuel economy on longer trips is impressive, high purchase
prices result in a long payback period from the savings in fuel costs.(AU1); TOP SHELF: Both the Accord, top left,
and Fusion plug-in hybrids come equipped with a full load of luxury touches. The Fusion's EV button, above, lets
the driver select a driving mode that uses battery power almost exclusively. (PHOTOGRAPHS BY AMERICAN
HONDA; FORD MOTOR) (AU5) CHARTS: Plug-in Hybrids: Gas Savings, but Higher Purchase Price: The added
cost of a plug-in version of the Ford Fusion or Honda Accord, compared to the base-level hybrid or gas versions,
could take years to recoup in fuel savings. Because automakers load up plug-in cars with amenities, better cost
comparisons are between fuel-sipping plug-in models and the upscale gas or hybrid versions of the Fusion and
Accord. After incentives, the Ford Fusion Energi is still over $1,000 more than the 47-m.p.g. Fusion Hybrid
Titanium (with nicer 18-inch aluminum wheels and a better audio system). After incentives, the price of the Honda
Accord Plug-in Hybrid is about $1,000 higher than the gas-only 278-horsepower V-6 Accord Touring model with
leather seats. (AU5)
Document NYTF000020130611e9690003h

Business Technology -- 3-D Printing: Barbies, Auto Parts Hot Off the Press
Business Technology -- 3-D Printing: Barbies, Auto Parts Hot Off the Press
By Clint Boulton
778 words
6 June 2013
J
B1
English
Companies such as General Electric Co., Ford Motor Co. and Mattel Inc. are pushing 3-D printing further into the
mainstream.
Also known as additive manufacturing, because objects manufactured in this manner are built one successive
layer of material at a time, the technology is allowing manufacturers to get products to their customers more
quickly.
Unlike traditional techniques, where objects are cut or drilled from molds, resulting in some wasted materials, 3-D
printing lets workers model an object on a computer and print it out with plastic, metal or composite materials.
"It allows us to be far more productive, efficient and innovative in designs," said Scott Goodman, senior vice
president of global product development at Mattel.
While prices have been coming down, 3-D printing materials are more expensive than traditional manufacturing
materials. Gartner Inc. analyst Pete Basiliere said he expects the costs of such materials will fall as demand for
3-D printing increases.
Here is how these three companies use 3-D printing in ways that could significantly impact their business.
Ford Motor
The auto maker sees a future where customers will be able to print their own replacement parts.
For now, Ford is using 3-D printing to prototype automobile parts for test vehicles, which it has been doing since
the 1980s. Ford engineers use industrial-grade machines that cost as much as $1 million to produce prototypes of
cylinder heads, brake rotors, and rear axles in less time than traditional manufacturing methods, said Paul
Susalla, section supervisor of rapid manufacturing at Ford.
Using 3-D printing, Ford saves an average of one month of production time to create a casting for a prototype
cylinder head for its EcoBoost family of engines. This complex part includes numerous ports, ducts, passages
and valves to manage fuel and air flow.
Mr. Susalla said the traditional casting method, which requires designing both a sand mold as well as the tool to
cut the mold, can take four to five months.
With 3-D printing, Ford engineers can design and print the sand mold and pour the metal in three months.
Engineers can also print several cylinder head iterations at once, allowing them to test multiple prototypes of the
same part to identify the best design for production.
General Electric
In coming years the airliner you're flying may come fitted with some printed parts.
GE's Aviation unit prints fuel injectors and other components within the combustion system of a jet engine being
built by CFM International, a joint company of GE and France's Snecma SA. By 2016, the LEAP jet engine is
expected to be fitted for commercial aircraft such as the Boeing 737 MAX and the Airbus A320neo, which are still
being developed.

Mark Little, senior vice president of GE's global research group, said that building jet engine airflow castings by
melting metal powders layer by layer can be more precise than making and cutting the parts from a ceramic mold.
GE said this process is technically more efficient and should save the company money. The company declined to
speculate on potential cost savings.
"We can make these parts in a way that we simply couldn't make them before to get better cooling passages and
better cooling efficiency," Mr. Little said.
GE is also experimenting with 3-D printing to produce a medical device, the ultrasound probe. The device is
placed on the patient's body during medical exams and transmits and receives signals that generate ultrasound
images. Traditional methods require hours of cutting and refinement to render intricate patterns near the probe's
face that help render ultrasound images.
Researchers at GE say that 3-D printing could help cut the costs of manufacturing certain parts of the probe by
30%.
Mattel
The toy maker used to sculpt prototypes of toys from wax and clay before building the production models out of
plastic. Today, Mattel engineers use any of 30 3-D printers to create parts of virtually every type of toy that it
manufactures, including popular brands such as Barbie, Max Steel, Hot Wheels cars and Monster High dolls.
But the toy maker draws the line at selling consumers software files that would enable them to print out their own
toys on low-cost 3-D printers.
A company spokesman said the company couldn't guarantee toys that consumers printed out would be safe for
children, a "topic that the entire toy industry will have to face and embrace" as 3-D printer use broadens at home.
Document J000000020130606e9660001g

New Exchange Is Formed For Trading Patent Rights
DEALBOOK
New Exchange Is Formed For Trading Patent Rights
By WILLIAM ALDEN
553 words
5 June 2013
The New York Times
NYTF
6
English
Patent rights, which are usually bought and sold in private transactions, are set to be publicly traded on a new
exchange, which plans to announce its first offering on Wednesday.
The Chicago-based exchange, Intellectual Property Exchange International, which says it is the first of its kind,
has attracted a handful of blue-chip companies and prominent universities as its initial members. One of those
companies, Royal Philips Electronics, the Dutch electronics giant, is set to begin marketing the rights to a portfolio
of more than 600 patent assets.
The Philips portfolio, to be announced in a pair of online presentations on Wednesday, is expected to raise
around $35 million, though the exact figure could change.
Two more offerings, which are expected to be announced in the next four to six weeks, will be in the finance and
automotive industries, according to Gerard J. Pannekoek, the president and chief executive of IPXI, as the
exchange is known.
JPMorgan Chase and Ford Global Technologies, a unit of the Ford Motor Company, are among the exchange's
member companies.
The product traded on the exchange is called a unit license right, a contract that allows the holder to use the
underlying technology a certain number of times.
The goal of the exchange, which was established in 2008, is to make the patent licensing marketplace more
transparent, said Mr. Pannekoek, who is a former executive of the Chicago Climate Exchange.
The Intellectual Property Exchange International does due diligence on patent offerings and plans to make a
''data room'' available to prospective buyers, which can include speculative investors and companies looking to
use the technology.
Mr. Pannekoek said he was confident the exchange would get off to a strong start.
''The market will immediately recognize that companies will give us assets of significant quality,'' he said.
But skeptics wonder if the patent market is mature enough for this new exchange.
''The intellectual property market just started liquefying,'' said Ron Epstein, the chief executive of the patent
advisory firm Epicenter IP Group, based in Redwood City, Calif. ''It went from granite to lava in the last six to eight
years. IPXI is trying to go from lava to water.''
Success for IPXI depends on a significant number of buyers and sellers populating the market. Some in the
business are taking a wait-and-see attitude.
''The bottom line is, the volume of transactions when it comes to any particular patent portfolio is generally pretty
small,'' said John A. Amster, the chief executive and co-founder of RPX, a San Francisco-based firm that buys
patents on behalf of clients. ''It's not like you need some massive electronic system to do this stuff.''

Still, proponents of the exchange point to the increased transparency it promises to bring to an opaque market.
Philips, for its part, was confident enough to buy a 10 percent stake in the company in late 2011.
''The marketplace is not really functioning properly yet. There's a lack of transparency,'' said Ruud Peters, the
chief intellectual property officer of Philips. ''We will make more offerings in the future. That's almost certain.''
Document NYTF000020130605e96500066

Trucks light up May auto sales
MONEY
Trucks light up May auto sales
James R Healey
James R. Healey, USA TODAY,
521 words
4 June 2013
USAT
FINAL
B.1
English
Pickups and SUVs had another capital month in May, but they were just among several notable points in the
month's new-vehicle sales.
Many automakers reported monthly sales not seen since before the Great Recession that ended in 2009. Ford
Motor outdid everything since 2005; Chrysler, since 2007. Porsche only once in its U.S. history posted a better
sales month.
Overall, new-vehicle sales were up 8% from a year ago and the annual sales pace was 15.3 million, up from just
less than 14 million, according to Autodata. The recession sales pace hovered around 10 million.
Beyond strong sales for pickups (up 19.2%) and SUVs (up 10.2%), other remarkable "yes, but" numbers:
Led by the new ATS sport sedan, General Motors' Cadillac brand sold 39.9% more vehicles in May than a year
ago, Caddy's biggest monthly jump since 1976. Chevy small cars also had an outstanding month, but weakness
in other models kept GM's overall sales increase to just 3.1%.
That left GM, perennial No. 1 in U.S. sales, ahead of No. 2 Ford by only 6,875 sales, as Ford's F-Series trucks
roared out of showrooms to lead a 14.1% leap. GM had a 17.5% new-vehicle market share in May; Ford rose to
17%, Autodata reports.
Ford didn't deliver enough of a final push to get "Ford is No. 1" headlines. If its dealers had each sold two more
vehicles, it would have overtaken GM. "I wouldn't call it a fluke necessarily. I think that Ford has done some great
things" with redesigns, says Alec Gutierrez, kbb.com analyst. His data show a gap of 10,000 or fewer six times
since the start of 2010. Ford beat GM one month in 2011.
Volkswagen's Passat midsize sedan, including the diesel model, had a very strong month, and Jetta, VW's best
seller, scored gains. But with no pickups, and only two SUVs, it lost some sales to truck buyers and fell 1.7% from
a year earlier.
Meanwhile, overlooked Subaru, with a stable of SUVs and two new designs to boot, passed the VW brand by
1,879 sales. The new Forester SUV led Subaru's 34.2% gain.
"Volkswagen's meteoric rise appears to be over, in part, because it isn't able to ride the wave of strong pickup
truck sales. Achieving its lofty goal of 800,000 vehicle sales by 2018 looks challenging now," says Edmunds.com
analyst Michelle Krebs.
Nissan cut prices across its line in a move to gain market share. It worked: Sales jumped 31.2%. Toyota and
Honda, usually the highfliers among the Japanese Big 3, were up just 2.5% and 4.5%, respectively.
Sales momentum should continue as long as unemployment or interest rates don't jump, says Lacey Plache,
chief economist at Edmunds.com. "Higher interest rates would affect the housing recovery," undermining sales of
the high-profit pickups and "slowing the gears of car sales."
Document USAT000020130604e96400019

Ford Showing Its Vigor as Industry Recovers

Ford Showing Its Vigor as Industry Recovers
By JACLYN TROP
869 words
4 June 2013
The New York Times
NYTF
1
English
For decades in Detroit, there was a clear pecking order among automakers: General Motors sold the most cars in
the United States, followed by Ford Motor Company and then the Chrysler Group.
But in the world of the postbailout auto industry, that firmament has gradually shifted, as Ford has introduced
appealing fuel-efficient models while G.M. has contracted, dropping brands and reducing capacity.
On Monday, Ford continued to chip away at its rival, reporting a robust 14 percent gain in American sales in May,
to 246,000, about 6,000 behind G.M., which reported a tepid 3 percent gain. Chrysler reported an 11 percent
sales increase, to more than 166,000, beating analyst expectations.
The strong performances by Ford and Chrysler helped the overall industry to stay on track to sell more than 15
million vehicles this year for the first time since 2007, before the financial collapse that sent carmakers into a
tailspin. All automakers combined to sell 1.44 million new vehicles in the United States in May, an 8.2 percent
gain over the same month in 2012.
''The industry is settling into a healthy place where supply and demand are meeting,'' said Jessica Caldwell, an
analyst with the auto research site Edmunds.com, ''but demand is still growing. We're edging our way into what
would be the sweet spot for sales.''
Now demand is driving supply, with Ford, Chrysler and Toyota adding more production and more jobs at United
States plants to capture sales momentum. On Monday, Ford announced plans to increase capacity by 10
percent, to 740,000 vehicles, in the third quarter, as it strives to meet increasing demand for its S.U.V.'s and
midsize passenger cars.
Ford's sales increase was driven not only by continued strong demand for large pickups and sport utility vehicles
but also by rising sales of its smaller models, like the Fusion, Focus and Fiesta. Sales of the automaker's Fusion
midsize sedan, for example, rose 10 percent, to 29,553 vehicles, for its best May ever.
Ford also reported strong sales of its Escape utility vehicle, which also had its best month ever, and the Lincoln
MKZ, which soared 42 percent for its best May on record.
G.M., by contrast, continues to struggle in some major passenger car categories even as other segments like
trucks remain strong. Its passenger car sales slipped 6.4 percent, in part because of a 31.7 percent decline for its
full-size Chevrolet Impala and a 36.1 percent drop for its Chevrolet Malibu midsize sedan. Its Buick LaCrosse,
down 15.2 percent in May, and Regal, down 37 percent, also struggled.
In a sign of G.M.'s urgency, on Friday it unveiled a refreshed version of its Malibu, only a year after introducing a
revamped model.
G.M., which sold 253,000 vehicles in May, did have success in its smaller cars, maintaining sales for its midsize
Chevrolet Cruze while introducing the smaller Chevrolet Spark and Sonic models.
''It's not necessarily saying G.M.'s performance was bad, because it wasn't,'' Ms. Caldwell of Edmunds.com said.
''It was just that Ford was better. Ford has a balance in their portfolio, while G.M. is a little more hit or miss.''

The strongest sales across the industry remained in pickups and S.U.V.'s, which rose 10.9 percent to 718,890
vehicles in May, in contrast to a 5.7 percent increase in car sales, to 725,736 vehicles.
Sales of Ford's F-Series rose 30.6 percent, while Chrysler's Dodge Ram truck brand climbed 21.6 percent. At
G.M., large pickup truck sales rose 23 percent, accompanied by a 25.3 percent gain for its Chevrolet Silverado
truck, the country's No. 2 best-selling vehicle with 43,283 units sold.
The 19.2 percent rise in pickup truck sales continues to reflect strong marketplace demand after a recovery in the
housing market and a surge in the construction and oil industries. Automakers also cited an aging fleet of pickups
and pent-up demand.
''Quite simply, it's a great time to be in the truck business,'' said Kurt McNeil, head of General Motors sales
operations in the United States.
Several foreign automakers also reported double-digit sales increases, including a 24.7 percent gain for Nissan,
driven by price cuts on seven of the Japanese automaker's vehicles and the popularity of its Sentra and Altima
models.
Mazda reported gains of 19.2 percent, and Subaru of 34.2 percent.
Toyota, the world's largest automaker, lagged competitors with a 2.5 percent increase, in line with expectations.
For both Toyota and G.M., ''the marketplace has become so competitive in their bread-and-butter segments,'' said
Alec Gutierrez, senior analyst at Kelley Blue Book.
Ford Fusions in Pennsylvania. Ford's sales rose on trucks and small cars. (PHOTOGRAPH BY KEITH
SRAKOCIC/ASSOCIATED PRESS) (B1); Nissan Altima; Toyota Corolla/Matrix (B2) CHARTS: How the Industry
Fared; Most Popular Cars and Trucks; How the Automakers Fared (Source: MotorIntelligence.com) (B2)
Document NYTF000020130604e96400063

Behind Surge In Auto Sales, Signs of Lost Momentum
Behind Surge In Auto Sales, Signs of Lost Momentum

By Christina Rogers and Neal E. Boudette
1,159 words
4 June 2013
J
B1
English
Strong demand for pickup trucks and sport-utility vehicles boosted U.S. sales in May for major auto makers, but
the auto industry rebound that has helped buoy the U.S. economy since early last year is showing signs of
leveling off.
Auto makers on Monday reported a mixed bag of results for their May U.S. new-car sales. Some had big gains,
including Ford Motor Co., Chrysler Group LLC and Nissan Motor Co. Others, however, showed tepid growth,
including General Motors Co., Hyundai Motor Co. and Toyota Motor Corp.
Overall, consumers and businesses bought vehicles at an annualized rate of 15.3 million vehicles, according to
researcher Autodata Corp., the fourth month this year that sales have exceeded a 15 million vehicle pace.
However, May's sales pace was only slightly above the average for the first five months of 2013.
For the last four years, auto makers have enjoyed a steady recovery in sales, which bottomed out in 2009, when
Americans purchased just 10 million cars and light trucks. In 2012, auto sales rose 13% to 14.5 million vehicles.
This year, U.S. light-vehicle sales have continued to surge ahead, thanks to easy credit, an improving housing
market that has boosted demand for pickup trucks, and higher home prices, which tend to put consumers in a
spending mood.
In anticipation of another strong year, U.S. car makers are limiting their traditional summer shutdown to keep
cranking out cars. Ford plans to increase its third quarter U.S. production by 10% from a year ago to 740,000
vehicles.
However, some industry analysts say that auto makers will have to work harder, and employ greater discounts
and new marketing tactics, to sustain growth.
"Car companies are having to do things to energize the market, and it is going to get harder and harder for them
to hit their numbers," said Jeremy Anwyl, vice chairman of Edmunds.com, a car-shopping website.
In May, Nissan cut the list price on seven models, including taking $580 off its midsize Altima, a car redesigned
last year.
VW in May started promoting "sign then drive" lease deals, which offered customers the opportunity to drive off in
one of four different VW models without putting any money down. (Customers would have to pay for certain fees
and taxes.) Such promotions are typically seen only later in the year to clear out the past year's models.
Despite the offer, U.S. sales for the VW brand declined 1.7% in May as demand for its midsize Passat flattened
out. VW is continuing the lease promotions through June 30.
"We were riding the wave for a while. Now, sales have leveled off," said Joe Gunther, general manager of
Gunther Volkswagen Mall of Georgia, referring to the Passat. VW launched a redesigned Passat in 2011.
Some auto makers are paying extra rebates to push dealers to increase sales, a practice known as stair-step
incentives. For example, Chrysler dealers who met certain month-end sales goals were paid a rebate of $600 a
vehicle, while Nissan dealers got up to $500 a vehicle for hitting its targets, according to dealers.
The payments can amount to anywhere from $50,000 for a small dealer to several hundred thousand dollars for
larger dealership groups, dealers say. Chrysler and Nissan declined to comment on their programs.
Many dealers dislike the programs because they don't guarantee a bonus, and sometimes require sales at a loss
to win, said Doug Waikem, head of an Ohio chain. "Nobody on the retail side likes this. It creates a quagmire, and
pits dealer against dealer," Mr. Waikem said.
Honda offered its dealers discounts under a program called "flex cash" that Mr. Waikem said has a similar impact.
Last week his Honda store sold two Accords and a CR-V at a total loss of $1,400 in connection with that program,
he said.
Auto lenders also are increasing subprime loans to consumers with marginal credit. "If you measure subprime as
a percentage of the total car market, it is back to prerecession levels," said Adam Jonas, an analyst with Morgan
Stanley.
Used car price also are beginning to drop, leaving buyers with less value on their trade-ins. Meanwhile, many
auto makers are expanding second-quarter production to build more cars, a move that could lead to overstocked
showrooms and greater pressure for discounts later in the year, he said.
"The market is peaking in value terms right now," Mr. Jonas said, noting that while auto sales may well rise
throughout the year, pricing is likely to weaken. "The real sharp V shape is over," he added.
Michael J. Jackson, chief executive of AutoNation, Inc., said dealers are using more subprime loans. "Subprime is
normalizing. It is just going back to where we were before the financial crisis, so of course the number is
increasing," he said. "But we are not dependent on subprime to sell cars."
Among the Detroit Three auto makers, Ford and Chrysler reported gains of 14% and 11%, respectively, for May
over the same month a year earlier. Ford said May sales of its F-series pickup line were the best since 2005, and
demand for the Ford Fusion midsize sedan and Escape small utility vehicle rose by 10% and 26% respectively.
GM, which stayed No. 1 among U.S. auto makers by a margin of just 6,875 vehicles over Ford, said its U.S. sales
rose 3.1% from a year ago. GM said its Cadillac brand achieved a nearly 40% increase. But sales at GM's
mainstream, high-volume Chevrolet brand rose by less than 1%.
Chrysler, which is majority owned by Italy's Fiat SpA, said total sales were up 11% to 166,596 in May, boosted by
a double-digit percentage increase from its Dodge brand and rising Ram truck sales.
German luxury car makers reported healthy year-over-year increases. Daimler AG said its Mercedes-Benz
vehicles climbed 9.8%, BMW AG reported a 14% jump in its namesake brand, while Audi's U.S. sales rose 15%.
Toyota said its U.S. sales rose 2.5% in May from a year earlier, reflecting in part flat demand for its best-selling
Camry midsize sedan and declining sales of several small cars. Honda Motor Co.'s sales rose 4.5% as stronger
sales of its midsize Accord were partly offset by falling sales of its compact Civic model.
Nissan's U.S. sales climbed 25% in May, thanks to a price cut on seven models at the beginning of the month.
South Korea's Hyundai reported a 2% increase in U.S. sales for May, while affiliate Kia Motors Corp.'s sales were
up 1%.
---
Jeff Bennett and Mike Ramsey contributed to this article.
Document J000000020130604e9640002v

Ahead of the Tape
Ahead of the Tape

Ahead of the Tape
By Spencer Jakab
427 words
3 June 2013
J
C1
English
Detroit's Evolution Isn't Without Peril
Big shifts in the economy often are likened to forces of nature. The impact of the financial crisis on Detroit's car
makers, for example, was akin to an asteroid that wiped out plodding dinosaurs to give rise to nimble new
creatures.
Less than two years after General Motors Co. and Chrysler Group LLC declared bankruptcy, and Ford Motor Co.
narrowly avoided it, their fortunes were boosted by a real-life catastrophe. Japan's March 2011 earthquake
disrupted auto exports for several months just as its car makers were starting to once again take U.S. market
share.
By that June, U.S.-based companies had boosted their market share by seven percentage points and Japanese
companies shed nine points -- a shift that normally takes years. Not only did Detroit sell more cars but, because
of tight inventories, it saw greater unit profit, too.
Since last fall, yet another seismic shift has taken place. Japan's central bank helped weaken the yen, with the
dollar breaking through 100 yen last month, a 30% depreciation that makes Japan's exports more competitive.
Still, U.S. auto sales reports for May due Monday should show that despite the currency tailwinds for Japanese
manufacturers, U.S. auto makers probably had a banner month after a dip in April. Sales probably topped 15
million vehicles at a seasonally adjusted annualized rate. Through April, their market share was 46.2% versus
44.7% a year earlier.
A home-building rebound and gasoline-price drop favor sales of light trucks, Detroit's forte. While trucks make up
half of all U.S. light-vehicle sales, they accounted for 60% of GM's sales and 55% of Ford's in April. Pickup trucks
are a particular strength. All three U.S. auto makers have cut back on summer factory closures this year to meet
demand.
But investors clearly think a weak yen will help Japanese car makers. Measured in dollars, Toyota Motor Corp.'s
stock has appreciated by 50% since October -- a gain about equal to Ford's entire market value. Toyota's
fortunes in other markets stand to gain too, of course, and its U.S.-built cars don't benefit from a weak yen. Even
so, Japanese manufacturers may soon be tempted to price their U.S. vehicles more aggressively.
Detroit may have shrugged off currency tremors from Japan, but it hasn't felt the aftershocks.

Document J000000020130603e9630002e

OFF DUTY --- Gear & Gadgets -- Rumble Seat: Ford C-Max Hybrid Energi: The Bawdy Electric
OFF DUTY --- Gear & Gadgets -- Rumble Seat: Ford C-Max Hybrid Energi: The Bawdy Electric
By Dan Neil
1,173 words
1 June 2013
J
D11
English
Many sentences below, you'll find some pithy observations about the 2013 Ford C-Max Hybrid Energi, a
range-extended plug-in gas-electric hybrid (they should have called it the Hyphen) that behaves more or less
exactly like the C-Max Hybrid that I drove for your delectation a few months ago. To preview: It's a nicely
turned-out five-seat family van. Loads of features for the money, peppy around town, comfy seats, easy to see
out of.
The C-Max Hybrid Energi is nobody's South Beach fantasy car, but it does deliver the equivalent of about
100-miles-per-gallon fuel economy, which is pretty sexy.
As of mid-2013, here is where we are: Gasoline engines in cars aren't going away, but they are going to get
smaller. As they do, hybrid and plug-in hybrid componentry -- batteries, power electronics, traction motors, plugs,
onboard charge inverters and thermal plumbing required to keep everything happy -- will gradually be integrated
into light-vehicle powertrains to backfill the horsepower gap.
To say so hardly qualifies as advocacy. Ask any engineering executive at any car company: In order to meet new
and ambitious fuel-economy standards in the global markets -- including a U.S. Corporate Average Fuel Economy
standard of 54.5 mpg by 2025 -- cars and trucks of the near future will have to exploit the advantages of electric
drive (low rpm torque, low-speed efficiency, regenerative braking) in urban driving, while reserving the
gasoline-fired engine for times of peak load and sustained demand.
Now, it's true that amazing gains are being made in the efficiency of internal combustion engines, both gas and
diesel: direct injection, cylinder deactivation, stop-start, eco-mode throttle mapping, to name a few of the recent
applied technologies. Chrysler promises its new nine-speed transmissions will improve its highway fuel economy
on the order of 10%. Better aerodynamics (replacing side mirrors with digital lenses, for instance, to reduce drag
and wind noise), lower-resistance tires, low-voltage engine accessories, lighter vehicle structures -- there's a lot
on the agenda.
The transportation-energy landscape of two decades hence will require all of the above, and electrons, too. Last
year, Ulrich Winzen, an analyst with R.L. Polk & Co., released a 25-year forecast of the automotive industry that
projected 50% global market share for battery-electric vehicles. Add high-capacity gas-electric hybrids (like our
C-Max Energi) to the mix and the projected share jumps to 80%. Even if Mr. Winzen turns out to be wrong by half,
it would still represent a radical shift in personal mobility, a wholesale electrification of the world's rolling stock.
Face it. You're going to have to stop worrying and learn to love the battery.
And Ford can help. The C-Max -- a spacious, tall-roof van based on the Focus platform -- now comes in two
battery-enhanced versions, the better to match buyers' comfort level.
The training-wheels model is a conventional gas-electric C-Max Hybrid with no plug ($28,365 in SEL trim, 188 net
system horsepower, 47 mpg average). I drove this thrifty little burgermeister a couple of months ago. It was
terrific.
The Energi ($34,140, not counting the $3,750 federal tax credit) is essentially the same terrific car with a larger
7.6-kwh battery pack hidden, rather badly, under the carpet in the rear cargo hold. This version comes with a
charging port.

The Energi has a nominal all-electric range of 21 miles, after which the gas engine comes whispering onstage. If,
during the EV-only portion of the program, you think you might need full engine power, there's a button for that on
the console. Top speed in EV mode is listed at 85 mph.
With a full battery and a tank of gas, the Energi has a calculated range of 620 miles. According to Ford, a fully
depleted battery takes less than 3 hours to charge using a 220V charger, and 7 hours with a drop cord plugged
into to a household wall socket, hillbilly style.
The Energi's 100-mpg fuel economy -- actually, mpg-e, which accounts for the gasoline-energy equivalence
stored in the battery -- just edges out that of the Chevrolet Volt (98 mpg-e, $39,995 before the $7,500 tax credit)
and Toyota Prius plug-in (95 mpg-e, $32,795).
If you went into a Ford dealership to test-drive the two C-Max versions, you'd be hard pressed to tell the
difference from behind the wheel. The Energi is a little less energetic in EV mode at highway speeds, but just
barely. While the Energi is about 250 pounds heavier, off-the-line acceleration doesn't suffer noticeably, due to
the Energi's shorter final drive ratio. The brake system (combined regenerative and friction) feels the same in both
cars, which is to say, abrupt and artificial.
The only functional difference between the cars is that the Energi's lump of a battery pack consumes an
unhealthy 22% of the rear cargo space.
In other words, the choice is purely arithmetic-driven. And this is what the numbers tell me:
If you drive 20 miles or less a day, the Energi plug-in version is for you. It costs more, but you'd probably go to the
dentist more often than the gas station. If your daily driving much exceeds 30 miles, the regular hybrid is the
better choice. You'll save about two grand and you'll still get 40-plus mpg, which is stellar.
What I like most about the Energi is its transparency. There's nothing exotic or experimental-feeling about the car.
The plug-in option is nothing more than a box to check at the dealership: hybrid or super hybrid?
What I'm saying is, fear not. There's a lot of upside in the electrification of automobiles. Just look at the Porsche
918 Spyder plug-in hybrid: 0-60 mph in 2.8 seconds, 202 mph, 78 mpg! The C-Max Hybrid Energi is the merest
rough sketch of how plug-capable cars of tomorrow will work. And yet, it's pretty clear from the Energi, they will
work.
---
2013 FORD C-MAX HYBRID ENERGI
Price, as tested: $31,000 (est)
Powertrain: Series-parallel gas-electric plug-in hybrid with Atkinson-cycle 2.0-liter DOHC, 24-valve in-line four
cylinder with variable valve timing (141 hp, 129 pound-feet); permanent magnet AC synchronous traction motor
(118-hp, 117 pound-feet); 7.6-kwh lithium battery pack; continuously variable transmission; front wheel drive.
Net system power: 188 hp
Length/weight: 173.6 inches/3,859 pounds
Wheelbase: 104.3 inches
EPA fuel economy: 44/41 mpg city/highway (gas); 100 mpg-e (gas-electric)
Cargo capacity: 19.2 cubic feet
Document J000000020130601e9610000d

American love affair with SUVs continues ; Ford Motor might bring another small one to U.S. market
MONEY
American love affair with SUVs continues ; Ford Motor might bring another small one to U.S. market
Alisa Priddle; Chris Woodyard; Nathan Bomey
Alisa Priddle, Chris Woodyard and Nathan Bomey, USA TODAY,
834 words
31 May 2013
USAT
FINAL
B.5
English
Predictions of the death of the SUV were premature, says Ford Motor, which is seeing thriving sales.
Sales are so vigorous, in fact, that Ford is considering bringing yet another small one to the U.S., the EcoSport
now in other world markets.
Ford officials say Americans still love sport utilities, especially in California, where Explorer and Escape retail
sales have risen 43% and 51% this year, respectively. R.L. Polk data show Ford's share of the sport and
crossover utility market there -- 15% this year to date -- has almost doubled since 2006.
This comes as the already-blurry line between cars and utility vehicles may vanish as SUVs become
commonplace everywhere in the world, the Ford executives said this week.
A decade ago, an SUV meant a big, truck-based vehicle. Today, automakers think of utilities as small, car-based,
sometimes-luxury vehicles that replace large or midsize cars. Beyond the U.S., the industry is finding a world
hungry for these vehicles that offer an image of durability, better fuel economy and a high view of the road ahead.
"There are big trends going on, and they are really accelerating," said Jim Farley, Ford global marketing chief.
"The death of utilities was premature. It's just coming back in a different form. Our intention is to be a utility leader
around the world."
Globally, utilities account for 18% of the market or 13 million sales a year. That is 35% more than in 2005.
To meet growing global demand, Ford is stepping up exports of its crossover SUV models and building more of
its utilities in emerging markets such as China and Russia:
Ford exports one of every four Explorers it makes. It plans to offer it in 27 countries by 2017, Ford analyst Erich
Merkle says.
Ford Edge, launched in the U.S. in 2006, is exported to 16 countries and will be in 40 by 2017.
Ford Escape (also sold as Kuga) is in 62 nations and is adding China.
The EcoSport, developed in Brazil, is also sold in Europe, China and India. Farley said Ford is studying whether
to offer it in the USA.
Farley, who also oversees Lincoln, said it's no accident that a small crossover, the MKC, is the second all-new
vehicle coming in the upscale brand's reinvention plan. The MKC is to go into production later this year.
Baby Boomers main driver of new car sales
Older buyers are more important to the auto industry than ever, according to a study by the University of Michigan
Transportation Research Institute. Adults ages 55 to 64 were 15 times more likely to buy new vehicles than those
ages 18 to 24 in 2011, the new study found.

In a separate study released in 2012, the institute found that the percentage of 19-year-olds with a driver's license
had fallen below 70%, the lowest in nearly 30 years.
Collectively, the results show that car sales still are predicated on an ability to connect with older buyers.
"The probability of buying a vehicle per driver is highest for people 55 to 64 years of age," said Michael Sivak,
who led the study using data from R.L. Polk. "That is probably surprising to many people, because they think of
much younger people being the target audience."
Another finding: 35- to 44-year-olds accounted for a smaller percentage of sales in 2011 than in 2007, possibly
reflecting how the tough economy affected that age group.
Consumers ages 55 to 64 bought 23% of U.S. vehicles in 2011, up from 18% in 2007. Meanwhile, those 35 to 44
accounted for 22% of purchases in 2011, down from 29% in 2007.
In another finding, the number of people ages 35 to 44 with a driver's license fell 6.6% from 2007 to 2011.
The number of people ages 18 to 24 with a driver's license increased by 0.8% in that four-year period, while the
likelihood that anyone in that age group would buy a car stayed flat. In 2011, one in 222 drivers in that age group
bought a new vehicle, vs. one in 15 for ages 55 to 64.
Those statistics worry automakers that the Millennial generation doesn't care about driving. But the other
possibility is interest is there, but sufficient income is not.
"The big question is, is this trend of decreasing licenses for young people going to continue?" Sivak said.
Although the auto industry is investing heavily in designs and marketing aimed at young car buyers, Sivak said
the study shows that marketing to older buyers is worthwhile.
Priddle and Bomey also report for the Detroit Free Press.
photo Ford might bring the EcoSport, a small SUV already sold in Europe, to the USA.
Document USAT000020130531e95v0000d

Home & Digital -- Eyes on the Road: Pickup Drivers Still Work Hard, but in Comfort
Home & Digital -- Eyes on the Road: Pickup Drivers Still Work Hard, but in Comfort
By Joseph B. White
1,040 words
29 May 2013
J
D3
English
Pickup trucks, the workhorses of the auto market, are becoming more domesticated.
Auto makers are adopting new technologies to smooth off the rough edges for customers who typically spend
hours behind the wheel of a big pickup both for work and play. Pickups can do tough work, but they can be tough
on drivers with their noisy cabins, bouncy rides and clumsy handling.
Some of the upgrades are easy to spot, such as more power outlets in the cabins, including standard plugs for
laptops, and features that make it easier to get at stuff in the bed. Other changes are out of sight, such as new
hardware designed to tune out the freeway vibration that could make a long drive in a truck a fatiguing
experience.
The big brands in the pickup business -- Ford, Chevrolet, GMC, Ram, Toyota and Nissan -- have big incentives to
make their models more appealing. Pickup buyers are becoming more demanding, auto makers say. And they
earn above-average incomes -- Ram says its average buyer earns about $66,654 a year while Ford owners
average $70,419 a year.
Truck brands advertise the dirty work their trucks can do. But most real truck owners also use their vehicles as
family haulers and grocery getters. About a third of big pickup owners say they use their vehicles daily for
shopping errands, and about 85% will take their trucks on a family vacation at least once a year, says Alexander
Edwards of Strategic Vision Inc., a San Diego company that studies consumer car-buying decisions.
Here are features aimed at making trucks more of a pleasure to drive.
Quieter Cabins
To cut the drone and rumble of previous generations of large pickups, General Motors Co. engineers devised
hydraulic mounts that fit between the rear of the cab and the steel-rail frame of the 2014 Chevrolet Silverado as
standard equipment. Fluid moving between an upper and lower reservoir acts to damp low-frequency noise and
vibration that most people can't hear, but can feel, says Jeff Vogt, ride-and-handling-performance engineer for the
Silverado. The new Silverado also has rubber seals on both the door and the truck body to block out road noise.
Chrysler Group LLC's Ram 1500 truck uses a new air-suspension system to smooth out the ride. The optional
system, which runs $1,595, can automatically raise the bottom of the vehicle by as much as 2 inches to navigate
rocky roads, or lower it by 0.6 inch to improve aerodynamic performance on the highway. Drivers can use a
key-fob control to lower the parked truck by 2 inches to make it easier to get in the cab.
A More Useful Bed
Pickup owners tend to be men in their 50s, so making it easier to get up into the truck bed can be a welcome
addition. The new Silverado offers as standard equipment steps built in to the outer corners of the rear bumper,
and hand holds molded into the sides of the bed.
The move follows Ford Motor Co.'s innovation in 2009 to offer an optional step that folds out of the top of the
truck's tailgate. Ford also installs a pop-up pole in the tailgate to act as a banister. About 40% of Ford F-series
owners buy the option, which lists for $375.

The 2013 Ram offers storage boxes built into the sides of the pickup bed as a $1,295 option. The "Ram Box" lids
and tailgate can be locked by hitting a key fob button. Nissan Motor Co.'s 2013 Titan has a 120-volt plug in the
back to power tools -- or boom boxes for tailgating.
Detroit's big pickups still haven't matched the Honda Ridgeline pickup's signature feature -- an 8.5 cubic-foot,
lockable trunk built in under the floor of the bed.
Buttons You Can See
Designers of pickup truck interiors are adding the same navigation and multimedia entertainment features offered
in many sedans. But new pickup dashboards don't rely heavily on touch controls. Instead, pickups have chunky
rotary knobs and easy-to-jab buttons.
The 2013 Ford F-150 has the company's "MyFordTouch" audio/information system, but it retains easy-to-grab
knobs for tuning the radio and adjusting the heat. Ford says that's because truck drivers need to be able to work
the infotainment system while wearing gloves.
The new Silverado's interior has chunky buttons and rotary controls arranged under a new infotainment screen
that is more vertical and "truck-like" than the previous generation, GM says.
Toyota Motor Corp.'s redesigned 2014 Tundra, due in showrooms later this year, puts the audio and climate
controls 2.5 inches closer to the driver.
Automated Co-Pilots
Pickups are beginning to adopt some of the crash-avoidance technology long offered in sedans, making it easier
to see what's behind the tailgate. Ford offers a rearview camera with a zoom feature that can zero in on the trailer
hitch, as part of a package of features that can list for up to $1,350.
Ram's heavy duty 2500 and 3500 models come with a rear-facing camera built into the center-mounted brake
light behind the cab that can beam images of a trailer or the cargo in the bed into the truck's dashboard screen.
The camera lists for $325 as a stand-alone option on a Ram 2500 model.
Toyota's 2014 Tundra pickup will come with a standard backup camera, and an optional blind-spot system that
can warn a Tundra driver when a car is about to pass.
Chevy's Silverado will offer as part of an $845 package of safety features a forward-collision-warning system that
will sound a beep and flash a red light on the windshield if it detects an imminent crash. (Drivers can choose a
seat that vibrates instead of a warning light.) The Silverado system won't automatically apply the brakes, as
collision-alert systems offered in some sedans and SUVs do.
Document J000000020130529e95t00016

Investors Spread Their Housing Bets
Abreast of the Market

Investors Spread Their Housing Bets
By Jonathan Cheng and Matt Jarzemsky
975 words
28 May 2013
J
C1
English
Rising U.S. home prices have sparked a run-up in shares of Lennar Corp., KB Home and Toll Brothers Inc., and
cleared the way for the first initial public offerings by home builders since 2004.
Now, some believers in the housing recovery are spreading their bets. They are buying shares in the makers of
appliances, building materials and even pickup trucks, as well as real-estate-sales firms and home-improvement
retailers. These investments will reap the rewards of an upsurge in residential construction and home renovation,
proponents say, at lower prices than home-building shares.
The average price of residential property in 20 large U.S. cities has risen 9.5% since the start of 2012, according
to the S&P/Case-Shiller home price indexes. Building permits for single-family houses rose last month to their
highest level since May 2008.
Bullish investors expect those trends to continue. They contend an improving economy and historically low
mortgage rates will bolster demand for both new and existing homes, while low housing inventory will help push
prices higher.
The recovery is in "the very early innings," says Russell Croft, a portfolio manager at Baltimore-based Croft
Leominster Inc., which manages about $950 million in assets.
He has ridden the rally in Lennar but now prefers investments in appliance maker Whirlpool Corp. and Ford Motor
Co., whose F-150 pickup truck he says stands to benefit from increased demand for the services of contractors
and construction workers. Mr. Croft says he is trying "to find the secondary or tertiary stocks that might be
influenced by housing."
He likes the lower valuations of companies outside the home-building sector. Ford trades at just 9.9 times
projected 12-month earnings, according to FactSet. Whirlpool trades at a 12.4 multiple, despite surging more than
170% since the end of 2011. Mr. Croft says he wishes he had bought more of the Benton Harbor, Mich.,
company.
The stocks in the Standard & Poor's 500-stock index are trading at 14.4 times profits that Wall Street analysts
expect the company to report over the next 12 months, according to FactSet.
By contrast, Lennar now trades at above 20 times projected earnings, while Toll Brothers and KB Home trade at
more than 30 times earnings.
To be sure, not everyone is buying the housing recovery. Some fund managers who have ridden the rise in
home-related stocks warn that the rally already has played itself out.
Chip Reed, who helps oversee $9 billion in stocks as portfolio manager at Atlanta Capital Investment Managers,
has considered selling stakes in paint maker Sherwin-Williams Co. and building-materials distributor Beacon
Roofing Supply Inc. that he acquired around the start of 2009. At more than 20 times future earnings, the stocks
look overvalued to Mr. Reed. If he sells them, he doubts he would invest proceeds in housing-related companies.
"Because the market is up so much, it's so much harder to find new [housing-related] ideas than it was at the end
2008 or early 2009," Mr. Reed says.

Others see plenty more room to run. Home prices on average are still 28% below their April 2006 peak. Some
expect more homeowners to fix up their houses for eventual sale as prices increase.
Three U.S.-listed residential-construction companies have gone public this year, ending a drought of more than
eight years for such initial public offerings. Tri Pointe Homes LLC, Taylor Morrison Home Corp. and William Lyon
Homes all have traded higher since their debuts.
Home Depot Inc. and Lowe's Cos. each have jumped by about 60% over the past 12 months, while some
investors have fanned out into manufacturers of roofing, floorboards, drywall and faucets.
"For years, we've seen no interest in families remodeling their kitchens, adding a new bedroom or putting a new
deck out there," says Ragen Stienke, who manages about $3 billion in assets at Dallas-based Westwood
Holdings Group. Now, he says, "We're looking for companies that will benefit from homeowners deciding that
their home will be worth more in a year or two, so they want to invest in it."
As that changes, Mr. Stienke says he sees more gains ahead for stocks such as plumbing-supplies company
Watts Water Technologies Inc. and backyard-decking-systems maker Trex Co.
They aren't the only potential beneficiaries. Ply Gem Holdings Inc., which makes siding, fencing, doors and other
housing materials, has risen 12% since its IPO priced late Wednesday above its expected range. Plywood maker
Boise Cascade Co. has rallied 39% since its February debut and also priced above projections.
Mitch Rubin, chief investment officer at New York-based RiverPark Funds, which manages $1.6 billion, expects
U.S. home prices and sales volumes to rise back to historical norms.
So Mr. Rubin bought shares of Realogy Holdings Corp., the world's largest franchiser of residential real-estate
brokerages, after the company's October initial public offering. Realogy takes a cut of the commissions that
brokers operating under the Century 21 and Coldwell Banker brands earn on home sales.
"There are a lot of derivative plays on housing, but this is a superdirect play," Mr. Rubin says, arguing that the
shares benefit from both rising prices and transaction volume.
At Brown Advisory, which oversees $33 billion in assets, analyst Kevin O'Keefe has been buying regional-banking
stocks such as SunTrust Banks Inc. and Synovus Financial Corp., betting the firms' balance sheets will improve
as homes backing loans rise in value. "The housing market is one of the best investible themes out there for 2013
and for 2014 as well," Mr. O'Keefe says.
Document J000000020130528e95s00035

Corporate News: News Corp. Split-Up Gets Board Approval
Corporate News: News Corp. Split-Up Gets Board Approval

By Ben Fox Rubin and Saabira Chaudhuri
550 words
25 May 2013
J
B3
English
News Corp.'s board approved the company's separation into two publicly traded entities, moving a step closer to
splitting its entertainment businesses from the publishing division.
The media company on Friday also outlined the terms of the share distribution, named the board directors for
both firms and announced a $500 million stock-buyback program for the new News Corp. following the
separation.
In addition, News Corp. said it would take a pretax charge of between $1.2 billion and $1.4 billion in the current
quarter to write down assets related to its publishing segment. In the year-earlier period, News Corp. booked a
$2.8 billion impairment charge, tied mainly to its publishing operations and in particular those in Australia.
Last year, News Corp. decided to split itself after years of shareholder pressure to spin off the lower-growth
publishing side of the business. The split, which is set for June 28, still requires approvals from shareholders and
some regulators.
As part of the deal, the company's board approved the distribution of all shares of the new News Corp., which will
be the publishing business, to the company's stockholders in a ratio of one share of the new News Corp. for every
four shares of News Corp.
The separation plan involves placing The Wall Street Journal, Dow Jones Newswires, book publisher
HarperCollins and several Australian and British publications, among other divisions, into a company that will
retain the News Corp. name.
The Fox broadcast and cable channels, 20th Century Fox movie studio and other entertainment properties will be
part of the newly titled 21st Century Fox.
"Today's announcement is a significant step in creating two independent companies with the world's leading
portfolios of publishing and media and entertainment assets," said Rupert Murdoch, who will serve as chairman
and chief executive of 21st Century Fox and executive chairman of the new News Corp.
"We continue to believe that the separation will unlock the true value of both companies and their distinct assets,
enabling investors to benefit from the separate strategic opportunities resulting from more focused management
of each division."
Among the directors named to the boards of 21st Century Fox as well as the new News Corp. are Mr. Murdoch,
who currently heads News Corp., and sons James Murdoch and Lachlan Murdoch. The boards of the new
companies have 12 directors each; the current News Corp. has 16 directors, including two directors emeritus.
In addition to several current News Corp. directors, the board of the new News Corp. will include investment
company EXOR SpA CEO John Elkann, Ana Paula Pessoa, a partner at corporate-communications firm
Brunswick Group, Masroor Siddiqui, the managing partner of Naya Management LLP, and Robert Thomson, who
will be the company's chief executive.
The 21st Century Fox directors include Delphine Arnault, deputy general manager at Christian Dior Couture since
2008 and a director of Christian Dior SA, and Jacques Nasser, who served as Ford Motor Co. chief executive
from 1998 to 2001 and a director of British Sky Broadcasting PLC from 2002 to late last year. Also included is
Strayer Education Inc. Executive Chairman Robert Silberman.

Document J000000020130525e95p00026

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Careers: Ford Names New Design and Labor Chiefs .....................................................................................................

Ford Issues Recall for Focus E.V. and Ambulances .......................................................................................................7

Corporate News: Lower Gas Prices Drive Auto Sales ....................................................................................................8

Corporate News: GM Tries to Curb Discounting ...........................................................................................................10

Mitsubishi, Audi and Ford to Recall Vehicles for Various Problems..............................................................................14

Cross-Country Run Ends For 1930 Ford Model A ........................................................................................................17

Earnings: Global Car Firms Ride Profit Gains ...............................................................................................................19

Take Ford For a Spin Abroad ........................................................................................................................................21

Ford enjoys a strong third-quarter report.......................................................................................................................22

Ford gets its motor running: 3Q income at $1.3B..........................................................................................................24

Robust Earnings From Ford and Southwest Bolster Shares.........................................................................................26

What to watch ; Profit reports to shed light on autos, housing ......................................................................................30

Ahead of the Tape .........................................................................................................................................................31

GM Cuts Costs for the Long Haul .................................................................................................................................40

Microsoft CEO Search Reveals Board Rifts ..................................................................................................................42

Corporate Watch ...........................................................................................................................................................47

Corporate News: South Africa's Troubles Hit Car Makers ............................................................................................49

Honk if You Love the Mass-Produced Automobile ........................................................................................................51

Two Media Mainstays Expand Their Video Presence ...................................................................................................53

Two Media Mainstays Expand Their Video Presence ...................................................................................................55

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No Traction: Europe's Car Makers Spin Their Wheels..................................................................................................63

Ford's No. 2 Steps Into the Limelight ............................................................................................................................69

Corporate News: Car-Parts Makers Agree to Pay $740 Million in Fines.......................................................................71

Companies Admit They Fixed Prices Of Car Parts .......................................................................................................72

VW's $1 Billion U.S. Bet is Sputtering ...........................................................................................................................81

Corporate News: Toyota Seeking To Regain Ground In U.S. Market...........................................................................83

U.S. Car Sales Soar To Pre-Slump Level .....................................................................................................................85

Vehicle Sales Show the U.S. Shifting Gear...................................................................................................................87

Trouble Finding a New Car? Shortages Begin to Appear .............................................................................................88

Your Earrings Remind Me of Grandma's Gran Torino ..................................................................................................92

Corporate News: Cummins in Engine Pact With Nissan ...............................................................................................94

U.S. Car Plants Shift to Top Gear .................................................................................................................................95

Corporate News: Ford Cuts Hybrid's Fuel Claim.........................................................................................................100

U.S. to Bring Gas Mileage Rules to Era Of Hybrids ....................................................................................................102

A Coupelike Sedan Suitable for Caligula ....................................................................................................................104

Corporate Watch .........................................................................................................................................................106

Tesla's Stock Is Outrunning Its Superfast Electric Car................................................................................................108

A Jersey Spin in a Fiesta.............................................................................................................................................110

Carmakers in U.S. Report Strongest July Sales Since 2006 ......................................................................................112

Corporate News: Corporate Watch .............................................................................................................................115

Strong Sales Push Chrysler's 2nd-Quarter Net Up 16% .............................................................................................117

Earnings: Europe Takes Less Of a Bite Out of GM.....................................................................................................119

Detroit has a reason to smile ; Automakers are doing fantastic ..................................................................................121

Page 2 of 199 © 2020 Factiva, Inc. All rights reserved.

Autos Roar Ahead As Economies Idle ........................................................................................................................126

Wanted: Techie auto workers ; Ford recruits 'aggressively' ........................................................................................130

Ahead of the Tape .......................................................................................................................................................132

Franchised dealers deliver best results .......................................................................................................................148

Ford F-250 Leads List As Top Target of Thieves ........................................................................................................149

How we did the SUV Challenge ..................................................................................................................................152

Car Sales Pace at 5-Year High ...................................................................................................................................154

A Revitalized Car Industry Cranks Up U.S. Exports....................................................................................................156

Ford Brings Back the Dial............................................................................................................................................163

Corporate News: Chevrolet, GMC Shine in J.D. Power Quality Survey......................................................................164

A Sudden Outbreak Of Annoying Noises ....................................................................................................................169

Rough Road Ahead, but a Robot Driver Takes It in Stride..........................................................................................171

Aiming for the Hybrid's Sweet Spot .............................................................................................................................176

New Exchange Is Formed For Trading Patent Rights .................................................................................................181

Trucks light up May auto sales ....................................................................................................................................183

Behind Surge In Auto Sales, Signs of Lost Momentum ..............................................................................................186

Ahead of the Tape .......................................................................................................................................................188

Investors Spread Their Housing Bets..........................................................................................................................196