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Pickup Fomoco

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Pickup Fomoco
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The United States' Big Three have been experiencing the lowest points in their history as Japanese carmakers continue their rise in the United States auto market. Ford, General Motors and Chrysler have already announced and implemented workforce reduction as part of their turnaround plans. In the case of Dearborn, Michigan based Ford Motor Company, selling off a brand is seen as a short term solution to their financial woes.

Earlier this year, Ford sold the British luxury car brand Aston Martin to a consortium led by racing champion David Richards. The money generated from the sale of the prestigious brand served as a boost for the financial status of the car manufacturer.

After the sale of the famed brand, there have been speculations that Ford will be putting another British brand on the auction block - this time the Jaguar. Ford however denied that they are planning to sell the struggling luxury car brand.

More recently, it was the Swedish car manufacturer Volvo which is being speculated to be the next to go after Aston Martin. It was rumored that German car giant BMW AG requested for the full financial status of Volvo Cars from a Swiss bank who is taking care of the financial aspects of Volvo's operation under Ford's Premiere Auto Group.

This speculation though was recently denied by Ford with spokesman John Gardiner saying "Ford is not in discussions with BMW or any other carmaker regarding interest in the Volvo Car Corp." The speculation surrounding the sale of Volvo became stronger when it was reported in newspapers in London and Sweden that BMW is talking with Ford concerning the sale of the safety-first oriented car manufacturer.

Another development in the auto industry which fanned the flames of speculation concerning the sale of Volvo is the fact that DaimlerChrysler recently sold its ailing American arm in the form of the Chrysler Group to Cerberus - an investment firm.

Meanwhile, FoMoCo pushes on with its restructuring plans to return the company to profitability after posting their biggest loss in their long history last year. Ford announced recently that they have closed down their Canadian engine casting plant. The closing down of the plant is in connection with Ford's plan to eliminate engine casting as part of their business. Other manufacturing facilities like the ones building Ford body parts will be continuing their operations. The said Canadian plant produced cylinder block castings for Ford's 4.2-liter V6 engines and crankshafts for various engines used by Ford on their different auto models. These engines are the 4.2-liter, 5.4-liter V-8, 3.0-liter V-6, 4.6 liter V-8 and the 2.3-liter engines.

The said Canadian plant employed approximately 450 persons as well as creating other jobs outside the facility's operations. Aside from the Canadian casting plant, Ford also announced that they will be closing down another casting plant near Cleveland. The Ford Motor Company announced further that they are looking for independent auto parts manufacturers to supply them with the engine castings. This step will ensure that they can focus more on manufacturing of more important auto components such as engines and gearboxes.

Glady Reign is a 32 year old is a consultant for an automotive firm based in Detroit, Mi. she is a native of the motor city and grew up around cars hence her expertise in the automotive field.You can also visit Ford body parts for more information.

Will Ford Emulate General Motors?

Both General Motors and Ford are steadily losing ground in the United States auto market for the same reason. Both automakers have not expected that price of gasoline will sky rocket today that consumers will be opting for smaller and more fuel efficient vehicles. Both automakers are caught up in outdoing each other by producing larger and larger vehicles.

In the past, SUVs and pickup trucks are well and good. But in today’s world where the price of petroleum fuel is continually rising along with the blood pressure of cost-conscious Americans, these large vehicles have become liabilities for General Motors and Ford.

Both are now pushing through with their turnaround plan to arrest their decreasing share market and sales. Detroit-based General Motors took a step which is currently paying off - a move that Ford has not made or has not made yet. General Motors’ Saturn Division is not as popular as it is today, but under General Motors’ turnaround plan, the brand has become one of the fastest growing auto brands in the United States auto market.

General Motors has revitalized the Saturn lineup by partnering it with German automaker Opel. The latter is also a subsidiary of the Detroit automaker. By infusing European styling to the new lineup of the Saturn brand, General Motors successfully attracted the attention of many consumers and auto journalists and critics as well. In fact, the Saturn Aura which was designed in Europe is the reigning North American Car of the Year.

The working relationship between Opel and Saturn did not only give birth to the revitalized Aura but also to other new Saturn auto models. The new Saturn Outlook has European styling cues all over it. The redesigned Saturn Vue is based on the Opel Antara. The new Vue has been receiving lots of praises for its new look and better performance - the result of Opel’s collaboration. Another Saturn auto model with undeniable European lineage is the upcoming Saturn Astra which is a rebadged version of the Opel Astra.

The working relationship between the two automakers has been beneficial for Saturn, not only for the European designs of their autos but also of their performance. The two General Motors marques may also be sharing other components. A Saturn spark plug wire may be used by an Opel auto or vice versa.

Now, General Motors’ European connection includes Saab and Vauxhall aside from Opel. Although these European automakers cannot be regarded as mediocre, they would pale in comparison to Ford’s European connection. FoMoCo still has Jaguar, Land Rover and Volvo in its folds plus it still has shares in the ultra luxury brand Aston Martin.

If Ford emulates General Motors’ initiative in bringing European styling to American cars, surely, the automaker can attract more consumers to their showrooms. With Volvo styling alone, Ford’s American offerings can be at par with the revitalized Saturn lineup. In terms of performance, Jaguar and Aston Martin can provide good support for the automaker’s American offerings.

But with Jaguar and Land Rover almost out of Ford’s door, would an Opel/Saturn-like partnership be possible for FoMoCo? That is a question that many in the auto industry are still pondering on and only Ford can answer. Should Ford emulate General Motors or take its own route towards profitability? Emulating General Motors might gain Ford more attention, after all, the Ford Fusion Challenge has been adopted by General Motors for the Saturn Aura.

About the Author

Anthony Fontanelle is a 35-year-old automotive buff who grew up in the Windy City. He does freelance work for an automotive magazine when he is not busy customizing cars in his shop.

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