Link (http://www.reuters.com/article/mnGreenAutos/idUS139511175820090507)

American automakers are responding to the changing climate in consumer demand and taking advantage of government incentives by trading in the manufacturing of SUVs for electric and hybrid vehicles.

The recent decision by Ford to transform three American light truck plants into small vehicle factories reflects Ford's recognition that times are a changing.

Ford's has invested $550 million investment to retool a plant in Michigan that once produced bulky Expeditions and Navigators to produce the all-electric Focus in 2011 as well as Focus hybrids. The all-electric Focus is being developed with partner Magna International, and will be able to be charged through a 110- or 220-volt outlet. Next year in collaboration with Smith Electric, the manufacturer will produce a Transit Connect battery electric commercial van, which provides much more transport room than other hybrid options.
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Link (http://www.reuters.com/article/mnGreenAutos/idUS139511175820090507)

American automakers are responding to the changing climate in consumer demand and taking advantage of government incentives by trading in the manufacturing of SUVs for electric and hybrid vehicles.

The recent decision by Ford to transform three American light truck plants into small vehicle factories reflects Ford's recognition that times are a changing.

Ford's has invested $550 million investment to retool a plant in Michigan that once produced bulky Expeditions and Navigators to produce the all-electric Focus in 2011 as well as Focus hybrids. The all-electric Focus is being developed with partner Magna International, and will be able to be charged through a 110- or 220-volt outlet. Next year in collaboration with Smith Electric, the manufacturer will produce a Transit Connect battery electric commercial van, which provides much more transport room than other hybrid options.
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The writing is on the wall. It's time to convert to electrified transportation. Some are waiting to jump in but soon it will be just like kids at the edge of a pool.

I have a fundamental concern for Ford. Chrysler and GM will soon both have great new UAW contracts while Ford is currently stuck with the old bible-sized contracts. Impossible to compete with, no matter how good their cars are.

So now Toyota, Honda, GM, Chrysler, etc. have much less union labor costs? How is that going to turn out? Of course, Now that the unions own a big chunk of the GM and Chrysler we don't know how that will effect operational decision making. My guess is that the new union representatives will become more like regular board members and do what is best for the balance sheet and long term wealth of the company. After all, their wealth is now directly linked to the share price.

I guess we might learn that the best way to defeat a powerful and stifling union is to give them a majority control of the company. If they play the same old game, they lose out as the company continues to bleed. During bankruptcy the contracts are torn up, the waste is tossed out and a new, streamlined company emerges.

I read that Ford recently got concessions from the UAW: "Hourly workers at Ford Motor Co. ratified sweeping cost-cutting changes in their labor contract..." http://online.wsj.com/article/SB123662654608974841.html

I read that Ford recently got concessions from the UAW: "Hourly workers at Ford Motor Co. ratified sweeping cost-cutting changes in their labor contract..." http://online.wsj.com/article/SB123662654608974841.html




We will soon read if there is a difference between Ford's new concessions and Chrysler's bankruptcy-forced concessions. Any guess which ones are going to be greater? Yeah, my thoughts as well.