Ford Exec: Japanese Hogging Hybrid Parts
09-20-2005 | 02:50 PM
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Ford Exec: Japanese Hogging Hybrid Parts
http://www.cnn.com/2005/AUTOS/09/20/...eut/index.html
Ford would offer more hybrids, COO says, if more parts were available.
September 20, 2005; Posted: 12:16 p.m. EDT (1616 GMT)
DETROIT (Reuters) - Ford Motor Co. could be offering more hybrid vehicles if it weren't for the shortage of specialized components, partly due to the "predatory" approach taken by some Japanese automakers, Ford Chief Operating Officer Jim Padilla said Tuesday.
"It is a supply issue, and it's supply of several technologies," Padilla said at the Reuters Summit in Detroit. "The Japanese have shown a little bit of a predatory approach."
Company Chief Executive Bill Ford Jr. has said he wants more hybrids in the fleet of the world's third-biggest automaker, after trailing Toyota Motor Corp. and Honda Motor Co. with the fuel-efficient technology.
The Japanese automakers have been successful in cultivating an image as the leaders in environmental technology by offering a range of hybrid vehicles. Toyota plans to sell up to 250,000 units worldwide this year, mainly in North America.
Ford began offering its first hybrids with the Escape sport utility vehicle last autumn, lagging firstcomer Honda by five years. It has said it plans to build 20,000 units this year, with the addition of the Mercury Mariner SUV.
The No. 2 U.S. automaker gets battery packs for the hybrid system, which twins a gasoline engine to an electric motor and batteries to boost fuel economy, mainly from Japan's Sanyo Electric Co., and other parts from various suppliers, such as Toyota affiliate Aisin Seiki Co.
Toyota, which licenses part of its hybrid technology to Ford, has been a volume leader for the fuel-sipping vehicles, saying last week it would boost annual output of motors for hybrids to meet strong demand, mainly in North America.
"We are working with multiple suppliers and alternatives," Padilla said. "We recognize that the ramp-up phase is very critical for suppliers and for ourselves to get economies of scale."
Padilla didn't say how many more hybrids Ford would like to produce. But he noted that production and development costs needed to come down substantially for them to be viable, both for the manufacturer and consumers.
"You have to realize that hybrids on the market now go for a $3,000 to $3,500 premium, and that only covers a fraction of the costs," he said.
Asked if Ford was making any money on hybrid sales, he said: "I don't know if anyone is making money on them, and if they do, I think that would be a very interesting economic study."
Toyota has said for some time that its hybrids are profitable, but declines to disclose by how much.
As another alternative to large, gas-guzzling SUVs, Padilla said Ford also had in the pipeline several so-called "crossover" vehicles, which generally get better mileage than truck-based SUVs. Ford is second in the U.S. market for crossovers after Honda.
Ford would offer more hybrids, COO says, if more parts were available.
September 20, 2005; Posted: 12:16 p.m. EDT (1616 GMT)
DETROIT (Reuters) - Ford Motor Co. could be offering more hybrid vehicles if it weren't for the shortage of specialized components, partly due to the "predatory" approach taken by some Japanese automakers, Ford Chief Operating Officer Jim Padilla said Tuesday.
"It is a supply issue, and it's supply of several technologies," Padilla said at the Reuters Summit in Detroit. "The Japanese have shown a little bit of a predatory approach."
Company Chief Executive Bill Ford Jr. has said he wants more hybrids in the fleet of the world's third-biggest automaker, after trailing Toyota Motor Corp. and Honda Motor Co. with the fuel-efficient technology.
The Japanese automakers have been successful in cultivating an image as the leaders in environmental technology by offering a range of hybrid vehicles. Toyota plans to sell up to 250,000 units worldwide this year, mainly in North America.
Ford began offering its first hybrids with the Escape sport utility vehicle last autumn, lagging firstcomer Honda by five years. It has said it plans to build 20,000 units this year, with the addition of the Mercury Mariner SUV.
The No. 2 U.S. automaker gets battery packs for the hybrid system, which twins a gasoline engine to an electric motor and batteries to boost fuel economy, mainly from Japan's Sanyo Electric Co., and other parts from various suppliers, such as Toyota affiliate Aisin Seiki Co.
Toyota, which licenses part of its hybrid technology to Ford, has been a volume leader for the fuel-sipping vehicles, saying last week it would boost annual output of motors for hybrids to meet strong demand, mainly in North America.
"We are working with multiple suppliers and alternatives," Padilla said. "We recognize that the ramp-up phase is very critical for suppliers and for ourselves to get economies of scale."
Padilla didn't say how many more hybrids Ford would like to produce. But he noted that production and development costs needed to come down substantially for them to be viable, both for the manufacturer and consumers.
"You have to realize that hybrids on the market now go for a $3,000 to $3,500 premium, and that only covers a fraction of the costs," he said.
Asked if Ford was making any money on hybrid sales, he said: "I don't know if anyone is making money on them, and if they do, I think that would be a very interesting economic study."
Toyota has said for some time that its hybrids are profitable, but declines to disclose by how much.
As another alternative to large, gas-guzzling SUVs, Padilla said Ford also had in the pipeline several so-called "crossover" vehicles, which generally get better mileage than truck-based SUVs. Ford is second in the U.S. market for crossovers after Honda.
09-21-2005 | 07:49 AM
#6
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If I am Not Mistaken
Many moons ago, the Japanese invested in Hybrid Technology whereas their American counterparts decided to put their efforts into SUVs & other large vehicles. So can they really blame Honda/Toyota for being behind the game?
Dang Ford
Dang Ford
09-21-2005 | 10:26 AM
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Update
Ford Poised for Hybrid Push
Report: Auto maker plans fuel-efficient versions of half its models, wants to produce 250K by '10.
NEW YORK (CNN/Money) - Ford Motor Co. plans to speed up its hybrid strategy and offer the fuel-efficient gas-electric cars on half its models in the next five years, according to a published report.
The Detroit News reported that an announcement on the hybrid push is due Wednesday from Chairman and CEO William Ford Jr.
Ford plans to ramp up hybrid production from several thousand this year to 250,000 by 2010, the newspaper reported.
Ford started selling its first hybrid vehicle, a version of its compact sport/utility vehicle Escape, in August 2004, and a hybrid version of its twin, the Mercury Mariner, in July this year, a year earlier than originally planned.
William Ford has been a longtime champion of environmental causes, but the nation's No. 2 auto manufacturer's main source of profit in recent years has been pickup trucks and sport utility vehicles that get poor gas mileage. But record gasoline prices and concerns that oil prices could stay high in the long term have auto manufacturers and car buyers taking a closer look at fuel economy of vehicles.
The U.S. auto manufacturers have trailed their Japanese counterparts in development and sales of hybrid vehicles.
Even with the new hybrid push by Ford, it won't necessarily close the gap with competitors such as Toyota Motor Co., which announced at the Frankfurt auto show last week that it intends to offer hybrid versions of all of its models, although it did not give a time frame to reach that target. Toyota also said it expects to make as many as 400,000 hybrid vehicles in 2006.
Ford Chief Operating Officer Jim Padilla complained to reporters Tuesday that it could be offering more hybrid vehicles if it weren't for the shortage of specialized components, and he blamed some Japanese auto manufacturers for the shortage.
"It is a supply issue, and it's supply of several technologies," Padilla said at the Reuters Summit in Detroit. "The Japanese have shown a little bit of a predatory approach."
Report: Auto maker plans fuel-efficient versions of half its models, wants to produce 250K by '10.
NEW YORK (CNN/Money) - Ford Motor Co. plans to speed up its hybrid strategy and offer the fuel-efficient gas-electric cars on half its models in the next five years, according to a published report.
The Detroit News reported that an announcement on the hybrid push is due Wednesday from Chairman and CEO William Ford Jr.
Ford plans to ramp up hybrid production from several thousand this year to 250,000 by 2010, the newspaper reported.
Ford started selling its first hybrid vehicle, a version of its compact sport/utility vehicle Escape, in August 2004, and a hybrid version of its twin, the Mercury Mariner, in July this year, a year earlier than originally planned.
William Ford has been a longtime champion of environmental causes, but the nation's No. 2 auto manufacturer's main source of profit in recent years has been pickup trucks and sport utility vehicles that get poor gas mileage. But record gasoline prices and concerns that oil prices could stay high in the long term have auto manufacturers and car buyers taking a closer look at fuel economy of vehicles.
The U.S. auto manufacturers have trailed their Japanese counterparts in development and sales of hybrid vehicles.
Even with the new hybrid push by Ford, it won't necessarily close the gap with competitors such as Toyota Motor Co., which announced at the Frankfurt auto show last week that it intends to offer hybrid versions of all of its models, although it did not give a time frame to reach that target. Toyota also said it expects to make as many as 400,000 hybrid vehicles in 2006.
Ford Chief Operating Officer Jim Padilla complained to reporters Tuesday that it could be offering more hybrid vehicles if it weren't for the shortage of specialized components, and he blamed some Japanese auto manufacturers for the shortage.
"It is a supply issue, and it's supply of several technologies," Padilla said at the Reuters Summit in Detroit. "The Japanese have shown a little bit of a predatory approach."
Trending Topics
09-23-2005 | 02:40 PM
#12
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Ford PR Machine Keeps Moving
http://money.cnn.com/2005/09/23/news...mmit/index.htm
Ford CEO writes Bush for energy summit
Bill Ford Jr. says the president's energy policy is 'only a beginning,' wants more done.
September 23, 2005: 9:57 AM EDT
NEW YORK (CNN/Money) - Ford Motor Co. CEO Bill Ford Jr. is asking the White House to convene a summit to discuss the nation's energy issues and the auto industry's role in finding a solution.
Ford wrote a letter to President Bush in which he said he supported the Energy Policy Act that Bush recently signed into law, but there's even more that should be done. The letter was released by the company's Washington office.
The letter said tragedies like Hurricane Katrina underscore the need for businesses to help government explore long-term solutions.
"The new energy law is a strong foundation for these efforts. But this is only the beginning," said the letter, which was dated Thursday.
"As you know, none of us can do this alone. There is no one magic bullet. But if we all work together -- automakers, suppliers, fuel providers, consumers and state and federal government -- I am confident we can overcome the great energy challenges facing our country," Ford wrote.
Ford, who came to the top job at his family's auto business with a reputation as a committed environmentalist, announced plans this week to step up production of Ford (Research) vehicles powered by fuel-efficient hybrid engines, which combine a gasoline engine and an electric motor to improve fuel efficiency.
The auto industry successfully fought to delete increases in fuel economy from the recently passed energy legislation.
While the National Highway Traffic Safety Administration recently proposed improved fuel economy requirements for light trucks like sport/utility vehicles and pickups, environmentalists charged the changes would allow Ford and General Motors (Research) to have less improvements in fuel economy than some competitors.
White House spokesman Allen Abney told the Detroit News, which first reported the news of Ford's letter, that the Bush administration had not yet reviewed the letter and couldn't offer any specific response to the call for a energy summit. But he said President Bush has made energy a top priority.
Not everyone is optimistic about the chances of success of such an energy summit.
David Friedman, research director of clean vehicles for the Union of Concerned Scientists in Washington, told the paper that previous Bush administration task forces on energy ended up downplaying conservation in national energy policy. Friedman said he is disappointed Ford had not made any specific commitment to higher fuel economy standards.
"This is more of the Bill Ford that we expected to see and have been hoping to see," Friedman told the paper. "But you've got to take some concrete steps, too."
Eron Shosteck, spokesman for the Alliance of Automobile Manufacturers, told the paper the industry lobbying group had not yet reviewed Ford's letter, but that automakers are all fiercely committed to doing their part to achieve United States energy independence.
Ford CEO writes Bush for energy summit
Bill Ford Jr. says the president's energy policy is 'only a beginning,' wants more done.
September 23, 2005: 9:57 AM EDT
NEW YORK (CNN/Money) - Ford Motor Co. CEO Bill Ford Jr. is asking the White House to convene a summit to discuss the nation's energy issues and the auto industry's role in finding a solution.
Ford wrote a letter to President Bush in which he said he supported the Energy Policy Act that Bush recently signed into law, but there's even more that should be done. The letter was released by the company's Washington office.
The letter said tragedies like Hurricane Katrina underscore the need for businesses to help government explore long-term solutions.
"The new energy law is a strong foundation for these efforts. But this is only the beginning," said the letter, which was dated Thursday.
"As you know, none of us can do this alone. There is no one magic bullet. But if we all work together -- automakers, suppliers, fuel providers, consumers and state and federal government -- I am confident we can overcome the great energy challenges facing our country," Ford wrote.
Ford, who came to the top job at his family's auto business with a reputation as a committed environmentalist, announced plans this week to step up production of Ford (Research) vehicles powered by fuel-efficient hybrid engines, which combine a gasoline engine and an electric motor to improve fuel efficiency.
The auto industry successfully fought to delete increases in fuel economy from the recently passed energy legislation.
While the National Highway Traffic Safety Administration recently proposed improved fuel economy requirements for light trucks like sport/utility vehicles and pickups, environmentalists charged the changes would allow Ford and General Motors (Research) to have less improvements in fuel economy than some competitors.
White House spokesman Allen Abney told the Detroit News, which first reported the news of Ford's letter, that the Bush administration had not yet reviewed the letter and couldn't offer any specific response to the call for a energy summit. But he said President Bush has made energy a top priority.
Not everyone is optimistic about the chances of success of such an energy summit.
David Friedman, research director of clean vehicles for the Union of Concerned Scientists in Washington, told the paper that previous Bush administration task forces on energy ended up downplaying conservation in national energy policy. Friedman said he is disappointed Ford had not made any specific commitment to higher fuel economy standards.
"This is more of the Bill Ford that we expected to see and have been hoping to see," Friedman told the paper. "But you've got to take some concrete steps, too."
Eron Shosteck, spokesman for the Alliance of Automobile Manufacturers, told the paper the industry lobbying group had not yet reviewed Ford's letter, but that automakers are all fiercely committed to doing their part to achieve United States energy independence.
09-23-2005 | 06:43 PM
#15
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Joined: Sep 2002
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From: philly
Originally Posted by Detroit News
http://www.detnews.com/2005/autosins...A01-322174.htm
Ford plans big hybrid push
Automaker will offer gas-electric engines in half of Mercury, Lincoln and Ford models by end of decade.
By Christine Tierney / The Detroit News
Executive Reading List
Hybrid menu expands for 2006: Buyers should have 15 choices next year, 40 a year later - From MarketWatch
Ford to ramp up hybrid production - From MarketWatch
Daimler seeks partners for "mild" hybrid cars - From Reuters
Europe's sudden switch to hybrids and hybrid partnerships - From AutoWeek
Fuel-efficient hybrids generate interest - From Green Bay Press Gazette
Hybrids, biodiesel getting a chance - From Cincinnati Enquirer
Hybrids: More Power, Less Fuel - From JBusiness Week
Dealing with hybrids safely - From South Bend Tribune
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Ford Motor Co. plans to offer hybrid versions of half the models in its Ford, Mercury and Lincoln brand lineups by the end of the decade as part of a bold strategy to distinguish itself as a leader in safety and environmental innovation.
CEO Bill Ford Jr. is scheduled to outline the strategy today in Dearborn at the Ford Scientific Research Laboratory, which will be renamed to reflect the company's emphasis on innovation, two industry sources told The Detroit News.
The first Detroit carmaker to produce a gas-electric vehicle, Ford plans to ramp up production of hybrids from several thousand in '05 to 250,000 by 2010, the sources said.
Ford also plans to step up development of vehicles running on alternative sources of energy, such as ethanol, and hydrogen-powered fuel-cell cars in a bid to recapture the high ground from leading Japanese automakers Toyota Motor Corp. and Honda Motor Co.
Bill Ford is a longtime champion of environmental causes, but the Dearborn automaker's main source of profit in recent years has been gas-guzzling trucks and sport utility vehicles. Light trucks, however, are starting to lose their appeal because of high gas prices.
Ford's bid to position itself as a global leader in safety and environmental technology appears designed to distinguish the automaker from its larger and also troubled rival, General Motors Corp. Both automakers are losing money in North America. Ford and GM are expected to announce major downsizing plans soon.
But Bill Ford said recently that the company's restructuring effort also would contain some heartening elements.
In a speech in Washington last November, he signaled that innovative responses to safety and environmental issues would be crucial to Ford's long-term prospects.
"Technological innovation has always played a key role in America's economic success," he said.
"I'm convinced that providing market-driven solutions to these concerns is an outstanding business opportunity that will give us a competitive advantage."
He said the auto industry faced huge challenges in developing new powertrains. "But the potential rewards of this new technology are great. The 100-year reign of the gas-powered internal combustion engine could come to an end in our lifetime," he said.
With its new strategy, Ford is also trying to push back Japan's biggest automakers, which have stressed safety and environmental technology to bolster their brands and limit their reliance on profit-eroding incentives to sell their vehicles.
Last week in Frankfurt, Toyota executives said they expected eventually to offer a hybrid version of every vehicle in their lineup.
When Honda first introduced its fuel-efficient, hybrid Insight to the U.S. market in 1999, the technology was expected to appeal to a small core of environmentalists and technology enthusiasts.
But as the Japanese increased their offerings in the market, notably with the launch of Toyota's Prius compact, demand surged. Most customers now wait weeks or months for delivery of their new hybrids. Demand is so strong that some used hybrids command new-car prices.
Hybrids now account for 1 percent of the U.S. auto market, but the niche is expected to expand dramatically as more automakers, including GM, DaimlerChrysler, Nissan Motor Co. and Porsche offer hybrid models.
After the highly successful launch of its Escape hybrid sport utility vehicle last year, Ford is rolling out a hybrid version of the Mercury Mariner SUV.
So far, the automaker also has said that it was developing hybrid versions of the Ford Fusion and Mercury Milan sedans.
Its Japanese affiliate Mazda is building a hybrid Tribute SUV.
DaimlerChrysler, GM and BMW, which recently announced plans to team up to develop hybrid powertrains, do not expect to put a vehicle on the market before 2007.
Most of the hybrid expertise is now concentrated in Japan, but Ford and GM officials have stressed the need to build up the number of hybrid specialist suppliers in North America.
As part of the company's new focus on technological innovation, Ford plans to take further advantage of the highly reputed safety equipment of its Volvo Cars subsidiary for vehicles of its other nameplates.
09-23-2005 | 07:28 PM
#18
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From: philly
Originally Posted by Bobbydoedoe
i'm sure toyota has better use of those parts than ford
09-23-2005 | 07:32 PM
#19
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From: philly
Originally Posted by majesty
GM saying Toyota quality down, and Ford complaining about Hybrid technology, like srika said above—pathetic.
I think in reality it might be true, but company execs shouldn't be airing their problems about competitors in the media, they should beat them at their game and then release in the media that they are number 1 in this or that- turn it into a positive spin kinda how toyota turned raising prices across the board into "oh we were just trying to help domestic companies by making consumers pay more for our products"
.
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