Tag: Ford

VW plans Tesla rival electric car for less than 20,000 euros: source

FILE PHOTO – A Volkswagen logo is pictured at the International Auto Show in Mexico City, Mexico November 23, 2017. REUTERS/Henry Romero FRANKFURT (Reuters) – Volkswagen (VOWG_p.DE) will offer a Tesla-rivalling electric car costing below 20,000 euros ($22,836) and convert three of its factories into electric car plants as part of a far-reaching overhaul, a… Continue reading VW plans Tesla rival electric car for less than 20,000 euros: source

Let’s Go for a Spin: Ford Buys Scooter Company to Provide Customers a First-Last Mile Solution

Let’s Go for a Spin: Ford Buys Scooter Company to Provide Customers a First-Last Mile Solution By Sunny Madra, Vice President, Ford X Everywhere you look around the U.S., people’s mobility choices are changing. In crowded and congested cities, especially, many are reconsidering their transportation options. From ride-hailing to dedicated bicycle lanes, people and cities are considering… Continue reading Let’s Go for a Spin: Ford Buys Scooter Company to Provide Customers a First-Last Mile Solution

Ford to buy San Francisco-based scooter sharing company Spin to beef up mobility business

David Paul Morris | Bloomberg | Getty Images
A person displays the SpinBike shared electric scooter application on a Apple Inc. iPhone X in San Francisco, California, on Friday, April 13, 2018.

Ford confirmed Thursday it has agreed to buy San Francisco-based scooter sharing company Spin.

News of the deal was first reported by Axios Wednesday, which quoted a source that put its value at $40 million.

Ford did not disclose the financial terms of the deal.

The move is a bid to beef up Ford's holdings in transportation and “mobility” businesses that don't involve selling cars, and tap what executives say is a rapidly growing market.

Several scooter start-ups, such as Bird and Lime, have risen to prominence recently, and some see these companies as yet another form of transportation, along with ride-sharing, that could undermine the need many households have for a garage filled with cars.

Spin rents out “dockless” scooters, meaning users do not have to park the scooters in designated areas or “docks,” as is commonly seen with similar sorts of services, such as bike-share programs. It currently operates in 13 cities and college campuses, including Denver, Detroit, Long Beach, California; Coral Gables, Florida and Troy University in Alabama. It operates bike-share programs at the University of Kentucky; and the University of California, San Diego.

By the end of 2018, Spin plans to operate in Washington, D.C.; Austin, Texas; Charlotte, North Carolina; Durham, North Carolina, as well as nearby Duke University; and Towson University in Maryland.

Ford has made a number of investments in mobility companies through its Smart Mobility division. In early 2018, the automaker bought Autonomic, a company that makes software meant to connect vehicles and organize transportation networks. When Autonomic CEO Sunny Madra joined Smart Mobility he was named the head of Ford X, an incubator designed to help grow new businesses that can target customers who may be losing interest in traditional car ownership.

Micro-mobility businesses like Spin are growing in a much different way than ride-sharing did, according to Madra. Cities are requiring permits and putting caps on the number of scooters a company can put in an area and where they can be placed.

Madra told CNBC Ford chose to acquire Spin because the way the company works fit Ford's values. “They always launch in markets where they have permits, they work very closely with cities to understand what their needs are,” he said.

Ford wants to grow Spin's business from 13 cities and college campuses today to about 100 in the next 18 months.

“We are really going to give them significant resources to help them scale,” Madra said, adding that the Spin will be able to leverage relationships Ford already has with different cities.

The potential market is large. Madra cited data from transportation research firm Populus, which found that half of all trips in the U.S. are three miles or less.

“Some of the leading companies in this space were getting upwards of 10 million rides in less than a year,” Madra said. “And if you compare that to the most disruptive transportation company in the last 10 years, being Uber, it took them three years to get to get the same level of usage. So it became obvious there was consumer desire in this space.”

Understanding how to scale a business like this will be key.

“That is an important fact because as we grow out our range of mobility offerings, we think autonomous vehicles are going to undergo the same sort of scrutiny that the scooters are in that sense,” he said. “Companies will need to get permits, and there will be caps, and companies will need to operate in very distinct ways.”

Self-driving car industry needs standards and security: executives

BERLIN (Reuters) – Automakers need standards for key equipment, a wide-reaching 5G broadband network and strong partnerships to make self-driving cars and electric vehicles a success, top European car industry executives said on Wednesday. FILE PHOTO – Ralf Speth, CEO of Jaguar Land Rover delivers a keynote speech at their ‘Tech Fest’ in London, September… Continue reading Self-driving car industry needs standards and security: executives

Ford Motor Company to Share Update on Operational Efficiency Improvements at Barclays Global Automotive Conference

About Ford Motor Company Ford Motor Company is a global company based in Dearborn, Michigan. The company designs, manufactures, markets and services a full line of Ford cars, trucks, SUVs, electrified vehicles and Lincoln luxury vehicles, provides financial services through Ford Motor Credit Company and is pursuing leadership positions in electrification, autonomous vehicles and mobility solutions.… Continue reading Ford Motor Company to Share Update on Operational Efficiency Improvements at Barclays Global Automotive Conference

Stoneacre acquires three more Mill Garage sites

The Stoneacre Group has followed up its takeover of Mill Garages’ Sunderland site by acquiring three further outlets in Harrogate, Newcastle and Stockton. The deal sees Stoneacre adding to its portfolio of Volvo outlets. It now oversees 8 sites. “Everyone at Mill Garages is delighted to have joined forces with the fantastic Stoneacre brand,” said… Continue reading Stoneacre acquires three more Mill Garage sites

Danish Bicycle Maker Unveils Electric Car

The Danes aren’t exactly known for their local auto industry, but Danish bicycle maker Biomega aims to change that. The company unveiled an electric car on Monday with intentions to re-envision city travel. The electric car, called the SIN, is meant for urban transport and embodies the company’s idea of affordable and sustainable vehicles. Designers… Continue reading Danish Bicycle Maker Unveils Electric Car

Ford shares jump after strong truck sales help third-quarter results beat expectations

Ford's shift of focus to trucks boosted its profitability, expert says
4:59 PM ET Wed, 24 Oct 2018 | 02:02

Ford shares surged on Wednesday after the automaker reported quarterly earnings and revenue that beat analysts' expectations.

Strong sales of trucks in North America helped offset declining sales of passenger cars, and challenges such as higher costs, lower volume, and difficulties in China. But earnings are still down from the same quarter last year.

Shares were up more than 4 percent in after-hours trading.

Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

Earnings per share: 29 cents, adjusted, vs. 28 cents expectedAutomotive Revenue: $34.7 billion vs. $33.3 billion expected

The results come during a challenging time for the automaker, which is very much in the middle of a turnaround. Shares of Ford have fallen more than 30 percent since the beginning of the year. Materials costs have risen and tariffs have already cost the company at least $1 billion.

Ford said third-quarter net income fell to $1 billion, or 25 cents per share, from $1.6 billion, or 39 cents per share a year earlier. Excluding items, Ford earned 29 cents per share, beating the 28 cents per share expected by analysts surveyed by Refinitiv.

Total revenues rose nearly 3 percent to $37.6 billion. Its automotive revenue was $34.7 billion, ahead of the $33.3 billion analysts were expecting.

The second-largest U.S. automaker continues to benefit from a relentless consumer shift toward sport utility vehicles and trucks in North America, Ford's strongest market. Ford said its F-Series line of full-sized pickup trucks gained market share, and the Super Duty line of trucks saw record high transaction prices.

Ford beats earnings, revenue expectations
4:35 PM ET Wed, 24 Oct 2018 | 01:22

“The shift to trucks is really the driver to profitability and the margins,” said Kelley Blue Book senior managing editor Matt DeLorenzo said on CNBC's Closing Bell. “Ford is pretty well positioned right now with their current product mix. The car decision right now won't hurt them much in the short term. We'll have to see where the market goes in the longer term.”

But it lost market share in every region where it sells vehicles. It continues to struggle internationally, though it lost less money in those markets than it did in the second quarter.

Revenues were up in Europe by about $500 million over the same quarter last year, but were down in South America, the Middle East and Africa, and Asia.

The Ford Credit business had a strong quarter, the company said.

“This quarter shows that our business remains very strong in key areas,” said CEO Jim Hackett. “We continue to make progress on our efforts to redesign Ford to be more competitively fit, disciplined in capital allocations and nimble enough to win in a fast-changing world.”

Ford continues to back its prior forecast, which calls for adjusted full-year earnings of $1.30 to $1.50 per share. It said cash flow for the year will be positive, but lower than it was in 2017.

Previously, the company said it will spend $11 billion on restructuring, but some investors say Ford has not released enough details and is not giving the appearance that it is taking decisive action.For example, the company said on Oct. 5 it plans to make cuts to its salaried workforce of 70,000 people, but it does not yet know how many jobs are at risk and will share more details in the second quarter of 2019.

During a call with analysts, Hackett said he understands the frustration over the lack of clarity, but said Ford has to move cautiously. Although it may not be apparent to those outside the company, Ford has been making progress in formulating a turnaround plan.

Separately, Ford said it expects to continue to pay its regular dividend. Morgan Stanley analyst Adam Jonas recently downgraded the stock from a buy to neutral, and said Ford's cash flow is under pressure and its dividend may be at risk.

“We don't know how we've lost control of the way that has been projected, but we have been consistent, saying that we plan to pay the regular dividend in this five-year plan,” Hackett said.