Tag: Ford

GM CEO Barra says the automaker is watching China trade ‘very carefully’

General Motors Chairman & CEO Mary Barra (L) and President of General Motors China Matt Tsien attend a press conference in Shanghai, China September 15, 2017.

General Motors is keeping a close eye on China, CEO Mary Barra said Wednesday.

GM said its luxury brand Cadillac had record sales in China despite an ongoing trade war that's raised prices on steel and aluminum as well as on the vehicles themselves.

“We're watching it carefully and we're very hopeful that both sides will have dialogue and get to the table to work through some very important issues that both China and the United States have as it relates to trade,” Barra told analysts on a conference call Wednesday discussing GM's third-quarter earnings. “When we look at our positioning, we have many levers that we can pull to continue to have strong performance in China.”

While Ford and other automakers have reported trouble in China for the third quarter, it was a bright spot for GM.

The company reported record third-quarter “equity income” in the country, led by a 4 percent increase in Cadillac sales there. GM uses equity income to measure its performance in the region since the company follows the standard industry practice of selling its vehicles through a joint venture with Chinese manufacturer SAIC. Each company owns a 50 percent stake in the venture.

Barra told analysts the partnership has served GM well.

“I think we have the strongest partner in China with SAIC,” she said.

“At this time we are not looking to change the 50-50 structure,” Barra added. “It has served us well, and I think the strength of our results demonstrate that.”

But at the same time, sales in the country were down 15 percent over the same quarter last year, and there are signs of trouble in the region. A recent report from Bloomberg said the Chinese government is considering a cut to taxes on auto purchases to revive flagging sales.

GM said it was able to charge more for cars during the quarter and the declines came from less its profitable segments. It also said that sales of its luxury vehicles were up.

GM to offer buyout to some workers in cost-cutting move: DJ

GM offering buyouts to salaried employees
29 Mins Ago | 01:32

General Motors is offering buyouts to salaried workers to help cut costs, Dow Jones reported Wednesday. About 18,000 employees are eligible.

The company said it is making the move now to take advantage of the strong economy and its own healthy performance. The largest U.S. automaker reported better than expected earnings on Wednesday, fueled by strong sales of trucks and crossovers in North America.

GM was not immediately available for comment.

The automaker is making the cuts in response to rising commodity costs, said CFRA analyst Garrett Nelson. The hope is enough workers take the buyouts, the automaker will not have to resort to layoffs.

GM's U.S. rival Ford said in early October it plans to thin the ranks of its salaried workforce by the second quarter of next year.

GM offering buyouts to cut North American salaried staff

FILE PHOTO: The GM logo is seen at the General Motors Lansing Grand River Assembly Plant in Lansing, Michigan October 26, 2015. REUTERS/Rebecca Cook/File Photo DETROIT (Reuters) – General Motors Co (GM.N) said on Wednesday it plans to cut its North American salaried workforce, starting with voluntary buyout offers but resorting to layoffs if necessary.… Continue reading GM offering buyouts to cut North American salaried staff

Ford and Baidu team up to test self-driving vehicles in China

Nelson Ching | Bloomberg | Getty Images
Robin Li, chief executive officer of Baidu Inc.

Ford and Chinese internet giant Baidu announced a tie-up Wednesday that will see the two firms jointly test self-driving vehicles in China for two years.

The initiative will see the two companies collaborate on the development and testing of driverless vehicles that meet the Level 4 standard set by U.S. industry organization SAE International. This means that autonomous vehicles developed by the two will not require intervention from a human driver.

Ford and Baidu did not disclose any financial terms or ownership structure details of the venture.

“Working with a leading tech partner like Baidu allows us to leverage new opportunities in China to offer innovative solutions that improve safety, convenience and the overall mobility experience,” Sherif Marakby, president and CEO of Ford's autonomous vehicles unit, said in a statement Wednesday.

“This project marks a new milestone in the partnership between Ford and Baidu, and supports Ford's vision to design smart vehicles that transform how we get around.”

Ford's autonomous vehicles have already been fitted with Baidu's autonomous driving system Apollo, the two companies said in a joint statement. On-road testing of the driverless vehicles developed by Ford and Baidu is slated to start by the end of this year.

“Baidu and Ford both believe in using technology to redefine the future of mobility,” Zhenyu Li, vice president and general manager of Baidu's intelligent driving group, said in a statement.

“This project will combine our leading-edge technological know-how and understanding of China together with Ford's vehicle expertise, marking a significant step forward towards Baidu's goal of developing autonomous driving vehicles that will greatly benefit future consumers.”

The news follows an initial announcement made in June that the two companies would explore areas of cooperation in the fields of artificial intelligence and connectivity.

Baidu was recently added to the Partnership on AI (PAI), a U.S. ethics body devoted to establishing best practices for AI and educating society about the technology. It was the first Chinese firm to join the organization.

It has upped the competitive pressure on U.S. rivals that are ploughing significant money and resources into AI — including Google and Microsoft — and recently developed a tool which it says can translate different languages in real time.

VW reviewing autonomous car alliances, Waymo seen as a leader -CFO

FRANKFURT, Oct 30 (Reuters) – Volkswagen Chief Financial Officer Frank Witter on Tuesday said the carmaker was open to deeper alliances with outside companies, particularly in the area of autonomous driving, where Google’s Waymo is seen to be an industry leader. “It remains to be seen whether every carmaker develops their own system, or whether… Continue reading VW reviewing autonomous car alliances, Waymo seen as a leader -CFO

Ford CEO says restructuring is ‘a massive undertaking’ that must be ‘very thoughtfully orchestrated’

Rebecca Cook | Reuters
Ford Motor Company president and CEO James Hackett

Ford CEO Jim Hackett said the company is still determining what steps it needs to take to completely redesign itself.

Ford is in the midst of a plan to restructure the company that is expected to cost at least $11 billion dollars and take several years. But investors have grown impatient and frustrated with the level of detail Hackett and other Ford leadership have given about their plans. Ford's stock has lost about a third of its value this year.

During a conference call Wednesday, Hackett said he understands the frustration over the lack of clarity, but Ford has to move cautiously. Earlier, Ford reported third-quarter earnings that beat expectations.

“What I remind everybody of is we first have to find the areas that need the attention,” Hackett said. “We're through that. We then have to design the solutions for them. We're through a lot of that but not all of it. And then we have to put them in place and perform. If you read hesitancy from me, it's not that we don't know where we're going or don't know how to do it, it's that there's a massive undertaking that we have to have very thoughtfully orchestrated. Because my experience in doing this, the worst thing we could do is disrupt our business and we aren't going to do that.”

Hackett has talked for months about the need to improve Ford's “fitness” or efficiency. And the company has announced at least some changes to its business.

In early 2018, Ford said it plans to phase out the production of passenger cars for the North American market, in favor of more popular and profitable trucks, SUVs and crossovers.

Then, in early October, Ford said it plans to make reductions to its salaried workforce of 70,000 employees. But fuller details on that won't come until the second quarter of 2019.

Hackett added on Wednesday's call that the company is already seeing some benefits from initiatives it has put in place. He cited the company's North American EBIT margin of almost 9 percent in the latest quarter as an example and said the company was “very happy” with its strong balance sheet.

“We are making great progress on the product portfolio and I can't emphasize that enough,” he said.

Ford will share more details on its progress on autonomous vehicles, its strategic partnership, and its restructuring efforts in “the coming weeks and months,” Hackett added.

In the wake of the earnings report, Ford shares were trading up more than 4 percent after the closing bell.

WATCH:Ford is using bionic suits to help employees work safer

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6:24 PM ET Fri, 20 April 2018 | 02:20