Ford – Page 1662 – I wish I had more to offer

Car-sharing startup Getaround raises $300 mln in funding led by SoftBank

(Reuters) – Car-sharing startup Getaround Inc has raised about $300 million in the latest funding round led by Japan’s SoftBank Group Corp, the San Francisco-based firm said on Tuesday. Toyota Motor Corp and some other existing investors were also part of the Series D funding round, Getaround said. The company, founded in 2013, has been… Continue reading Car-sharing startup Getaround raises $300 mln in funding led by SoftBank

Tesla investor: There couldn’t be a better time for Apple to invest in Tesla

Bull and bear debate the trade in Apple
7 Hours Ago | 04:25

Apple should buy a stake in Tesla now for the sake of both companies, Tesla investor Ross Gerber told CNBC on Monday.

“This is [Apple CEO] Tim Cook's gift of all gifts,” Gerber said on CNBC's “Squawk Alley.”

Gerber, co-founder & CEO of Gerber Kawasaki, said a potential investment from Apple in Tesla could be hugely beneficial to both companies.

Tesla has faced extensive scrutiny in the past year for a wide array of issues, including a push to meet Model 3 production goals. CEO Elon Musk, who on Friday admitted the past year has been “excruciating” and “the most difficult and painful” of his career, has come under fire for erratic behavior. Most recently, Musk rattled markets after tweeting he was planning to take Tesla public when the stock reached $420 per share and that he had “funding secured.” The tweet hasinvited scrutiny from the Securities and Exchange Commission.

“If you look at actually what Elon's problems are every day, they are operational, which is why Tim Cook was hired by Steve Jobs back in the day. Cook is perfect for this role,” Gerber said. “In the past Apple and Tesla probably wouldn't have gotten along because Musk didn't need Apple, but it is clear he needs help [now].”

And what Tesla lacks in scaling and operations, it makes up for in innovation — which Gerber says is what Apple desperately needs long-term.

With a giant cash hoard and deep-running consumer loyalty, Apple became the first publicly traded U.S. company to hit a valuation of $1 trillion in early August. It has since continued its trajectory, hitting a fresh all-time high in intraday trading on Monday. Despite Apple's recent success, however, it has its own share of pressures. Some investors worry stagnating iPhone sales could spell trouble for the company in the future.

“My biggest fear with Apple is that they have fallen so far behind in the innovation curve, I don't see where they will be five years from now,” Gerber said. “I don't think phones are going to be the primary device in a decade,” he added.

Ivan Feinseth, chief investment officer at Tigress Financial Partners, agreed Tesla could present a decent investment opportunity for Apple but said the investment wouldn't make or break the tech giant.

“I don't think Apple is on the decline. It is still on the ascent,” Feinseth said.

He said wearables and Apple's voice assistant, Siri, still present big areas for growth and innovation.

But an investment in Tesla could present a unique opportunity for Apple to “get a foothold in the development” of Tesla technology, which it usually keeps in-house.

“Apple does have enough cash, with the $240 billion they now have. With that they could buy Tesla, Ford, Fiat, Ferrari, Harley Davidson — they could buy everything,” Feinseth said.

“Why would they want to tie themselves down with owning an automobile manufacturer? If they want to be involved with the manufacturing, especially the integration of technology, taking a financial interest in Tesla would make sense,” he added.

Gerber agreed mobility could be a huge opportunity for Apple in the future. And he said the iPhone maker's secretive self-driving car project, “Project Titan,” is “going nowhere,” so Tesla would be a surer bet. If Apple were to strike a deal with Tesla that put its operating system and app store in Tesla cars, that would open up a whole new avenue for Apple to market its services and applications to customers, he said.

“Apple should buy 5, 10 percent of Tesla just to get the iOS onto that Tesla screen. Part of the Tesla story is that screen in the middle of the car, and not having Apple on that screen is going to be a huge problem for them,” he said.

Whether or not Tesla ends up private, Apple should act now, while Musk is actively searching for partners, Gerber said.

Shares of Tesla closed up 0.96 percent at $308.44. Shares of Apple closed down 0.97 percent at $215.46, after briefly touching an all-time high of $219.18 in intraday trading on Monday.

Apple and Tesla did not immediately respond to CNBC's requests for comment.

Elon Musk should consider working with distributors, delegating more, ex-Toyota exec says

Musk treated well now and maybe better if Tesla doesn't go private: Former auto exec
4 Hours Ago | 03:54

Tesla CEO Elon Musk needs to delegate more and work with an outside distributor if he's going to make the electric car maker “sustainable,” Jim Press, former COO and president of Toyota Motor Sales U.S.A., told CNBC on Monday.

“You need to have a marketing organization, have to have sales, you have to have an active distribution channel, and you really do need day-to-day management operation. You can't sit by the plant and spend the night there to run everything. You can't funnel everything through one person,” Press said on CNBC's “Closing Bell.”

Tesla has battled widespread criticism since Musk's Aug. 7 tweet that he was planning to take Tesla public and had “funding secured,” which may have violated Securities and Exchange Commission rules. In a blog post, Musk attempted to clarify that his claim about secured funding was based on repeated and ongoing conversations with Saudi Arabia's sovereign wealth fund, which was cast into doubt when it surfaced on Sunday that the fund is in talks to invest in a Tesla rival.

Going private is one way to avoid close scrutiny by the public market, which Tesla has faced in recent months as it fought to meet Model 3 production goals. Some analysts speculate Musk has wanted to take Tesla private for a while, and the press and shareholder hype surrounding Model 3 production goals hastened his ambitions.

Despite Musk's concerns, Press, who was also the deputy CEO of Chrysler, said the market has been pretty fair to Tesla so far, especially when compared with legacy motor companies, such as Ford. But now, he said, “There's some reality coming into it,” meaning Tesla will have to get profitable or face ongoing market adjustment.

“The reality is, the market treats him very well. If you look at the market cap of Tesla, $50 billion, compared to Ford, that makes a profit — the stock is about $9 — it shows the disconnect, and there is an adjustment that's occurring,” Press said.

Tesla shares closed out the day up 0.96 percent at $308.44.

To get profitable, Press added, Musk needs to learn to delegate, both within the company and without.

“I always have a saying, and that is, you don't have stress, you should give it. And [Musk] doesn't have anyone to give it to,” Press said.

Press said Musk should hire someone to “run day-to-day” operations while he works at “30,000 feet” and should look outside of the company for independent distribution channels, such as third-party dealerships.

“He is the only one that's trying to run the distribution channel and capitalize that at the same time. There's a whole opportunity there for an independent distribution channel to take half the work load off and create the sales,” Press said.

And as for going private, Press said it may be best for the carmaker to stay put, rather than risk the unknown pressures from the private market.

“I understand the frustration, but going private may not be the best. You know, the devil that you know — versus the devil you don't — may actually treat him better,” Press said.

Tesla did not immediately respond to CNBC's request for comment.

US carmakers must win in China, but it's going to get more difficult

US carmakers must win in China, but it's going to get more difficultThe fortunes of Detroit automakers increasingly lie some 7,000 miles to the east — in China.
China is already the world's largest car market, selling 29 million light vehicles a year. By 2025, China's new car sales will be double those of the United States, analysts said. To put that in perspective, about 17.2 million new light vehicles were sold last year in the U.S., according to Kelley Blue Book data.
And while new car sales are ballooning in China, they have leveled in the U.S.
This puts Detroit's car companies at a critical juncture. They must focus on growing their sales in China if they want to sustain total profits enough to succeed elsewhere in the world.
Yet Ford and Fiat Chrysler struggled in China in the second quarter, and it isn't getting any easier in the future for them and General Motors.
“It's going to get more and more difficult to compete in China,” said John Bonnell, senior adviser of ZoZo Go, an investment advisory firm specializing in China's electric and autonomous vehicle industries. “With the heavy competition, demand for more electric vehicles, trade wars … it's not an easy business there.”
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Ford profit drops $1B due to China, tariffs
Detroit's reality checkThe Chinese car market is intensely competitive given the rising success of some Chinese car companies in the last few years. Then there is the looming threat of President Donald Trump's proposed 25 percent tariffs on imported cars and parts, which could inflate prices across the board.
But carmakers that succeed in China will gain a big advantage in other markets, said Bonnell.
“It will impact their performance here, eventually,” said Bonnell. “If you just have the U.S., you wouldn't have those million-dollar sales to spread to your tooling costs” and to cover other research and development expenses.
In fact, said Bonnell, looking at Volkswagen's success in China, “Its market share in Europe, since they have succeeded in China, has gone straight up.”
But the Chinese consumer has distinct needs and requires products tailored to them, said Jeremy Acevedo, manager of data strategy with Edmunds. Therefore, product becomes king if Detroit carmakers are to attract new buyers there. “They can't rely on shopper loyalty in the booming Chinese auto market,” said Acevedo.
As for Trump's proposed tariff hike and retaliation by the Chinese, Detroit Three exports to China are not a factor because they account for less than 5 percent of sales, Michael Dunne, CEO of ZoZo Go, wrote in a newsletter.
“But if tensions escalate, Chinese leaders could steer consumers away from American-brand cars,” wrote Dunne.
He noted Chinese leaders did just that in the past with Korean and Japanese cars to “great effect” when political relations soured.
“So, a reality check is in order,” said Dunne. “Intensifying competition from Chinese automakers, plus a dose of acute consumer nationalism, could spell the beginning of the end of Detroit in China.”
China salesBesides fierce competition in China — about 110 car brands are sold in China, 60 of which are Chinese — the Chinese government is also pushing automakers for more electric vehicle production by 2020, said Bonnell. It has set strict regulations around EVs, he said.
As Ford and FCA try to compete, they are already behind the curve. Through June, Ford had sold 313,000 vehicles, down 38 percent from the same period a year ago giving it a 2 percent market share in China, said Bonnell, who references data from LMC Automotive.
In that same period, FCA's Jeep brand was down 34 percent to 115,000 units. It sells such a small number of vehicles, though, that FCA's market share is negligible, said Bonnell.
For GM, through June, sales of its Buick, Chevrolet, Cadillac brands were 960,000, up 10 percent from the same period a year ago. Including GM's minority share in SAIC GM Wuling, GM's sales through June totaled 2 million, up 7 percent from the same year ago period, said Bonnell.
GM President Dan Ammann told Wall Street analysts Thursday that GM is successful in China because it has invested in the product and the dealer network there for many years.
But the market in China has been intensely competitive, Ammann said. GM continues to invest in its business there and, “Make sure we’re prepared for the next phase of the market there” as it pushes for more electric vehicles and strict emissions.
The strongest non-Chinese automaker is Volkswagen, which has seen consistent growth in China.
“They were the first one to set up in the mid-'80s and they have strong partners and worked hard to get their brand established and dealer network established,” said Bonnell. “Being the first mover offered a big advantage for them.”
Volkswagen had sold 2.1 million cars through June in China, up 7 percent from the year-ago period, he said.
Ford's problemsFord China has struggled with an aging product portfolio and a thin, unprofitable dealer network. In the second quarter, it lost $483 million, a decline of $506 million from last year, Ford's CFO Bob Shanks said in a call with analysts.
Current products in the showroom are dated. Five new models, arriving this autumn, should help, but there is a lot of lost ground to make up. Ford China sales this year could fall 25 percent below their 2016 peak of 1.2 million. That's a 300,000-vehicle hole to dig out of, Shanks said.
Shanks blamed unfavorable market factors for Ford and Lincoln imports into China, and lower net pricing, some of which is related to tariff changes.
But Ford's Jim Farley said the deterioration of Ford's business in China has been swift.
“I can assure you, we understand the importance of getting our China business back on track,” Farley, Ford's executive vice president and president of Global Markets, told analysts.
Ford will launch a new, low-priced, midsize sport utility vehicle called Territory in China early next year, Farley said. The SUV will be built in China and was developed strictly for that market. It will give Ford a better chance to compete against lower priced vehicles than it had in the past there, said Farley.
Ford combats China struggles with low-cost SUV
Ford has serious shortfalls in its go-to-market capabilities, “including inadequate dealer profitability, excess stock including our high-volume (compact) cars,” Farley said. “We haven't maintained a fresh enough product lineup for this rapidly changing and dynamic China market.”
Those missteps along with an uncompetitive cost structure hurt Ford China, and Farley said Ford is taking “urgent action.”
By the end of next year, 60 percent of Ford China's vehicle lineup will be refreshed or new, said Farley. He said Ford is improving its competitiveness with aggressive cost cuts and more localized product such as the Explorer.
“We're close to hiring a new CEO for Ford China and we have already onboarded a number of local Chinese talent in key management positions such as marketing and sales leads for both Ford and Lincoln to drive not only our strategy but they're already reinvigorating our sales,” said Farley.
But until all of Ford's SUVs are launched in China, he warned, “We'll continue to face this mix deficit.”
GM's successFord's new products will be competing against several new products from GM China, which already has a strong foothold in the market.
In the second half of the year, GM China will introduce 10 new models including the Cadillac XT4 small SUV.
“The focus is on high-demand segments including SUVs and multipurpose vehicles and luxury vehicles,” GM CEO Mary Barra said in an analyst call.
GM China reported record results in the second quarter with equity income of $600 million, up $100 million year-over-year. The bulk of those sales are from Baojun, Cadillac and Chevrolet, and GM said it had a “continued focus on cost efficiencies” there.
GM will incur higher costs in the second half because of the cost to launch new vehicles. With competitors launching new vehicles, pricing will come under pressure too, she said.
“But we remain confident in our 20 years of market strength in China,” said Barra. “Due to established local and U.S. brands and our strong Chinese partner, our current outlook does not assume any comprehensive impact in China beyond existing trade flows.”
Still, GM's growth is driven by the affordable Baojun (pronounced bow joon) brand and the surging Cadillac brand. Buick and Chevrolet are “crimped at the edges and stalling,” wrote Dunne.
Baojun is GM's ultrasubcompact that costs less than $15,000. It will account for one in every four GM China sales this year, said Dunne.
But Dunne wrote that the “squeeze on Chevy and Buick reveals a larger, deeper threat to the Detroit Three in China.” Consumers there are much less attracted to mass market global brands than they were a few years ago. Instead, they are switching to Chinese brands such as Great Wall, BYD and Geely, wrote Dunne.
Geely is China's largest private automaker. It will sell almost twice as many cars in China as FCA and Ford combined this year, said Dunne.
FCA's futureIn Fiat Chrysler's second-quarter earnings call, CEO Mike Manley acknowledged that “the biggest challenges we face, and frankly we're going to continue to face to some extent for the balance of the year, are all focused in China.”
Changes in the tariff drove down sales of Maserati cars and shipments to dealers, Manley said. But he was quick to add, “With all of these duty changes behind us, I'm clearly expecting improved sales performance,” Manley said.
That's provided that FCA manages inventory to meet demand ahead of the transition to China's tougher emission regulations, he said. FCA has lowered its expected..

Tesla pares losses in volatile trading after falling below $300

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Elon Musk

Tesla's stock price fell below $300 per share at one point on Monday as investors in the electric car maker continued to doubt the validity of a privatization proposal by founder Elon Musk.

Shares of the Palo Alto, California-based company fell as low as $288.20 before rebounding shortly after the open of trading. The stock was down 0.6 percent at $303 as of 10:43 am ET.

Earlier Monday, J.P. Morgan slashed its projections for the carmaker, telling clients that while it originally took chief executive Elon Musk's proposal to take the company private at $420 per share seriously, the funding to do so “appears to not have been secured.”

The firm pared its year-end price target for Tesla shares back to $195 from $308, representing 36 percent downside to Friday's close.

But while the bearish J.P. Morgan note may have weighed on the stock Monday, investors have had plenty of reason to question the CEO over the past few weeks.

Shares also fell after news broke that PIF, the Saudi Arabian sovereign wealth fund that Musk has said could help him fund an offer to take the car company private, is in talks to invest in rival Lucid Motors, Reuters reported cited sources.

The Securities and Exchange Commission, meanwhile, reportedly served Tesla with a subpoena early last week after Musk's now-infamous privatization tweet.

What Tesla would have to raise to go private
2 Hours Ago | 01:50

Earlier reports said the SEC had intensified scrutiny of the automaker after the Aug. 7 tweet. A subpoena would be one of the first steps in a formal inquiry.

The SEC declined CNBC's request for comment on the subpoena.

Musk admitted last Thursday in an emotional interview with The New York Times that the past year has been taxing for him, blaming so-called short-sellers — investors betting against the company — for much of his stress.

He told the newspaper he's overwhelmed by the job, has been working up to 120 hours per week and takes Ambien to fall asleep on occasion.

Tesla shares tumbled 9 percent to $306 the day following the interview.

Columnist and businesswoman Arianna Huffington later called on Musk to adopt a healthier work-life balance in light of the interview, but he said that's not a viable option.

Musk told the Huffington Post founder in a tweet Sunday morning that his car company and Ford are the only two American automakers that have avoided bankruptcy. He then added, in an apparent reference to his long workweek: “You think this is an option. It's not.”

WATCH: Is it game over for Elon Musk?

Tesla's in turmoil, is the game over for Elon Musk?
5:20 PM ET Fri, 17 Aug 2018 | 07:59

Elon Musk could learn a lesson from Henry Ford: One person can’t run a car company

Original Article

UPDATE 1-Nissan to boost China production capacity by 40 pct, source says

BEIJING (Reuters) – Japan’s Nissan Motor Co (7201.T) plans to invest about $900 million to boost vehicle-making capacity in China by 40 percent by 2021 – part of a 60 billion yuan ($8.73 billion) strategy to become a top three player in the world’s largest auto market. A car with the Nissan logo badge is… Continue reading UPDATE 1-Nissan to boost China production capacity by 40 pct, source says

Elon Musk says Tesla could produce $25,000 car in ‘maybe’ 3 years, but cites industry challenges

Yuriko Nakao | Bloomberg | Getty Images
Elon Musk, co-founder and chief executive officer of Tesla

Elon Musk suggested it could take Tesla “maybe” three years to come up with a low-cost version of a car, even as he admitted it was “really tough” to do given the auto sector's economics and competition.

Amid recent turmoil surrounding Musk's stated goal to take Tesla private, the CEO sat for an interview with YouTuber Marques Brownlee to discuss the future of electric cars. Musk explained that Tesla's comparatively smaller scale made it hard to compete against major producers like General Motors or Ford, given their massive scale in an “insanely competitive industry.”

Musk told Brownlee that Tesla was “really focused on making cars more affordable, which is really tough. In order to make cars more affordable, you need high volume and economies of scale,” he said. When asked if Tesla could eventually make a cheaper vehicle with higher quality, Musk responded in the affirmative.

“I think in order for us to get up to…a 25,000 car, that's something we can do,” he said. “But if we work really hard I think maybe we can do that in about 3 years,” Musk added, saying it depended on both time and scale. He compared car making to the early years of the cellphone, which were bulky and lacked functionality.

“With each successive design iteration, you can add more things, you can figure out better ways to produce it, so it gets better and cheaper,” Musk said. With “natural progression of any new technology, it takes multiple versions and large volume to make it more affordable.”

Currently one of the top trade-ins for a Tesla Model 3 is a Toyota Prius, according to statements Musk made during an August earnings call. The Prius, which starts at $23,475, is roughly half the cost of the $49,000 Model 3 starting price.

Musk boasted that Tesla shells out virtually nothing on advertising and endorsements, and relies heavily on word of mouth.

“Where I put all the money into and all the attention into is trying to make the product as compelling as possible,” Musk says. The key to selling a product is having something people love and will talk about, he added.

“If you love it, you're going to talk and that generates word of mouth,” he told Brownlee. That's Tesla's business model: rely mainly on word-of-mouth. The company isn't spending on advertising, according to Musk. And no discounts. Musk said even he pays full retail price on his Tesla cars.

Musk's sit-down was published on YouTube in the wake of an unusually personal New York Times interview, in which Musk displayed rare moments of emotion as he described the pressures of meeting a recent Model 3 production milestone. The bombshell report sent Tesla's stock reeling in Friday's trading, and laid bare concerns among Tesla board members about Musk.

The NYT article landed at a turbulent time for the electric carmaker. Musk upped the ante in his battle against investors betting against Tesla's stock, tweeting recently that he had “funding secured” to take Tesla private at $420 per share. That sent shares soaring, and ultimately prompted the SEC to open a probe, according to reports.

Correction: This version corrects the spelling of Tesla's name.

Ford’s Corktown campus cost: $740M

Ford’s Corktown campus cost: $740MFord's new beginning for the old train station FullscreenPosted!A link has been posted to your Facebook feed.
Buy PhotoFord Executive Chairman Bill Ford Jr. stands in the lobby of the former Michigan Central Depot train station in Detroit, June 14, 2018. Ford Motor Co.'s purchase of the building and several others in Corktown will allow the automaker to build a new mobility corridor along Michigan Avenue, from Corktown to its facilities in Dearborn, Willow Run and the University of Michigan campus.Buy PhotoFullscreenBuy Photo”It's not just a building,” Ford Executive Chairman Bill Ford Jr. told The Detroit News in an interview. “It's an amazing building, but it's about all the connections to Detroit, to the suburbs, and the vision around developing the next generation of transportation.”Buy PhotoFullscreenBuy PhotoMichigan Central Depot would attract new employees to develop the mobility, autonomy and electrification technologies billed as the biggest disruptors to the auto industry since Henry Ford began making Model T's for the masses. A view of the Detroit skyline from the top floor of the Michigan Central Depot train station.Buy PhotoFullscreenBuy PhotoThe Corktown outpost is meant to supplement Ford's work on its Dearborn campus, and it will use a portion of the undisclosed dollar amount Ford set aside in 2016 to accomplish that redesign. The lobby of the Michigan Central Depot train station.Buy PhotoFullscreenBuy Photo”It's not just a building,” said Ford Executive Chairman Bill Ford Jr., standing in the depot's atrium. “It's an amazing building, but it's about all the connections to Detroit, to the suburbs, and the vision around developing the next generation of transportation.”Buy PhotoFullscreenBuy PhotoA hallway leads to the lobby. Ford expects the building to attract new employees to develop the mobility, autonomy and electrification technologies important for its future.Buy PhotoFullscreenAn artist's rendering shows a market for fresh produce in the atrium space.FullscreenBuy PhotoThe ground floor lobby of the 18-story, 500,000-square-foot building would be open to the public. That space could house markets, coffee shops, restaurants, retail and gathering spaces. A hotel or residential component also is being considered.Buy PhotoFullscreenBuy PhotoFord's plan for the depot is currently an outline. Bill Ford Jr. envisions a bustling public space akin to San Francisco's Ferry Building Marketplace.Buy PhotoFullscreenIn addition to the train station, above, Ford has purchased these Corktown properties: The Factory, 1907 Michigan Ave.; the old book depository, 2231 Dalzelle St.; and vacant land adjacent to PAL complex.FullscreenA rendering imagines the ground floor of the old Michigan Central Depot as a public space with retail, restaurants and gathering spaces.FullscreenBuy Photo”One thing I don't want to do is take a beautiful building and put something that's garish on there,” Bill Ford Jr. said. ”
“We don't want to be isolated and we don't want to be seen as taking over the community by any means.”Buy PhotoFullscreenBuy PhotoA small fraction of the company's Dearborn workforce would move into the station, with all but Ford's electrification and autonomous driving teams remaining in Dearborn to occupy the sprawling, estimated $1 billion campus redesign there slated for completion in the mid-2020s.Buy PhotoFullscreenBuy PhotoRoughly a third of the renovation cost would be comped by tax breaks for the historic restoration of the depot. Ford, the city, and the former owners of the building have declined comment on the purchase price or how much Ford will spend on the renovation.Buy PhotoFullscreenBuy PhotoA small fraction of the company's Dearborn workforce would move into the station, with all but Ford's electrification and autonomous driving teams remaining in Dearborn to occupy the sprawling, estimated $1 billion campus redesign there slated for completion in the mid-2020s.Buy PhotoFullscreenBuy PhotoWhile the public space would occupy the 300,000 square feet on the ground floor of the station and other Corktown properties, 2,500 Ford employees and 2,500 partner employees would occupy the remaining 900,000 square feet come 2022. This is the top floor.Buy PhotoFullscreenBuy PhotoFord CEO Jim Hackett said the Corktown outpost will give Ford's teams access to a true urban landscape in which to test autonomous technology and how those vehicles will need to communicate with traffic systems, delivery destinations and other infrastructure.Buy PhotoFullscreenBuy PhotoHackett said the Corktown project won't cost Ford any more than the estimated $1 billion it budgeted for the Dearborn transformation plan. Money for the Corktown outpost came out of that original budget. Above, a stairwell on the top floor of the Michigan Central Depot.Buy PhotoFullscreenBuy PhotoThe ticket booths used to occupy this space in the Michigan Central Depot.Buy PhotoFullscreenBuy PhotoFord will announce officially on June 19 its plans for the building, followed by a party in Roosevelt Park in front of the long-vacant building.Buy PhotoFullscreenBuy PhotoWorkers prepare for Ford's press conference Tuesday, June 19, to talk about their purchase of the train station.Buy PhotoFullscreenBuy PhotoLighting crews work in the lobby to prepare for the Tuesday, June 19 press conference.Buy PhotoFullscreenBuy Photo”This is our home,” Bill Ford Jr. said during an interview in Ford World Headquarters in Dearborn. “We're not leaving by any means. By the end of this we'll have a large multiple of employees in Dearborn versus Detroit.” Bill Ford Jr., chairman of Ford Motor Company, speaks about the purchase of the Michigan Train from the Moroun family during an interview from Ford World Headquarters in Dearborn on Thursday, June 14, 2018.Buy PhotoFullscreenBuy PhotoReviving the depot and establishing Corktown on that mobility corridor will require tax incentives to renovate the building at its heart, according to Bill Ford Jr. A stairwell on the top floor.Buy PhotoFullscreenBuy PhotoBill Ford said the depot restoration price “dwarfs the purchase price.” Workers prepare for Ford's press conference to celebrate their purchase of the train station.Buy PhotoFullscreenBuy Photo”This is an exclamation point” for Detroit's resurgence,” Bill Ford Jr. said. “Ford and Detroit have seen good times, we've seen bad times, and this is a tough region. We've been through it together. This is an authentic move for the city and for us. Frankly, it's where it all began.”Buy PhotoFullscreenReplay1 of 262 of 263 of 264 of 265 of 266 of 267 of 268 of 269 of 2610 of 2611 of 2612 of 2613 of 2614 of 2615 of 2616 of 2617 of 2618 of 2619 of 2620 of 2621 of 2622 of 2623 of 2624 of 2625 of 2626 of 26AutoplayShow ThumbnailsShow CaptionsFord Motor Co. plans to spend as much as $740 million on its planned 1.2 million-square-foot Corktown campus, company officials announced Tuesday night.
The automaker said it expects to seek $250 million over 34 years through local, state, federal tax incentives to offset the cost, a representative said, as it launches its ambitious plan to revitalize the area, including the derelict Michigan Central Depot.
“We are excited by the opportunities that Ford’s investment in the train station and other key Corktown sites will bring, not only for the larger resurgence of the neighborhood but all of Southeast Michigan, including economic growth, attracting world-class talent and leading the development for the next generation of the automotive industry,” Ford Land said in a statement.
“Given Ford’s investment in the Corktown projects, we are actively working with federal, state and local officials for tax and other incentives to support the development.”
The investment involves five Corktown neighborhood sites, including the building and land purchase as well as expected building exterior and infrastructure rehabilitation costs over the next four years, Ford Land said Tuesday.
The cost estimate was unveiled during a neighborhood advisory council meeting at the International Brotherhood of Electrical Workers No. 58 in Detroit on Tuesday. The panel is slated to work with Ford to create a community benefits agreement.
The city recently released the complete list of area residents appointed to serve on the nine-member neighborhood advisory council. The advisory council members are:
— David Esparza, Nicole Rittenouer, Mike Ransom and Ken Jameson appointed by Planning and Development Department Director Maurice Cox.
— Robin Ussery appointed by Detroit City Council member Raquel Castañeda-López. Previously, City Council President Brenda Jones selected Hubbard-Richard resident Aliyah Sabree, a judge in the 36th District Court.
— Councilwoman Janee Ayers chose Sheila Cockrel, a Corktown resident and former member of the city council.
–The community voted for Jerry Paffendorf, co-owner of Loveland Technologies, and Heather McKeon, an interior designer with Patrick Thompson Design.
Upcoming advisory council meetings are scheduled for Aug. 27, Sept. 10 and Sept. 17.
Ford has been working to collect comments on its plans restore the iconic Michigan Central Station building, which the company expects to occupy by 2022, as well as parts of the surrounding Corktown neighborhood.
Ford said the 500,000-square-foot, 18-story train station will anchor a campus for the company's self-driving, electric car and alternative transportation teams, as well as the automaker's partners.
The Dearborn automaker is bringing 2,500 people from its autonomous technology and electrification departments to Corktown; another 2,500 employees are arriving from startups and other partner companies.
The company expects to occupy the long-vacant depot by 2022.
During a community meeting l..

No ‘sound investor’ would want Elon Musk to remain CEO of Tesla, says former GM exec Bob Lutz

If Elon Musk left Tesla, the stock would go up: Expert
4 Hours Ago | 06:14

For the good of Tesla, Elon Musk should step aside, former vice chairman of General Motors Bob Lutz told CNBC on Friday.

“I can't imagine any sound investor who has money in the company or any independent board member would want him to remain as CEO in light of recent performance,” Lutz said on CNBC's “Closing Bell.”

The New York Times published an extended interview with Musk on Friday in which he said the past year has been “excruciating” and “the most difficult and painful” of his career. The interview follows months of erratic behavior on Musk's part, both on and off social media. Most recently, the CEO tweeted that he would take Tesla private at $420 per share and had “funding secured,” which has invited scrutiny from the Securities and Exchange Commission.

Musk took to Twitter in July to call a British cave diver who assisted in the rescue of a Thai boys soccer team a “pedo guy.” During Tesla's first-quarter earnings call in May, Musk dissed analysts, cutting off Sanford Bernstein's Toni Sacconaghi because of what he called a “boring, bonehead” question. Musk later apologized to Sacconaghi and to the diver, Vernon Unsworth, for his comments.

“Elon is tired, he's worn out. He's obviously got some emotional problems. He's self medicating. He has shown some disturbing signs of being somewhat volatile and unstable,” Lutz said. “I think the right solution for Tesla at this point is to move him aside from day-to-day operation.”

Lutz, an automotive industry veteran who has also served in top roles at BMW, Chrysler and Ford, has been a huge critic of Tesla in the past. In November of last year he said Tesla is “going out of business.” Although he wasn't quite as critical this time around, he did raise some of the same issues, saying Tesla was “bleeding” profitability and “will probably have to go back to the capital markets for more money.”

“In my personal judgment, the board should take action and find a CEO. Not get rid of Elon — keep him as the visionary, keep him as the titular head of the company, and give him the honor and respect the founder of the company deserves,” Lutz said. “But that company needs professional management, and it needs it now.”

J.P. Eggers, associate professor at New York University's Stern School of Business, agreed, saying it is likely there are many other things Musk would rather spend his time on than Model 3 production goals.

“We see this all the time with … start-up founders or early leaders in these firms, where what they really want to do is do the vision, do the growth, build the … reputation of the company. And when it comes to actually executing on the vision, they aren't always the best ones for that,” Eggers said Friday on “Closing Bell.”

As much as it might be better for Tesla — and its stock price — were Musk to step aside as CEO, Eggers said, he's not so sure Musk would be willing to stay on with the company in a secondary role.

“I have a hard time seeing him doing anything other than being completely involved or walking completely away. He's tenacious; that's what's made him successful to this point,” Eggers said.