Michigan Automotive News

Did Americans give up on manufacturing? Unqualified workforce could put industry at risk, officials say

Wed, 30 May 2012 18:50:54 UTC

While rebounding, American manufacturing could be in trouble if things continue how they have been this past decade, according to officials.

AP file photoThere is a stigma plaguing the manufacturing industry that could lead to an untrained workforce and trouble for the nationâs economy, according to officials.

MACKINAC ISLAND, MI- While rebounding, American manufacturing could be in trouble if things continue how they have been this past decade, according to officials.

“(Manufacturing is) not viewed as a destination for kids that are very young,” said John Smith, Global Fuelbox LLC COO and past group vice president of Global Product Planning for General Motors Co. “In fact, we’ve taught them to avoid something where you’ll get your hands dirty.”

Smith was on a panel of automotive executives and manufacturing experts today at the Detroit Regional Chamber’s Mackinac Policy Conference. He was joined on the panel with David Cole, AutoHarvest chairman and Center for Automotive Research emeritus; Sridhar Kota, University of Michigan professor and former White House Office of Science and Technology Policy assistant director of advanced manufacturing and ASME Fellow; and BorgWarner Inc. Chairman and CEO Tim Manganello.

All four of the panelists agreed that teachers, parents and anyone else involved in a child’s life need to promote manufacturing and engineering as a career because there are thousands of manufacturing jobs in the U.S. that need to be filled.

“We are going to be fast followers instead of the innovators of the future,” Manganello said. “We’ve never had to compete against China in the past. We are definitely at risk because China is spending more money.”

Courtesy image

Cole said he is particularly concerned with the lack of women choosing manufacturing or engineering as possible careers.

“We are not tapping into the tremendous resource that is available in young women,” he said. “We have created such a negative impression typically of manufacturing as a place for a young woman to develop a career around.”

AutoHarvest is a nonprofit organization designed to offer automakers, outside companies and university researchers a one-stop-shop to exchange intellectual property.

Officials said organizations such as Auto Harvest and the Detroit Regional Chamber’s new MichAuto continue to attempt to help the country’s manufacturing not only rebound, but prosper.

Manufacturing in Metro Detroit in the past two years grew more than almost every major metropolitan area in the U.S., according to a report released earlier this month for the Brookings Institution.

The report found that manufacturing in the Motor City and its surrounding areas increased 12.1 percent from the first quarter of 2010 to the fourth quarter of 2011. The national average was 2.7 percent.

The 2012 Mackinac Policy Conference started today and continues through Thursday at the Grand Hotel. The annual three-day conference brings together public officials and business leaders to discuss economic development in the state. About 1,500 people are expected to attend this year’s conference

Email Michael Wayland: MWayland@mlive.com and follow him on Twitter at twitter.com/MikeWayland

Report: Chrysler to replace Town & Country minivan with luxury crossover

Wed, 30 May 2012 11:40:26 UTC

Since its heyday in the mid-90s, the segment once known as the foremost way for family travel has dropped from a nearly 1.5 million market with an 8.1 percent market share to annual sales of less than 500,000 and a market share of less than 5 percent, according to Edmunds.com.

ChryslerChrysler CEO and Chairman Sergio Marchionne told Automobile magazine that the Auburn Hills-based automaker will cease production of its Chrysler Town & Country minivan in 2014 as part of an overhaul of the companyâs lineup.

The Dodge Grand Caravan will reportedly be the lone minivan for Chrysler Group LLC.

Chrysler CEO and Chairman Sergio Marchionne told Automobile magazine that the Auburn Hills-based automaker will cease production of its Chrysler Town & Country minivan in 2014 as part of an overhaul of the company’s lineup.

For the past three to four years, Chrysler – the inventor of the minivan -- was the only American automaker offering a minivan and the only automaker to produce more than one minivan.

Marchionne had previously announced that it would produce only one of the vehicles, as customers drove toward crossovers rather than minivans.

According to Automobile magazine, Chrysler plans to replace the Town & Country with an upscale crossover that might resemble the Mercedes-Benz R-Class.

In March, MLive.com examined how crossovers and soccer moms essentially killed the minivan segment, and how Chrysler continued to be the lone king of the American minivan.

According to experts and analysts, “uncool” stigmas, such as “soccer moms” and “daddy daycares,” started to plague minivans. The stigmas led buyers to sport utility vehicles and eventually crossovers.

Edmunds.comMinivan vs. Crossover sales

Since 2002, the crossover segment has nearly doubled from about 1.4 million sales with an 8.1 percent market share in 2002 to 2.5 million vehicles last year and a 19.7 percent market share.

“What happened to the minivan is what happened to the station wagon about 20 years earlier, which is that they went from being seen as this incredibly capable and effective family transportation device to being seen as ‘mommy mobiles’ that nobody wanted to be caught dead driving,” Karl Brauer, editor of car comparison site TotalCarScore.com, told MLive.com in March.

Last year, Chrysler sold 205,182 minivans -- 110,862 Grand Caravans, up 7 percent from 2010; and 94,320 Town & Country units, down 16 percent – a more than 300,000 unit decline from its best sales of 538,807 minivans in 1996.

The Grand Caravan currently ranges from about $22,000-$30,000. The Town & Country ranges from $30,000 to a little over $40,000.

Email Michael Wayland: MWayland@mlive.com and follow him on Twitter at twitter.com/MikeWayland

Girl power: Voting open for best female-designed Ford Mustang

Tue, 29 May 2012 14:01:37 UTC

Ford Motor Co., with the Specialty Equipment Market Association (SEMA), is hosting an inaugural contest called the SEMA Mustang Build Powered by Women to determine the best female-designed, aftermarket 2013 Ford Mustang GT of three concept models from members of the SEMA Businesswomen’s Network (SBN).

Ford SEMA Mustang Build: Chromatic Exterior by Jennifer Seely.

DEARBORN, MI- This is the final week of voting to determine the "queen" of the Ford Mustangs.

Officials said the project is meant to shine light on women working in the automotive aftermarket and to encourage more women to pursue careers in the industry.

“Women play a significant role when it comes to customizing a vehicle,” said Bryan Harrison, senior manager of councils for SEMA and project manager on the build, in a statement. “From purchasing the vehicle and determining what modifications to make, to executing the actual modifications and driving the customized vehicle, women are key players in the entire process.”

The three concepts are:

• High Gear: Designed by SBN Member, Jennifer Seely of Ford Motor Company, High Gear –a luxury Mustang concept – is inspired by international products in categories such as jewelry, couture clothing and architecture. Designed to stimulate the senses by fusing luxury and power, the results are fresh and exciting, propelling Mustang into a whole new arena
• Chromatic: Designed by SBN Member, Jennifer Seely of Ford Motor Company, the ultimate pop culture edition Mustang takes a futuristic design approach drawing inspiration from such pop culture elements as street art and products for an exciting color palette that is free of all boundaries and disciplines. The anthracite-colored chrome body as a base exemplifies the neon colors bringing this Mustang to life. Design details include anthracite-colored chrome exterior, bright cyan wheels and white leather racing interior coupled with an aggressive track suspension and V8 roar
• Fast Metal: Designed by SBN Member, Theresa Contreras from L&G Enterprises. Theresa takes the American muscle car to a whole other level using tone-on-tone dark metallic finishes and red accents for a dramatic design that underscores Mustang’s DNA, raw speed and power

The completed vehicle will debut at the 2012 SEMA show in Las Vegas. The modified Mustang will then be auctioned off on eBay, with money raised to benefit the SEMA Memorial Scholarship Fund.

Click here to see all three designs and vote.

Email Michael Wayland: MWayland@mlive.com and follow him on Twitter at twitter.com/MikeWayland

Fiat joins other automakers, suspends sales to Iran

Fri, 25 May 2012 19:58:01 UTC

Fiat’s announcement follows similar ones from other automakers, such as Hyundai and Porsche.

AgainstNuclearIran YouTube video: Mark Wallace Speaks on UANI's Auto Campaign Before House Foreign Affairs Committee

MILAN- Fiat SpA today said it will suspend sales to Iran.

In a statement, the Italian automaker, which controls Chrysler Group LLC, said "that effective immediately its subsidiaries will no longer carry out business activity related to products or components where the ultimate destination of such products is known to be Iran, other than to the limited extent required to fulfill already existing binding obligations."

Fiat’s announcement follows similar ones from other automakers, such as Hyundai and Porsche.

According to the Associated Press, the auto industry has been under pressure from the anti-nuclear lobby group, United Against Nuclear Iran, to cut ties with the regime.

UANI CEO Mark Wallace spoke earlier this year about UANI's Auto Campaign before a hearing on Iran sanctions held by the House Committee on Foreign Affairs (video embedded above).

Fiat said sales to Iran in previous years "were totally immaterial in a quantitative and qualitative sense and any concerned products were sold for commercial and civilian use only."

In April, Fox News reported Iran’s auto industry, which has business relationships with Nissan, Fiat, Volvo and Peugeot, employs thousands of workers and exports vehicles to more than 30 countries.

Here is the full statement from Fiat:

Fiat supports the international efforts for a diplomatic solution of the issues relating to the relations with Iran. In this respect, Fiat announces that effective immediately its subsidiaries will no longer carry out business activity related to products or components where the ultimate destination of such products is known to be Iran, other than to the limited extent required to fulfill already existing binding obligations.
Sales to Iran based entities during past years by Fiat’s subsidiaries were totally immaterial in a quantitative and qualitative sense and any concerned products were sold for commercial and civilian use only.
Fiat’s subsidiaries having commercial relations with Iranian entities always conducted their businesses in compliance with all applicable laws and regulations, including those of the United Nations, the European Union and Italy.

Email Michael Wayland: MWayland@mlive.com and follow him on Twitter at twitter.com/MikeWayland

A Chevy Cheyenne truck built at Flint Assembly makes a homecoming after 41 years

Fri, 25 May 2012 19:46:27 UTC

A 1971 Chevrolet two-tone C10 Cheyenne Super with a 350 V-8 engine rolled back into the Flint plant where it had been built on Friday. Watch video

Ryan Garza | MLive.com Howard Elmer, of Canada, talks to the press on Friday during a media event at General Motor's Flint Assembly after driving his 1971 Chevrolet C10 Cheyenne pickup that was made in Flint from Colorado.

FLINT, MI -- A 1971 Chevrolet two-tone C10 Cheyenne Super with a 350 V-8 engine rolled back into the Flint plant where it had been built on Friday. Its new owner said it just made sense to visit the plant that had created what he called "this incredibility well-built vehicle."

"I came to Flint because it just seemed like the right thing to do," said the vehicle's new owner, Howard Elmer of Toronto, Canada.

Elmer, a syndicated auto writer with the National Post in Toronto had been on a mission to find this vehicle for decades.

He pulled into Flint Assembly on VanSlyke Road Friday in the 41-year old Chevy Cheyenne, saying it was important for him to bring the car back to the place of its birth before heading to its new home.

"The truck had to come home one more time before I took it back to Canada," said Elmer, surrounded by Flint Assembly workers during a lunch break at the plant.

"I was hoping for the kind of the reaction that I got," he said. "A lot of the folks here were happy to see that loyalty is still out there when it comes to certain vehicles.

"There's a lot of love in this truck. It sounds corny, but it's true."

Earlier in the week, Elmer took ownership of the pickup from its most recent owner in Colorado. The vintage Cheyenne, he learned, had originally been purchased in 1971 by an Ohio man who knew he was dying of lung cancer. That man's son held onto the vehicle and took care of it for 27 years as a keepsake.

As fate would have it, Elmer also was driven on his mission to find a Chevy Cheyenne from the 1970's because of memories of his father.

Elmer, it turns out, had taught himself to drive in his father's 1970 Cheyenne pick-up. Elmer was 13 years old at a time. He stole rides when he thought no one was watching.

Since then, it is a vehicle that has always reminded him of his father.

"It's something I've been thinking about for the past 20 years or so," said the 54-year-old Elmer. "I started thinking about the truck around the time my father died. It was nostalgia, I guess. All the things that reminded me of him became more important."

Elmer, who picked up the vehicle earlier this week with 120,000 miles on it, says he made the 2,100-mile trip from Colorado to Flint with no problems, at least from a mechanical perspective.

"My wife complained about the wind, and how it was so hot with no air conditioning," Elmer joked. "But it made it here without a hiccup."

Elmer, who is a self-described car buff, sees the 1971 Cheyenne in his possession as more of a luxury vehicle than the working pick-up he sneaked rides in as a young teen.

"My dad had the working truck, the '3 on the T', standard transmission with the shifter on the steering column," said Elmer. "There was no radio, no nothing, just a gas gauge and a speedometer."

"This one is as fancy as they made them," he said. "The Super 10 added all sorts of chrome accents outside. And inside, there's two-toned hounds-tooth cloth seats. For 1971, this was like space-aged."

One of his first thoughts when he received the Vehicle Identification Number (VIN) on the car was to track down its origin.

"I was hoping it had been built at the Oshawa Assembly Plant in Canada," Elmer said. "That would have been a complete circle. But when I realized it had been built in Flint, I suggested to my wife we should stop here on our way back home."

"I feel great about being able to bring it back where it started," he told the audience at Flint Assembly. "I'm all choked up."

As a working automotive journalist, Elmer said he is as excited about Flint Assembly's old vehicles as he is about their future product.

"I'm so looking forward to the next Silverado and I'm already booked to go to the Texas State Fair where they're going to be showing it off," Elmer said. "I'm just 'jonesin' to see what's going to be in it."

As for his new vintage vehicle that originally sold for $3,150 brand-new in 1971, Elmer said he paid $7,500 to buy it as his 'fun' car to keep at home.

After clocking a slim 10 miles a gallon during his Colorado-to-Flint trip, he says the decision to use it just for occasional touring makes plenty of sense.

Elmer shares his thoughts about the vehicle, and the Flint workforce that made it, in the video below.

First Dodge Darts reaching showrooms

Fri, 25 May 2012 19:15:56 UTC

The 2013 Dart five-seat sedan, made at the Belvidere assembly plant, has received good reviews from automotive analysts so far and will now be judged by consumers.

AP PhotoIn this May 24, 2012 photo, Michael White puts rear taillights on a new 2013 Dodge Dart at the Belvidere Assembly Plant in Belvidere, Ill. The first Dodge Darts to come out of the revitalized Chrysler plant are being shipped off to dealers. (AP Photo/Rockford Register Star, Scott Morgan)

BELVIDERE, Ill. (AP) — The first Dodge Darts to come out of a revitalized Chrysler plant in northern Illinois were shipped off to dealers this week, setting the stage for what chief executive Sergio Marchionne called the automaker's "real battle" in the compact market.

The 2013 Dart five-seat sedan, made at the Belvidere assembly plant, has received good reviews from automotive analysts so far and will now be judged by consumers.

"Our future hangs on how well we do here," Marchionne told reporters Thursday after meeting with the plant's workers. "I've been public on this before. I can probably get one car wrong. Of all the cars I can get wrong, it ain't this one. This one is too visible, it's too large, it's got too much embedded into it to go wrong."

The Chrysler Group LLC CEO was visiting the plant for the second time this year to congratulate workers, the Rockford Register Star reported.

Marchionne leads Italy's Fiat SpA and took over Chrysler in 2009 after the company filed for bankruptcy protection.

Around that time, the plant in Belvidere had far fewer workers than it does today and briefly shut down, leading to fears it could close for good. Now, Chrysler is on target to boost the plant's workforce to 4,500 this year, strengthening the outlook for a once-dominant manufacturing area that now has the state's highest unemployment rate.

The fuel-efficient Dart is Chrysler's first compact sedan since 2005. The compact sedan segment is the second largest in the U.S. automotive market.

"Obviously, the Dart is a big step forward for us because we've been absent of a competitive product in the compact market in the U.S. forever," Marchionne said. "All the efforts we've made so far have been made by effectively fighting and repositioning the SUV and the pickup truck market. We have had some success in the large sedans with the Chrysler 200 and 300. The real battle for us in this marketplace starts today."

Marchionne decided to build the Dart at the Illinois plant and added jobs there as part of a 2010 package of $62 million in state tax breaks and other incentives given to the automaker.

He announced Thursday that the Jeep Compass and Jeep Patriot, which also are assembled in Belvidere, will go out of production in August 2014.

More products will be launched on the Dart architecture, Marchionne said. He aims to get the Belvidere plant producing as many as 400,000 cars a year.

Saturday marks 75th anniversary of UAW's Battle of the Overpass with Ford

Fri, 25 May 2012 16:25:50 UTC

Saturday marks the 75th anniversary of the United Auto Workers' historic Battle of the Overpass with Ford Motor Co.

Ford In this undated photo, Ford Rouge Center workers assemble a 1958 Fairlane.

DEARBORN, MI- Saturday marks the 75th anniversary of the United Auto Workers’ historic “Battle of the Overpass” with Ford Motor Co.

On May 26, 1937, the UAW had already organized General Motors and Chrysler, but Ford was holding out.

The UAW felt it had a sufficient base for membership at Ford's Rouge plant, but the workers were apprehensive because of their unfamiliarity with unions and Ford Motor's anti-union stance, according to the Henry Ford Museum.

In an attempt to unionize Ford, labor leaders went to the Ford Rouge Complex overpass, which connected the front entrance of the complex to Miller Road, to speak with workers and hand out leaflets. They were however met by Ford security personnel who attacked and beat them.

The event was captured by news photographers. Numerous of the photos can still be found online.

According to the UAW, a group of leaders and members planned to commemorate the anniversary by gathering at the overpass this morning.

"This is an opportunity to recognize how much has been achieved in these 75 years," said UAW Vice President Jimmy Settles, who directs the union's Ford branch, in a statement. "What drove us apart in 1937 now brings us together to produce some of the world's highest quality and most popular cars and trucks."

The event was expected to include unfurling banners from the overpass with the theme: "Working from a dark beginning toward a bright future," according to the UAW.

Today, the Ford Rouge Center is Ford's largest factory and employs about 6,000 workers, represented by UAW Local 600, which has about 25,000 active and retired members.

Email Michael Wayland: MWayland@mlive.com and follow him on Twitter at twitter.com/MikeWayland

Poll: What are the best Detroit Three vehicles?

Fri, 25 May 2012 14:19:06 UTC

What are your favorite vehicles from Ford Motor Co., General Motors Co. and Chrysler Group LLC? Do you have a need for speed? Or is fuel efficiency your main concern?

AP PhotosWhat are your favorite 2012 vehicles from Ford Motor Co., General Motors Co. and Chrysler Group LLC?

DETROIT, MI- Detroit Three executives and analysts have consistently said the lineups of vehicles on the road right now are some of, if not the best, they’ve ever had.

And recently, the Ford brand was named the best 2012 brand on the market in an inaugural analysis from TotalCarScore.com.

But what are your favorite current vehicles from Ford Motor Co., General Motors Co. and Chrysler Group LLC? Do you have a need for speed? Or is fuel efficiency your main concern?

MLive.com has compiled a lists of some of the most popular vehicles from each of the automakers and wants to know what vehicles you think are the best from each of the Detroit Three.

The lists are broken down by automaker, but not brand or trim level, with the hopes of taking the top three vehicles from each and putting them against one another.

The vehicles are from the 2012 model year. You may choose up to three vehicles for each automaker.

Email Michael Wayland: MWayland@mlive.com and follow him on Twitter at twitter.com/MikeWayland

This Holland firm hopes to share in the glory if Andretti Autosport wins the Indianapolis 500

Fri, 25 May 2012 13:33:26 UTC

ORG, a division of The Stow Company based in Holland, is the official garage outfitter for Andretti Autosport in the famed Gasoline Alley at the Indianapolis Motor Speedway.

HOLLAND, MI – If one of the four cars entered by Andretti Autosport wins the Indianapolis 500 on Sunday, a Holland storage and organization company hopes to share in the glory.

ORG, a division of The Stow Company based in Holland, is the official garage outfitter for Andretti Autosport in the famed Gasoline Alley at the Indianapolis Motor Speedway.

Of the four Andretti Autosport drivers competing in Sunday’s classic race, three are starting in the top four positions.

"We are thrilled to support the Andretti Autosport team by supplying them with solutions for their hard-working garages," said Bill Lown, Stow’s vice president of corporate sales.

"We want to do all we can to make the Andretti Autosport garages look their very best while equipping the mechanics and engineers with the resources they need to work efficiently and keep their gear organized."

ORG's relationship with Andretti Autosport began earlier this year, when the company installed its cabinets and workstations in the home garage of team owner Michael Andretti.

Company spokeswoman Angela Smit said ORG installers can put a workstation similar to the type they installed for Andretti Autosports for between $2,500 and $3,500, depending on colors and hardware.

Besides making garage cabinets, ORG also makes custom closet organizers, pantry storage systems, office organizers, wall beds, craft room storage, media centers and mudroom storage cabinets.

The company’s 187,000 square-foot manufacturing facility is located in Holland.

E-mail Jim Harger: jharger@mlive.com and follow him on Twitter at twitter.com/JHHarger

Detroit Electronic Music Festival artists use 2013 Ford Fusion to create tracks

Fri, 25 May 2012 12:43:31 UTC

Detroit-area techno artists Joshua Harrison, Keith Kemp and Tom Newman sampled sounds from a 2013 Ford Fusion to make three original electronic music tracks.

Ford YouTube: Sounds of Fusion

DEARBORN, MI- Ford Motor Co. had three metro Detroit techno artists turn a 2013 Ford Fusion into a four-wheel remix.

Detroit-area techno artists Joshua Harrison, Keith Kemp and Tom Newman sampled sounds from the midsize sedan – both natural noises like windows going up and down, and digital creations from the car’s sound bank like the welcome chimes – to make three original electronic music tracks.

The musicians were provided by Paxahau – organizers of the Movement Electronic Music Festival in Detroit, as known as DEMF, which is taking place this Memorial Day weekend in the city’s Hart Plaza.

“Just like a car, a techno song has many elements that serve their own small purpose, and the masters of the craft are those who can put it all together and make everything work as one solid piece,” Harrison said in a statement.

Ford posted a YouTube video (embedded above) that shows how the artists integrated the vehicle’s noises into their tracks, which range from 4:42 minutes to 8:04 minutes in length.

To hear each song, go to facebook.com/fordfusion, and to learn more about the Movement Electronic Festival go to www.movement.us.

Email Michael Wayland: MWayland@mlive.com and follow him on Twitter at twitter.com/MikeWayland

Analysts: U.S. vehicle sales to increase 30 percent in May

Thu, 24 May 2012 19:45:33 UTC

Vehicle sales in the U.S. are expected to increase about 30 percent this month compared to last year, according to data released today.

AP File PhotoVehicle sales in the U.S. are expected to increase about 30 percent this month compared to last year, according to data released today.

Vehicle sales in the U.S. are expected to increase at least 30 percent this month compared to last year, according to data released today.

Car and truck sales are anticipated to come in at about 1.4 million this month compared with 1.05 million in May 2011, according to separate reports from J.D. Power and Associates/LMC Automotive and Truecar.com.

"The fact that we continue to see strong month-over-month results in retail sales points to the underlying strength of the recovery for the industry going forward,” said John Humphrey, senior vice president of global automotive operations at J.D. Power and Associates, in a statement.

Humphrey said the year-over-year gain is the largest since February 2011, when sales increased 27 percent.

As a result of the strong sales pace this year, LMC Automotive raised its 2012 forecast to 14.5 million cars and trucks, up from its previous forecast of 14.3 million.

In April, Jesse Toprak, vice president of industry trends and insights for TrueCar.com, told MLive.com that the industry has exceeded expectations this year thanks to numerous factors, including high gas prices driving buyers to fuel-efficient products, Wall Street’s performance, strong vehicle lineups and a strengthening economy.

According to TrueCar.com, all major automakers are expected to experience double-digit sales gains this month compared to May 2011, led by Toyota Motor Corp. and Honda Motor Co. at increases of 90.8 percent and 61.2 percent, respectively.

“Toyota’s recovery stemming from the natural disasters has happened at a breakneck pace and sales this month for Toyota will be the highest we have seen in a few years led by strong sales of the Camry and Prius along with strong sales from GM, which will be the highest since September 2008,” Toprak said in a statement today.

Of the Detroit Three, Chrysler Group LLC is anticipated to record the biggest growth from a year earlier at 32.9 percent, followed by General Motors Co. up 16.7 percent and Ford Motor Co. with a 10.5 percent uptick in sales.

Email Michael Wayland: MWayland@mlive.com and follow him on Twitter at twitter.com/MikeWayland

Marchionne celebrates one-year anniversary of auto bailout repayments at Dodge Dart plant

Thu, 24 May 2012 17:49:39 UTC

One year ago today, the Auburn Hills-based automaker officially repaid its loans from the 2009 auto bailout to the U.S. and Canadian governments, six years early.

AP PhotoChrysler Group CEO Sergio Marchionne smiles after a ceremony at the Sterling Heights Assembly Plant in Sterling Heights Tuesday. Marchionne acknowledged and expressed gratitude for the financial support from the U.S. and Canadian governments.

BELVIDERE, IL- Chrysler Group LLC CEO and Chairman Sergio Marchionne celebrated a historic company milestone today by looking toward its future.

One year ago today, the Auburn Hills-based automaker officially repaid its loans from the 2009 auto bailout to the U.S. and Canadian governments, six years early. To celebrate the anniversary, Marchionne visited Chrysler’s Belvidere Assembly Plant in Illinois, where the “first child” -- the Dodge Dart -- of the American automaker’s partnership with Fiat SpA is being built.

“The repayment proved what could be achieved by hard work and determination, by not giving in when the going is tough, but rather finding the strength to get back on one’s feet and move forward,” Marchionne told Belvidere’s 1,000 or so first shift employees during a town hall, according to Chrysler.

The Dart – set to hit showrooms in late-June – is the first vehicle jointly designed with vehicle between Chrysler and its Italian owner, which began as part of the 2009 auto bailout. The vehicle is based on the Alfa Romeo Giulietta, a compact sold in Europe, but is wider and longer to handle Americans' need for more space.

Marchionne, who has previously said to expect a full-merger between the two companies sometime after this year, said expect the partnership will continue to grow.

“The Dart is really a bellwether of how well Fiat and Chrysler can make this partnership work,” Marchionne said in a statement. “This first child is the start of a big family that is going to grow, that will explore new experiences, will become more capable and more aware of its possibilities as its horizon grows wider and brighter.”

Marchionne, who visited the Illinois plant earlier this year to announce 1,800 new jobs, officially announced the repayment of the $7.6 billion of federal loans and interest at the company’s Sterling Heights Assembly Plant.

“That day marked an extraordinary achievement, and a new beginning, once again free to chart our own future,” Marchionne said.

That "future" has been a profitable one. Chrysler reported a $183 million profit for 2011, and a net income of $473 million for the first quarter of 2012.

Email Michael Wayland: MWayland@mlive.com and follow him on Twitter at twitter.com/MikeWayland

Ford brand tops inaugural list of best-ranked vehicles for 2012

Thu, 24 May 2012 12:18:12 UTC

The Dearborn-based automaker’s namesake brand received the most Top Scoring Car Awards with a top-scoring vehicle in five of 20 categories, according to the car comparison and ranking website. Honda followed closely with four. Cadillac, Mercedes-Benz, Toyota and Volkswagen all had three winners each.

AP File PhotoThe Dearborn-based automakerâs namesake brand received the most Top Scoring Car Awards with a top-scoring vehicle in five of 20 categories, according to the car comparison and ranking website.

LOS ANGELES- Ford is the strongest brand for the 2012 model year, according to a new list of top-ranked vehicles released by TotcalCarScore.com.

The Dearborn-based automaker’s namesake brand received the most Top Scoring Car Awards with a vehicle in five of 20 categories, according to the car comparison and ranking website. Honda followed closely with four. Cadillac, Mercedes-Benz, Toyota and Volkswagen all had three winners each.

“These brands all managed to earn a top score in multiple vehicle categories,” said Karl Brauer, founder and CEO of TotalCarScore.com. “That’s an impressive accomplishment given the highly competitive nature of today’s automotive marketplace.”

Ford vehicles on the lists were the Focus with an 82.38 ranking for compact sedans/wagons; Mustang with an 80.96 for sport coupes/convertibles; Flex, with its new redesign, came in at 84.44 for large SUVs/crossovers; F-Series for large trucks with a 79.67; and Taurus SHO with an 83.22 for high performance.

The top scoring vehicle of any category was the Lexus LS with an 89.08 ranking, followed by its hybrid version at 88.41 and the Hyundai Sonata at 87.77.

If judging by each automaker’s number of nameplates, Ford Motor Co., General Motors Co. and Toyota Motor Corp. would each tie with five vehicles on the inaugural list.

A vehicle’s Total Car Score is its combination of scores from all the top automotive review and rating sites. These car reviews and ratings are translated into a single Total Car Score that allows visitors to quickly and easily compare cars.

Click here for the full list of rankings from TotalCarScore.com

Email Michael Wayland: MWayland@mlive.com and follow him on Twitter at twitter.com/MikeWayland

Ford gets its blue oval back: Six years later, stock upgrade caps automaker's turnaround plan

Wed, 23 May 2012 11:12:40 UTC

Moody's Investors Service raised Ford's debt ratings to investment-grade Tuesday for the first time in seven years. The upgrade means that all of Ford's U.S. assets, including factories, the blue oval and the trademarks for the F-150 pickup and Mustang sports car, are back in the company's hands and will no longer be used to secure the company's debt.

Ford Motor CoTo mark the return of the Ford Blue Oval and Ford Motor Company being lifted to investment grade status, Bill Ford, Jr. joined over 1000 Ford employees outside of Ford World Headquarters in Dearborn, Mich. on May 22, 2012, to form a human Blue Oval with blue and white t-shirts.

Ford Motor Co. is getting its blue oval logo back.

Ford never stopped using its logo or factories, but posted them as collateral in 2006 in order to get a $23.5 billion loan and avoid bankruptcy. Executive Chairman Bill Ford, the great grandson of company founder Henry Ford, said Tuesday that giving up the rights to the oval was "enormously emotional for me personally and for my family."

"This is one of the best days that I can remember," Bill Ford said in a conference call with reporters.

Ford needed investment-grade ratings from two of the three ratings agencies to get its assets back from a group of banks that held them. Fitch Ratings upgraded the company last month. Standard and Poor's has not yet upgraded Ford, and said in March that it didn't expect to change Ford's ratings within the next year.

Moody's said it believes Ford can maintain its investment grade rating even in the face of a European downturn or other challenges. The company has approximately $20 billion in cash, and it has been disciplined about cutting costs, controlling production and lowering spending on incentives, Moody's said.

"The key factor in our considering an investment grade rating for Ford was whether or not the company would be able to sustain its strong performance," said Bruce Clark, Moody's senior vice president. "We concluded that the improvements Ford has made are likely to be lasting."

Moody's said one of Ford's main strengths was its low break-even point in North America, the company's largest market. The ratings agency calculated that Ford has to sell only 1.8 million cars and trucks before it starts turning a profit. In the 12 months that ended in March, Moody's said, Ford shipped 2.7 million cars and trucks in North America, 50 percent more than that break-even point. Prior to its restructuring in 2009, Ford had to sell 3.4 million cars and trucks in North America to break even.

Moody's also said Ford's cars and trucks are increasingly competitive with Asian automakers, and it expects "robust" future products.

An investment-grade rating signals that a company's debt has a low risk of default. Companies with investment grade credit ratings generally pay lower interest on debt. Ford also will have an easier time borrowing for projects like new plants in Asia. Moody's said increasing sales in China is one of the biggest challenges Ford faces.

Ford shares rose 13 cents, or 1 percent, to $10.34 in after-hours trading.

Moody's also affirmed General Motors Co.'s credit rating of Ba1, one notch below investment grade, on Tuesday. Moody's said GM remains on track to return to investment grade within the next year.

Ford lost its investment grade status in 2005 when it was racking up billions in losses as the SUV boom went bust. The company decided that a massive restructuring loan was worth risking its logo. The influx of cash helped Ford to revamp its cars and trucks and — unlike rivals GM and Chrysler Group — avoid bankruptcy protection.

Ford began its turnaround in 2006 when Bill Ford fired himself as CEO and hired Alan Mulally from aviation giant Boeing. The automaker used the billions it borrowed — which Mulally often calls a "giant home improvement loan" — to close plants, shed brands and cut its global workforce by one-third.

Ford has paid back much of that debt. The company had $13.7 billion in debt at the end of the first quarter and expects to lower that to $10 billion by 2015. In March, it resumed paying a dividend, which it hadn't done since September 2006.

Mulally, 66, said Tuesday that the return to investment grade is "way up there on the highlight film" in terms of his accomplishments at Ford. But he said it won't speed up his timetable for retiring. Mulally hasn't said when he plans to retire.

"It changes none of my plans to continue to serve this great corporation," he said.

Bill Ford said he announced the upgrade on the company's public address system. Employees then formed a giant oval on the lawn of the company's Dearborn, Mich., headquarters.

Ford's former chief financial officer, Lewis Booth, said just before his retirement in April that getting the blue oval back would have an "enormous" psychological impact on the company after its wrenching turnaround.

"For every person who works at Ford, anywhere in the world, that's a very precious thing," he said.

The logo, which is recognized worldwide and appears on everything from baseball caps to scented candles, dates to 1965. Ford began replacing black and white ovals with blue ones that year, according to Ford corporate historian Bob Kreipke. The script in the center of the logo goes back even further. Harold Wills, a friend of company founder Henry Ford and a draftsman who helped design the first Model T, created the Ford script in 1912 using his grandfather's stencil set.

Ford hasn't placed a value on the logo. But Interbrand, which tracks brand values, said the Ford brand is worth $7.5 billion, and it ranked Ford 50th out of its top 100 brands in a recent survey.

GM breaks ground on $380M expansion in Missouri

Tue, 22 May 2012 17:33:17 UTC

The expansion, which will accommodate the production of the next-generation Chevrolet Colorado midsize pickup, will create or retain about 1,260 jobs hourly and salaried jobs, according to officials.

GM. Throwing a second shovel full of dirt for photographers are (l to r): UAW Asst. Director Gary Jones, Wentzville Mayor Nick Guccione, Missouri Governor Jay Nixon and Wentzville Plant Manager John Dansby. (Photo by James Visser for General Motors)

WENTZVILLE, Mo.- General Motors Co. broke ground Monday on a $380 million plant expansion to its Wentzville Assembly facility in Missouri.

The expansion, which will accommodate the production of the next-generation Chevrolet Colorado midsize pickup, will create or retain about 1,260 jobs hourly and salaried jobs, according to officials.

“Our plant could not be successful without strong support from our local community,” said John Dansby, GM Wentzville plant manager, in a statement. “We’re pleased to make this announcement today that strengthens our presence in Wentzville with a significant expansion of our facility that will benefit the local economy.”

The General Motors Truck Group Wentzville facility is located 40 miles west of St. Louis, Missouri on a 569-acre site. The facility was built in 1983 on a wheat field. The current facility employs approximately 1,300 employees that work over two shifts to produce the Chevrolet Express and GMC Savana cargo and passenger vans, according to GM.

In 2011, the plant produced 79,162 express vans and 26,214 Savanas, according to the Detroit-based automaker.

GM did not release when the expansion is expected to be finished.

Email Michael Wayland: MWayland@mlive.com and follow him on Twitter at twitter.com/MikeWayland