Ford's CEO does not swear when he wants to change things, Cadillac wants to do the same, and the CEO of Nissan intends to resign as well. All this and much more in The Morning Shift for Friday, January 25, 2018.
1. Gang: No, more Mr. Nice Guy
Ford boss Jim Hackett is done with all the losing money so in an e-mail he sent to employees, as seen by Reuters and reported. Hackett said in the e-mail that 2018, a year in which Ford was hammered for money, was "mediocre" mediocre and it was time to make things better.
Improvement is probably the best route as investors are not satisfied with Ford and it's hard to say what the company actually wants to become at this point in time, as it has taken dramatic steps in North America to turn small cars off and on Change mobility "and" data. "
However, Ford has just announced an alliance with Volkswagen for trucks and vans to help save some money, although Hackett has a vague idea to accomplish more, as reported in the reported email via Reuters:
Ford announced its fourth quarter results on Wednesday and reported operating profit of $ 7 billion in 2018, with a margin of 4.4 percent, 6.1 percent in 2017. Ford said its goal last week for the operating margin was more than 8 percent.
"2018 was mediocre for any standard," Hackett said in the email. "Yes, we earned $ 7 billion last year. This equates to an operating margin of 4.4 percent, which is about half of what we consider to be an adequate margin, so we are moving much closer to $ 14 billion. "
Hackett did not specify a timetable to billion to reach your dollar goal. Ford spokesman said Hackett just did the calculations to show employees how the margin target was reflected in the overall result.
Ford did not give Wall Street a specific forecast for the year, Reuters reports, stating instead that it has "potential to" improve revenue and revenue. "But Hackett, Ford's boss for nearly two years, got a little more specific in the past year, quotes Reuters, saying it's time to" bury the year (2018) in a deep grave, mourning over what maybe the meeting was and could be, and that was even surpassed. "
Oh. Everything kar. Sounds good.
Second Gear: Nissan CEO Wants to Resign
Following his indictment of former Nissan Renault CEO Carlos Ghosn, who has been imprisoned for alleged financial misconduct since November, Automotive News reports that Nissan boss Hiroto Saikawa this was when Nissan CEO resigned. Ghosn resigned from the prison Wednesday night by Renault.
Although it is strange that these two messages are so close, it makes sense. Renault and Nissan have an alliance to go on, and their relationship has not been great since the CEO of Nissan sent the forces to Renault.
Aside from any reports of hostility between the two CEOs and the companies, the Rocky was as obvious to the relationship from an organizational point of view as Nissan Ghosn quickly threw out and Renault held him as CEO for months after the arrest.
It only makes sense to save the relationship, really, to throw the two to the top and start over. Nobody forgets what happened in the near future, so companies try to appoint people other than those who try to save each other as their new minds.
Automotive News reports that Saikawa "wants to pass the baton" after doing what he considered most important: "The reform of bad governance has weakened the Japanese automaker," wrote Automotive News. From the story:
Renault's decision to give up his leader, and the prospect that Saikawa might soon hand over the reins, could help remove some distrust that has built up on both sides of the Alliance. Prior to his arrest, Ghosn's corporate chairmanship kept tensions under control and prevented clashes from coming to light. Now it is up to the outgoing Saikawa and Jean-Dominique Senard, the 65-year-old Michelin chief appointed by Renault on Thursday, to take the chair and direct relations between the French automaker and Nissan and the alliance. […]
Senard is supported by France, Renault's strongest shareholder. His appointment could mean that he will be more open to the contributions of the politicians than Ghosn, who sometimes clashed with the government. The new Renault chairman will join the Nissan board and will be responsible for proposing changes to the structure of the alliance.
So, if everything goes according to plan, there will be a relatively blank panel at the top of Renault and Nissan trying to come back from all this. Maybe it helps.
Third gear: Cadillac plans to make 2019 its year
Cadillac is in a difficult position. The lineup has long been dominated by limousines, which are not doing well, and it is behind the crossover and SUV wave. General Motors executives do not seem to be in agreement at the moment.
But do not worry, another leader is here to tell us that everything is going to be okay and looks promising for the future. Cadillac's Chief Marketing Officer Deborah Wahl, speaking to a group on Thursday, said an "unprecedented product attack" will help the brand end its three-year sales decline in the United States, according to Automotive News.
In 2019, the election said "The Year of the Cadillac SUV Family" wants the company to grow double-digit worldwide. However, global growth is not an urgent issue as Automotive News reports that Cadillac set a worldwide sales record last year thanks to China.
And although 2019 may deal with SUVs, Wahl said Cadillac will not give up the sedans – even though we all received some mixed messages on the CT6 that came on the market in 2015 and should and will die in the US in June now probably live on.
Despite plans to close the Detroit-Hamtramck manufacturing facility where the CT6 sedan is being produced, the Cadillac executives have said they will consider options to put the vehicle in the lineup to keep. Wahl said they intend to sell it for at least the remainder of 2019 and 2020.
"The news of his demise has been greatly exaggerated," Wahl said. "This vehicle has so much to offer."
This includes a new Blackwing engine, a 550 hp V-8 in the CT6-V, which will arrive in mid-2019 from $ 89,785 (including shipping). 19659009] "I think that's how new legends are made and mysticism is regained and polished," she said.
Basically everything is alright in Cadillac. The brand will lead GMs towards electric vehicles, did not you hear? Everything is wonderful. Things are going well. Seriously, life in Cadillac is wonderful. Why do you keep asking? Why do not you sound confident?
Can we change the topic now?
. 4 Gear: Ford could lose $ 1 billion
Back to Ford quite fast and Brexit.
The United Kingdom is leaving the European Union in about two months and there are concerns that the country may be leaving without any agreement on future entity relations. That would mean a no-deal Brexit and would not be great for car manufacturers like Ford.
Reuters reports that internal calculations indicate that a no-deal Brexit could cost between $ 500 million and $ 1 billion, depending on factors. Potential outcomes of a no-deal exit include higher tariffs, supply chain issues and employment threats, and this is also a threat to other automakers and manufacturers.
Here's the deal or the absence of such a company Reuters:
Britain will leave the European Union in 64 days, and as Prime Minister Theresa May could not gain support for their negotiated deal, companies are increasingly concerned about the possibility a chaotic Brexit.
Ford Chief Financial Officer Bob Shanks did not refuse on Wednesday what the financial implications of a no-deal exit could be, but said Ford is already planning that.
"We have clearly begun to work on a tough Brexit," he told reporters at the headquarters of US automaker No. 2 outside of Detroit. "We certainly hope that does not happen, but we can not wait."
"We are actually incurring costs if we do things now to prepare for it, so it will have an impact, it is a significant impact," he added.
According to Reuters, Ford is the UK's best-selling car brand, employing about 13,000 people. But Shanks said a no-deal Brexit would be "catastrophic" if it did happen.
. 5 Gear: Hyundai's sale in China hurts
Ford and Cadillac are not the only automakers to have anything to do with it. Hyundai posted the first quarterly net loss since the company changed its accounting policies in 2011. Sales in China had a negative impact on the numbers.
The Nikkei Asian Review reports that Hyundai posted a net loss of nearly $ 115 million in the fourth quarter ended last month, partly due to declining sales in China. Car sales in China have slowed down surprisingly this year and they have certainly slowed down for Hyundai.
Here is a more detailed picture of Hyundai in China, from the Nikkei Asian Review:
Hyundai, which together with its subsidiary Kia Motors was once the third largest car manufacturer in China, is now over-saturated with overcapacity. Its sales in China for 2018 fell short of its target and reached only half of its total production capacity.
China, the world's largest auto market, shrank For the first time in more than two decades last year, trade between China and the US was affected by trade wars and the cessation of tax cuts for smaller cars.
Hyundai sold 790,000 vehicles in China last year – less than 900,000 From its 6-year low of 785,000 in 2017, almost unchanged as the diplomatic dispute between Seoul and Beijing affected consumer sentiment about Korean products. Hyundai's total capacity in China is 1.65 million vehicles.
In addition to the decline in sales, Hyundai and Kia also have some potentially defective, potentially dangerous engines in view.
Conversely: Former Fiat boss Giovanni Agnelli dies
Giovanni Agnelli, whose grandfather founded Fiat, died on 25 January 2003 at the age of 81. Agnelli, who took over the management of Fiat in 1966, was the one who expanded the company internationally.
Neutral: Can Crossovers redeem Cadillac?
Sure, crossovers are popular. But are they popular enough?