Jalopnik Snap Judgment: Our "snap" guess is yes. Given that Toyota has long been upfront about its goal of building a million hybrids a year by 2010, we have to give the company the benefit of the doubt on its supplier chain. Remember, the Toyota Manufacturing Process (TMP) actually started the concept of lean manufacturing and just-in-time supply. To that end, the company is building its own battery facility, reducing exposure in that most critical of hybrid components. And with plans to make room for more Priuses at a Japanese factory and to build them in the US at a new plant in Mississippi, Toyota appears to be taking steps to alleviate pent-up Prius demand.

So, half a million Priuses a year? Despite the mere thought bringing blood flowing out of our uber-enthusiast ears, we have to give Toyota credit for ratcheting supply up when demand exceeds it on this product, as opposed to being forced to ratchet supply down when demand drops like a rock. That's always been the problem our poor, poor US automakers have had — always trying to wring every sale out of a product in an attempt to meet and beat the U.S. financial markets quarterly expectations. Now our only question is — how will the world cope with so much new smug? [Automotive News, Sub. Req.]

GM is putting high technology in the hands of the government's most notoriously dangerous agency. While deep undercover, we're certain the "mail carriers" will use the Equinox to quickly develop the necessary network of hydrogen depots, drop stations, and the intel needed for the larger plan, whatever that is. We don't know what the "targets" are, but the plan falls under GM's false flag "Project Driveway" operation. So far they've placed a hundred of these "fuel cell vehicles" with "test subjects" around the country. We don't like where this is going. Not one bit. Now where are our meds? [Edmunds

How about this for a brain bender: After the shrinking mid-sized cars, they're talking about taking the future entry-level Saab 9-1 and basing it on the popular-in-Europe Opel Corsa! My, my, Saab, how you'll be shrinking.

Jalopnik Snap Judgment: We like this idea. Saabs have always been quirky, pocket-sized cars that go against the grain and win admiration for it. Monster-sized Saabrolets like the 9-7X just aren't right. For a brand that embodies European sensibilities, this seems like a choice that should have been made from the get-go. [Auto News Sub. Req]

Press Release #1: Ford's 2nd Quarter Earnings

What Ford Says: Ford reported a net loss of $8.7 billion.
Jalopnik Snap Judgment: $8.7 billion sure sounds like a lot of money. Well, that's because it is a lot of money — $3.88 per share, to be precise. It's actually the company's worst quarterly results ever. Especially given the company made a net profit of $750 million, or 31 cents per share, during the second quarter of last year.

But the real important numbers are how much cash they have on hand and how much revenues were. Second quarter revenue was only $38.6 billion, down $5.6 billion from the same quarter a year ago. And cash on hand? $26.6 billion now versus $28.7 billion at the end of March, 2008.

What Ford Says: It's not all bad news. Ford posted profits of $582 million in Ford Europe and $388 million in Ford South America.
Jalopnik Snap Judgment: Yes, this is true. Very good, Ford. But it's hard to get excited abut $960 million in profits when you've just dropped over $8 billion throughout the rest of the organization.

What Ford Says: Ford's claiming $1 billion in cost savings, including over $600 million in Ford North America and claims to be on track with reducing annual costs by $5 billion by the end of 2008 compared with expense outlays in 2005.
Jalopnik Snap Judgment: Yes, both very good things. It remains to be seen how much of those annual cost reductions are due to decreases in production and actual cost reductions. However, we do know quite a few personnel reductions have taken place over in Dearborn over the past few months, with more targeted buyouts offered to reduce salary-related costs by 15% in North American operations.

What Ford Says: $8 billion of the $8.7 billion loss are from "pre-tax special charges."
Jalopnik Snap Judgment: So this is where things get a little confusing. Some $516 million of the losses are the type of losses normally seen as items that can be written off as losses on a pre-tax non-ongoing basis — these would be items like the costs associated with cutting personnel, plant sales or reducing the number of dealers. But then there's the line item of "North America Long-Lived Assets" for $5.3 billion dollars. We'd never seen a line item like that on a list of pre-tax items, but we finally figured it out. We're interpreting it as Ford writing off the losses they'll take on the factory equipment they'll need to junk now that they'll be using those factories to build small cars. We'd even expect they'll need to take another cash hit in the next quarter to pay for that new machinery.

And that brings us to...

Press Release #2: Ford's Small Car Euro Offensive, Manufacturing Restructuring

What Ford Says: Ford is bringing six small vehicles to North America from the company's acclaimed European lineup.
Jalopnik Snap Judgment: Ford's finally answering U.S. auto enthusiasts prayers, and bringing their highly-regarded European lineup to the United States. We know we're getting from Europe the following vehicles:

1.) European Ford Fiesta - Four-Door
2.) European Ford Fiesta - Five-Door
3.) European Ford Focus - Four-Door
4.) European Ford Focus - Five-Door
5.) New 2010 Mercury Small Car
6.) New 2010 European Small "whitespace" vehicle

By the way, "whitespace" means a place where a vehicle does not currently fulfill a need. Like a three-wheeled MPV. Or, you know, a two-door six-seater.

We do also want to note that it doesn't appear that there will be a two-door Focus coming stateside. We guess that means we won't be getting the RS here. Sad. Still, we'd prefer the stylings of the four-door and five-door Euro Focus over — well — over just about any design Ford North America's put out in small cars in years.

What Ford Says: "Ford will convert three existing North American truck and SUV plants for small car production, with the first conversion beginning this December...The moves are in addition to Ford's announcements in May and June that it is reducing its North American production plans for large trucks and SUVs for the remainder of 2008, as well as increasing production of smaller cars and crossovers."
Jalopnik Snap Judgment: To accomplish this and build some of these new Euro vehicles here in North America, Ford will be making the following manufacturing plant changes. We want to emphasize Ford claims these will be flexible manufacturing changes — to ensure they're able to shift production when and if necessary:

* Michigan Truck Plant in Wayne, Mich.,
Currently Builds: Ford Expedition, Lincoln Navigator (to move to Kentucky Truck Plant early next year)
Will Build: Small cars derived from Ford's global C-car platform
Conversion Begins: December, 2008
Production Begins: 2010

* Cuautitlan Assembly Plant in Mexico
Currently Builds: F-Series pickups
Will Build: Ford Fiesta
Conversion Begins: ???
Production Begins: Early 2010

* Louisville (Ky.) Assembly Plant
Currently Builds: Ford Explorer mid-size SUV
Will Build: small vehicles from Ford's global C-car platform
Conversion Begins: ???
Production Begins: 2011

* Twin Cities (Minn.) Assembly Plant - was scheduled to close in 2009, but remain open to continue production of the Ford Ranger through 2011 to meet consumer demand.

* Kansas City Assembly Plant this year will add a third crew to its small utility line for the Ford Escape, Escape Hybrid and Mercury Mariner and Mariner Hybrid. (*Previously announced)

What Ford Says: "The company also confirmed Ford, Lincoln and Mercury will remain in its North American brand portfolio."
Jalopnik Snap Judgment: Looks like the Mercury brand will still be around — rumors of its demise appear to be greatly exaggerated. If the NYT is right, they'll be getting the brunt of the new Euro-designed small cars coming stateside.

What Ford Says: The Ford, Lincoln, Mercury line will be almost completely upgraded by the end of 2010.
Jalopnik Snap Judgment: Here's what they're talking about:

* 2009 Ford F-150, on sale in late fall

* 2010 Ford Fusion, Mercury Milan, Lincoln MKZ sedans, on sale in early 2009, Ford says Fusion's and Milan's four-cylinder fuel economy expected to top Honda Accord and Toyota Camry

* 2010 Ford Fusion Hybrid and Mercury Milan Hybrid, beginning production late this year and on sale in early 2009 - Ford claims fuel economy expected to top the Toyota Camry hybrid

* New Ford Mustang - coupe, convertible, glass-roof and every other variant model you can think of - in early 2009

* New Ford Taurus sedan - with EcoBoost engine - in mid-2009

* New Lincoln seven-passenger crossover - with EcoBoost engine - in mid-2009

* Next-generation Ford Explorer - with unibody construction, EcoBoost, six-speed, weight savings and improved aerodynamics for up to 25 percent better fuel economy, did we mention EcoBoost? - in 2010

* 2009 Ford F-150, on sale in late fall with the most capability, most choice and most smart features of any full-size pickup, and with more than a 7 percent fuel economy improvement
* 2010 Ford Fusion, Mercury Milan, Lincoln MKZ sedans, on sale in early 2009, with Fusion's and Milan's four-cylinder fuel economy expected to top Honda Accord and Toyota Camry
* 2010 Ford Fusion Hybrid and Mercury Milan Hybrid, beginning production late this year and on sale in early 2009 - with fuel economy expected to top the Toyota Camry hybrid
* New Ford Mustang - coupe, convertible, and glass-roof models - in early 2009
* New Ford Taurus sedan - with EcoBoost engine and even more advanced safety and convenience technologies - in mid-2009
* New European Transit Connect small multi-purpose van in mid-2009
* New Lincoln seven-passenger crossover - with EcoBoost engine - in mid-2009
* New European Ford Fiesta, in both four- and five-door versions, in early 2010
* New European Ford Focus, in both four- and five-door versions, in 2010
* New Mercury small car in 2010
* New European small vehicle that will be a "whitespace" entry in North America in 2010
* Next-generation Ford Explorer - with unibody construction, EcoBoost, six-speed, weight savings and improved aerodynamics for up to 25 percent better fuel economy - in 2010

FORD REPORTS $8.7 BILLION NET LOSS FOR SECOND QUARTER 2008, INCLUDING PRE-TAX SPECIAL CHARGES OF $8 BILLION; COMPANY ALSO DETAILS ACCELERATED TRANSFORMATION PLAN+

* Net loss of $8.7 billion, or $3.88 a share, for the second quarter of 2008.
* Pre-tax special charges of $8 billion, including impairments of $5.3 billion for Ford North America long-lived assets and $2.1 billion for Ford Motor Credit Company's operating lease portfolio.
* Pre-tax loss of $1 billion from continuing operations, excluding special items.++
* Cost reductions of $1 billion, including over $600 million in North America (at constant volume, mix and exchange; excluding special items). The company remains on track to reach $5 billion in annual cost reductions in North America by the end of 2008 compared with 2005.
* Strong profitability from Ford Europe and Ford South America.
* Automotive gross cash at June 30 of $26.6 billion (including cash and cash equivalents, net marketable securities and loaned securities). +++
* Ford also today announced a significant acceleration of its product and production transformation plan with the addition of several new fuel-efficient small vehicles in North America and a realignment of its North American manufacturing.

DEARBORN, Mich., July 24, 2008 - Ford Motor Company [NYSE: F] today reported a second quarter net loss of $8.7 billion, or $3.88 per share, including pre-tax special items totaling $8 billion. This compares with a net profit of $750 million, or 31 cents per share, in the second quarter of 2007.

Ford also today announced a significant acceleration of its transformation plan with the addition of several new fuel-efficient small vehicles in North America and a realignment of its North American manufacturing (see related release http://media.ford.com/article_display.cfm?article_id=28660).

"We continue to take decisive action in response to the rapidly changing business environment and remain absolutely committed to the four elements of our business transformation plan," said Ford President and CEO Alan Mulally. "Our European and South American operations are robust and profitable. We have momentum in Asia. And we are uniquely positioned to leverage our global assets and the global strength of the Ford brand to quickly bring more small, fuel-efficient vehicles to North America."

The 2008 operating data discussed below exclude Jaguar Land Rover, which was sold on June 2, 2008. Jaguar Land Rover and Aston Martin data are, however, included in the 2007 data, except where otherwise noted. See tables following "Safe Harbor/Risk Factors" for the amounts attributable to Jaguar Land Rover and any necessary reconciliations to U.S. GAAP.

Ford's second quarter pre-tax operating loss from continuing operations, excluding special items, was
$1 billion, down from a year-ago profit of $483 million. On an after-tax basis, Ford's second quarter operating loss from continuing operations, excluding special items, was $1.4 billion, or 62 cents per share, compared with a net profit of $258 million, or 13 cents per share, a year ago.

Ford's second quarter revenue, excluding special items, was $38.6 billion, down from $44.2 billion a year ago. Adjusted to exclude Jaguar Land Rover and Aston Martin from 2007 results, revenue would have been down slightly, with lower volume, adverse product mix and lower net pricing, partly offset by favorable exchange.

Special items reduced pre-tax results by $8 billion in the second quarter, or $3.26 a share, primarily reflecting charges associated with asset impairments of $5.3 billion for Ford North America and $2.1 billion for Ford Credit. Because of deteriorating economic conditions, demand has declined substantially, particularly in North America. At the same time, fuel and commodity prices have increased substantially. As a result, there has been a significant shift away from large pickup trucks and traditional SUVs in North America. This prompted a review of our long-lived North American assets and Ford Credit operating lease portfolio, which led to the pre-tax non-cash impairment charges.

Automotive gross cash, which includes cash and cash equivalents, net marketable securities, and loaned securities, was $26.6 billion at June 30, 2008, a decrease of $2.1 billion from the end of the first quarter.
The decrease primarily reflects working capital increases, upfront subvention payments to Ford Credit, and Automotive operating losses, offset partly by the proceeds of the Jaguar Land Rover sale.

The following discussion of second quarter highlights and results are on a pre-tax basis and exclude special items. See tables following "Safe Harbor/Risk Factors" for the nature and amount of these special items and any necessary reconciliations to U.S. GAAP.

SECOND QUARTER HIGHLIGHTS

* Posted profits of $582 million in Ford Europe and $388 million in Ford South America.
* Launched the new Ford Kuga in Europe, a compact crossover vehicle with the best fuel economy of any AWD vehicle in the segment.
* Completed the sale of Jaguar Land Rover to Tata Motors.
* Improved initial quality of Ford brand vehicles in the U.S. at a rate faster than the industry average, according to J.D. Power and Associates. Ford was the only full-line automaker to show continuous quality improvement since 2004.
* Lincoln and Mercury finished fifth and sixth, respectively, in the latest J.D. Power survey of customer satisfaction with dealership service.

* Achieved $1 billion in cost savings, including over $600 million in Ford North America (at constant volume, mix and exchange; excluding special items). The company remains on track to achieve $5 billion in annual cost reductions in North America by the end of 2008 compared with 2005.

* Launched the 2009 Ford Flex, our all-new seven passenger crossover vehicle with fuel economy that is equal-to-or-better-than its crossover competitors, and Lincoln MKS, our new luxury sedan in North America.
* Confirmed the next-generation European Ford Fiesta and Ford Focus will begin North American production in 2010 as Ford North America adds more small cars, crossovers and fuel-efficient powertrains.

FORD ACCELERATES TRANSFORMATION PLAN WITH SMALL CAR OFFENSIVE, MANUFACTURING REALIGNMENT
* Ford adding new fuel-efficient small cars and crossovers to North American product lineup
* Six European small vehicles coming to North America from global B-car and C-car platforms
* Three large truck and SUV plants converting to small cars; retooling begins this December
* Ford, Lincoln and Mercury lineup to be almost completely upgraded by end of 2010
* Ford plans to be the best or among the best in fuel economy with every new product in its segment
* Hybrid vehicle production and lineup to double in 2009
* Capacity for North American four-cylinder engines to double by 2011
* Ford, Lincoln and Mercury confirmed in company's North American brand portfolio

Plant Information

DEARBORN, Mich., July 24, 2008 - Ford Motor Company [NYSE: F] today announced a significant acceleration of its transformation plan with the addition of several new fuel-efficient small vehicles in North America and a realignment of its North American manufacturing.

The actions represent a considerable shift in Ford's North American product plans and investments toward smaller vehicles and fuel-efficient powertrains in both the near- and mid-term in line with rapid changes in customer buying preferences.

In addition to bringing six small vehicles to North America from the company's acclaimed European lineup, Ford is accelerating the introduction of fuel-efficient EcoBoost and all-new four-cylinder engines, boosting hybrid production and converting three existing truck and SUV plants for small car production, beginning this December.

"We continue to take fast and decisive action implementing our plan and responding to the rapidly changing business environment," said Ford President and CEO Alan Mulally. "Ford is moving aggressively using our global product strengths to introduce additional smaller vehicles in North America and to provide outstanding fuel economy with every new product."

Mulally said the company is more focused than ever on its transformation plan, which calls for:

* Aggressively restructuring to operate profitably at the current demand and changing model mix
* Accelerating the development of new products that customers want and value
* Financing the plan and improving the balance sheet
* Working together effectively as one team, leveraging Ford's global assets

"The progress we have made in working together to create a 'One Ford' global enterprise during the past two years gives us a unique competitive advantage in today's environment," Mulally said. "We are in a stronger position than ever to leverage Ford's global assets to address the North American business environment. We also are building on the past few years of progress in continuously improving our quality, reducing our cost structure and introducing strong new products."

Aggressively Restructuring
Ford will convert three existing North American truck and SUV plants for small car production, with the first conversion beginning this December.

The moves are in addition to Ford's announcements in May and June that it is reducing its North American production plans for large trucks and SUVs for the remainder of 2008, as well as increasing production of smaller cars and crossovers.

"We are transforming Ford's North American manufacturing operations into a lean, flexible system that is fully competitive with the best in the business," said Mark Fields, Ford president of The Americas. "We remain committed to matching our capacity with real consumer demand, and we are equipping nearly all of our assembly plants with flexible body shops, ensuring we can respond quickly to changing consumer tastes.

"In addition, we are adding four-cylinder engine capacity to meet the growing consumer demand, while expanding production of our new EcoBoost engines, six-speed transmissions and other fuel-saving technologies," Fields said.

Among the manufacturing realignment actions:

* Michigan Truck Plant in Wayne, Mich., which currently builds the Ford Expedition and Lincoln Navigator full-size SUVs, will be converted beginning this December to production of small cars derived from Ford's global C-car platform in 2010.
* Production of the Ford Expedition and Lincoln Navigator will be moved to the Kentucky Truck Plant in Louisville, Ky., early next year.
* Cuautitlan Assembly Plant in Mexico, which currently produces F-Series pickups, will be converted to begin production of the new Fiesta small car for North America in early 2010.
* Louisville (Ky.) Assembly Plant, which builds the Ford Explorer mid-size SUV, will be converted to produce small vehicles from Ford's global C-car platform beginning in 2011.
* Twin Cities (Minn.) Assembly Plant - which was scheduled to close in 2009 - will continue production of the Ford Ranger through 2011 to meet consumer demand for the compact pickup.
* As previously announced, Kansas City Assembly Plant this year will add a third crew to its small utility line for the Ford Escape, Escape Hybrid and Mercury Mariner and Mariner Hybrid.

In tandem with the realignments, Ford will continue to offer targeted hourly buyouts at its U.S. plants and facilities, working with the UAW to secure competitive employment levels. Ford also said it remains on track to reduce salaried-related costs by 15 percent in North America by Aug. 1.

Ford North America still expects to reduce annual operating costs by $5 billion by the end of 2008 - at constant volume, mix and exchange, and excluding special items - compared with 2005. In addition, the company said it plans to continue to reduce structural costs beyond 2008.

The company also confirmed Ford, Lincoln and Mercury will remain in its North American brand portfolio. Ford said it will work with its dealers to broaden and accelerate its dealer consolidations, which will result in a dealer network that reflects the changing industry size and model mix.

Ford also updated its current North American planning assumptions, which include:

* U.S. economic recovery to begin by early 2010
* U.S. industry sales to return to trend levels as the economy returns to health
* Product mix changes are permanent, but some recovery will occur from the current share-of-industry for full-size pickups - though not back to levels experienced previously - as the economy and housing sector recover
* Oil prices to remain volatile and high
* No near-term relief from current level of commodity prices
* About 14 percent U.S. market share for Ford, Lincoln and Mercury brands

Accelerating New Products
Ford is adding several new North American products in the near- and mid-term, and shifting from a primary emphasis on large trucks and SUVs to smaller and more fuel-efficient vehicles. By the end of 2010, two-thirds of spending will be on cars and crossovers - up from one-half today.

"We are accelerating the development of the new products customers want and value," Mulally said. "We sell some of the best vehicles in the world in our profitable European and Asian operations, and we will bring many of them to North America on top of our already aggressive product plans."

The new products include six European small vehicles to be introduced in North America by the end of 2012. Ford's acclaimed European products are set apart by their world-class driving dynamics, exciting design and outstanding quality.

"While we have no intention of giving up our longtime truck leadership, we are creating a new Ford in North America on a foundation of small, fuel-efficient cars and crossovers that will set new standards for quality, fuel economy, product features and refinement," Fields said.

The Ford, Lincoln, Mercury line will be almost completely upgraded by the end of 2010, including:

* 2009 Ford F-150, on sale in late fall with the most capability, most choice and most smart features of any full-size pickup, and with more than a 7 percent fuel economy improvement
* 2010 Ford Fusion, Mercury Milan, Lincoln MKZ sedans, on sale in early 2009, with Fusion's and Milan's four-cylinder fuel economy expected to top Honda Accord and Toyota Camry
* 2010 Ford Fusion Hybrid and Mercury Milan Hybrid, beginning production late this year and on sale in early 2009 - with fuel economy expected to top the Toyota Camry hybrid
* New Ford Mustang - coupe, convertible, and glass-roof models - in early 2009
* New Ford Taurus sedan - with EcoBoost engine and even more advanced safety and convenience technologies - in mid-2009
* New European Transit Connect small multi-purpose van in mid-2009
* New Lincoln seven-passenger crossover - with EcoBoost engine - in mid-2009
* New European Ford Fiesta, in both four- and five-door versions, in early 2010
* New European Ford Focus, in both four- and five-door versions, in 2010
* New Mercury small car in 2010
* New European small vehicle that will be a "whitespace" entry in North America in 2010
* Next-generation Ford Explorer - with unibody construction, EcoBoost, six-speed, weight savings and improved aerodynamics for up to 25 percent better fuel economy - in 2010

With every new product, Ford expects to be the best or among the best for fuel economy. This is aided by one of the most extensive powertrain upgrades ever for Ford. By the end of 2010, nearly all of Ford's North American engines will be upgraded or replaced. In addition, within two years, nearly all of Ford's North American lineup will offer fuel-saving six-speed automatic transmissions.

The improvements build on several Ford fuel economy leaders today, such as:

* 2009 Ford Flex, which is the most fuel-efficient standard seven-passenger vehicle on the market, topping the 2009 Honda Pilot
* 2009 Ford Focus, with highway fuel economy of up to 35 mpg - better than the smaller 2008 Honda Fit and 2009 Nissan Versa SL and a key reason Focus retail sales are up 50 percent
* 2009 Escape, with a new 2.5-liter four-cylinder engine and six-speed transmission delivering best-in-class highway fuel economy of 28 mpg - ahead of Toyota RAV4 and Honda CR-V
* 2009 Ford Escape Hybrid, delivering 34 mpg in the city and 31 mpg on the highway, making it the most fuel-efficient utility vehicle available

Coming in 2009 are the first applications of Ford's new EcoBoost engines. EcoBoost uses gasoline turbocharged direct-injection technology for up to 20 percent better fuel economy, up to 15 percent fewer CO2 emissions and superior driving performance versus larger-displacement engines.

EcoBoost V-6 engines will be introduced on several vehicles next year, beginning with the Lincoln MKS and Ford Taurus sedans, and Ford Flex crossover. Four-cylinder EcoBoost engines will debut in 2010 in both North America and Europe. Ford will offer EcoBoost on more than 80 percent of its North American lineup by the end of 2012.

Ford also plans to double capacity for North American four-cylinder engines to more than 1 million units by 2011, to meet the consumer trend toward downsized engines for fuel economy. The smaller engines will deliver significant fuel savings.

In addition, Ford plans to double its hybrid volume and offerings next year - and is looking to expand further going forward. Production of the all-new 2010 Ford Fusion Hybrid and Mercury Milan Hybrid begins in December - with fuel economy expected to top the Toyota Camry hybrid.

With these new models, the Ford Escape Hybrid - now in its fifth year of production - and the Mercury Mariner Hybrid, Ford will offer four hybrid vehicles. That will make Ford the largest domestic producer of full hybrid vehicles in North America, second only to Toyota in sales volume.

Ford also is introducing six-speeds with PowerShift that offers the fuel economy of a manual transmission and convenience of an automatic; start-stop engines that shut off when the vehicle stops; electric power steering; direct injection, and Twin Independent Variable Cam Timing engines. These technologies will be progressively introduced within the North American lineup by 2012.

"One Ford"
Driving Ford's product transformation is the company's "One Ford" global product development vision, which will deliver more vehicles worldwide from fewer core platforms, further reduce costs and allow for the increased use of common parts and systems.

In the next five years, Ford will build more than 1 million vehicles a year worldwide off its global B-car platform and nearly 2 million units worldwide off its global C-car platform.

"Ford is investing most where consumer growth is taking place - and that's in highly fuel-efficient global small cars," said Derrick Kuzak, Ford group vice president of Global Product Development. "One of every four vehicles in the world today is a 'C' or Ford Focus-sized vehicle, and we expect the segment to grow more than 20 percent to 6 million units in North America and 25 million worldwide by 2012. We see similar strong growth in the B-segment, where the Fiesta competes."

With Ford's global product development plan, all of the company's vehicles competing in global segments will be common in North America, Europe and Asia within five years. In addition to B- and C-sized small cars, the company's Fusion- and Mondeo-sized C/D cars and utilities will be common globally. The same will be true for commercial vans.

Ford said it is uniquely positioned to take advantage of its scale, already acclaimed global products and the strength of the Ford brand around the world to respond to the current changing marketplace and to begin to grow profitably. The company said its success in growing market share and profits with smaller, more fuel-efficient vehicles in Europe is now the template around the world.

"We remain absolutely committed to creating an exciting, viable Ford going forward - and to transforming Ford into a lean global enterprise delivering profitable growth over the long term," Mulally said. "We continue to make progress on every element of our transformation plan, and we are taking decisive steps in the near term to ensure our long-term success."
Risk Factors

Statements included herein may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on expectations, forecasts and assumptions by our management and involve a number of risks, uncertainties, and other factors that could cause actual results to differ materially from those stated, including, without limitation:

* Continued decline in market share;
* Continued or increased price competition resulting from industry overcapacity, currency fluctuations or other factors;
* An increase in or acceleration of market shift away from sales of trucks, sport utility vehicles, or other more profitable vehicles, particularly in the United States;
* A significant decline in industry sales, particularly in the United States, Europe or South America, resulting from slowing economic growth, geo-political events or other factors;
* Lower-than-anticipated market acceptance of new or existing products;
* Continued or increased high prices for or reduced availability of fuel;
* Currency or commodity price fluctuations;
* Adverse effects from the bankruptcy or insolvency of, change in ownership or control of, or alliances entered into by a major competitor;
* Economic distress of suppliers that has in the past and may in the future require us to provide financial support or take other measures to ensure supplies of components or materials;
* Labor or other constraints on our ability to restructure our business;
* Work stoppages at Ford or supplier facilities or other interruptions of supplies;
* Single-source supply of components or materials;
* Substantial pension, postretirement health care and life insurance liabilities impairing our liquidity or financial condition;
* Inability to implement Retiree Health Care Settlement Agreement with UAW to fund and discharge retiree health care obligations because of failure to obtain court approval or otherwise;
* Worse-than-assumed economic and demographic experience for our postretirement benefit plans (e.g., discount rates, investment returns, and health care cost trends);
* The discovery of defects in vehicles resulting in delays in new model launches, recall campaigns or increased warranty costs;
* Increased safety, emissions (e.g., CO2), fuel economy, or other regulation resulting in higher costs, cash expenditures, and/or sales restrictions;
* Unusual or significant litigation or governmental investigations arising out of alleged defects in our products or otherwise;
* A change in our requirements for parts or materials where we have entered into long-term supply arrangements that commit us to purchase minimum or fixed quantities of certain parts or materials, or to pay a minimum amount to the seller ("take-or-pay" contracts);
* Adverse effects on our results from a decrease in or cessation of government incentives;
* Adverse effects on our operations resulting from certain geo-political or other events;
* Substantial negative Automotive operating-related cash flows for the near- to medium-term affecting our ability to meet our obligations, invest in our business or refinance our debt;
* Substantial levels of Automotive indebtedness adversely affecting our financial condition or preventing us from fulfilling our debt obligations (which may grow because we are able to incur substantially more debt, including additional secured debt);
* Inability of Ford Credit to access debt or securitization markets around the world at competitive rates or in sufficient amounts due to additional credit rating downgrades, market volatility, market disruption or otherwise;
* Higher-than-expected credit losses;
* Increased competition from banks or other financial institutions seeking to increase their share of financing Ford vehicles;
* Changes in interest rates;
* Collection and servicing problems related to finance receivables and net investment in operating leases;
* Lower-than-anticipated residual values or higher-than-expected return volumes for leased vehicles; and
* New or increased credit, consumer or data protection or other regulations resulting in higher costs and/or additional financing restrictions.

We cannot be certain that any expectation, forecast or assumption made by management in preparing forward-looking statements will prove accurate, or that any projection will be realized. It is to be expected that there may be differences between projected and actual results. Our forward-looking statements speak only as of the date of their initial issuance, and we do not undertake any obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events or otherwise. For additional discussion of these risks, see "Item 1A. Risk Factors" in our 2007 Form 10-K Report.

Ford Motor Company, a global automotive industry leader based in Dearborn, Mich., manufactures or distributes automobiles across six continents. With about 229,000 employees and about 90 plants worldwide, the company's core and affiliated automotive brands include Ford, Lincoln, Mercury, Volvo and Mazda. The company provides financial services through Ford Motor Credit Company. For more information regarding Ford's products, please visit www.ford.com.

When police arrived at the scene they ticketed Novak for failure to yield; however, other charges may be pending. The 60-year-old pedestrian was treated for injuries at George Washington University Hospital and later released. We're assuming Novak will plead not guilty, as the pedestrian was a liberal scumbag who failed to yield to the conservative reality of his 'Vette's bumper. (H/T to Maxichamp and SwatLax) [Politico]

Jalopnik Snap Judgment: Bill Gates has tons of money (literally, Scrooge McDuck style) and invests it in a number of places. Having said that, he is a shrewd investor, so he obviously expects AutoNation to do well in the coming years. Maybe the future of auto sales is high-volume used car retail centers? Maybe power within the industry is shifting from the manufacturers to the dealers? Maybe Bill just wants to score used car discounts for life? We don't know, but we bet he does.
[via Automotive News]

While Team Honda is believed to be the first organization racing with an active KERS system, the fact that Toyota, acknowledged as world leaders in hybrid technology, is admitting potentially insurmountable problems may lend credibility to calls for postponing KERS implementation. The system is intended to recover energy during braking, allowing it to be stored for later use as an electrical "boost" when needed.

We think the introduction of KERS could provide a new reason to watch what's become a rather dull sport, at least for the first season, as fans tune in to see how things play out. At the same time, if the system can't be proven safe above all else — not just for the drivers and mechanics, but also safe for track workers, rescue personnel, and spectators who could be in the vicinity of an accident — then rushing KERS into the program is a recipe for disaster. And, of course, higher TV ratings.
[Autosport.com; Photo Credit: AutoCult.com.au]

Included in the bill, at the behest of Michigan Senator Debbie Stabenow, is an additional $250 million for advanced battery funding, which seems to be the sexy thing to fund these days. On the opposite side of the presidential horse-race fence, Senator John McCain (R-Everybody's Friend) is backing large tax credits for consumers purchasing economical cars and an X-Prize-like $300-million contest for much-improved batteries. We just want this long national nightmare of endless election "news" to be over. One hundred and one days left. [Freep]

About a week ago, Red Bull Racing was forced to evacuate their garage as the battery pack associated with their KERS system went wrong, threatening fire and explosion. Of course, this kind of news makes us think the next F1 season may actually be interesting to watch. Sure, the sport is great fun when guys other than Schumi are winning, but nothing draws eyeballs like fireballs. [AutoSport]

Jalopnik Snap Judgement: Despite Lotus producing the Evora in a mere 21 months and they're expanding operations globally, given the size of Lotus operations under the guidance of Proton, this three-platform plan seems extremely ambitious. But the real news is still that new mid-engined supercar. Given the existing lineup, starting with a four-banger in the smallest chassis, and now the six-cylinder Evora, a V8 seems the logical next step, and a Toyota V8 at that (Toyota 4.7-liter, anyone?). Despite our fervent wishes to see the return of the Esprit, we think it's probably unlikely they'll drink from the fountain of retro, so expect yet another new "E" name to remember.

Photo credit to Autogaleria

Lincoln is also getting some new product to make up for Odyssey/Pilot decreases, as Honda Ridgeline pickup production will be consolidated there from Alliston, Ontario. The Ontario plant will then concentrate on cranking out more Civics.

Jalopnik Snap Judgement: Honda has one thing going for them the U.S. automakers don't have — a lineup that includes a wider variety of small, fuel-efficient vehicles. Boosting Civic production is the right move at the right time. But, how far over the "comfort line" is Honda with Odyssey/Pilot supply? Automotive News claims, as of July 1, they have a 78-day supply of Odysseys and a 99-day supply of Pilots. The company wants between a 45- and 60-day supply. In contrast, the F-150, one of the vehicles hit hardest by the truck slowdown, had about a 104-day supply. In other words, Honda screwed up its production forecasts almost as much as Ford. USA! USA! [Automotive News (Sub. Req.)]

Last summer, Grelley and a friend drove from Paris to Beijing and back to Paris...in a Citroen 2CV. As the crow flies, that's over 10,200 miles, and about 22,000 miles on the road, all in a floppy car designed for peasants half a century ago. Needless to say, we can only hope to be half as cool as Jacques someday.
[DallasNews.com]

Jalopnik Snap Judgement: To be honest, we can't say we blame GM. The relentless march of NASCAR towards something looking like a big-budget IROC series leaves the "Race on Sunday, sell on Monday" model all but evaporated. The only differences between the "cars of tomorrow" are decals and the engine under the hood — and heck, that doesn't even have anything to do with a street car anyway. We tend to agree with the General that blowing huge piles of money to tout cars that don't even look like anything on the lot is a mis-allocation of resources. The only loser in this plan, as we see it, is NASCAR. Without automotive sponsors, it kind of starts to looks like the smoke and mirrors man-drama it actually is. [USAToday]

Patrick went to the Dreyer & Reinbold Racing pit box after the morning practice to complain about her struggles to pass Duno, but Duno did not like Patrick's style. [...]

On a video shot by a friend of Duno's and shown to The Star, Duno told Patrick on several occasions to "go away." When Patrick didn't leave immediately, Duno twice threw a towel in Patrick's direction, prompting Patrick to use foul language before the minute-long incident ended.

Auto Analyst Mike Wall explained the decision to the Detroit News:

"Given where fuel prices are at, I'm not sure that people are following the old progression that the higher the trim-level, the bigger the engine...(Chrysler) needs to hit what the customer wants, and that may be a 4-cylinder engine with leather seats and a navigation system."

10.) Honda
9.) BMW
8.) Infiniti
7.) Acura
6.) Mercury
5.) Lincoln
4.) Lexus
3.) Buick
2.) Cadillac
1.) Jaguar

Jalopnik Snap Judgement: In this less-than-profitable auto market, dealerships are working harder to maintain ties with customers by offering a better service department experience. Makes sense to us.

Full press release below:

Overall Satisfaction with Dealer Service Increases

WESTLAKE VILLAGE, Calif.: 17 July 2008 — Overall customer satisfaction with dealer service improves considerably in 2008—with more than two-thirds of the 37 ranked brands demonstrating gains—according to the J.D. Power and Associates 2008 Customer Service Index (CSI) StudySM released today.

The study, now in its 28th year, measures satisfaction among vehicle owners who visit the dealer service department for maintenance or repair work during the first three years of ownership, which typically represent the majority of the vehicle warranty period.

After remaining relatively flat since 2005, overall satisfaction with dealer service increases to 882 on a 1,000-point scale in 2008—an improvement of 6 points from 2007. The improvement is primarily due to a combination of an increase in the proportion of maintenance work performed and improvements in satisfaction with repair work. Customers who visit the dealer for routine maintenance tend to be more satisfied (894), on average, than are repair customers (862). The proportion of customers bringing their vehicles to the dealer for repair work has declined to a historic low in 2008, averaging 35 percent. Customer satisfaction with repair work increases notably—improving by 9 points since 2007—with gains made by both premium and non-premium brands. However, satisfaction with maintenance work increases only slightly in 2008.

"Improved levels of vehicle quality have led to a decline in the need for vehicle repairs during the first three years of ownership," said David Sargent, vice president of automotive research at J.D. Power and Associates. "Despite the fact that the majority of service visits—65 percent—are for maintenance work, dealers are very focused on the need to satisfy their repair customers. Given today's market conditions—where dealers are finding it extremely difficult to achieve profitability—it is vital that they not overlook the importance of ensuring their service customers are satisfied. Not only does meeting and exceeding the expectations of customers through after-sales service result in increased likelihood that those customers will return for service, but it also results in increased likelihood that those customers will stay loyal to the brand when they are next in the market for a vehicle."

For a second consecutive year, Jaguar ranks highest in customer satisfaction with dealer service. Jaguar achieves an overall CSI score of 923 and is closely followed in the rankings by Cadillac (922) and Buick (919).

"Jaguar dealers receive very high satisfaction scores among repair customers, particularly in the service initiation, service advisor and user-friendly service measures," said Sargent. "Cadillac improves by one rank position in 2008. This is also attributable to its particularly high levels of satisfaction among repair customers. Buick has strong performance among non-premium brands, and its continuing efforts to improve quality have resulted in a decreasing incidence of repair visits among the brand's customers."

The study also finds that communicating with customers after service work has been completed has a notably strong impact on satisfaction particularly through increasing customer perceptions of fairness of charges and the value of service received. For customers that receive an explanation of work performed or an explanation of charges, satisfaction is approximately 100 points higher, on average, than if no explanations were provided. Approximately 82 percent of customers report that they received explanations of the work performed on their vehicle, while 58 percent say they received an explanation of charges, when necessary.

"Many times, it is the quality of communication provided by service personnel that makes the difference between a satisfied customer and a true advocate," said Sargent. "When customers are provided with clear explanations as to why the work performed on their vehicle was necessary, as well as the reasoning behind the charges, it improves satisfaction with the value of the work performed, as well as perceptions of the fairness and honesty of the dealer. Consistently following these relatively simple steps helps to foster trust among customers, which is critical to building loyalty for future service work as well as future sales. For example, 78 percent of customers who rate the fairness of charges as 'outstanding' say that they will return to the dealership for routine maintenance after the warranty expires, while only 49 percent of customers who provide 'average' fairness ratings say the same."

The study also finds the following key patterns:

* While 5 percent of customers say that they would prefer to schedule their service visit with the dealer via the Internet, only 1 percent of customers actually do so. The vast majority of customers—74 percent—call the dealership to schedule an appointment, while 25 percent of customers just drop in.
* When vehicles are returned to the customer cleaner than they were when received by the dealer, satisfaction scores average 48 points higher than scores provided by customers whose vehicles showed no difference in cleanliness. However, there is a particularly large decline in satisfaction—202 points, on average—if vehicles are returned less clean than when they were received.
* Among customers who report speaking to a service advisor immediately upon arriving at the dealership, satisfaction scores average 927—224 points higher than among customers who say they waited more than 5 minutes to speak to a service advisor.

The 2008 CSI Study is based on responses from 87,302 owners and lessees of 2005 to 2007 model-year vehicles. The study was fielded between January and April 2008. J.D. Power and Associates measures dealer service in various countries around the world, including Australia, Canada, China, France, Germany, India, Indonesia, Japan, Malaysia, Mexico, New Zealand, the Philippines, South Africa, Taiwan, Thailand and the UK.

[Source: JD Power]

Mosley's Case: British laws protecting the rights of individuals against the press extend to him and this was a completely private affair.

News Of The World's Case: Mosley is a public figure and he committed a serious act of "depravity" and the public has a right to know about it.

X Factor: The witness who was the biggest part of the setup, Woman E, was supposed to testify that there was a specific request for a Nazi theme. She never showed up.

Jalopnik Snap Judgement: Because British laws are so strong on this point, we're pretty sure NOTW is going to lose this case. But it isn't going to make problems like this go away.

[NY Times]

Hector 'Snake Blade' Cortes noted "the biking gives me a way to get some fresh air and exercise we don't normally get from our daily grind." "We really should be worrying about not only who's stepping into our business," said accomplice Johnathan 'The Gun' Smith, "but also the environment, global warming won't cure itself you know." If response is good, and the return on respectability sees a market increase under the new policy, look to see a further roll out across greater LA in the near future. [LA Times]

Details are sketchy, but the Star claims J.D. Power sources say suppliers are gearing up for an iteration of the Two-Mode Hybrid system used on the upcoming Durango/Aspen hybrids and shared with the Tahoe/Yukon hybrid. The report also states that a hybrid Toyota "Sierra" (which we're pretty sure means "Sienna") van is scheduled for 2010, and that diesel minivans from Honda and VW are on the near horizon.

Chrysler's foray into more-efficient vans could be as much for the company as for the consumer, since Chrysler remains near the back of the pack on total fleet fuel efficiency. Adding a hybrid van to the mix would be an effective (if expensive, on the order of $4,000 per unit) way to bump up CAFE numbers while older, larger models are being retooled or dropped completely.

Unlike Chrysler with its Two-Mode, and Toyota, who will presumably use a version of its Hybrid Synergy Drive in the Sienna Hybrid, Honda and VW are likely to exploit their diesel expertise in the Odyssey and Routan, respectively. Honda is reportedly readying a diesel Accord for 2009, providing it with a federally approved oilburner that could be used in Odyssey, while VW has access to its own diesels (which would be a bit small for minivan use) as well as the Mercedes Bluetec unit.

If the idea of a hybrid Grand Caravan or an Odyssey with 400 lb-ft of torque doesn't get you excited, hey, that's okay. What should get you excited is what's on display here: More evidence of the powertrain variety we can expect around the 2010/2011 model year. [Windsor Star]

BMW management board member for development and evil names, Klaus Draeger, told Auto Motor und Sport an announcement will only be made if "concrete results" had been achieved, possibly coinciding with the LA Auto Show in November. What an industry news nerd of a bomb shell that would be, eh? [Auto Motor und Sport via Automotive News (Sub. Req.)]

If General Motors' global sales don't increase above their final tally of 9,369,524 for 2007, and Toyota actually hits their reduced number, Toyota wins. More ominously, GM hasn't provided a forecast for 2008 sales; given the thinly veiled sense of panic around the RenCen these days, there's concern that year-over-year sales figures could remain stagnant enough to allow Toyota to take the top spot.

As always, don't count out the power of cash incentives. We know the General too well to assume they won't toss a "buy a Yukon, get an Aveo for a dollar!" two-for-one promotion into the mix come November. GM for the win! And, as always, the eventual loss. [Automotive News (Sub. Req.)]