Ford plans $14B in cost cuts as part of new CEO's strategy

Published: Tuesday, October 03, 2017 @ 12:16 PM
Updated: Tuesday, October 03, 2017 @ 12:14 PM

Ford Motor Co.'s new CEO plans to cut $14 billion in costs, drop some car models and focus the company's resources on trucks, SUVs and electric vehicles as part of a renewed effort to win over skeptical investors.

Jim Hackett, who became Ford's CEO in May, met with around 100 investors in New York Tuesday to lay out his plans for the future. He said getting the company lean and flexible will help it handle the changes the auto industry is facing, from car-sharing to self-driving vehicles, to the shift to electric cars.

"I feel a real sense of urgency for what we're doing here," Hackett said.

Hackett and his executive team spent the summer reevaluating Ford's operations after former CEO Mark Fields was ousted in May. Hackett traveled to Russia and Turkey and visited North American plants and Ford's Silicon Valley research center as part of his review.

He said he was impressed by the talent at Ford, but wants to update factories and speed product development and decision-making. One of his first moves was to pare down the number of people reporting to him. Hackett has eight direct reports, compared to 18 for Fields.

Ford told investors it expects to reduce material costs by $10 billion by 2022 through new deals with suppliers and simpler designs. The company plans to share more parts between vehicles and reduce the options available for configuring a car. For example, customers can now order a Ford Fusion sedan in 35,000 possible combinations. Ford is reducing that to 96.

Ford also says it will cut $4 billion in engineering costs through 2022 by making fewer prototypes and reducing product-development time.

It plans to cut one-third of its engine development costs and redeploy them to electric and hybrid vehicles. Ford plans to introduce 13 new electrics and hybrids over the next five years, including a small electric SUV coming in 2020.

The company plans to reallocate $7 billion from cars to SUVs and trucks. Global demand for those vehicles is rising, and they are critical to Ford's bottom line. Jim Farley, head of Ford's global markets, said Ford plans more off-road SUVs like the upcoming Bronco for North America and more low-end small SUVs and seven-passenger SUVs for China.

The automaker plans to cut some cars from its lineup, but didn't name them Tuesday. Farley said Ford will still offer small cars, like the Focus, but will stick to more expensive — and more profitable — versions.

Ford emphasized that it's open to new partnerships, such as its recent agreement with Indian automaker Mahindra Group to cooperate on mobility, electric cars and other projects. It is also working with ride-hailing company Lyft on self-driving technology and with China's Zotye Automobile Co. about an electric car partnership.

The company says its vehicles will get smarter, with 90 percent of its global vehicles getting modem connectivity by 2020. That will allow things like software updates or apps that help drivers find parking. Ford can differentiate itself by offering, say, connected commercial vans that help small businesses keep track of their deliveries.

Marcy Klevorn, Ford's head of mobility, said Ford launched a medical van service eight weeks ago that can pick up wheelchair-bound patients and take them to the doctor. The service uses Ford-developed software for scheduling appointments, and it will help the company figure out ways that consumers will eventually use self-driving vehicles.

"We have created a box of assets that we can pull out and use for various things," Klevorn said.

Ford stuck to its previous guidance for 2017 on Tuesday. The company expects adjusted earnings of $1.65 to $1.85 for the full year. Ford earned $1.76 per share 2016.

Hackett, the former CEO of office furniture company Steelcase Inc., joined Ford's board in 2013. He briefly led Ford's mobility unit before being tapped as CEO.

Ford hired Hackett, in part, to turn around its share price, which has languished for the last two years even as rival General Motors Co. saw its shares rise to their highest level in seven years. Ford sunk below Tesla Inc. in market value earlier this year, even though it earned $4.6 billion in 2016 and Tesla has never made a full-year profit.

Ford's shares rose 2 percent to close at $12.34 Tuesday before Hackett's presentation. It's not yet clear if his pitch will improve investors' confidence.

"Straddling the now and the future will be tricky, especially in terms of profitability," said Michelle Krebs, an executive analyst for the car-buying site Autotrader.com.

Investors have been critical of Ford for waiting too long to bring a long-range electric vehicle to market, as GM did with the Chevrolet Bolt. They also struggled to understand Ford's plans to compete on autonomous cars.

"In the past few years, Ford simply hasn't had a compelling narrative that investors could latch onto," Barclay's analyst Brian Johnson wrote in a recent note to investors.

Trump campaign ad calls Democrats 'complicit' in killings by undocumented immigrants

Published: Sunday, January 21, 2018 @ 3:53 AM

President Trump’s Physical Exam Results Released

A new ad released by President Donald Trump's campaign is claiming that Democrats are “complicit” in killings by undocumented immigrants. The ad was released after Senate Democrats opposed a short-term spending bill to keep the government from shutting down.

>> Click here to watch

“President Trump is right — build the wall, deport criminals, stop illegal immigration now,” the ad said, showing clips of top Democrats. “Democrats who stand in our way will be complicit in every murder committed by illegal immigrants.”

>> Trump cancels Florida trip as government shutdown looms

“President Trump will fix our border and keep our families safe,” the ad concluded. The ad was released on the one-year anniversary of Trump’s inauguration.

>> Government shutdown: What closes; will you get your Social Security check; what happens to SNAP, WIC

On Friday, Senate Democrats opposed a short-term spending bill to fund the government and keep it from shutting down after Republicans refused to include a provision to protect thousands of immigrants brought here as children.

>> Read more trending news 

President Trump bashed Democrats after the failed vote, saying that they wanted “unchecked illegal immigration.”

“Democrats are holding our Military hostage over their desire to have unchecked illegal immigration. Can’t let that happen!” he tweeted Saturday morning.

Earlier on Saturday, he again bashed Democratstweeting that they were more “concerned with Illegal Immigrants than they are with our great Military or Safety at our dangerous Southern Border.”

(H/t: The Hill)

What You Need to Know: Government Shutdown

Neighbors of parents accused of holding 13 kids captive describe family as odd, reclusive

Published: Thursday, January 18, 2018 @ 6:12 AM

13 Siblings Held Captive In California "House of Horrors"

Neighbors described the reportedly nightmarish situation at the Turpin home, where parents David and Louise allegedly kept their 13 children shackled to their beds and malnourished, as seeming like a “cult.”

Former neighbors said the children were made to march around for hours in the middle of the night, they told the New York Post.

A man named Mike, who did not want to give his full name and was a neighbor of the Turpins when they lived in Murrieta, California, told the Post, “I thought they were like a cult. They would march back and forth on the second story at night. The light would be on the whole time, and they would be marching the kids back and forth.”

>> Police: 13 siblings held captive in California residence

Mike said he would arrive home late from his job at a hospital and see the children marching through the upstairs rooms of the Turpin home between midnight and 3 a.m.

David and Louis Turpin were arrested Sunday in their Perris, California, home after one of their daughters called police for help, saying she had managed to escape the house with a cellphone. When police arrived, they reportedly found the siblings, ages 2 to 29, living in squalor and looking very thin, with several of the kids shackled to furniture.

Mike said his wife, Myrna, called the family “clones,” saying the Turpins all spoke “robotically, in a monotone and at the same” time during the few occasions on which Myrna interacted with them at a local grocer.

However, Mike told the Post that he and Myrna never called the police because they didn’t see anything that suggested they needed to. They just thought the parents were a bit odd.

Mike, as well former neighbors from when the Turpins owned a farm in Rio Vista, Texas — which the family left due to foreclosure — remarked on the amount of trash that the family accumulated.

“I ended up calling the police because of the trash and everything that was left there,” said former Texas neighbor Randy McClain. “There was a brand new pickup truck covered in [trash] — a whole truck bed full and overflowing to the ground with trash: diapers, Spam cans, potted meat cans, just overflowing.”

The Daily Mail got access to the Turpin’s Perris backyard and found a Disney-themed fountain situated in a messy yard in which “piles of metal pipes could be seen strewn around, along with a rusty set of metal garden furniture and some diaper boxes.”

>> Read more trending news 

Through the screen door, the Daily Mail spied piles of clutter, including what appear to be stacked books, within the house.

Neighbor Leticia Gomez, 45, who lives directly behind the Turpin home, told the Daily Mail that she wasn’t aware there were any kids in the house. She described the Turpins’ garden as unkempt and “scruffy.”

Another neighbor, Andria Valdez, said she did know there were children living in the home and that she had seen them before. She joked that the Turpins reminded her of the vampire family in the “Twilight” books and movies, because they were “really, really pale” and “only came out at night.”

Photos offer glimpse into former Texas home of parents accused of abusing 13 children

Published: Friday, January 19, 2018 @ 3:58 PM

RIVERSIDE, CA - JANUARY 18: David Allen Turpin, accused of holding their 13 children captive, appears in court for arraignment on January 18, 2018 in Riverside, California. According to Riverside County Sheriffs, David Allen Turpin and Louise Anna Turpin held 13 malnourished children ranging in age from 2 to 29 captive in their Perris, California home. Deputies were alerted after a 17-year-old daughter escaped by jumping through a window shortly before dawn on Sunday morning, carrying a de-activated mobile phone from which she was able to call 911 for help. Responding deputies described conditions in the home as foul-smelling with some kids chained to a bed and suffering injuries as a result. Adult children appeared at first to be minors because of their malnourished state. The Turpins were arrested on charges of torture and child endangerment.  (Photo by Terry Pierson-Pool/Getty Images)
Pool/Getty Images
RIVERSIDE, CA - JANUARY 18: David Allen Turpin, accused of holding their 13 children captive, appears in court for arraignment on January 18, 2018 in Riverside, California. According to Riverside County Sheriffs, David Allen Turpin and Louise Anna Turpin held 13 malnourished children ranging in age from 2 to 29 captive in their Perris, California home. Deputies were alerted after a 17-year-old daughter escaped by jumping through a window shortly before dawn on Sunday morning, carrying a de-activated mobile phone from which she was able to call 911 for help. Responding deputies described conditions in the home as foul-smelling with some kids chained to a bed and suffering injuries as a result. Adult children appeared at first to be minors because of their malnourished state. The Turpins were arrested on charges of torture and child endangerment. (Photo by Terry Pierson-Pool/Getty Images)(Pool/Getty Images)

David and Louise Turpin, the California couple who were charged with torture and child abuse after authorities accused them of holding their 13 children captive in dire conditions, previously lived in Texas, several news outlets have reported.

>> Read more trending news

ABC News reported Thursday that it had acquired pictures from inside the family’s former Texas home, near Fort Worth. The pictures were submitted by the home’s current owner, who took the pictures after he bought the foreclosed property about 18 years ago.

The pictures, which can be seen here, show stained carpets and walls. The current owner told ABC it required an “extensive cleanup” and that he and his wife “believed that the previous occupants destroyed the house because it was being foreclosed on.”

The anonymous owner also told ABC that feces were smeared all over the walls of every room at the time that he bought the home.

The Associated Press reported Friday that a prosecutor in the case said the Turpins limited their children to one shower a year and one meal a day. 

Dogs found in perfect condition in home where 13 siblings held captive

Published: Sunday, January 21, 2018 @ 1:52 AM

13 Siblings Held Captive In California "House of Horrors"

A pair of well-kept dogs were taken from the Perris, California, house where 13 children were found shackled and severely malnourished last week.

>> Watch the news report here

David Turpin, 57, and Louise Turpin, 49, are facing a minimum of 94 years for charges including child neglect and torture after police said their children, ranging from ages 2 to 29, were discovered in their home severely malnourished.

>> Neighbors of parents accused of holding 13 kids captive describe family as odd, reclusive

In a statement on Wednesday, city spokesman Joe Vargo said authorities recovered two Maltese terrier dogs in far better condition than the Turpins’ children. The 1-year-old female puppies were reportedly healthy and were taught skills, People reported.

“The animals, one white and one black, appear healthy and friendly and are leash-trained, according to Christina Avila, a senior animal control officer,” a press release from the city of Perris said.

>> Read more trending news 

The dogs — one was named Fluffy — were featured in photos from the city appearing well-groomed and in sweaters. An adoption raffle for the pups is being held through Jan. 26 to find them new homes.

Investigators said the children were only allowed showers a few times per year and were fed only once per day. In a press conference with reporters Thursday, District Attorney Mike Hestrin alleged that the last time any of the children had seen a doctor was four years ago and they had never been to a dentist. Police said the parents allegedly kept themselves well-fed and regularly ate pies in front of their children to taunt them, ABC News reported.

>> Police: 13 siblings held captive in California residence

The 17-year-old who reportedly escaped the home through a bedroom window to alert authorities was initially believed to be just 10 years old due to the severity of her malnourishment, while the oldest victim, a 29-year-old woman, weighed only 82 pounds when the children were found. According to Hestrin, the children “lack a basic knowledge of life,” although they were allegedly homeschooled, KTLA reported.

According to the Daily Mail, the parents face a combined total of 75 charges, and each was being held on $12 million bond.