The Fiesta Movement: 2010 Ford Fiesta

This month, Ford will be announcing a groundbreaking marketing plan for the upcoming new "B-Car," the Ford Fiesta. To begin building consumer awareness and excitement for the Fiesta well in-advance of its US launch in 2010, Ford is importing 145 European-built Ford Fiestas. These vehicles are being used in 3 ways:

· The Fiesta Movement: 100 Fiestas are being given to 100 young, technologically savvy, and socially vibrant consumers - spread throughout the US - for free extended test-drives. From May-November, these "Fiesta Movement Agents" will be very active in exposing the Fiesta to both their local and online social networks and communities. The Fiesta Movement Agents were selected from over 4,000 applicants. You can learn more about the Agents and follow their adventures on fiestamovement.com.

· Fiesta Discovery Tours: 25 Fiestas will be utilized for 5 regionally based mobile test drive tours. Between May and December 2009, over 500 Fiesta test-drive experiences will be held across the country. The Fiesta Discovery Tours will allow approximately 100,000 consumers to learn about and drive the new Fiesta prior to the US market launch. The schedule of Fiesta test drive events will be posted on fiestamovement.com/ride-and-drive. Customers who wish to receive an e-mail notification of test drive timing in their area can register on fiestamovement.com.

· Marketing Events: the remainder of the Fiestas will be making appearances at auto shows, Drive One Tour stops, and other Ford marketing events this year.

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Chrysler Rejects U.S. Aid?

Chrysler Financial executives rejected a new $750 million loan from the Treasury Department after the company was unable to obtain waivers from top executives agreeing to strict pay limits, according to a government report to be released today.

The report from the Treasury Department's Special Inspector General overseeing the $700 billion TARP, also confirms the government plans to give General Motors Corp. up to $5 billion in short-term assistance and $500 million to Chrysler LLC.

And it reveals that Treasury plans to offer as much as $1.25 billion to underwrite Chrysler and GM vehicle warranties if either automaker files for bankruptcy.

On April 7 the government asked Chrysler Financial, as a condition of getting an additional $750 million, "to obtain waivers from the top 25 Chrysler Financial executives that would have waived legal claims against Treasury and Chrysler Financial resulting from the recent changes in executive compensation requirements for TARP recipients."

The government claims Chrysler was unable to obtain waivers from all 25 executives, therefore the request for additional funding was denied."

Chrysler Financial, however, said Monday that negotiations with the government never got to the point that executives were asked to sign compensation waivers.

According to Chrysler Financial they have determined that it has adequate private capital funding to cover the short-term needs their dealers and customers and that no additional TARP funding is necessary for the time being.

It sounds like Chrysler is trying to learn a lesson from Ford and not take bailout money. However June 1st is coming quickly and Chrysler needs to speak Italian and cut a deal with Fiat. According to the Obama administration Chrysler isn't viable as a standalone company and vows not to provide it with any more aid after April 30 if it doesn't complete the tie-up with Fiat.

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Fleet Pricing For The 2010 Ford Fusion Hybrid

Want That New Ford Fusion? Well now you don't have to pay full price for it! My friends at Blue Oval have a program that you can purchase the 2010 Fusion Hybrid at fleet pricing. That means you pay the same price as the big companies who purchase a large amout of vehicles. They get huge dicounts because of the volume, now you can too. Go to the Ultimate Auto Advisor for more info.

GPS technology lets you track vehicles live online

New technologies are emerging that can help managers keep an eye on not only where the vehicles are, but how they are driving and how long they are stopped, says George Karonis, CEO of LiveViewGPS. Most GPS navigation devices are commonly used to get a user from point “a” to point “b,” but the new technology expands that basic capability with a live Web based tracking unit that updates vehicles positions every 10 seconds. The vehicle’s position can then be viewed on any Web enabled computer.

“As the recession tightens everyone’s belts, companies need to maximize the time that their vehicles are in the field,” Karonis said. “You may be losing money simply because of man-hours wasted by drivers goofing off, or taking too much time on service calls. Being late to a customer call can sometimes cost you their business, so it’s imperative for companies to know where their vehicles are at all times.”

Here are some of the capabilities of the new technology, used in LiveView GPS products, include:

• Track the vehicle live – Anyone with a Web connection can track a vehicle live online, with
the view of the vehicle’s exact position being updated every 10 seconds.

• Track the vehicle’s speed – A pre-set maximum speed can be programmed into the unit, so
that an email and SMS text message is set any time the vehicle exceeds a predetermined
speed.

• Track the vehicle’s territory – If a vehicle is not supposed to leave a certain area, a
geographical safeguard can be programmed into the unit, alerting the tracker if the vehicle
leaves the area.

• Stay in contact with drivers -- The new units allow for two-way communication with drivers,
saving on cell phone bills. It allows companies much tighter control over their vehicle
deployment, and the ability to answer questions and mitigate issues drivers may have in the
field quickly, efficiently and cheaply.

• Historical Playback – Records all positions the vehicle has been, where it stopped for how long,
etc….Available for 90 days. If there ever was a question – User could retrieve data.

GM Board Members to be Replaced? Does it Go Too Far?

Changes in GM management at the influenced by the Obama Administration Auto Task Force have some wondering if it is too much government intervention in the free enterprise system America has always enjoyed. With the ouster of Rick Wagoner, and entry of Fritz Henderson as CEO and Kent Kresa as Chairman, the next move will be to replace a majority of the board of directors. Are we moving toward a European style of Socialism? How much power should the government yield over companies seeking aid?

The Obama administration will play a heavy role in reshaping General Motors' board of directors over the next six months, giving it even greater control in the management of the distressed auto manufacturer. The board today by and large consists of the current and former chiefs of major U.S. corporations such as Eastman Kodak Coca-Cola, Pfizer, and Ernst & Young,

Kent Kresa,, GM's new chairman, said that company officials will seek to replace a majority on the board by August, as the automaker moves to restructure operations.
And one White House official said that "There will be continuing coordination as decisions about the leadership of the company are made,"

If this is not a move toward socialism, than what is? The President of the United States has forced out the CEO of GM G. Richard Wagoner Jr. and Chrysler has been told they must make a partnership with Fiat. Even some senators agree; Bob Corker (R-Tenn.) "There is no question that this country is moving down a very different and foreign path. We have crossed this threshold: We own this company and we are telling it what to do."

What will happen to GM? With the government takeover and GM’s debt to the UAW heath plan, GM will probably go bankrupt and you will see the UAW being a major shareholder in the company. Hopefully if you own a GM product you won’t have to go to the post office to have service done or have a claim on your government backed extended warranty.

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2010 Transit Connect By Ford

Ford plans to unveil the 2010 Transit Connect small van at the New York auto show next week.

Ford developed the Transit Connect for use as a small delivery vehicle for businesses, and the 2010 Transit Connect will be the only purpose-built light-duty commercial van in the U.S. market. Designed for small business owners and their specific needs, Transit Connect will be prepared to handle those needs with a maneuverable, right-sized design, efficient powertrain, customizable cargo area and internationally proven dependability.

The body, essentially a scaled-down UPS van built on a compact car's platform, provides an excellent turning radius of 39 feet. The base version of the Transit Connect will come with a vinyl interior and a $21,475 price tag when it goes on sale this summer.

Powered by a 2.0-liter four-cylinder engine, the Transit Connect should get EPA ratings of 22 m.p.g. in the city and 25 m.p.g. on the highway. It has seating for 2 in the cargo van, and up to 5 on the XLT wagon. Transit Connect offers a choice of 2 rear door designs, 1600 lb payload, and over 135 cu. Ft. of cargo volume.

And here is a cool tool: The optional Ford Work Solutions TM empowers small business owners to turn Transit Connect into a mobile office with these features:

Internet-capable in-dash computer and communications system
Tool LinkTM, an innovative tool-tracking system
Crew ChiefTM, a cutting-edge elematics system that tracksfleet vehicles

For a brochure on the 2010 Transit Connect


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Ford Shares Up 15% Today

While GM is being taken over by the U.S. Government, and Chrysler has been given 30 days to learn Italian, on the other side of town in the capitalist part of the U.S; shares of Ford Motor Co. surged more than 15% today after Ford released the positive results of its debt restructuring effort.

Ford said it will eliminate about $9.9 billion of its automotive debt following the results of three separate offers to debt holders that gave investors an opportunity to accept payments at less than the face value of bonds and loans.
Both the stock and bond markets reacted positively to the announcement. By 1:45 p.m shares of Ford’s stock had increased by 47 cents to $3.72 per share compared with its Friday close of $3.25 on Friday. Ford’s stock was trading under $2 per share as recently as March 10.

“We think this was a very successful transaction and it met all of our expectations,” Ford Treasurer and Vice President Neil Schloss said in an interview with the Free Press.

Because of the success of the effort, Ford will be able to slash its annual interest payments by more than $500 million. That means no federal loans are needed by the U.S. government.

Ford and Ford Motor Credit are using about $2.4 billion in cash and 468 million shares of Ford stock to repurchase the outstanding bond and debt obligations.

The acceptance period for two of the three offers closed on Friday and a loan repurchase offer expired last month. Ford plans to complete the debt exchanges by Wednesday.

Standard & Poor’s equity analyst Efraim Levy said “We view positively Ford’s reduction of nearly $10 billion of its debt in exchange for stock and cash,” in a research note today. “In addition to lowered interest costs, the reduction improves Ford’s balance sheet.”


However Levy warned that the value of Ford’s stock will be diluted as Ford issues the shares of stock and also said Ford will continue to face challenges due to industry-wide declining vehicle sales both in the United States and around the world.

Thanks to BRENT SNAVELY at bsnavely@freepress.com for the info.

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