Episode 435 – Ford Shuffles Management Deck, Nissan Halts Production, 2011 BMW X3

July 15th, 2010 at 12:00pm

Runtime 8:32

Ford is shuffling its management deck, pulling Jim Farley away from operations in Latin America and expanding his role in the global sales and service arena.  Nissan was forced to halt production in Japan because of a shortage of electronic parts and now the problem has spread to the U.S.  BMW reveals its redesigned 2011 X3.  All that and more, plus a look at a new display technology supplier company Continental is developing.

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Transcript and Story Links after the jump . . .

This is Autoline Daily for Thursday, July 15, 2010. And now the news.

Interesting management changes at Ford. Jim Farley, who was running global marketing as well as operations in Latin America, will surrender those operational duties and see his marketing role expanded to include global sales and service. Eduardo Serrano will take over those operations in Latin America and Mexico and will report to Executive Vice President Mark Fields. In other developments, as we’ve been reporting here for months, Steve Odell will leave Volvo and take over as CEO of Ford of Europe. Remember him? I keep pointing out Steve Odell was the guy who started the Zoom-Zoom campaign when he was at Mazda. The exec that had been running Ford of Europe, John Flemming, will move to Ford headquarters in Dearborn, Michigan to take over global manufacturing and labor relations for the company. I find these to be very interesting changes, and we’ll be talking more about them tonight on Autoline After Hours.

The problem started in Japan, but now it’s spread to the U.S.  Nissan had to halt production at several plants in Japan because it cannot get engine computers from its supplier Hitachi, and now it’s closing two plants in the U.S., and could close them in Mexico. And Hitachi stopped shipping them because it can’t get the right integrated circuits from its supplier, STMicoelectronics, which is headquartered in Geneva, Switzerland. Electronics Weekly.com reports that the ASIC, or application-specific integrated circuits, control the fuel injection in cars like the Sentra and Altima.

IndyCar announced the new chassis teams will use starting in 2012, and once again it will be a Dallara. According to Autoblog, the Dallara beat out other entries from BAT, Lola, Swift and even this wild concept from DeltaWing. The new chassis is 185 pounds lighter, weighing a total of 1,380 pounds. IndyCar will allow teams to modify the bodywork, which includes aero kits for front and rear wings, sidepods and engine covers. The cost of the chassis is $350,000 – nearly half the cost of the current one. And with the engine IndyCar estimates the cost of the race car at less than one million dollars.

China’s auto industry has been booming for the last several years and a new report suggests that that will continue for some time to come. According to the People’s Daily, a study done by China’s State Council, the Society of Automotive Engineers and Volkswagen China, says that the golden age for the country’s auto industry will last another 20 years. The report says sales will reach 15 million this year and by 2030 sales will grow to over 35 million a year.

Moore’s Law states that the power of computers roughly doubles every two years.  Ford is proving this rule true with its SYNC system.  When the automaker introduced the hands-free infotainment technology three years ago it could understand about 100 commands.  Now, after working with voice-recognition company Nuance Communications, the latest generation of the system – called MyFord Touch – can recognize more than 10,000!  The newest version of the technology aims to be easier and more natural to use, so, for example, it recognizes direct commands like “call Autoline Daily” or “find a shoe store.”  There’s no need to first go to the telephone or navigation menus.  It also recognizes “aliases,” different commands for a common function.  For instance, if you’re on the climate control menu you could say “warmer,” “increase temperature” or “temperature up,” any of which will accomplish the same thing.  TALK about progress.

2011 BMW X3 (login required)
Tuesday we ran part of an interview we did with Richard Brekus, the head of sales at BMW North America.  In the sound bite he talked about some of the new products the company is developing, and one of the vehicles he mentioned was the X3.  Well, now BMW has released details and video of its redesigned crossover.  Overall it’s a little taller, wider and longer than the outgoing model, plus has more ground clearance.  In the U.S. you can expect it to be powered by a 3.0-liter straight six with 240 horsepower or a turbocharged version with 300 ponies.  Of course other markets in the world will get additional engine options, namely diesels.  Sending the power to the wheels is an eight-speed automatic transmission.  The 2011 BMW X3 will be built in the company’s Spartanburg, South Carolina plant.  Look for it to go on sale later this year.

After the break we’ll take a look at one of the new technologies supplier company Continental is working on.  Back right after this.

German supplier Continental makes all kinds of different components, from sensors and actuators to fuel pumps and control modules.  Many of these parts are necessary, but fairly unglamorous.  The average car buyer never sees any of them – but Conti also makes things that drivers interact with everyday, like switches and display screens.  One new technology under development aims to give car designers greater freedom over what they can do with vehicle interiors.

Continental is also a major supplier of instrument clusters.  OEMs ranging from Mercedes-Benz to Hyundai buy their components.  On this front the company is working on digital gauges, ones that can be programmed to show any kind of information automakers – or drivers – want.

In a conversation with one of the company’s engineers, we learned about a big challenge they faced in developing this prototype, and that was how to get the gauges to sweep across the screen smoothly.  She said it took a lot of work to get it right, and so did the small, reflective chrome accents at the base of the needles.

It will be interesting to see how automakers implement both of these technologies.  Several manufacturers already use digital instrument clusters – Jaguar has them on the brand-new XJ – but they’ll probably become the industry standard in a few years.

That report was filed by Autoline Daily’s Craig Cole.

Don’t forget to tune in to Autoline After Hours tonight at 7 p.m. Eastern Time when Jim Hall of 2953 Analytics will be joining us to talk about anything and everything going on behind the scenes in the automotive industry.

And that brings us to the end of this edition of Autoline Daily. Thanks for watching, we’ll see you tomorrow.

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20 Comments to “Episode 435 – Ford Shuffles Management Deck, Nissan Halts Production, 2011 BMW X3”

  1. dcars Says:

    I was wondering where Jim Hall has been. I hope your piping in extra oxygen for tonight show he usually is all.
    To bad that Indy cars is using only one car manufacturer at least they will use different engines.

  2. Don MacConnel Says:

    Ford’s voice recognition was already cool but with an extended vocabulary I wonder what it will do when I cuss out other drivers?

    Maybe it will say, “Calm down Don.”

  3. LEX Says:


    Carlos Ghosn must be going crazy about the lack of compononets from STMicoelectronics. Is this an example of the weakness in the Tier 2 and 3 supplier base which you have been mentioning in your broadcasts or a summer vacation cycle that does not match production schedules? Will this cause Nissan to rethink it’s entire supplier base and bring vital component production in house?

  4. pedro fernandez Says:

    mostly all oem’s have been depending too much on outside suppliers for vital components, hence the diminished quality in the Japanese brands, specifically fr the sake of saving production costs and increasing profits, maybe it is time for all of them to look inward a little more.

  5. G.A.Branigan Says:

    Wow…..Ford already had a winner with Sync,and now it’s getting even better.It took me less then 5 minutes to “sync” both my wifes and my cell phone to their vehicle system and it works great.Kudos Ford……….now when are ya coming out with a diesel ranger/f100?

  6. Salvador G. Says:


    I thought Peter Hofbauer was going to be tonight guest at AAH, not Jim Hall; or is it both???

  7. Chuck Grenci Says:

    Those digital instrument clusters are the ‘bomb’; the ECU’s have so much data than can be displayed on fixed instruments (so with a digital cluster you could more easily switch to alternate readouts, i.e. oil temp, transmission temp, various other pressures and temperatures that previously required separate gauges or displays. Hope to see this in future vehicle applications.

  8. pedro fernandez Says:

    GA: since the diesels don’t come to you, maybe you should move to where the diesels are. No? you like it just fine in the good ole USA w/o the diesels?

  9. Chuck Grenci Says:

    You know, I walk every morning (early) and even with the new diesel technology on some of the new trucks, I can alway tell when one passes by; they still stink (and it’s a lingering stink too). I think I am all for a very very strick emmissions requirement before letting them go mainstream. I can’t even imagine, if say, 20% of the vehicles were diesel, of what the air would be like.

  10. merv Says:

    Agree with Chuck,those digital gauges are the bomb for sure. Opens up all kinds of interesting options.Very exciting!

  11. Kit Gerhart Says:

    Chuck Grenci Says:
    July 15th, 2010 at 2:00 pm

    “You know, I walk every morning (early) and even with the new diesel technology on some of the new trucks, I can alway tell when one passes by; they still stink (and it’s a lingering stink too).”

    The diesel cars sold in Europe, and the few sold here by VW, BMW, and Mercedes are a lot cleaner than even the newest diesel trucks. I doubt if you’d smell one if it drove by while you are walking. Still, I suspect the Euro market cars are not clean enough that you’d want to fill LA with them.

  12. Alex Kovnat Says:


    >Moore’s Law states that the power
    >of computers roughly doubles every
    >two years.


    >Now, after working with voice-
    >recognition company Nuance
    >Communications, the latest
    >generation of the system –
    >called MyFord Touch – can recognize
    >more than 10,000 commands

    I’d be delighted if I could say ONE ZERO SIX POINT SEVEN and my car radio would go to The Beat of Detroit (106.7 FM). If on the other hand I were to say NINER FIVE ZERO it would automatically tune to WWJ. I would like also, if I could command the radio SAY ARTIST AND NAME OF SONG and the radio would tell me who’s singing what.

  13. vrmchris Says:

    @ lex,

    that is the biggest problem for the automotive industry. too reliant on outside suppliers for critical parts such as ecu. it has become ridiculous indeed.

    it is time that the automakers return to being more vertically integrated.


  14. Nick Stevens Says:

    I did a search all over the US at cars.com for E class Bluetechs and other E class Diesels. Only the 80s diesels are cheap, most 90s and 2000s models are over 15k and recent ones are above 20k, but some have low miles and might be a good choice for my next car.-unless I get a Prius minivan or…whatever bargain emerges in other models..

  15. pedro fernandez Says:

    From you can’t believe everything you read dept: Cars.com just published a list of the best used cars for under $10k and they left out Civic and Camry but included Ford”s Freestar and Five Hundred , Kia Optima and Mitsu Gallant, these so called experts are full of it.

  16. Nick Stevens Says:

    Pedro: I am quite surprised… since cars.com also links with CLick and Clack the funny MIT Italians who usually give sound advice.

    I wonder if they had any old Priuses or even Civic Hybrids in the best under $10k…

  17. Nick Stevens Says:

    “Peugeot’s new diesel-electric hybrid 508 sedan will be the greenest large car in Europe, the company says.

    (“large” in Europe means smaller than the current Camry or Accord, and a bit larger than the CIvic or COrolla.)

    Peugeot says the 508 hybrid will have CO2 emissions of 99 grams per kilometer and use of 3.8 liters per 100km (62 U.S. mpg).

    Is this AVERAGE? probably. IF this thing was #EVER US Street legal (don’t hold your breath, with our obscenely high standards for Diesels…) it would cost a bundle (I estimate around $40-50k) and have EPA ratings of 50 city and 55 hwy maybe.

    Currently, only smaller-sized cars such as the Toyota Prius and Auris gasoline-electric hybrids and diesel versions of the Volkswagen Polo and Smart ForTwo emit less than 100g/km of CO2.

  18. C-tech Says:

    Is Nissan’s situation due to trying to force cost cuts on suppliers and/or consolidation of supplier’s?

  19. Martin Says:

    New X3, great. No diesel for NA, FAIL! Why why WHYYYY does BMW not get that offering diesel engines in higher volume models will increase demand. And no BMW it doesnt have to be the massive 3.5L diesel. I’ve driven the smaller 2.0 and 2.5 diesels and they’re fantastic. An X3 2.5D would be a car i’d seriously consider to replace our 2005 X3.

  20. Nick Stevens Says:

    Martin: it’s a pure cost calc thatg BMW made and it made no sense to bring more diesels. It DID try with the excellent performance diesels on the X5 and the 335, but due to the very sringent Damned US emissions regulations, they are far more stringent than the also tough Euro ones, the modifications would cost $1000s and the fuel savings would EVAPORATE to almost all drivers.