FoMoCo said Friday that it is recalling a total of 130,000 Fusion and Mercury Milan sedan due to concerns that the wheel studs could crack and cause wheels to fall off. Pretty scary stuff here. The recall consists of 2010 and 2011 Ford Fusion and Mercury Milan models with 17-inch steel wheels- a total of 128,616 units are being recalled.

Ford is also recalling 2,940 steel wheels that were sold to dealers.

The company said that the steel wheel mounting pads may have been faulty and the wheel mounting face on rear brake discs could not have been attached properly.

In January, NHTSA opened an investigation into 317,000 Ford Fusion and Mercury milan units.

- By: Omar Rana

Source: Detroit news

When people have money but just don’t quite have enough, especially to dolly up for the $1 million-plus price tag of the legendary Bugatti Veyron, yet relentlessly want the car, sometimes individuals would do the unthinkable in order to get what they want. And that’s exactly what 25-year old Mike Duff from Florida did.

But instead of selling his left leg and kidney for e Bugatti Veyron, Mr. Duff took a normal and complete 2002 Mercury Cougar and more or less made a “Cougatti Veyron.”

Using fiberglass, composite material and a tubular steel frame, the body of the faux supercar was professionally painted and fitted to the Cougar. And Duff didn’t stop there. In order to avoid having an interior that’s exactly the same as the normal, cheap insides of the Cougar, Duff festooned everything in genuine high-quality leather.

Duff said the car took him about nine months from start to finish. With the end results, Duff is selling his “Cougatti” for around $89,000, which is a fraction of the price of the original Veyron.

Unfortunately however, despite the custom body work that actually doesn’t look quite terrible, the lethargic 2.5L V6 good for 170-hp in the Cougar still sits under the front hood driving the front wheels.

- By: Chris Chin

Source: TECCA

Here is some exciting (sarcasm intended) recall news for you this Monday morning. FoMoCo announced that it is recalling nearly 3,000 2007 Ford Five Hundred and Mercury Montego sedan to replace fuel the fuel tanks. Ford said the fuel tanks on 2,945 units may not have proper welds between the fuel tank and fuel filler neck, the NHTSA said.

As a result, some may not have enough strength to withstand a severe rear impact.

Ford said that while minor fuel leaks have been reported in a small number of warranty claims, no reports of crashes, injuries or fires have resulting.

Ford will start notifying owners on Aug. 15 and give them until Aug. 31 to file for reimbursement if they have previously replaced their fuel tank for the same issue.

- By: Omar Rana

Source: Detroit News

2010 Ford Escape

The wonderful folks over at NHTSA said that they have opened an investigation into 200,000 units of the Ford Escape and Mercury Mariner after getting complaints that the window glass in the liftgate shattered without warning. NHTSA said that it has received 18 complaints of liftgate window glass breakage on 2010-2011 Ford Escape and Mercury Mariner models.

NHTSA said “that the liftgate window glass shattered spontaneously, while opening the liftgate or while closing the liftgate. In one alleged injury incident, the complainant and her 10 year old son were cut by glass fragments.”

The agency noted in its statement that Ford had issued a technical service bulletin to its dealers on Nov. 22 addressing broken windows in 2010-2011 Escape and Mariner SUVs.

Hopefully Ford gets this cleared up soon.

- By: Omar Rana

Source: Detroit News

Mercury Cougar Turned Into Bugatti Veyron

Recently offered for auction, was a replica of a Bugatti Veyron, built upon a Mercury Cougar. While the two cars are perhaps the polar opposite of each other in terms of both style and performance, the owner of the vehicle was able to construct a replica that seems passable – at least at first glance.

The Veyron draws it power from 16-cylinders, and puts out 987bhp. All this sits on a four-wheel drive system. The 2002 V6 Cougar that was used however, puts out a paltry 168bhp, and has front-wheel-drive.

The starting bid asking price was a laughable $89,000. A bargain though, when compared to the close to $1,000,000 an actual Veyron would set you back.

Mercury Cougar Turned Into Bugatti Veyron:

- By: Stephen Calogera

Source: eBay Motors, PistonHeads

2010 Mercury Grand Marquis

FoMoCo today produced the last Mercury – a Grand Marquis, which rolled off the production line at 8 a.m. in the morning today at the company’s assembly plant in St. Thomas, Ontario. The sedan will be shipped out as part of a fleet order, according to Ford spokeswoman Marcey Evans said.

Production of the last Mercury was delayed due to snowstorms that pushed back parts shipments to the plant.

The plant will continue to produce the Ford Crown Victoria for taxi and police fleets until it closes in September 2011.

The Mercury Grand Marquis had been produced for 25 years at the plant. FoMoCo sold more than 21 million Mercury cars and light trucks in the United States since the brand made its debut with the 1938 model year.

- By: Omar Rana

Source: Automotive News (Subscription Required)

GM CEO Dan Akerson Rings Opening Bell at NYSE

Happy New Year’s Eve to all our readers. While you’ve been seeing many top 10 lists all over the Internet as we say farewell to 2010 one of the lists you’re most likely to come across on automotive sites are the Top 10 Cars of 2010…well, not here (we’ll do one too, don’t worry). We decided to do something a little different and create a top 10 list of the most important moments in the automotive industry of 2010.

Let’s get started…

1. General Motors’ IPO:

GM CEO Dan Akerson at New York Stock Exchange

• It was probably the most important automotive industry moment in 2010. On Nov. 3, 2010, General Motors announced that it has started the process of a public offering. On its opening day at the NYSE on Nov. 18, GM’s common stock made its debut at $35 a share and rose as high as $35.99 in early trading. The issue included 478 million shares of common stock, for a total of $15.77 billion, and 87 million shares of mandatory convertible junior preferred stock, for a total of $4.35 billion. As of Dec. 30, the stock stood at 36.82. GM’s shares still have to rise to nearly $49 for the government to break even.

2. First Nissan LEAF and Chevrolet Volt delivery:

2011 Nissan LEAF / 2011 Chevrolet Volt

• Electric-cars made huge headlines in 2010 with General Motors delivering the first Chevrolet Volt and Nissan delivering the first all-electric LEAF.

3. BP’s oil spill was one of the largest man-made disasters in histroy:

BP Oil Spill

• When your company is responsible for one of the largest disasters in history, you wouldn’t expect your public relations department to tweet, “Look, cut us some slack. We’ve kinda just been winging this whole ‘deepwater drilling’ thing.” Well, that’s because BP didn’t. Instead, the tweets came from comedian Josh Simpson. Nonetheless, CEO Tony Hayward hurt the company’s image by downplaying the damage and issuing statements like “it wasn’t our accident” and “I just want my life back” after 11 workers lost their lives in the explosion of oil rig Deepwater Horizon.

4. Toyota’s CEO apologizes to buyers:

• Toyota CEO Akio Toyoda apologized to the company’s shareholders in 2009, followed by an apology to Japan in early 2010. However, in late February 2010, Toyoda apologized to buyers during his trip to Washington and apologized to the House Committee on Oversight and Government Reform. “When the cars are damaged, it is as though I am as well,” he said. ”I sincerely regret that some people actually encountered accidents in their vehicles.”

5. Ford Explorer / Jeep Grand Cherokee show life to the SUV market:

2011 Ford Explorer / 2011 Jeep Grand Cherokee

• The 2011 Ford Explorer and the 2011 Jeep Grand Cherokee showed the automotive industry that American automakers can still build some of the best SUVs on the market. The 2011 Jeep Grand Cherokee became known as Chrysler Group’s pride and joy, while the 2011 Ford Explorer showed that America can sell SUVs in a new fuel-efficient manner.

6. Ford kills Mercury:

2010 Mercury Milan

• On June 2, 2010, FoMoCo announced that it will kill the Mercury brand with production of the brand coming to an end in the fourth quarter of 2010. The company said that it will allocate Mercury’s financial, product development, production and marketing, sales and service resources towards growing and enhancing its luxury Lincoln brand.

7. Bugatti Veyron 16.4 Super Sport breaks top speed record at 268 mph:

2011 Bugatti Veyron 16.4 Super Sport

• For all of us gear heads, this was probably one of the most important moments of 2010. The Bugatti Veyron 16.4 Super Sport received an increased horsepower from 1,001-hp to 1,200-hp with a maximum torque of 1,106 lb-ft. The folks at TUV and Guinness took the average of two runs (one at 265.3 mph and one at 269.6 mph), which came in at 268 mph. Click here for more info.

8. The USA gets its own Top Gear:

From L to R: Adam Ferrara, Tanner Foust, Rutledge Wood

• Another important moment for gear heads and fans of the UK Top Gear. The History Channel filled our desire of having our very own Top Gear in the United States starring Adam Ferrara, Tanner Foust, Rutledge Wood. The show aired on Nov. 21 and, according to us, still has some growing up to do to live up to the UK version. Here is our review of the first episode.

9. Ford sells Volvo to Geely / GM sells Saab to Spyker Cars:

2011 Volvo S60 / 2011 Saab 9-4X

• In 2010, we saw the sale of two Swedish brands from two American automakers. On January 26, 2010 General Motors and Spyker Cars announced that they have reached a binding agreement on the sale of Saab Automobile AB to Spyker Cars. A couple months later, on March 28, 2010, FoMoCo announced that it has entered into a definitive agreement to sell Volvo and related assets to Zhejiang Geely Holding Group Company Limited.

10. Bob Lutz retires:

Bob Lutz

• One of the most important figures in automotive history retired in 2010. General Motors confirmed on March 3, 2010 that Bob Lutz will officially leave his Vice Chairman position and retire as of May 1, 2010. On May 1, Lutz said:

As I mark my last day at General Motors today, I want to say a special thank you and farewell to the loyal readers of FastLane. This blog would not have been the success it has become without you, and I”m sure you”ll continue to read the many interesting posts about GM and its vehicles that will follow on these virtual pages.

I leave here today knowing full well that this company is on the right track, especially in terms of the products, which pave the path to success.

* Note: List is in no particular order.

- By: Omar Rana

For FoMoCo, the quicker the Mercury brand is wound down, the better. Ford is offering Mercury dealers a way to guarantee their cash settlements are secured by year”s end, but that would require all dealers to report their inventory as sold by November 12, and then sell off the remaining inventory as used vehicles. According to the company there are still about 1,294 Mercury dealers that remain in business.

Many dealers are reluctant to sign a settlement with Ford, because they are holding out for larger payments. Attorney”s representing dealers have seen settlement offers ranging from $100,000 to $800,000. Ford says that it will reimburse dealers 100% for parts, and that dealers may also keep and sell those parts.

Currently, Ford has a 35-day supply of Mercury vehicles, or well under 10,000 as the company puts it. It is expected that Ford will be sold out of any remaining Mercury vehicles by mid-December. Through October of this year, Mercury has shown a 4% increase in sales from last year.

- By: Stephen Calogera

Source: Automotive News (Subscription Required)

2010 Mercury Milan

According to FoMoCo’s sales analyst George Pipas, the Dearborn automaker today ended production of Mercury passenger cars and SUVs for retail customers. The last retail 2011 Mercury Mariner was built in Kansas City, said Pipas.

Additional Mercury models will roll of the production line by the end of the year, but those will go to fleet customers including corporate, the government and rental car agencies.

However, if you think that the end of Mercury’s production means some nice bargains for you, think again. Many Mercury models have lost their bonus cash offers and FoMoCo seems to be compensating that by offering customers free basic maintenance programs on select models.

Separately, in August, FoMoCo produced 9,039 new Mercurys – an increase of 120.2 percent month-over-month. Mercury even outsold Lincoln by nearly 9% in total volume in that same month.

- By: Omar Rana

Source: DriveOn

From L to R: Alan Mulally, Sergio Marchionne, Ed Whitacre (replaced by Akerson)

As expected auto sales cooled off during the month of August with the overall sales down 21 percent.

“The car market and the overall economy are pretty weak,” said Joe Phillippi, principal of consulting firm AutoTrends in Short Hills, N.J. “Showroom traffic is down. We still have issues on the margin with some people not being able to get credit, and people are nervous.”

FoMoCo’s Ford, Lincoln and Mercury dealers delivered 157,503 new vehicles in August, down 11 percent versus a year ago, when FoMoCo outpaced the industry during the “Cash for Clunkers” sales program.

“Ford continues to outperform the overall industry,” said Ken Czubay, Ford vice president, U.S. Marketing, Sales and Service. “In this market, consumers are looking for vehicles that offer industry-leading quality, fuel economy, safety and technologies, and growing numbers of them are turning to Ford.”

August sales for Chevrolet, Buick, GMC and Cadillac were down by a combined 11 percent to 184,921 units, compared to August 2009, a month in which the automotive industry experienced the highest level of sales in 2009 due to the Cash for Clunkers stimulus program. Compared to July 2010, sales for GM”s brands were down 7 percent.

“Last year”s Cash for Clunkers program spiked industry sales in 2009, so results this August were, not surprisingly, a bit mixed,” said Don Johnson, vice president, U.S. Sales Operations. “Importantly, three of our four divisions showed solid gains. This is further evidence that our performance is the result of balanced contributions across our brands.”

Chrysler Group LLC reported U.S. sales of 99,611, a 7 percent increase compared with sales in August 2009, making it the only major auto manufacturer to post a year-over-year sales increase in August.

When it comes to Japanese automakers, Toyota’s sales were down 34 percent, Honda was 33 percent and Nissan was down 27 percent.

- By: Omar Rana

As FoMoCo moves forward with winding down the Mercury brand, the company has extended the dealer cash program on all Mercury models through September as dealers try to get rid of their last remaining units.

The program, which gives new car shoppers $1,500 per vehicle, was scheduled to end August 31. Ford announced on June 2 that it will shutdown Mercury by Dec. 31 and said that it planed to sell all remaining units of the brand by the end of the year.

“We are continuing to provide strong sales tools to our dealers so they are able to remain competitive in the marketplace,” Ford spokesman Steve Kinkade said.

- By: Omar Rana

Source: Automotive News (Subscription Required)

2011 Buick LaCrosse CXS

Here is something you probably wouldn’t expect to hear about American automakers. According to a study by the American Customer Satisfaction Index released Tuesday, FoMoCo’s Lincoln, Mercury (which is now dead) brands and General Motor’s Buick brand received the highest customer satisfaction rankings among all automakers over the past 18 months.

Overall, vehicle satisfaction dipped from an all-time industry high of 84 in 2009 to 82 this year on a scale of 0-100.

Lincoln, Mercury and Buick topped the list for the first time ever on the survey, while Chrysler continued to struggle along with Dodge and Jeep at the bottom. General Motors’ Chevrolet brand also scored below the industry average but GMC was up 2 points to 84.

Coming in behind Lincoln and Buick were BMW, off by 1 point – Mercedes-Benz, which remained unchanged and Cadillac, which was down 3 points.

- By: Stephen Calogera

Source: Automotive News (Subscription Required)

We heard last month that shutting down the Mercury brand will cost FoMoCo around $500 million. The Dearborn automaker’s CFO said that it has already spent $247 million in the first half of 2010 to cover the cost of ongoing dealer reductions and other costs related to killing Mercury.

According to latest reports, FoMoCo might just have to pay out a little more because many dealers are reluctant to sign their settlement and are looking for larger payouts. Lawsuits are very possible and negotiations between many dealers and FoMoCo are certain.

Many dealers say they don’t like the offers they’ve received from Ford. Dealer lawyers say they have seen offers ranging from $100,000 to $800,000 – however, Ford has declined to comment on the amounts.

Of the 1,712 Mercury dealerships, about 700 have signed Ford’s compensation agreement, the company says.

- By: Omar Rana

Source: Automotive News (Subscription Required)

From L to R: Alan Mulally, Sergio Marchionne, Ed Whitacre

As major automakers close out the month of July 2010, most are reporting a positive sales growth for the seventh month of the year. All of Detroit’s Big 3 automakers reported an increase in July.

GM said that July sales for Chevrolet, Buick, GMC and Cadillac increased by a combined 25 percent to 199,432 units. Buick and Cadillac brands each sold more than twice as many vehicles in July, compared with the same month in 2009. July marks the 10th straight month in which total and retail sales for GM”s brands increased year-over-year.

FoMoCo’s Ford, Lincoln and Mercury dealers delivered 166,092 new vehicles in July ““ a 5 percent increase versus a year ago. Year-to-date sales totaled 1.12 million, up 24 percent.

Last but not least, Chrysler Group reported U.S. sales of 93,313, a 5 percent increase compared with sales in July 2009. July represents the fourth consecutive month of year-over-year sales increases.

- By: Omar Rana

Ford, which announced a second quarter 2010 net income of $2.6 billion, estimates that it will spend nearly $500 million to shutdown its Mercury brand, CFO Lewis Booth said. Speaking to Automotive News Booth, said that Ford spend $247 million in the first half of 2010 to cover the cost of ongoing dealer reductions and other costs related to shutting down the Mercury brand.

He estimates the total cost to close the brand will be twice that amount. Booth said no dealer lawsuits have been filed against Ford for the shutdown of Mercury.

“The plan is in place and we’re having very fruitful discussions with our dealers,” Booth said.

Ford announced in June that it will kill Mercury and allocate the resources to focus all of its attention on Ford and Lincoln.

- By: Omar Rana

Source: Automotive News (Subscription Required)

2010 Mercury Milan

On June 2nd, FoMoCo surprised (but something that was long expected) the auto industry by announcing that it will kill the Mercury brand. Ford now says that it will begin the wind-down of Mercury production in late September, completely shutting down the 71-year-old brand and dealer network by Dec. 31.

Mercury dealers submitted their final factory orders last month and expect to take deliveries of those vehicles in about 30 days. If a dealer wants more stock after that, they will have to contact other dealers.

FoMoCo has 1,712 Mercury dealerships in the United State but none of them were stand-alone stores. However, Ford is offering Mercury dealers a cash settlement after they get rid of their remaining inventory. The compensation ranges from low thousands to about $1 million depending on the size of the dealership.

FoMoCo now says that it will concentrate all of its resources and money to its Ford and Lincoln brand.

- By: Stephen Calogera

Source: Automotive News (Subscription Required)

2010 Mercury Milan

Historically, the discontinuation of an automotive brand, means trouble for the resale values of the cars already in circulation, but not so much is the case with Mercury, which is expected to be discontinued as a Ford label by the end of the year. While resale prices of Mercury vehicles will certainly be hurt, resale price predicting service ALG says that we can expect the blow to be a lot less sever than what other automakers have seen.

Two major factors contribute to this; there are not many Mercuries on the road – .8% of new cars sold are Mercury vehicles – , and the brand is similar enough to Ford that there is a negligible difference between the brands.

Resale values of discontinued brands typically drop 3% to 5%, but ALG expects only a 2.5% to 3% drop in Mercury vehicles.

- By: Stephen Calogera

Source: USAToday

2011 Ford F-Series Super Duty

FoMoCo announced today that its retail sales were up 15 percent in June 2010 versus a year ago, helping the company gain retail market share for the 20th time in the last 21 months.

“New products continue to drive Ford”s success,” said Ken Czubay, Ford vice president, U.S. Marketing, Sales and Service. “Ford and its dealers continue to offer customers the strongest value proposition ““ leading fuel economy, quality and resale value on a wide range of vehicles. That”s why our business is growing.”

Ford sold 170,900 Ford, Lincoln, Mercury and Volvo brand vehicles in June, bring its first half-year total to 954,745.

Click through for the press release for more details.

Press Release:

FORD DELIVERS STRONG, BALANCED SALES IN FIRST HALF 2010; NEW SUPER DUTY, MUSTANG PACE JUNE SALES GROWTH

* Ford, Lincoln and Mercury first half sales totaled 954,745, up 28 percent versus year ago; June sales totaled 170,900, up 15 percent
* New 2011 F-Series Super Duty and Mustang models are off to a fast start. Super Duty sales were up 58 percent in June versus year ago; Mustang retail sales increased 37 percent
* First Fiestas delivered to U.S. customers
* Ford”s retail market share continues to grow for the 20th time in 21 months as buyers turn to Ford”s fresh lineup of high-quality, fuel-efficient vehicles; Ford brand now has the highest initial quality among all non-luxury brands, according to J.D. Power and Associates” 2010 Initial Quality Study

DEARBORN, Mich., July 1, 2010 ““ Ford”s newest models helped the company conclude a strong first half as Ford, Lincoln and Mercury dealers delivered 170,900 new vehicles in June ““ a 15 percent increase versus a year ago. Year-to-date sales totaled 954,745, up 28 percent with growth across Ford”s full family of cars (up 27 percent), utilities (up 24 percent) and trucks (up 32 percent).

Sales for the 2011 F-Series Super Duty were 58 percent higher than a year ago, capturing more than 50 percent of the heavy duty pickup segment ““ believed to be the first time since year 2000 that Super Duty has achieved a 50 percent share.

Retail sales for the Mustang were 37 percent higher than a year ago. Since the arrival of the 2011 model, featuring new V-6 and V-8 engines that deliver more horsepower and improved fuel economy, Mustang”s share has climbed to a level not seen in 13 months.

Another new product, the Ford Fiesta, is on its way to U.S. dealers and their customers. Highly-acclaimed in Europe and Asia, the Fiesta is the first car developed by ONE Ford”s global product development system.

In June, Ford retail sales were up 15 percent versus a year ago, and Ford gained retail market share for the 20th time in the last 21 months. Fleet sales also were up 15 percent, primarily reflecting higher sales of Ford”s hard-working trucks to commercial customers.

Strength Across the Lineup
Once again, sales were higher throughout Ford”s lineup in June ““ continuing a trend that began in December. Trucks paced the year-to-year results with a sales increase of 25 percent, while cars were up 16 percent and utilities increased three percent. Year-to-date, car sales were up 27 percent, utilities grew 24 percent, and trucks were up 32 percent.

Other sales highlights include:

* Demand for the Ford Fusion, Motor Trend”s Car of the Year, remains strong as sales of 18,412 nearly matched last June”s record. Ford Taurus sales totaled 6,607 in June, up 191 percent and Ford Focus sales were up 20 percent.
* With sales of 46,502, Ford”s F-Series posted a 29 percent sales increase in June. Year-to-date, F-Series sales totaled 240,345, up 34 percent. F-Series is the only vehicle sold in the U.S. to surpass 200,000 sales in the first half of 2010.
* Utility vehicles also posted higher sales. Ford Edge was up six percent, Escape was up one percent, and Mariner was up 35 percent. Ford Escape is America”s best-selling utility vehicle. Sales for the Ford Explorer (up 28 percent), Mercury Mountaineer (up 31 percent) and Lincoln Navigator (up 14 percent) also were higher than a year ago.

- By: Stephen Calogera