1
00:00:03,240 --> 00:00:06,640
Speaker 1: Global business news twenty four hours a day. If Bloomberg

2
00:00:06,680 --> 00:00:09,760
Speaker 1: dot com, the Radio plus mobile app and on your radio.

3
00:00:10,000 --> 00:00:14,480
Speaker 1: This is a Bloomberg Business Flash from Bloomberg World Headquarters.

4
00:00:14,600 --> 00:00:17,439
Speaker 1: I'm Charlie Pellot, the Dollins and Pierre Higher naz Deak

5
00:00:17,440 --> 00:00:19,680
Speaker 1: lower on this update brought to you by Anson Block

6
00:00:19,720 --> 00:00:23,160
Speaker 1: and Ansion name the best accounting firm in North America

7
00:00:23,280 --> 00:00:25,720
Speaker 1: for the six year in a row by hedge week

8
00:00:25,840 --> 00:00:27,920
Speaker 1: dot Com. Now let's head over to the First Word

9
00:00:27,960 --> 00:00:31,480
Speaker 1: Breaking news desk for today's afternoon call, and here is

10
00:00:31,560 --> 00:00:35,680
Speaker 1: Bill Maloney. Good afternoon, Charlie. Big reversal today for you

11
00:00:35,800 --> 00:00:38,800
Speaker 1: as stocks with the Dow currently higher by seventy three

12
00:00:38,800 --> 00:00:42,360
Speaker 1: point scipes Game three and NAZAC falls a point at

13
00:00:42,360 --> 00:00:44,519
Speaker 1: one point, the Dow is down a hundred and sixty

14
00:00:44,600 --> 00:00:47,440
Speaker 1: nine points up of market School is lower despite his

15
00:00:47,560 --> 00:00:50,239
Speaker 1: surge in the last hour of trade. Italy fell one

16
00:00:50,360 --> 00:00:52,879
Speaker 1: percent and the U S small cap six hundred is

17
00:00:52,920 --> 00:00:55,960
Speaker 1: down three points. The US tenniel at one point five

18
00:00:56,040 --> 00:00:59,040
Speaker 1: six percent, held the key test of the February lows,

19
00:00:59,040 --> 00:01:01,880
Speaker 1: and seven out of n SB sectors are higher, led

20
00:01:01,920 --> 00:01:05,920
Speaker 1: by gains and telecom, utilities and consumer staples. Industrials and

21
00:01:06,160 --> 00:01:10,600
Speaker 1: energy led to the downside. Down Transports fault six, Nazi,

22
00:01:10,640 --> 00:01:13,960
Speaker 1: botexs lose six, and the vix is a little changed.

23
00:01:14,240 --> 00:01:17,480
Speaker 1: Down Leaders included Mark three M and Microsoft, Nike and

24
00:01:17,640 --> 00:01:21,679
Speaker 1: Boeing led to the downside. Look for Oral, Look for Oracle.

25
00:01:21,840 --> 00:01:24,920
Speaker 1: Results after the bell estimates are four eighty two cents

26
00:01:24,959 --> 00:01:28,200
Speaker 1: on revenues of ten point four seven billion. Live on

27
00:01:28,240 --> 00:01:30,560
Speaker 1: the first Breaking news task on Bill Maloney, Charlie, all right,

28
00:01:30,600 --> 00:01:33,520
Speaker 1: thank you to hear live breaking news over your Bloomberg

29
00:01:33,560 --> 00:01:36,920
Speaker 1: type squawk s q U A w K on your terminal.

30
00:01:37,280 --> 00:01:43,160
Speaker 1: I'm Charlie Palaton. That's a Bloomberg business flash. You're listening

31
00:01:43,200 --> 00:01:48,680
Speaker 1: to taking start with Fox on Bloomberg Radio. It's the

32
00:01:48,840 --> 00:01:53,200
Speaker 1: crown jewel of the Ford Motor Company. It's best selling model,

33
00:01:53,400 --> 00:01:58,200
Speaker 1: certainly in the truck category, the Ford F one fifty.

34
00:01:58,840 --> 00:02:02,000
Speaker 1: Our reporter John lipp It, though for Bloomberg News, has

35
00:02:02,120 --> 00:02:05,200
Speaker 1: found in his story. He reported on for Bloomberg Today

36
00:02:05,600 --> 00:02:08,960
Speaker 1: that some versions of the new F one fifty still

37
00:02:09,040 --> 00:02:14,399
Speaker 1: don't meet the government's twenty sixteen admission and fuel economy mandates.

38
00:02:14,400 --> 00:02:18,720
Speaker 1: And this is a problem because by those hurdles, those

39
00:02:18,760 --> 00:02:23,080
Speaker 1: fuel mandates will become much more stringent. John, Welcome to

40
00:02:23,160 --> 00:02:28,080
Speaker 1: taking stock and congratulations on a very interesting story. So

41
00:02:28,160 --> 00:02:30,240
Speaker 1: what is it the heart of this? What kind of

42
00:02:30,880 --> 00:02:32,840
Speaker 1: what kind of problems did you turn up and how

43
00:02:32,840 --> 00:02:36,320
Speaker 1: did you do it? Well? I had the heart. It

44
00:02:36,360 --> 00:02:39,760
Speaker 1: is just I guess if you took a poll, everybody

45
00:02:39,760 --> 00:02:41,720
Speaker 1: would say I'm in a a favorite of clean air. But

46
00:02:43,360 --> 00:02:45,320
Speaker 1: the question is was it take to get that? And

47
00:02:45,680 --> 00:02:48,000
Speaker 1: so we're talking about the Crown Jewel. As you said,

48
00:02:48,200 --> 00:02:50,720
Speaker 1: you know, the a half of for its North American

49
00:02:50,720 --> 00:02:54,600
Speaker 1: profit is wrapped up in these big pickups. And big pickups.

50
00:02:55,440 --> 00:02:58,520
Speaker 1: You know, they have four wheel drives, they have town capability,

51
00:02:58,560 --> 00:03:00,200
Speaker 1: they have all this stuff, and plus are not very

52
00:03:00,240 --> 00:03:03,560
Speaker 1: good aerodynamically. So it's just harder to move the needle

53
00:03:04,240 --> 00:03:06,760
Speaker 1: on a big pick up than it is on a

54
00:03:06,840 --> 00:03:09,919
Speaker 1: Ford Focus. So it's not and we've got to point out,

55
00:03:09,960 --> 00:03:12,960
Speaker 1: I mean, it's not just Forward that's struggling, because it's

56
00:03:12,960 --> 00:03:16,600
Speaker 1: everybody and um and and the government is you know,

57
00:03:17,440 --> 00:03:20,040
Speaker 1: they're showing no signs of backing off. I mean Obama

58
00:03:20,080 --> 00:03:23,000
Speaker 1: has has said fifty four point five miles from bawling

59
00:03:23,680 --> 00:03:28,320
Speaker 1: as a as a corporate average, and that's where the

60
00:03:28,320 --> 00:03:32,560
Speaker 1: government intends to go John, I just want to offer

61
00:03:32,600 --> 00:03:35,680
Speaker 1: a statement from Ford because we contacted them, of course

62
00:03:35,760 --> 00:03:39,080
Speaker 1: because of the story. Uh. They said that Bloomberg's F

63
00:03:39,280 --> 00:03:42,800
Speaker 1: one fifty story is wrong. They said that Ford exceeds

64
00:03:42,840 --> 00:03:45,160
Speaker 1: fuel economy standards and the F one fifty is a

65
00:03:45,240 --> 00:03:49,839
Speaker 1: strong positive contributor to Ford's fuel economy compliance and say

66
00:03:49,880 --> 00:03:53,080
Speaker 1: that the F one is also has best in class

67
00:03:53,120 --> 00:03:57,120
Speaker 1: gasoline fuel economy customs, recognizing F one fifties best in

68
00:03:57,160 --> 00:04:00,560
Speaker 1: class capability and fuel efficiency with strong and grow sales

69
00:04:00,560 --> 00:04:05,320
Speaker 1: while major competitors are losing market share end quote. What

70
00:04:05,600 --> 00:04:09,240
Speaker 1: is your response? Well, I think that I think that

71
00:04:09,600 --> 00:04:15,040
Speaker 1: the forward, I mean we our headline said the fifty

72
00:04:15,120 --> 00:04:19,120
Speaker 1: has a big problem, right and forward that that's the

73
00:04:19,200 --> 00:04:22,560
Speaker 1: core of They're saying that that headline implies that the

74
00:04:22,720 --> 00:04:26,840
Speaker 1: entire program is auto compliance now and so on and

75
00:04:27,040 --> 00:04:29,560
Speaker 1: and and that's notw what're that's how the story says.

76
00:04:29,560 --> 00:04:33,400
Speaker 1: So so when we use the word problem, we're saying, um,

77
00:04:33,560 --> 00:04:36,520
Speaker 1: after having spent a lot of money in six years

78
00:04:36,560 --> 00:04:39,400
Speaker 1: to redesign and put aluminum body for you know, a

79
00:04:39,480 --> 00:04:44,080
Speaker 1: lot of technology, after having done all this, there the

80
00:04:44,160 --> 00:04:49,279
Speaker 1: program as a whole complies UM. But as Kathleen said

81
00:04:49,320 --> 00:04:53,640
Speaker 1: that in the intro, everything gets much harder. So right

82
00:04:53,680 --> 00:04:56,720
Speaker 1: now a truck you know sort of average f one

83
00:04:56,760 --> 00:04:59,800
Speaker 1: fifty is about twenty four miles again, requirement that goes

84
00:04:59,839 --> 00:05:04,839
Speaker 1: to thirty three. And so I'd say they ran the

85
00:05:04,880 --> 00:05:07,920
Speaker 1: Olympics um to get to this point, and now they've

86
00:05:07,920 --> 00:05:10,240
Speaker 1: got to run the Olympics, you know, a bunch more

87
00:05:10,279 --> 00:05:12,320
Speaker 1: times in order to keep up with where the government

88
00:05:12,400 --> 00:05:16,120
Speaker 1: is taking these regulations. And of course um you cite

89
00:05:16,600 --> 00:05:21,560
Speaker 1: a report by Barkley's analysts Brian Johnson, another piece of

90
00:05:21,600 --> 00:05:27,560
Speaker 1: research from Gopaul Dooley from HD Systems. So is this

91
00:05:27,760 --> 00:05:31,279
Speaker 1: I'm just curious if the information they got is something

92
00:05:31,320 --> 00:05:35,240
Speaker 1: that's publicly available and it's you're saying four Just this

93
00:05:35,480 --> 00:05:38,880
Speaker 1: kind of disputes how the problem is described or how

94
00:05:38,880 --> 00:05:42,719
Speaker 1: the issue is described rather than saying it's wrong. And

95
00:05:42,760 --> 00:05:45,520
Speaker 1: if that's the case, what do they say about saying no,

96
00:05:45,680 --> 00:05:50,039
Speaker 1: we can meet these targets? Well, forward, yeah, Forward is

97
00:05:50,120 --> 00:05:56,800
Speaker 1: saying that they will meet um um regulatory requirements. There

98
00:05:57,080 --> 00:05:59,000
Speaker 1: you know, they're meeting them now and will continue to

99
00:05:59,000 --> 00:06:01,240
Speaker 1: do so. And we when in the story, you know

100
00:06:01,279 --> 00:06:05,920
Speaker 1: they've got hybrid pick up coming they're looking at diesel.

101
00:06:05,960 --> 00:06:08,120
Speaker 1: They may even put a four cylinder in the F

102
00:06:08,279 --> 00:06:11,080
Speaker 1: one fifty for the first time in the US. So

103
00:06:11,320 --> 00:06:15,719
Speaker 1: I mean they've got a lot of uh technology that's coming.

104
00:06:15,800 --> 00:06:19,120
Speaker 1: But it's not just I mean, I mean in a

105
00:06:19,200 --> 00:06:22,440
Speaker 1: way for them to say we will meet the standard,

106
00:06:22,920 --> 00:06:27,760
Speaker 1: it's it's um um, it's it's it's sort of true

107
00:06:27,760 --> 00:06:31,200
Speaker 1: by definition because if you if you don't meet the

108
00:06:32,120 --> 00:06:35,159
Speaker 1: admission standard, you can't sell the truck and then basically

109
00:06:35,480 --> 00:06:37,720
Speaker 1: boards out of business. Sean, I just want to we

110
00:06:37,760 --> 00:06:39,840
Speaker 1: only have a limited amount of time. I just want

111
00:06:39,839 --> 00:06:41,680
Speaker 1: to get your thoughts here. Just could you explain to

112
00:06:41,720 --> 00:06:44,400
Speaker 1: people in about thirty seconds what the methodology was that

113
00:06:44,440 --> 00:06:47,599
Speaker 1: you used in order to come up with the details. Well,

114
00:06:47,680 --> 00:06:52,720
Speaker 1: the methodology, I mean working with UMP to leave in

115
00:06:52,800 --> 00:06:57,720
Speaker 1: others is just the targets around public by footprint on.

116
00:06:58,279 --> 00:07:02,480
Speaker 1: You add up to targets and into U I mean,

117
00:07:02,520 --> 00:07:05,200
Speaker 1: you add up to performance into a corporate average and

118
00:07:05,200 --> 00:07:06,760
Speaker 1: it needs to see how it comes out. I mean,

119
00:07:06,760 --> 00:07:11,080
Speaker 1: so the methodology is pretty straightforward. So in words to

120
00:07:11,720 --> 00:07:16,840
Speaker 1: measuring the performance of the truck now against the standards

121
00:07:16,840 --> 00:07:18,640
Speaker 1: as you have pissed now and then saying and what

122
00:07:18,800 --> 00:07:23,120
Speaker 1: happens when the standard moves higher going forward. Thank you

123
00:07:23,240 --> 00:07:28,440
Speaker 1: very much. John Lippert, automotive reporter for Bloomberg News, speaking

124
00:07:28,480 --> 00:07:31,600
Speaker 1: about Ford Motor Company. It's f one FI shares of

125
00:07:31,720 --> 00:07:35,840
Speaker 1: Ford up ten cents right now th eleven cents for Ford.

126
00:07:36,120 --> 00:07:45,960
Speaker 1: You're listening to taking Stock on Bloomberg Radio. Bloomberg taking

127
00:07:45,960 --> 00:07:48,040
Speaker 1: Stock is brought to you by New York Community Bank.

128
00:07:48,120 --> 00:07:50,760
Speaker 1: Asked about their my community in just checking with free

129
00:07:50,800 --> 00:07:53,840
Speaker 1: New York Community Bank online and mobile banking. Earn more,

130
00:07:53,960 --> 00:07:57,080
Speaker 1: get more of is it my NYCB dot com for

131
00:07:57,360 --> 00:07:57,920
Speaker 1: details