Tag: Ford

Latest Headlines

Haier opens Russian fridge factory, as GE close nears today; Ford shakes up China; and ‘you were hot’ at Dallas Roadhouse
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Two employees work on an Appliance Park spray line in 1953, two years after construction started. China-based Haier could close on its $5.4 billion purchase of the GE complex today.

A news summary, focused on big employers; updated 3:13 p.m.

GE: Haier has opened a new refrigerator factory in Russia to serve increasing demand from the European market. The new plant is the first joint Sino-Russian business project in a non-energy field (China.org). Back in the U.S., Haier wants its product development model to be more collaborative with its supply chain (Plastic News). The Chinese company could close on its $5.4 billion purchase of GE’s appliance business as soon as today. Meanwhile, GE is considering scrapping annual raises, as well as the longstanding and much-imitated system of rating employees on a five-point scale — moves that could lead other major companies to reconsider their own compensation plans (Bloomberg).

FORD reshuffled China sales leadership: Dave Schoch, group vice president and president of Asia Pacific, will take over and add the title of chairman and chief executive officer, Ford China. “As our growth plans in China have developed, this market is delivering an increasingly important portion of our revenue and profits globally,” CEO Mark Fields said. “Elevating the reporting of this business right now reflects China’s importance in our profitable growth plan going forward” (press release). Ford shares were up 1.2% to $13.19 40 minutes before the closing bell.

KFC will temporarily close at least some of its 12 restaurants in the southern African nation of Botswana this week after being placed under partial bankruptcy liquidation. Franchiser VPB Propco said it had been trying to the sell the restaurants for the past year without success, and the only option left was to shutter them, eliminating 400 jobs (Bloomberg). KFC clarified that the liquidation will not affect its business in neighboring South Africa (AFK Insider).

BROWN-FORMAN: Two of the newly appointed members of the board of directors — Campbell Brown and Marshall Farrer — have disclosed stock holdings in the family controlled spirits and wine company. Brown listed sole ownership of 805,313 Class A shares, and 312,208 Class B shares (SEC document). Farrer listed sole ownership of 315 Class A shares, and 116 Class B (SEC document). Both men also disclosed beneficial ownership of thousands of other A and B shares, but because some are counted twice as a result of overlapping trusts, it’s unclear how many shares are involved.

Fortune 500The new Fortune 500 list of the biggest-revenue companies includes three in Louisville. HUMANA (No. 52); YUM (218); and KINDRED (372). They all appeared on the magazine’s list last year, too. Walmart held onto the No. 1 spot in the rankings published today (Fortune).

TEXAS ROADHOUSE: A customer at a Dallas area restaurant regrets a missed opportunity for romance with another diner. “I was sitting outside with my two boys waiting to be seated,” he wrote in the Craigslist Missed Connections section. “You came out and we locked eyes. . . . You then asked if you knew me! You were hot, but I was honest and said no. I wouldn’t mind getting to know you tho! 😉 tell me what you looked like or what you were wearing” (Craigslist Dallas).

In other news, the late boxing heavyweight and humanitarian Muhammad Ali will be buried Friday at Cave Hill Cemetery, a decision the Louisville native made that will raise the profile of the storied burial ground. Ali died late Friday at a Phoenix hospital after a long battle with Parkinson’s disease. He was 74, and lived principally in Phoenix. His family asked that expressions of sympathy take the form of donations to the Muhammad Ali Center downtown (WFPL). About the Muhammad Ali Center.

The Dow Jones Industrial Average and other major stock indices rose shortly before noon as investors look toward a speech by Federal Reserve Chairwoman Janet Yellen (Google Finance). All 11 big employers in Boulevard’s Stock Portfolio were trading higher.

Photo, top: University of Louisville Digital Collections.

Snapshot

In Appliance Park sale, a long chapter in local history comes to a bittersweet conclusion
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Construction underway on GE Appliance Park in 1952, in this aerial view from the University of Louisville Photo Archives.

China’s Haier Co. may close on its $5.4 billion purchase of the iconic 65-year-old Appliance Park as soon as Monday. Built during the rapidly growing post-World War II economy, the 1,000-acre park churned out dishwashers and other home appliances for the burgeoning baby boom generation. Construction started in 1951.

With Ford and other big local manufacturers, GE launched a solid middle class that became the foundation of Louisville’s economy. At one time, the park employed 25,000 workers. It was a self-sufficient city providing many of its own needs, right down to mail handling. (In 1953, it got its own Zip Code: 40225.)

But that started to ebb in the 1970s, as manufacturers sought cheaper labor by moving production overseas. Appliance Park now employs only 6,000 workers. Service jobs have become the fastest-growing part of Louisville’s economy. But they’re often part-time and don’t pay as well as factory work once did.

GE women working
Women work on the pickling and spray booth line in this 1953 photo, also from the photography archives.

Manufacturing employment last peaked in the Louisville metro area in 1999, when there were an average 95,000 jobs, according to the Bureau of Labor Statistics. It then fell to a low of 60,900 in 2010, when the economy was still recovering from the Great Recession. The better news is that it’s crept up every year since, to 76,500 last year. But it’s extremely unlikely it will ever return to the glory days of 1951, when Appliance Park was king.

Factory jobs

Latest Headlines

B-F closes $405M BenRiach deal; Bezos says Amazon isn’t gunning for UPS — but he wants ‘better prices’; and Taco’s new Chalupa is one of ‘grossest fast food items ever offered’
BenRiach Distillery
The distillery is in the Highlands of northern Scotland.

A news summary, focused on big employers; updated 3:47 p.m.

BROWN-FORMAN said today it had completed its previously announced acquisition of Scotland’s BenRiach Distillery Co. for £281 million ($405 million). The deal includes three BenRiach labels and brings Brown-Forman back into the single-malt scotch whisky business. “The GlenDronach, BenRiach, and Glenglassaugh single-malt brands are among the finest single malts in the world,” CEO Paul Varga said in a statement. The purchase includes three distilleries, a bottling plant, and the headquarters in Edinburgh. BenRiach was founded in 1826 — 44 years before Brown-Forman was launched (press release). Today’s announcement follows a published report two weeks ago that the Louisville spirits and wine company is considering selling its Finlandia vodka business amid a broader effort to focus on whiskey. Brown-Forman’s Louisville operations.

Jeff Bezos
Bezos

AMAZON CEO Jeff Bezos told a high-profile technology conference last night that the retail giant isn’t aiming to compete head-on with UPS and other shippers it now partners with. Instead, Amazon wants to pick up the slack when delivery services can’t handle the final stretch. He cited India and the U.K. as examples. “We have had to take over a lot of the last-mile delivery in the U.K. over the last several years,” he told the Code Conference, in wide-ranging remarks. “The Royal Mail ran out of capacity at peak” (Bloomberg). Bezos did, however, hint at another motivation: wrangling better terms on delivery contracts. “Better prices on transportation would be acceptable to us,” he deadpanned (Recode). The Amazon founder was “equally comic, candid, and clever as he offered his views on artificial intelligence, data privacy, free speech, leadership, streaming video, and aerospace” (Fortune).

Elsewhere, Amazon is hiring more than 1,000 workers for its new 855,000 square-foot distribution center opening this summer outside San Antonio; the company already has six other Texas centers, including another one in the San Antonio area (Houston Chronicle). Amazon has five centers in Kentucky, including two in the Louisville area employing 6,000. And with more than 20,000 workers, UPS is Louisville’s biggest private employer.

TACO BELL‘s newest menu offering — a Chalupa with a fried chicken shell — is one of the “grossest fast food items ever offered” (New York Daily News). How it’s made (BuzzFeed). Also, the company has started construction on a restaurant in Nitro, West Virginia (WSAZ).

Ford logoFORD recalled 1.9 million vehicles with certain Takata passenger-side frontal airbag inflators after Takata said the inflators were defective. The vehicles affected are 2007-2010 Ford Edge; 2006-2011 Ford Fusion; 2005-2011 Ford Mustang; 2007-2011 Ford Ranger; 2007-2010 Lincoln MKX, and 2006-2011 Lincoln MKZ, Zephyr and Mercury Milan (Reuters and press release); all about Takata’s airbag scandal. Separately, Ford said total U.S. vehicle sales in May declined 6% from a year ago, to 235,997. That was despite F-Series pickup sales posting a 9% gain, and van sales hitting their best May since 1978 (press release). Ford shares closed down 2.9% at $13.10.

KINDRED said it completed a deal where it’s buying four leased hospitals in Indianapolis, Houston, Denver and Colorado Springs, Colo., and selling two in Cleveland, one owned and another leased. The Louisville hospital and nursing home giant said it paid about $800,000 cash and additional cash consideration to Select Medical Holdings Corp. as part of the deal (press release). Separately, Kindred said it’s closing its Bashford Manor area nursing and rehabilitation center, where 153 employees care for 110 residents (Courier-Journal).

PAPA JOHN’S will be one of the first U.S. restaurant brands to enter Tunisia; it’s the second African country after Egypt to have one of the pizza chain’s franchises. The country in North Africa only recently opened its borders to franchising (Meat & Poultry). More about Tunisia.

GE is scaling back plans for a factory that will build big gas-powered engines in Welland, Ontario; the factory is now in Waukesha, Wisc. The company will create just 150 jobs at the new site, down from 350 at Waukesha, when it first announced the move in September. GE is taking advantage of tax incentives (CBC).

TEXAS ROADHOUSE got only a so-so review in Augusta, Ga., partly because of the restaurant’s signature item: steak. “My first bite of the filet seemed pleasantly salty, but as I went on, the meat was overwhelmed with salt — I couldn’t even finish it,” the reviewer said. “It was tender, but not the most tender filet I’ve ever had. And while I ordered it medium, it was more of a medium rare” (August Chronicle). The restaurant chain tweeted a recommended topping on Sunday:

In other news, the embattled Cahoots bar on Baxter Avenue in the Highlands is closing (Business First). Brawls had been a problem, leading a customer to post a truly gross review, complete with photo! “Blood on the men’s room sink,” wrote John R. “From one of the (many) fights I’ve witnessed at this place. Disgusting” (Yelp).

Latest Headlines

Ford recalls 271,000 F-150s from 2013-14; UPS boosts size of planned expansion; Missouri regulators to Humana: show me changes

A news summary, focused on big employers; updated 9:16 p.m.

2014 Ford F-150
A model year 2014 F-150 of the kind being recalled.
William Clay Ford, Jr.
Ford

FORD is recalling about 271,000 2013-14 F-150 pickups with 3.5-liter V-6 engines because the brakes may malfunction, the automaker said today. The company said it was aware of nine accidents but no injuries (New York Times). Also, Executive Chairman Bill Ford Jr. defended the automaker against blistering criticism by White House candidate Donald Trump, saying it should be held up as an example of a company doing things right. Trump has called Ford’s decision to build a $1.6 billion assembly plant in Mexico an “absolute disgrace” that would not happen if he becomes president (Detroit News).

In December, Ford said it would invest $1.3 billion in its Kentucky Truck Plant in Louisville, creating 2,000 jobs. The expansion is for the launch of the new 2017 Ford F-Series Super Duty truck (press release). More about Ford’s Louisville factories. Also, Ford said today it will release its May U.S. sales figures around 9:15 a.m. June 1, followed by a conference call to discuss the results (press release).

UPS is doubling the size of an expansion announced last fall that was already going to add another 300 jobs to the so-called Centennial Hub; it’s unclear whether the bigger project will require even more hiring  (Courier-Journal). UPS originally announced the project last October, saying it would cost $300 million and would be substantially complete by 2018 (press release).

HUMANA: Missouri’s insurance regulators are asking Humana and Aenta to make changes before the state approves their pending $34 billion merger announced July 3 (Business First).

KINDRED‘s shareholders approved the executive compensation plan during a non-binding advisory vote today at their annual meeting. They also re-elected the full slate of 11 directors to the governing board; the company didn’t provide a vote breakdown, which will likely come in a future regulatory filing (press release).

CHURCHILL DOWNS broke ground yesterday on a previously announced $25 million expansion of its Oxford Casino in Maine. The project includes a 106-room hotel, new dining, and an expanded gaming area. Churchill bought the casino in 2013 (WLBZ).

AMAZON said today it would open a second distribution center in Joliet, Ill., 46 miles southwest of Chicago. The company will create more than 2,000 full-time jobs at the facility in addition to the 1,500 full-time employees currently working at its existing Joliet center (press release). The city has 148,000 residents; more census facts. Also, the company plans to expand its Fresh grocery delivery service this year to new markets including Boston (Recode). More about Amazon’s Louisville area operations.

The Eagle logoIn other news, Bardstown Road is getting another craft beer restaurant: The Eagle, which has locations in Cincinnati and Indianapolis. It’s taking the space now occupied by El Camino, which is moving to another, undisclosed location two miles away and with half the current 300 seats (Insider Louisville). The Eagle will join the soon-to-open HopCat at Grinstead and Bardstown, which will have 130 craft beers and seating for 600. Also in the works: Sterling Brewing has announced plans for a restaurant at 1300 Bardstown Road (Courier-Journal). And there are already so many more.

Elsewhere in hospitality land, the average Louisville hotel room rate will jump 13.9 percent to $119.35 by 2020, according to a new report (Insider Louisville).

Finally, U.S. stocks soared for the second consecutive day after positive economic data, rising oil prices, and a new debt deal for Greece. The Dow Jones Industrial average and other major indices all closed up nearly 1% after similar gains yesterday (Google Finance). Nearly all 11 big-employer shares in the Boulevard Stock Portfolio rose, too.

Executive Pay

Ford issues $1.8M in stock-based fees to 10 directors

Ford logoThe automaker just filed documents with the Securities and Exchange Commission disclosing a slew of stock grants to 10 of the 16 members of the board of directors. The stock, part of their annual fees, was issued to the directors on Thursday; at that day’s closing price of $13.09, the 141,040 shares had a total value of $1.8 million. For most of the directors, the shares were worth about $150,000. Here’s the line-up; links go to the SEC filings.

Ford’s stock closed today at $13.13, basically flat.