ford vp’s challenge grant from state,...

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K CMY Idea for Plymouth wine bar comes from TV 2E Inside Industry Report 2 Business List 2 Tip Sheet 4 Motley Fool 4 More oil company consolidations likely in the future 5E For updated quotes, send text message with STOCK TICKER (e.g., MSFT) or FUND TICKER (e.g., AGTHX) to 44636 (4INFO). E Tuesday, Dec. 26, 2006 Business dept.: 313-222-8765, [email protected] www.freep.com Detroit Free Press Joe Hinrichs spent the early part of his life in the small, blue- collar town of Fostoria, Ohio, playing by the rules. He was an altar boy. He had perfect attendance in school. He avoided rebellious teenage activities. He graduated as vale- dictorian of his Catholic high school, with a 4.0. He went to the University of Dayton on a president’s scholarship. Then, Hinrichs got into the automotive industry, where he started breaking with conven- tions he found ineffective and frustrating to get things done. His first day on the job in a General Motors Corp. factory, back in 1989, the young engi- neer tried to clean the dirty win- dows in his office and was quick- ly cited “for doing organized work” — a union-covered task. Hinrichs refused to fall in line, going on to earn 22 such grievances one day. When he got to Ford Motor Co. in 2000, he transported transmission parts from one factory to another in his Explor- er SUV, a breach of protocol that kept his assembly plant running. Today, Hinrichs turns 40, and he’s the youngest vice pres- ident at Ford — charged with the company’s sprawling North American manufacturing oper- ations, which include 42 facto- ries in the United States, Cana- da and Mexico. In these troubled times at Ford, that makes Hinrichs one part Grim Reaper, one part dei- ty and, quite clearly, an unpre- dictable Whiz Kid to watch. The 103-year-old automaker lost $7 billion this year through September. Ford’s Way For- ward turnaround plan calls for a variety of actions to reverse that dive, such as cutting one- third of its North American workforce, about 44,000 hourly and salaried workers in all, and closing 16 factories by 2012. That has put the task of downsizing Ford squarely in Hinrichs’ hands, and his to-do list for 2007 is daunting: Close four plants and prepare to close three more in 2008. Execute 32,000 hourly buy- outs at factories, without com- promising safety or quality. Decide whether layoffs or temporary hires will be neces- sary. Help launch five new cars and trucks. Keep reducing costs in plants. And if all that weren’t enough: Help negotiate a new contract with the UAW. “Next year will be one of the most challenging years that I’ve ever seen, at Ford or any- where,” the boyish-looking Hin- richs told the Free Press. This might not have been the kind of responsibility Hinrichs FORD VP’S CHALLENGE Photos by HUGH GRANNUM/Detroit Free Press Engineer Bharat Pawa, second from left, and operator/team coordinator Charle Roach show Joe Hinrichs transmission parts for a Ford Focus at the Van Dyke Transmission Plant in Sterling Heights on Dec. 19. Hinrichs is in charge of North American manufacturing for Ford. A prodigy, Joe Hinrichs is suited to task By SARAH A. WEBSTER FREE PRESS BUSINESS WRITER Democrats campaigned on promises of making sweeping changes to the nation’s energy policy, but it’s unlikely they’ll de- liver on most of those promises. The new Democratic-con- trolled Congress is expected to place greater emphasis on re- newable energy sources and end the drive to open offshore areas to oil and natural gas pro- duction. But Democrats who will have jurisdiction over energy issues indicated they aren’t planning a big energy bill next year. “We’re going to have smaller, more manageable, more digesti- ble” legislation, said Bill Wicker, spokesman for Sen. Jeff Binga- man of New Mexico, the new Democratic chairman of the Senate Energy and Natural Re- sources Committee. The new Congress is expect- ed to debate ways to cut green- house gases to fight global warming and press for in- creased efficiency standards for cars and other gas-operated machines. Democrats also are expected to champion propos- als that would require utilities to produce a percentage of their electricity output from renew- able energy sources. Producers of solar power, wind power, geothermal power and other technologies that use wood or waste products to gen- erate energy also are expected to receive new tax breaks from the Democratic Congress. But the biggest change in en- ergy policy is expected to come through a farm bill Congress hopes to consider next year that would provide new incentives for the production of ethanol, a corn-derived fuel. Many Democrats cam- paigned against Big Oil this year, tying Republicans to an in- dustry that critics say pollutes the environment and manipu- lates prices. If Democrats follow through JASLYN GILBERT/Gannett News Service Huge wind towers are built by Tower Tech Systems in Wisconsin. Al- ternate energy sources are likely to get Democratic support. See FUEL, 2E Congress likely to favor alternate fuel Democrats ran against Big Oil By ANA RADELAT GANNETT NEWS SERVICE NASA and the Michigan Research Institute are to an- nounce this week that they are giving Delphi Corp. nearly $1 million to develop an advanced welding process that promises to be less expensive and more effective at welding dissimilar- shaped materials. NASA will use what it learns from Delphi’s deformation re- sistance welding procedure in developing spacecraft and ter- restrial vehicles. Deformation resistance welding is unique because it en- ables welding different materi- als and shapes for less money than conventional welding methods. The $950,000 grant under- scores Delphi as a tale of two companies: While Delphi’s tra- ditional car-parts business, making items such as brake hoses and batteries, loses bil- lions, Delphi also is an innova- tive manufacturer of highly profitable, highly technological products. The welding process can be used in manufacturing heavy load-bearing structures, mobile medical products and automo- biles because of its ability to handle tube-to-tube and tube- to-sheet welding. “Delphi will be in a stronger position to provide innovative joining and structural solutions to a broader set of customers,” said Jayson Pankin, Delphi’s new venture creation specialist. Contact JASON ROBERSON at 313-222-8763 or [email protected]. Delphi gets grant from state, NASA Firm to develop welding method By JASON ROBERSON FREE PRESS BUSINESS WRITER Joseph R. Hinrichs Age: 40, today Title: Vice presi- dent, North Ameri- ca manufacturing, Ford Motor Co. Experience: Oct. 2005 to Sept. 2006: Vice president, North America vehicle operations, respon- sible for 19 assem- bly and eight stamping and tool-and-die plants. Jan. 2005 to Oct. 2005: President and CEO, Ford of Canada. July 2003 to Jan. 2005: Director of manufacturing for vehicle operations, responsible for launch of vehicles at six assembly plants. April 2002 to July 2003: Execu- tive director, mate- rial planning and logistics. Dec. 2000 to April 2002: Manag- er of the Van Dyke Transmission Plant. Aug. 1998 to Dec. 2000: Partner and senior vice presi- dent of Ryan En- terprises Group, a manufacturing investment group in Chicago. May 1989 to Aug. 1998: Worked at General Motors Corp. Education: Bachelor’s de- gree in electrical engineering from the University of Dayton in 1989. Master’s degree in business admin- istration from Harvard Business School in 1994. Family: Wife, Maria, and children Anna, 12, Andrew, 10, and Sarah, 8. Hobbies: Spend- ing time with family, landscaping and reading busi- ness books. Drives: Lincoln Navigator. YOUNG EXEC, BIG MISSION “He’s a very strong leader. Some people just have that.” JIM BUFFALO SMYTHE, UAW Local 2280, on Ford Vice President Joe Hinrichs See HINRICHS, 3E F01E_26_0D_X#color#broad#single

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Page 1: FORD VP’S CHALLENGE grant from state, NASAjournoportfolio.s3-website-eu-west-1.amazonaws.com/...Idea for Plymouth wine bar comes from TV 2E Inside Industry Report 2 Business List

KC M Y

Idea for Plymouth winebar comes from TV 2E

InsideIndustry Report 2Business List 2Tip Sheet 4Motley Fool 4

More oil companyconsolidations likelyin the future 5E

For updated quotes,send text messagewith STOCK TICKER(e.g., MSFT) or

FUND TICKER (e.g., AGTHX) to44636 (4INFO).

ETuesday, Dec. 26, 2006 Business dept.: 313-222-8765, [email protected] www.freep.com Detroit Free Press

Joe Hinrichs spent the earlypart of his life in the small, blue-collar town of Fostoria, Ohio,playing by the rules.

He was an altar boy. He hadperfect attendance in school.He avoided rebellious teenageactivities. He graduated as vale-dictorian of his Catholic highschool, with a 4.0. He went tothe University of Dayton on apresident’s scholarship.

Then, Hinrichs got into theautomotive industry, where hestarted breaking with conven-tions he found ineffective andfrustrating to get things done.

His first day on the job in aGeneral Motors Corp. factory,back in 1989, the young engi-neer tried to clean the dirty win-dows in his office and was quick-ly cited “for doing organizedwork” — a union-covered task.

Hinrichs refused to fall inline, going on to earn 22 suchgrievances one day.

When he got to Ford MotorCo. in 2000, he transportedtransmission parts from onefactory to another in his Explor-er SUV, a breach of protocolthat kept his assembly plantrunning.

Today, Hinrichs turns 40,and he’s the youngest vice pres-ident at Ford — charged withthe company’s sprawling NorthAmerican manufacturing oper-ations, which include 42 facto-ries in the United States, Cana-da and Mexico.

In these troubled times atFord, that makes Hinrichs onepart Grim Reaper, one part dei-

ty and, quite clearly, an unpre-dictable Whiz Kid to watch.

The 103-year-old automakerlost $7 billion this year throughSeptember. Ford’s Way For-ward turnaround plan calls fora variety of actions to reversethat dive, such as cutting one-third of its North Americanworkforce, about 44,000 hourlyand salaried workers in all, andclosing 16 factories by 2012.

That has put the task ofdownsizing Ford squarely inHinrichs’ hands, and his to-dolist for 2007 is daunting:� Close four plants and prepareto close three more in 2008.� Execute 32,000 hourly buy-outs at factories, without com-

promising safety or quality.� Decide whether layoffs ortemporary hires will be neces-sary.� Help launch five new cars andtrucks.� Keep reducing costs in plants.

And if all that weren’tenough:� Help negotiate a new contractwith the UAW.

“Next year will be one of themost challenging years that I’veever seen, at Ford or any-where,” the boyish-looking Hin-richs told the Free Press.

This might not have been thekind of responsibility Hinrichs

FORD VP’S CHALLENGE

Photos by HUGH GRANNUM/Detroit Free Press

Engineer Bharat Pawa, second from left, and operator/team coordinator Charle Roach show Joe Hinrichs transmission parts for a FordFocus at the Van Dyke Transmission Plant in Sterling Heights on Dec. 19. Hinrichs is in charge of North American manufacturing for Ford.

A prodigy, JoeHinrichs issuited to task

By SARAH A. WEBSTER

FREE PRESS BUSINESS WRITER

Democrats campaigned onpromises of making sweepingchanges to the nation’s energypolicy, but it’s unlikely they’ll de-liver on most of those promises.

The new Democratic-con-trolled Congress is expected toplace greater emphasis on re-newable energy sources andend the drive to open offshoreareas to oil and natural gas pro-duction.

But Democrats who will havejurisdiction over energy issuesindicated they aren’t planning abig energy bill next year.

“We’re going to have smaller,more manageable, more digesti-ble” legislation, said Bill Wicker,spokesman for Sen. Jeff Binga-man of New Mexico, the newDemocratic chairman of theSenate Energy and Natural Re-sources Committee.

The new Congress is expect-ed to debate ways to cut green-

house gases to fight globalwarming and press for in-creased efficiency standards forcars and other gas-operatedmachines. Democrats also areexpected to champion propos-als that would require utilities toproduce a percentage of theirelectricity output from renew-able energy sources.

Producers of solar power,wind power, geothermal powerand other technologies that usewood or waste products to gen-erate energy also are expectedto receive new tax breaks fromthe Democratic Congress.

But the biggest change in en-ergy policy is expected to comethrough a farm bill Congresshopes to consider next year thatwould provide new incentivesfor the production of ethanol, acorn-derived fuel.

Many Democrats cam-paigned against Big Oil thisyear, tying Republicans to an in-dustry that critics say pollutesthe environment and manipu-lates prices.

If Democrats follow through

JASLYN GILBERT/Gannett News Service

Huge wind towers are built by Tower Tech Systems in Wisconsin. Al-ternate energy sources are likely to get Democratic support.

See FUEL, 2E

Congress likely tofavor alternate fuelDemocrats ranagainst Big Oil

By ANA RADELAT

GANNETT NEWS SERVICE

NASA and the MichiganResearch Institute are to an-nounce this week that they aregiving Delphi Corp. nearly $1million to develop an advancedwelding process that promisesto be less expensive and moreeffective at welding dissimilar-shaped materials.

NASA will use what it learnsfrom Delphi’s deformation re-sistance welding procedure indeveloping spacecraft and ter-restrial vehicles.

Deformation resistancewelding is unique because it en-ables welding different materi-als and shapes for less moneythan conventional weldingmethods.

The $950,000 grant under-scores Delphi as a tale of twocompanies: While Delphi’s tra-ditional car-parts business,making items such as brakehoses and batteries, loses bil-lions, Delphi also is an innova-tive manufacturer of highlyprofitable, highly technologicalproducts.

The welding process can beused in manufacturing heavyload-bearing structures, mobilemedical products and automo-biles because of its ability tohandle tube-to-tube and tube-to-sheet welding.

“Delphi will be in a strongerposition to provide innovativejoining and structural solutionsto a broader set of customers,”said Jayson Pankin, Delphi’snew venture creation specialist.

Contact JASON ROBERSON at313-222-8763 [email protected].

Delphi getsgrant fromstate, NASAFirm to developwelding method

By JASON ROBERSON

FREE PRESS BUSINESS WRITER

Joseph R. Hinrichs

Age: 40, today Title: Vice presi-

dent, North Ameri-ca manufacturing,Ford Motor Co.

Experience: Oct. 2005 to

Sept. 2006: Vicepresident, NorthAmerica vehicleoperations, respon-sible for 19 assem-bly and eightstamping andtool-and-die plants.

Jan. 2005 to Oct.2005: Presidentand CEO, Ford ofCanada.

July 2003 to Jan.2005: Director ofmanufacturing forvehicle operations,responsible forlaunch of vehiclesat six assemblyplants.

April 2002 toJuly 2003: Execu-tive director, mate-rial planning andlogistics.

Dec. 2000 toApril 2002: Manag-er of the Van DykeTransmissionPlant.

Aug. 1998 to Dec.2000: Partner andsenior vice presi-dent of Ryan En-terprises Group, amanufacturinginvestment groupin Chicago.

May 1989 toAug. 1998: Workedat General MotorsCorp.

Education: Bachelor’s de-

gree in electricalengineering fromthe University ofDayton in 1989.

Master’s degreein business admin-istration fromHarvard BusinessSchool in 1994.

Family: Wife,Maria, and childrenAnna, 12, Andrew,10, and Sarah, 8.

Hobbies: Spend-ing time withfamily, landscapingand reading busi-ness books.

Drives: LincolnNavigator.

YOUNG EXEC,BIG MISSION

“He’s a very strong leader. Some people just have that.”JIM BUFFALO SMYTHE, UAW Local 2280, on Ford Vice President Joe Hinrichs

See HINRICHS, 3E

F01E_26_0D_X#color#broad#single