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Ford Q1 profits dragged down by warranty costs

General Motors isn't the only Detroit automaker posting falling profits in the first quarter. Ford just released its Q1 2014 financial data, and it reported a net income of $989 million, down $622 million from Q1 2013. The drop is partially blamed on higher warranty and recall expenses than the company had anticipated.
Financially, Ford suffered a rough quarter almost across the board. Its pre-tax profit of $1.4 billion was also down $765 million from a year ago. Things were even worse in the North American market where operating profit fell significantly to $1.5 billion, down from $2.392 billion in Q1 2013. However, its global revenue ticked up slightly to $35.9 billion, from $35.6 billion in this period in 2013.
Ford admitted that it spent about $900 million on expenses that it hadn't planned for during this quarter. According to Reuters, the company paid about $400 million in additional warranty and recall costs in North America. The automaker didn't explain why the costs were so much higher than expected. However, in the last three months, Ford has had several recalls, including on the 2001-2004 Escape for rust, Explorer for its steering, Edge for its fuel line and others.

NHTSA investigating 725k Ford, Mercury vehicles for stalling issue

Owners of Ford Escape, Mercury Mariner, Ford Fusion and Mercury Milan models, listen up. According to a report on Automotive News, the National Highway Traffic Safety Administration has opened an investigation into these four vehicles totaling an estimated 725,000 units. The investigation appears to center around a malfunctioning throttle body on non-hybrid models of the 2005-2012 Escape and 2011-2012 Fusion. With Mercury dying off after the 2011 model year, this probe will also apply to the 2005 through 2011 Mariner and the 2011 Milan. There has been some discussion around the Escape stalling issue for some time now, but this investigation appears to be larger in scope than before.
Though not a recall yet, NHTSA's Office of Defects Investigation (ODI) has received 123 complaints of stalling or surging vehicles, while Ford itself has logged 1,472 complaints. The investigation report, which is posted below, seems to indicate that a faulty circuit board for the throttle body could cause the vehicle to go into limp mode, which, according to NHTSA, could cause complaints of both stalling and surging.

Ford reports 58% drop in Q2 profits on European losses

Ford Motor Company announced Wednesday that it has posted a $1 billion profit for the second quarter of 2012. That sounds like good news for the Blue Oval, until you take into account that Ford posted a $2.4 billion profit for Q2 a year ago. That is a substantial 58 percent loss.
Ford also posted $465 million in international losses, with $404 million of those losses coming directly from Europe. The automaker also increased its European loss projections to $1 billion for 2012, due in large part to the economic crisis overseas, which has resulted in increased unemployment and decreased consumer confidence.