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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.

Ford recalls select Explorer, E-Series vans

Just a few days ago we brought you news that Ford had issued a recall on 28,000 units of the Edge crossover for problems related to the fuel line. But now the Blue Oval has issued recall notices on two more of its larger vehicles.
The first relates to the Explorer, 395 examples of which from the 2011 and 2012 model years were found to have problems with their steering systems if they underwent service after September 1, 2013. An apparent software glitch could lock the steering gear, preventing the driver from steering the vehicle and thereby increasing the risk of a crash. As a result, Ford dealers are being instructed to check their records to identify the problematic vehicles and bring them in to have the steering gear replaced. Details of the recall can be found in the PDF linked here.
The second problem revolves around E-Series vans that may develop bubbles in their windshields under hot temperatures. The decrease in visibility through the problematic windshield could - you guessed it - "increase the risk of a crash." As a result, Ford is calling in 4,532 units of the E-150, E-250, E-350 and E-450 vans built in the relatively short window between May 12 and May 26, 2011. Details of this recall can be found in the notice below from the National Highway Traffic Safety Administration.

Michigan museum offers Model T driving classes

Halfway between Detroit and Chicago, there is a car museum that gives visitors a unique level of interaction with antique cars. The Gilmore Car Museum in Hickory Corners, MI has a driver's training class to teach people of any age to learn how to drive a Ford Model T.
From the crank starter to the column-mounted throttle control, this driving school teaches people all there is to know about driving and operating a Model T. Each class lasts about two and a half hours and is only open to 18 students. There are ten sessions planned for 2014 - twice a day on May 3, June 22, July 22, August 23 and September 14. The class costs $95 (or $85 for members), and it also includes a tour of the museum's automobile collection.
In addition to this driving school, the museum has plenty of exhibits on the property, and it's open all but three days per year (Easter, Christmas and New Year's Day) with free admission for school field trips and active military. Be sure to check out the Gilmore Car Museum's website or visit them on Facebook for more info.