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Ford Q3 pretax profits drop to $1.18B

Following positive third quarter financial results recently from General Motors, rival Ford took a tumble in Q3. The automaker posted pre-tax profits of $1.18 billion, compared to about $2.59 billion in Q3 2013, a drop of around 54 percent. Net income also suffered with $835 million made in the quarter, versus $1.272 billion last year, a decline of about 34 percent. The Blue Oval blamed the gloomy figures on three reasons in its release: "lower volume, higher warranty costs and adverse balance sheet exchange effects."
There were problems of one kind or another in practically every region. North America experienced higher warranty costs than expected, partially due to recalls. The sales volume for the quarter was 665,000 units, versus 725,000 in Q3 2013, and pre-tax results amounted to $1.41 billion versus $2.296 billion last year.
South America and Europe both posted worse pre-tax results than last year. On the bright side, European volume was up slightly to 321,000 vehicles, from 303,000 in Q3 2013. The Middle East and Africa also lost $15 million, but that was an improvement compared to the $25 million loss previously experienced in this region.

Ford issues four recalls covering 163k vehicles

Recalls! 2014 will be forever remembered as the year that automakers went recall crazy, with millions and millions of vehicles adding up to crush previous recall records well before the end of the year. Adding to that tally is Ford, which announced a call-back for 163,000 vehicles.
Leading that charge are the 2.0-liter, EcoBoost four-cylinder engines of the Ford Focus ST and Ford Escape. 160,000 of the 2013 and 2014 models have bad wiring harnesses that can disrupt the signals traveling to the powertrain control module. That, in turn, could lead to a check engine light, reduced power and stalling. Notably, Ford hasn't recalled any other vehicles that feature the 2.0 EcoBoost, such as the Fusion, Taurus or Explorer.
While the Focus ST and Escape constitute the vast majority of recalled vehicles, they aren't the only problem children in the Ford family. 1,300 Transit passenger vans from model year 2015 were recalled due to brake fluid leaks, while another 600 Transit cargo variants were recalled after Ford discovered the windowless sliding doors could come open in the event of a side-impact crash. Dealers will replace the sealing washers on the passenger variants and add a reinforcement plate on the cargo models, The Detroit News reports.

NHTSA closes rollaway investigation into 1.56M Ford SUVs

It's taken four years of study, but the National Highway Traffic Safety Administration has finally closed the books on its investigation into rollaway accusations surrounding 1.56-million Ford SUV models.
The probe, which centered on the 2002-2005 Ford Explorer, 2002-2005 Mercury Mountaineer and 2003-2005 Lincoln Aviator, ends without the federal agency calling for a recall. According to The Detroit News, the investigation was closed due to a "low number of complaints" - NHTSA documented 180 such complaints that resulted in 14 crashes and six minor injuries, but the number of incidents have been slowing. The suspected defect rate for the trucks' automatic transmissions was found to be 4.4 per 100,000 units, and the brake-shift interlock mechanism failure rate was judged to be even lower at 3.4 per 100k.