1957 Ford F-100 on 2040-cars

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Ford profits soar as problems mount

Ford is doing well. It can't make enough examples of its new Fusion, it can barely make enough of the aging F-150, it's getting good brand rankings, people like its turnaround story, it's selling oodles of product and its quarterly profit numbers end in the word "billion." As other high-flying examples have demonstrated over the past few years, though, big numbers can come with problems that aren't exactly small.
Automotive News has published a good "nutshell" report of Ford's progress and problems. The Dearborn automaker's optimistic "general label rule" determination of gas mileage for the C-Max Hybrid has led to lawsuits, hybrid software updates, a downward revision of C-Max fuel economy and millions in rebates. AN notes the C-Max was the "worst-scoring model in this year's J.D. Power Initial Quality Study," but Ford will probably be happy that it managed not to be mentioned further in the study's results after last year's mediocre showing. Its MyTouch and SYNC systems, the bugbears sabotaging Ford's J.D. Power results, have also led to lawsuits, software updates, more software updates and a center console rethink. On top of that, the 1.6-liter EcoBoost in the 2013 Ford Escape that Ford called a "hero" was soon catching fire for three different reasons. And let's not even get into the troubled launch of the Lincoln MKZ.
The Automotive News piece notes that industry observers have been surprised at Ford's stumbles because everything has been looking so good. Nevertheless, there is still the issue of those billions in profits - the company is doing plenty of things, plural, right. Ford says it is tackling its problems, hiring engineers and instituting new quality control processes as part of its effort to find solutions. The test will be to see if in a year from now we begin the discussion of these issues with "Remember when Ford...", or "Problems continue at The Blue Oval."

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.

Why Ford's Alan Mulally would be right for Microsoft, or any company

That Mulally was seriously being considered says a great deal about Microsoft and Mulally.
It appears that the chatter about Ford CEO Alan Mulally possibly leaving early to take over as CEO of Microsoft is losing air pretty fast. What's pretty interesting is that it got any traction in the first place.