1931 Ford Model A Custom on 2040-cars

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Subprime financing on the rise in new car sales, leasing too

We all remember the financial crisis that began several years back. At its core was a splurge of subprime lending for housing loans. The housing bubble burst, triggering a collapse of the mortgage-backed securities market. Apparently, those types of loans still exist in the automotive industry, and the market share for these types of "nonprime, subprime, and deep subprime," loans has grown 13.6 percent compared to the third quarter a year ago.
According to an Automotive News report, high-risk lending expanded to 24.8 percent of total loans in Q3, up from 21.9 percent for this time last year. As this level increased, average credit scores of borrowers dropped to 755, down from 763 a year ago. In that time, the average financing amount increased $90 per vehicle, to $25,963.
At 818, Volvo maintains the highest per-owner credit score, while Mitsubishi has the lowest, at 694. The highest rate of borrowers was at Toyota, with 14 percent of the market, followed by Ford with 13.1 percent and Chevrolet at 11.1.

Black Zombie electric Mustang launches Blood Shed Motors [w/videos]

As patient zero of Blood Shed Motors, the classic pony car has received a powerful electric transplant. Lightning repeatedly vanquished the darkness like the angriest of strobe lights and thunder shook the building, punctuating the clatter of a heavy Texas rain on the metal roof as the clock ticked away the initial seconds of a rare full moon Friday the 13th. It was then that the Black Zombie came to life for the first time. Beneath the hood of this rust-free 1968 Mustang fastback, a 289-cubic-inch V8 no longer turns gasoline into heat, noise and pollution. As patient zero of Blood Shed Motors, the classic pony car has received a powerful electric transplant, and now boasts twinned Warp 11 DC motors and a pair of fresh Zilla controllers that will serve as the basic blueprint for future vehicles. Dubbed the Zombie 222 drivetrain, the setup will be limited to 750 horsepower in customer's cars to keep the maintenance experience low, and eventually will draw power from a 40-kWh battery pack. In this first example, though, the output is bit more extreme. For one day, at least, they have the 1,500-kW-capable pack that powers the record-setting Swamp Rat 37 racer belonging to Don Garlits and a brief window of opportunity to try it out on a track. Blood Shed Motors is the result of a collaboration between NEDRA co-founder John "Plasma Boy" Wayland, the man who helped bring electric vehicle drag racing to the attention of the world with his unassuming White Zombie Datsun 1200 conversion and Austin, TX business man Mitch Medford, who've put together a small team of experts in their chosen fields. The plan is to build a limited number of muscle car conversions on pristine early Mustang, Camaro, and Barracuda platforms. The plan is to build a limited number of high-quality muscle car conversions on pristine (No restored rust buckets!) early Mustang, Camaro, and Barracuda platforms. Each can be customized according to buyer's wishes and blessed with its own serial number. The price tags will be in the eye-watering $200,000-and-up neighborhood, reflective of the cost and rarity of these cars and the custom nature of the alterations. Of course, you can't just multiply horsepower and add the monster torque that these electric motors put out and expect an antique chassis to hold up.

Ford 2Q profit drops 86% as it restructures overseas

DEARBORN, Mich. (AP) — Ford's net profit tumbled 86% in the second quarter due largely to restructuring costs in Europe and South America. Net income for the April-through-June period dropped to $148 million, or 4 cents per share. Without the charges the company made 28 cents per share. Revenue was flat at $38.9 billion. On average, analysts surveyed by FactSet expected earnings 31 cents per share on revenue of $38.49 billion. Chief Financial Officer Tim Stone says the company had charges of $1.2 billion as it moved to close factories in Europe and South America. He says Ford already is seeing an impact from its global fitness measures that included a reduction of 7,000 white-collar workers. Ford, which released numbers after the markets closed Wednesday, says its results include a $181 million valuation loss on an investment in a software company, trimming 4 cents off adjusted earnings per share. Its stock fell 6.3% in after-hours trading to $9.68. Stone said Ford is in the early stages of its restructuring, but already is seeing improvement in some regions. Free cash flow also improved by 80% to $2.1 billion in the first half of the year, he said. "We're already starting to see some early benefits," he said. "A lot of work to do." The company expects improvement in the second half of the year as more new big SUVs hit dealerships and more of the restructuring takes hold. Ford on Wednesday forecast pretax adjusted earnings of $7 billion to $7.5 billion for all of 2019, compared with $7 billion last year. The company previously had only said that pretax earnings would improve. Full-year adjusted earnings per share are forecast to be $1.20 to $1.35, up from $1.30 in 2018. Previously it did not give per-share guidance. Ford's U.S. sales fell nearly 5% in the second quarter, according to the Edmunds.com auto pricing site, as the company exited most of its passenger car business. But Stone said sales of the new Ford Ranger small pickup offset much of that as its share of the small truck segment rose 14%. Edmunds, which provides content for The Associated Press, said Ford's average vehicle sale price rose 2.8% to $41,328 during the quarter. In North America, Ford's biggest profit center, pretax earnings fell 3% to just under $1.7 billion, which the company blamed on switching its Chicago factory to build new versions of midsize SUVs.