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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.

Lincoln MKC Concept shows real promise [w/video]

Ford's efforts to resuscitate its moribund Lincoln luxury brand began in earnest with the introduction of its 2014 MKZ sedan, a model many labeled as the marque's make-or-break offering. Of course, one model does not a comeback make, and with the MKZ just now starting to trickle into dealers, it will be some time before America's jury of consumers comes in with their judgment. More to the point, it's likely to take better than a decade's worth of products and sustained marketing effort to even begin to figure out whether Lincoln has a shot at redemption or if it will die of Mercury poisoning. After all, rival General Motors has been pouring resources into Cadillac since the late '90s, and if the sales charts are any guidance, it's still probably too early to declare its rebirth a success.
Certainly, a brand with Ford's resources, free of distractions (read: the now-defunct Premier Auto Group and various other side projects) should be able to successfully market a single luxury brand, particularly one with such a rich - if distant - history. Especially now with the Blue Oval enjoying more consumer goodwill than at any time in recent history. So let's all give Alan Mulally and friends a little room to work, eh?
We can start by focusing on the compact crossover seen before you, the Lincoln MKC Concept. Riding atop the same global C-platform that underpins the Ford C-Max, Escape and Focus, the MKC showcar here presages a production small CUV that will stick its distinctive nose into one of the auto industry's fastest-growing segments.

Lincoln prepping MKZ re-launch?

Launching an all-new car is no easy task. Case in point is the 2013 Lincoln MKZ, introduced with the fanfare of a major nationwide marketing campaign, including expensive Super Bowl ads, just as Ford was curbing production over potential quality issues. The resulting mess was nothing short of a nightmare for any automaker - customers visiting dealerships looking for cars that hadn't been delivered yet. Disappointed buyers walked out of Lincoln retailers without new keys in their hands, or switched to a competing brand to fill empty spaces in their driveways.
The impact was painful, as Lincoln's sales in January and February of this year were among the lowest it has recorded in more than a quarter century. Even though March looked a bit brighter, with the supply crisis reportedly over (there are 3,000 units in transit and production is approaching 200 units per day) the automaker is reportedly studying the feasibility of giving its pivotal MKZ the launch it originally deserved.
According to TheDetroitBureau.com, putting the MKZ back on consumer's radar could cost Ford tens of millions of dollars, but that kind of investment may be warranted if potential buyers have forgotten about the new model... or worse, if they have forgotten about Lincoln.