2014 Ford F150 302a on 2040-cars

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Ford books $1.2B profit in second quarter on strength of trucks

Ford is rolling along nicely, with a positive second-quarter sales report and a $2.3 billion profit in North America. The Dearborn, Michigan-based manufacturer captured $1.2 billion globally from April to June, with a $177 million profit in Asia. Even in Europe, the land of doom and gloom for automakers not named Mazda, Ford saw some success as it lowered its expected full-year loss from $2 billion to $1.8 billion. The company lost $348 million in Europe during the second quarter, which, believe it or not, represents a $56-million improvement over 2012.
According to the report on CNBC, Ford enjoyed a three-percent increase in pre-market trading thanks to the news. The strong demand for the F-150 propelled growth in the US market, while Ford's 47-percent increase in Asian sales can be attributed to the new EcoSport crossover and Kuga (Ford Escape in the US) arriving in the somewhat fragile Chinese market.
Pre-tax profits for Ford are expected to be in the neighborhood of $8 billion by the end of the year, with sales the US, Europe, and China all looking up. The company also shifted $4.78 billion of asset-backed debt in the form of bonds, according to a report by Bloomberg. This move came amidst rumors of the Federal Reserve cutting back on its $85-billion-per-month bond purchases. Ford wasn't alone among automakers looking to sell off debt, though, as Mercedes-Benz and Nissan shifted around $1 billion each in bonds relating to auto loans.

China's auto sales continue to drop

The days of unending growth of carmakers in China look to be over, and some analysts are even forecasting a net drop in volume this year, The Detroit News reports. After falling numbers in June and July, the China Association of Automobile Manufacturers tallied total sales, including trucks and buses, in August to 1.7 million, down 3 percent from 2014. There were some tiny specs of good news in China, but there's no turnaround in sight. Total vehicle sales from January to August are actually still up but only 2.6 percent. Like the rest of the world, SUVs are booming with numbers up 45.6 percent from the previous year. Honda managed a very impressive 50.7 percent gain on the strength of the CR-V and Vezel (the HR-V here), according to The Detroit News. Also, the country's domestic automakers, which generally offer less expensive products, posted a 2.5 percent growth in sales. The news continues to look bad for Detroit's automakers, though. Volume from General Motors dropped 4.8 percent in August, and Ford fell 3 percent in August. Both of them have invested significant amounts there in the past years. The vehicle industry in China grew last year, but there was burgeoning evidence of weakness. At the end of 2014, dealers there pushed back against huge inventories pushed by automakers. Even before the big drops began in June, GM saw the writing on the wall and started cutting prices. BMW responded to the slump by cutting back production to deal with the changing demand. News Source: The Detroit NewsImage Credit: Mark Schiefelbein / AP Photo BMW Ford GM Honda Car Buying

FIA introduces 'Hypercar Concept' for World Endurance Championship

One of the most common jabs at hypercars is the question, "Where can you drive them to their potential?" Imagine the answer being: to the checkered flag in the 24 Hours of Le Mans. We're not there yet, but the FIA World Motor Sport Council took a step closer to the possibility during its second annual meeting in Manila, the Philippines. One of three initiatives the WSMC announced for the 2020 World Endurance Championship was "Freedom of design for brands based on a 'Hypercar' concept." This "Hypercar concept" would replace LMP1 as the premier class in the WEC. The dream, of course, would be seeing racing versions of the AMG Project One, Aston Martin Valkyrie AMR Pro, Bugatti Chiron, Koenigsegg Regera, McLaren Senna GTR, Pagani Huara BC, and the rest of the gang trading paint and carbon fiber through Dunlop in a heinously expensive version of "Buy on Sunday, sell on Monday." The reality is that we don't have all the details yet on the set of regulations called "GTP," but the FIA wants race cars more closely tied to road cars, albeit with the performance level of today's LMP1 cars. Exterior design freedom would shelter internals designed to reduce costs, the FIA planning to mandate less complex hybrid systems and allow the purchase of spec systems. One of the FIA's primary goals is lowering LMP1 budgets to a quarter of their present levels. Audi and Porsche budgets exceeded $200 million, while Toyota - the only factory LMP1 entry this year and next - is assumed to have a budget hovering around $100 million. Reports indicated that Aston Martin, Ferrari, Ford, McLaren, and Toyota sat in on the development of the proposed class. If the FIA can get costs down to around $25 million, that would compare running a top IndyCar team and have to be hugely appealing to the assembled carmakers. The initiative represents another cycle of the roughly once-a-decade reboot of sports car racing to counter power or cost concerns. The FIA shut down Group 5 Special Production Sports Car class in 1982 to halt worrying power hikes, and introduced Group C. In 1993, Group C came to an ignoble end over costs; manufacturers were spending $15 million on a season, back when that was real money and not one-fifth of a Ferrari 250 GTO. Then came the BPR Global GT Series that morphed into the FIA GT Championship, which would see the last not-really-a-road car take overall Le Mans victory in 1998, the Porsche 911 GT1. That era would be most aligned with a future hypercar class.