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Ford nets $924M in first quarter

Where General Motors' first-quarter 2015 financials showed growth in many major metrics, Ford's newly released numbers had falling figures in most of the vital categories. The automaker's Q1 revenue shrank to $33.9 billion, down $2 billion, and net income fell to $924 million, a $65-million drop. However, pre-tax profits increased slightly to $1.4 billion, $24 million more than in the same period in 2014, and operating margin rose to 3.6 percent, up 0.2 percent. Despite the less-than-stellar numbers, the Blue Oval thinks 2015 should be positive for the company. "The first quarter was a good start to a year in which our results will grow progressively stronger as the new products we have been launching start to pay off," CEO Mark Fields said in the financial announcement. The automaker has 15 vehicles to launch globally this year, and only three of them are already out. By the end of 2015, Ford predicts pre-tax profits of between $8.5 billion and $9.5 billion. In terms of vehicle sales, Ford slipped by 21,000 to a total of 1.568 million worldwide in the first quarter. North American sales dropped to 678,000, which was 39,000 less than last year, and pre-tax profits fell to $1.34 billion, a $160-million fall. The company explained the reductions on this continent as linked to the launches of the latest F-150 and Edge. In other major markets, European wholesales grew to 376,000 vehicles, a 9,000-car boost from last year. Pre-tax results there increased by $9 million, but the area still showed an overall loss of $185 million. In the Asia Pacific region, Ford moved 16,000 more units than in Q1 2014 to reach 366,000. However, due in part to preparing for new vehicles, the company only made $103 million there, a $188-million drop. The automaker released all of these figures as part of a PDF, which you can download here. Related Video:

Stocks down as automakers, Boeing lead China's hit list in trade spat

Shares in U.S. exporters of everything from planes to tractors fell on Wednesday after China retaliated against the Trump administration's tariff plans by proposing duties on key U.S. imports including soybeans, beef and chemicals. U.S. automakers' products are prominent on China's list of tariff targets, yet shares of automakers ended higher on Wednesday as Wall Street stocks changed course in the afternoon when investors' trade fears subsided. Tesla shares closed 7.3 percent higher at $286.94, Ford shares gained 1.6 percent to close at $11.33, and GM shares were up 3 percent at $38.03. Aircraft maker Boeing closed down 1 percent, weighing the most on the Dow Jones Industrial Average as documents from China's Ministry of Commerce and the U.S. manufacturer showed the move would affect some older Boeing narrowbody models. It was not immediately clear how much the tariffs would impact its newer aircraft. Boeing said it was assessing the situation while analysts from JP Morgan said the proposals from China looked to have been calibrated carefully to avoid a major impact on the planemaker. Fellow Dow component 3M lost as much as 2.4 percent. And farming equipment maker Deere lost nearly $10 per share at its lowest. The company urged the two countries to work toward a resolution to "limit uncertainty for farmers and avoid meaningful disruptions to agricultural trade." The speed with which the trade spat between Washington and Beijing is ratcheting up — the Chinese government took less than 11 hours to respond with its own measures — led to a sharp selloff in global stock markets and commodities. China was hitting back against U.S. President Donald Trump's plans to impose tariffs on $50 billion in Chinese goods with similar tariffs on U.S. goods even as Trump said the country is "not in a trade war with China." "Everybody knew they were going to retaliate. The question was how strong of a retaliation. Today's move clearly shows that they mean business," said Adam Sarhan, chief executive of 50 Park Investments in New York. China levied 25 percent additional tariffs on U.S. goods, but unlike Washington's list that covers many obscure industrial items, Beijing's covers 106 key U.S. imports including soybeans, planes, cars, whiskey and chemicals. Trump denied that the tit-for-tat moves amounted to a trade war between the world's two economic superpowers.

Ford secures Microsoft for software updates

Ford is dropping Microsoft later this year as its infotainment partner when the Blue Oval switches to the BlackBerry QNX operating system for Sync 3 (pictured above). However, the two companies aren't severing ties completely, because the Redmond, WA, outfit is taking responsibility for Sync 3's wireless updates. Don Butler, Ford Director of Connected Vehicles and Services, announced the deal during a speech, according to Automotive News. "We've obviously had a good, long relationship with Microsoft," he said. "Microsoft understands the automotive environment and the kinds of experiences that we'd like to enable." The ability for Sync 3 to accept Wifi updates was announced as a major feature the new infotainment system, but this was the first mention of how that has been handled. Ford will host the files on Microsoft's Azure Cloud servers, according to Automotive News. Owners will need to give permission to check for new software, and they'll be notified after an improvement's installation. Dealers will install Wifi transmitters to keep vehicles on the lot up to date, as well. Sync 3 is set to replace the much-maligned MyFord Touch later in 2015 on some 2016 model year vehicles, and by next year it should be available throughout the Ford and Lincoln lineups. In addition to the wireless updates, the new system also promises a simplified interface, better voice recognition and faster response times. Ford Motor Company is preparing for vehicle ownership and user experiences of the future with the creation of a global cloud based Ford Service Delivery Network enabling new ways for consumers to interact with cars. Teaming up with Microsoft, Ford will expand connected services for customers around the world using the globally scalable and reliable Azure Cloud infrastructure. Ford and Lincoln owners will benefit from the convenience of new connectivity services keeping them better informed and in control of their vehicle at all times with the expanded availability of features like scheduled remote start, vehicle finder, and vehicle status (fuel or charge level, tire pressure). Building the Ford Service Delivery Network (SDN) on the Microsoft Azure platform enables a common platform for Ford to bring new features and services to market faster, quickly scale up for global implementation, and remain flexible for the future. Starting later this year, the Service Delivery Network will first enable over-the-air software updates for SYNC 3.