2005 Ford Crown Victoria Police Interceptor on 2040-cars

Auto blog

Ford earnings take a dive on investment, slowing sales; workers get $6,900 in profit sharing

Ford Motor Company's pre-tax profits for 2014 took a beating, falling to $6.3 billion, a $2.3-billion drop from 2013, while overall revenues fell from $139.4 billion to $135.8 billion. Net income for 2014, meanwhile, plunged 56 percent, from $7.18 billion to $3.19 billion. Yeah, those aren't great numbers. While Ford's figures are largely down across the board, some of the weaker numbers aren't too difficult to explain away. The company launched 24 vehicles across the globe in 2014, including some of its biggest and most important volume models, like the 2015 F-150, as well as iconic offerings like the new Mustang. The result of this is both increased investment as well as a drop in total sales – US market numbers were down 164,000 units compared to 2013. Recall claims and high warranty costs also did a number on the Blue Oval. "2014 was a solid yet challenging year for Ford - with our investments and a record number of new products launched around the world positioning us for strong growth this year and beyond," Ford CEO Mark Fields said in a statement. Ford's 50,180 UAW workers in the United States will receive profit-sharing checks of $6,900. In some markets, Ford's fortunes were impacted by outside factors. Europe, for example, recorded more sales (up 70,000 units) and higher revenues (up $2.2 billion), but still reported a $443-million pre-tax loss. Blame was placed on the crumbling Russian economy, which has suffered from sanctions and slumping oil prices. Despite its troubles last year, the company still seems bullish on 2015. Ford's pre-tax outlook remains unchanged, as the company expects to make anywhere from $8.5 to $9.5 billion on the back of higher revenue from the company's automotive operations. We expect strong growth and improved financial performance in 2015 driven by our investments in new products and capacity," Ford CFO Bob Shanks said of the company's future.

Rising aluminum costs cut into Ford's profit

When Ford reports fourth-quarter results on Wednesday afternoon, it is expected to fret that rising metals costs have cut into profits, even as rivals say they have the problem under control. Aluminum prices have risen 20 percent in the last year and nearly 11 percent since Dec. 11. Steel prices have risen just over 9 percent in the last year. Ford uses more aluminum in its vehicles than its rivals. Aluminum is lighter but far more expensive than steel, closing at $2,229 per tonne on Tuesday. U.S. steel futures closed at $677 per ton (0.91 metric tonnes). Republican U.S. President Donald Trump's administration is weighing whether to impose tariffs on imported steel and aluminum, which could push prices even higher. Ford gave a disappointing earnings estimate for 2017 and 2018 last week, saying the higher costs for steel, aluminum and other metals, as well as currency volatility, could cost the company $1.6 billion in 2018. Ford shares took a dive after the announcement. Ford Chief Financial Officer Bob Shanks told analysts at a conference in Detroit last week that while the company benefited from low commodity prices in 2016, rising steel prices were now the main cause of higher costs, followed by aluminum. Shanks said the automaker at times relies on foreign currencies as a "natural hedge" for some commodities but those are now going in the opposite direction, so they are not working. A Ford spokesman added that the automaker also uses a mix of contracts, hedges and indexed buying. Industry analysts point to the spike in aluminum versus steel prices as a plausible reason for Ford's problems, especially since it uses far more of the expensive metal than other major automakers. "When you look at Ford in the context of the other automakers, aluminum drives a lot of their volume and I think that is the cause" of their rising costs, said Jeff Schuster, senior vice president of forecasting at auto consultancy LMC Automotive. Other major automakers say rising commodity costs are not much of a problem. At last week's Detroit auto show, Fiat Chrysler Automobiles NV's Chief Executive Officer Sergio Marchionne reiterated its earnings guidance for 2018 and held forth on a number of topics, but did not mention metals prices. General Motors Co gave a well-received profit outlook last week and did not mention the subject. "We view changes in raw material costs as something that is manageable," a GM spokesman said in an email.

Ford Apollo edition Mustang nets $230K for charity

Ford's Apollo Edition Mustang won't be going to the moon anytime soon, but the specially modified pony car will be helping young people learn to fly thanks to the $230,000 raised from its charity auction during AirVenture in Oshkosh, WI. All of the funds go to the Experimental Aircraft Association's Youth Aviation Programs that assist kids in becoming pilots. Eight specially modified Mustangs are responsible for raising about $3 million for the charity to date. With inspiration from the Apollo Program and a 2015 Mustang GT as a canvas, Ford Design manager Melvin Betancourt needed to create a road-going rocket ship dedicated to this massive engineering accomplishment. He definitely succeeded. The car is ready to takeoff with its supercharged 5.0-liter V8 pumping out 627 horsepower and 540 pound-feet of torque. The orange LEDs underneath make it look ready to blast into orbit, too. The exterior mixes patriotic imagery with lightweight carbon fiber performance parts, and on the interior, additional embroidery pays homage to the whole project of reaching the moon. Each year Ford returns to AirVenture with a new, customized 'Stang. In 2014, the car took inspiration from the F-35 Lightning II. The US Air Force Thunderbirds tribute car in 2013 and the Navy Blue Angels version in 2011 both raised $400,000 for the EAA charity. The SR-71-inspired example from 2010 went for another $375,000. Related Video: Ford Apollo Edition Mustang Celebrating the Apollo Missions Raises $230,000 to Support EAA Youth Aviation Programs • U.S. Apollo spaceflight program inspired one-of-a-kind 2015 Ford Apollo Edition Mustang sold at charity auction July 23 at EAA AirVenture in Oshkosh, Wisconsin • 100 percent of proceeds benefit EAA youth aviation education programs, including Young Eagles • Unique Ford vehicles have raised approximately $3 million for EAA youth aviation programs, including Young Eagles DEARBORN, Mich., July 30, 2015 – The one-of-a-kind Apollo Edition Ford Mustang, developed by Ford Motor Company, raised $230,000 at the Gathering of Eagles charity event July 23. Proceeds from the auction – held during the Experimental Aircraft Association AirVenture Oshkosh 2015, the World's Greatest Aviation Celebration – benefit youth aviation education programs, including the Young Eagles. The Young Eagles has provided free introductory flights to more than 1.9 million young people since 1992, helping to grow the next generation of aviators.