1973 Ford F-100 on 2040-cars

Auto blog

Ford Q1 profits dragged down by warranty costs

General Motors isn't the only Detroit automaker posting falling profits in the first quarter. Ford just released its Q1 2014 financial data, and it reported a net income of $989 million, down $622 million from Q1 2013. The drop is partially blamed on higher warranty and recall expenses than the company had anticipated.
Financially, Ford suffered a rough quarter almost across the board. Its pre-tax profit of $1.4 billion was also down $765 million from a year ago. Things were even worse in the North American market where operating profit fell significantly to $1.5 billion, down from $2.392 billion in Q1 2013. However, its global revenue ticked up slightly to $35.9 billion, from $35.6 billion in this period in 2013.
Ford admitted that it spent about $900 million on expenses that it hadn't planned for during this quarter. According to Reuters, the company paid about $400 million in additional warranty and recall costs in North America. The automaker didn't explain why the costs were so much higher than expected. However, in the last three months, Ford has had several recalls, including on the 2001-2004 Escape for rust, Explorer for its steering, Edge for its fuel line and others.

Ford taken to task by gov't for Chicken Tax end-around

Ford is in a bit of a pickle for importing and selling Turkey-built Transit Connect cargo vans as passenger vehicles in the US, then converting them to commercial-vehicle specification stateside in an effort to bypass a 25-percent tax imposed on vehicles imported for commercial use. Automakers are required to pay a 2.5-percent tax on imported passenger vehicles.
The Blue Oval got into trouble for this in a January ruling in which U.S. Customs and Border Protection officials asked Ford to stop the practice of importing the Transit Connect vehicles with passenger seats, then removing and shredding them. Now Automotive News reports that Ford is appealing the ruling. The 25-percent "Chicken Tax," as the tariff is often called, is 50 years old and was enacted as a response to a German tariff on chickens. Like Ford, Chrysler bypasses the higher tariff, but it does so in a different manner. It partially disassembles Sprinter cargo vans before shipping them to the US, then rebuilds them at a plant in South Carolina.
But the ruling against Ford's strategy states that it "serves no manufacturing or commercial purpose" and is there to "manipulate the tariff schedule," Automotive News reports. As Ford's appeal goes through, it is importing the Transit Connect and paying the higher tax, hoping for a favorable outcome and planning to build the next-generation Transit Connect, which it plans to launch before the end of the year, in Spain.

2013 Shelby 1000 unleashes its 1,200 horsepower ahead of NY show reveal

True story: Last fall, I had the opportunity to spend a week with Ford's new 2013 Shelby GT500 - the Blue Oval's factory Mustang with 662 horsepower and 631 pound-feet of torque. It's an amazing beast, to be sure. I'm not sure if it was Michigan's damp streets strewn with potholes and wet leaves, but at no point did I ever say to myself, "You know, Ford is on to a really good thing here, but what it really needs is about twice the power." And yet, for people in warmer climes with infrastructure in better nick - or for those whose muscle cars live their lives out on the track, there's apparently sufficient demand to warrant just such a beast.
Quick studies will recall that Shelby American launched its 1000 last year to commemorate its 50th anniversary, but it is returning to the New York Auto Show with a fresh version based on the 2013 GT500 I drove. The 2013 Shelby 1000 whips up 1,200 horsepower on pump gas thanks to beefed-up forced induction, engine internals and cooling. Wisely, it also incorporates an adjustable suspension and big brake package to make sure those ponies have the best chance being safely deployed to the ground.
What price the world's most powerful "production" muscle car? $154,995 for starters - donor GT500 not included. What, no convertible variant?