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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 Star Concept provides a glimpse of four upcoming EVs

The auto industry is in the midst of what has been called a once-in-a-century transformation as it shifts to zero-emissions propulsion. As it happens, this year also marks Lincoln’s 100th anniversary. There were actually Lincolns a few years earlier, but Lincoln counts Feb. 4, 1922, when Henry Ford purchased the company, as its birthday. Like many, Lincoln wants to electrify its lineup, and plans to introduce four new battery-electric vehicles by 2026. Today it unveiled the car that will inform that future, the Lincoln Star Concept. “ItÂ’s a clean-sheet of paper to help us get through the next four products,” chief exterior designer Earl Lucas told Autoblog at a preview. But when asked whether it's a crossover, LincolnÂ’s representatives resist dropping it into any existing categories. Global Design Director Kemal Curic describes it as a “new species.” It lacks the upright, two-box design of crossovers and SUVs dotting AmericaÂ’s roads. Instead it has a dramatically raked A-pillar and an even more acutely angled rear. The greenhouse area tapers towards the rear, and the main body has a distinct anti-wedge silhouette. To these eyes, it has almost wagon-like proportions. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. The other hallmark of the Star is its use of lighting. Illuminated surfaces can be found throughout the car — on logos where badges would normally reside, on a thin band that outlines the roof, and on fingernails that trace the wheel arches. ThereÂ’s also an unmissable light bar that spans the leading edge of the nose before curving up over the fenders and to the A pillars. ItÂ’s reminiscent of the chrome strips on the blade-like fenders of the 1961 Continental, but the designers we talked to denied that resemblance. The Star is decidedly anti-chrome, and lighting takes the place of that brightwork. Throughout our walkaround, designers used phrases that evoked a jet age view of transit. “ItÂ’s the journey, not the destination,” said Lucas. Curic uses the term “in flight” when talking about driving modes. Chief interior designer Robert Gelardi called it “the romance of travel.” ItÂ’s as if the Star was channeling a time when Lincolns like the Continental Mark II, once the most expensive domestic car ever sold, bore the American standard around the world and went toe-to-toe against the likes of Rolls-Royce.

Lincoln to adopt Mini-like personalization strategy?

There's no single silver bullet that will cure all that ails the Lincoln brand, and Ford knows that just as surely as we do. Coming out with exciting new models like the well-received MKC crossover counts as several steps in the right direction, assuming of course that the production version is as appealing as the concept just shown at the 2013 Detroit Auto Show, but more is needed. According to Jim Farley, executive vice president of Lincoln, one more trick may be "mass customization."
Put another way, Lincoln is considering ways to allow buyers to customize their new vehicles right off the showroom floor, similar to how things are done at Mini, and, to a lesser extent, Scion, where Farley previously served as corporate manager. Imagine, for instance, ordering a new MKC with a large Lincoln insignia embossed into the leather seatbacks, according to Automotive News.
While we're not so sure anybody is all that interested in paying extra for more Lincoln logos, it's a strategy that has proven rather fruitful at Mini. Only time will tell if Ford's erstwhile luxury division will once again be seen as something truly worth reaching for, and if customers are willing to pay a further premium for customization.