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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.

NHTSA upgrades Ford floor mat unintended acceleration probe

According to a Bloomberg report, the National Highway Traffic Safety Administration has upgraded an investigation into complaints of unintended acceleration lodged against Ford vehicles. The investigation began in June of 2010 when just three complaints had been received and it only concerned the Ford Fusion and Mercury Milan, but this was at a time when the phrase "unintended acceleration" made grown men go pale. With 49 additional complaints received since then, the investigation has been reclassified as an engineering analysis - the last phase before a recall - and it has been expanded to include the Lincoln MKZ, making for a total of "around 480,000" units affected between the three sedans from the 2008 to 2010 model years.
The ostensible cause is that floor mats are trapping the accelerator pedal, but according to a Ford statement at the time, the entrapment is due to owners placing the optional all-weather floor mats, or aftermarket floor mats, on top of the car's standard floor mats. NHTSA has backed up that assessment, pinning the blame on "unsecured or double stacked floor mats."
On the face of it, it would appear that NHTSA has upgraded the status not because of Ford's error, but owner error, and Ford has stated publicly that it is "disappointed" in NHTSA's move. On top of NHTSA still being skittish after that other unintended acceleration debacle, it could be seen to be taking its time investigating all of the variables: it's reported that Ford changed its accelerator pedal design in 2010, a "heel blocker" in the floorpan has been considered a potential culprit in how the floor mats could be trapping the pedal, some drivers have said the floor mats weren't anywhere near the pedal, and according to a report in the LA Times, in "a letter sent by Ford to NHTSA in August 2010, the automaker said it found three injuries and one fatality that 'may have resulted from the alleged defect.'"

2017-19 Ford Super Duty trucks recalled for tailgates that could open

Ford announced two separate recalls today, though neither has resulted in any known injuries. The first recall, which deals with a tailgate malfunction, affects 261,617 examples of 2017-2019 F-250, F-350, and F-450 Super Duty pickups. The second, which anticipates the possibility of a fuel leak, affects 3,893 units of 2020 Explorer and 2020 Lincoln Aviator SUVs with 3.0-liter engines. Ford says tailgates might accidentally open on some 2017-2019 Super Duty trucks because of a short circuit. If the pickups have an electric tailgate latch-release switch on the tailgate handle, water might get into the wiring. If the water hits the right spots, a short circuit could cause the switch to release the tailgate latch. In a worst-case scenario where the tailgate opens while driving, contents of the truck's bed could fall out and create a safety hazard. Dealerships will fix the problem by modifying the tailgate frame wiring harnesses with jumper pigtails and install a new tailgate handle release switch. Of the lot, 231,664 trucks are in the U.S., and 29,953 are in Canada. The Ford recall number is 19S48.  The second recall is much smaller, involving fewer than 4,000 vehicles. In certain 2020 Explorers and Aviators with 3.0-liter engines, Ford says, "The convolute protective sleeve on the liquid fuel line is not long enough, which may allow for potential hard contact with the convolute-protected vapor fuel line. Over time, with vibration and engine roll, hard contact between the two fuel lines could cause the convolute on the vapor fuel line to rub through the plastic liquid fuel line." If that happens, it could be a fire risk and hazardous for drivers and passengers. Only 35 of those SUVs are in Canada, and the rest are in the United States. Dealers will fix the problem by replacing the defective convolute with a full-length piece and tying it down with a strap. The recall reference number for the Aviators and Explorers is 19S49. The recall adds to what has otherwise been a rocky early production phase for the new Explorers and Aviators.