Auto blog

Ford reports $3B profit in Q4, $6.9B for the year

Good news out of Dearborn today, as Ford announced $3 billion in profit for the last quarter of 2013, a 90-percent increase over the same period of 2012. Net income for all of last year, meanwhile, jumped to $7.2 billion from $5.7 billion in 2012, while pre-tax profits sat at a decade-topping $6.9 billion for all of 2013.
The results of the substantial profit increases are bigger profit-sharing checks for UAW employees. How big? A record $8,800 on average for 47,000 UAW workers, making 2013 the biggest year for profit sharing in Ford history. In total, $414 million will be paid as part of the profit-sharing scheme.
Now, it should be pointed out that a fair portion of Ford's Q4 profits were due to tax benefits, totaling $2.1 billion, according to Automotive News. Total profits would have also been higher, had there not been a significant recall on the Escape, as well as plant issues in South America.

2020 Ford Explorer, Lincoln Aviator reportedly facing numerous QC issues

A lengthy report in the Detroit Free Press delves into a range of quality control issues confronting the 2020 Ford Explorer and its luxury platform sibling, the 2020 Lincoln Aviator. Freep says it's been following the issue for two months, tapping various unnamed sources for information on the automaker's unorthodox route to resolution. Seems the problem is Explorers and Aviators leaving the production line at the Chicago Assembly Plant with flaws in areas like the chassis, transmission and suspension, said vehicles trucked to Ford's Flat Rock Assembly Plant (FRAP) outside of Detroit for repair. The estimates range from 10,000 to 18,000 vehicles affected, numbers so high that Ford has sought help from Roush Engineering in nearby Allen Park, and brought workers and managers from other plants in the Midwest to FRAP to get vehicles repaired and shipped to dealers. Ford hasn't shared the nature of the problems with anyone outside the company, including dealers and customers. Freep's sources are said to include workers who have provided photos of certain vehicles and of tents used to house parts at the FRAP repair site. The Explorer chassis allegedly has an unidentified problem that engineers are using X-rays to diagnose, and the transmission is having problems sensing when it's in park or going into park. Both the Explorer and Aviator have come off the line with HVAC units that only blow hot air. And the Aviator's height-adjustable suspension enters failure mode for unknown reasons. These come on top of quotidian mishaps common to every new vehicle, but that are meant to be sorted in pre-production, like missing emblems and trim pieces. They also come on top of a recall in early August issued for the Explorer and Aviator concerning the instrument cluster and parking brake, and another at the end of August over rear seatbacks that could collapse in a crash. An automaker spokesperson told Freep, "Making updates to preproduction models based on all-new platforms as they roll off the assembly line – is standard industry practice." Except these aren't pre-production, these are early production vehicles that paying customers and dealers are waiting for, and some of the affected vehicles have been pulled off dealer lots. Dealers say they are fine waiting for the trucks to get sorted out, and they'd rather have Ford fix the problems before the SUVs go to customers.

Consumer Reports says Toyota, Ford, Honda and Chevy are big winners in brand perception survey

According to Consumer Reports, the automotive brands that stand out in the minds of car buyers are, in order: Toyota, Ford, Honda and Chevrolet. This news comes after the magazine polled its readers, asking them to take into account vehicle quality, safety, performance, value, fuel economy, design/style, and technology/innovation - which are the factors that car shoppers are most influenced by.
It's important to note that this award is only about perception. In other words, it's perceived quality, not actual quality. "Often, perception can be a trailing indicator, reflecting years of good or bad performance in a category, and it can also be influenced by headlines in the media," said Jeff Bartlett, Consumer Reports deputy automotive editor.
The brand that made the biggest jump in perception amongst Consumer Reports readers is Tesla, which posted an impressive 47-point gain to finish in fifth place. Subaru is also notable for finishing in the top 10, despite being one of the smaller manufacturers doing business in the US. Scroll down below for all the details from Consumer Reports, if you're so inclined.