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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.

Ford F-150 SVT Raptor sales jumping to new heights

Ford can't seem to build F-150 SVT Raptors fast enough. The off-road-ready trucks have been one of the Blue Oval's most reliable sellers, with record sales in eight of the last 10 months and a 14-percent jump in 2013. That's impressive enough, considering that the least expensive Raptor starts at $44,000. Factor in the modded F-150's fuel economy (it's rated at 11 miles per gallon in the city and 16 on the highway) and a national average gas price, as of this writing, of $3.55 per gallon, and its success is as unlikely as Ford's home team, the Detroit Lions, winning the Super Bowl this year (sorry, Lions fans, we're just quoting the experts in Vegas...).
Yet for some reason, Raptors spend an average of just 15 days on dealer lots before being snapped up, which is a quarter of the 60-day industry average. According to Ford's truck group marketing manager, Doug Scott, it's capability that keeps the Raptor selling strong. "What's helping drive Raptor sales is that Raptor delivers unmatched off-road performance to our customers. Raptor is also proof of our commitment to offer a truck for every customer and continuously improving them to meet our customers' evolving needs."
To address the strong demand for Raptors, Ford will bump production from three trucks per hour to five. Not much, we agree. But building an extra 48 trucks per day, at most, seems like a prudent way of addressing demand without oversaturating what is ultimately a niche market. Check out the press release below for more.

Ford opens the doors on its Swedish rally skunkworks

It's always amazing to see how different kinds of racecars are made. Formula One racers are often constructed in modern architectural marvels that hint at some of the cutting-edge technology going into the racing. Conversely, rallying is all about sliding around on a varied course as fast as possible, but it often leaves a vehicle caked in mud. So it makes some sense Olsbergs MSE, or simply (OMSE) rally car shop in Nynashamn, Sweden, shows technological sophistication in a more down-to-earth setting. It builds Ford Fiesta ST racers for Global Rallycross there, and this new video gives viewers a tour through the work.
Former rally driver Andreas Eriksson runs OMSE. These days instead of racing, he and the company's 46 employees are building Ford racers from scratch. A ton of work goes into constructing each one, and according to Eriksson, it takes 400 hours to complete each body. At times, things are so busy that some of the technicians live in the shop in apartments that are on premises. There's even a restaurant to keep them fed. Sadly the dyno room is empty during this visit, though.
By the time OMSE is done, a rallycross car might resemble a Fiesta ST on the outside, but as you see in the video, it's a completely different beast underneath. Check out the work it takes to build one of them, and scroll down to read more about it in the official release.