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Ford books $1.2B profit in second quarter on strength of trucks

Ford is rolling along nicely, with a positive second-quarter sales report and a $2.3 billion profit in North America. The Dearborn, Michigan-based manufacturer captured $1.2 billion globally from April to June, with a $177 million profit in Asia. Even in Europe, the land of doom and gloom for automakers not named Mazda, Ford saw some success as it lowered its expected full-year loss from $2 billion to $1.8 billion. The company lost $348 million in Europe during the second quarter, which, believe it or not, represents a $56-million improvement over 2012.
According to the report on CNBC, Ford enjoyed a three-percent increase in pre-market trading thanks to the news. The strong demand for the F-150 propelled growth in the US market, while Ford's 47-percent increase in Asian sales can be attributed to the new EcoSport crossover and Kuga (Ford Escape in the US) arriving in the somewhat fragile Chinese market.
Pre-tax profits for Ford are expected to be in the neighborhood of $8 billion by the end of the year, with sales the US, Europe, and China all looking up. The company also shifted $4.78 billion of asset-backed debt in the form of bonds, according to a report by Bloomberg. This move came amidst rumors of the Federal Reserve cutting back on its $85-billion-per-month bond purchases. Ford wasn't alone among automakers looking to sell off debt, though, as Mercedes-Benz and Nissan shifted around $1 billion each in bonds relating to auto loans.

Ford finds flex-fuel engine design plays big role in emissions output

How bad is ethanol for your engine? There's been a lot of debate on this issue as the US considers upping the biofuel content in the national gasoline supply from 10 percent (E10) to 15 percent (E15). The ethanol industry and some scientists say higher ethanol blends show no "meaningful differences" in new engines while the oil industry says ethanol creates health risks. Researchers working at the Ford Research and Innovation Center decided to take a closer look at how a wide range of gas-ethanol blends - E0, E10, E20, E30, E40, E55 and E80 - affected the emissions coming out of a flex-fuel 2006 Mercury Grand Marquis. To see the full report, printed in the journal Environmental Science & Technology, requires payment, but there is an abstract and Green Car Congress has some more details. The gist is that, "with increasing ethanol content in the fuel, the tailpipe emissions of ethanol, acetaldehyde, formaldehyde, methane, and ammonia increased." At least NOx and NMHC emissions decreased. The researchers say that the effects are due to the fuel and "are expected for all FFVs," but that the way that a manufacturer calibrates the engine will affect NOx, THC, and NMOG emissions. It's this last bit that's important, since the researchers found, "Higher ethanol content in gasoline affects several fundamental fuel properties that can impact emissions. ... These changes can have positive or negative effects that can depend on engine design, hardware, and control strategy. In addition to direct emissions impacts, higher ethanol content fuel can also provide more efficient combustion and overall engine operation under part-load conditions and under knock-limited higher-load conditions." So, as we head towards more ethanol in our fuel supply (maybe), manufacturers are going to need to learn how to burn it most efficiently.

Weekly Recap: Auto execs face life in prison for recall delays under proposed legislation

The stiff punishments are part of broader transportation legislation, but clearly McCaskill has automakers in her sights.
Missouri Senator Claire McCaskill threw down the gauntlet this week, proposing a bill that could send auto executives to prison for life if they were found to have delayed a recall. She also wants to eliminate the limit for fines for auto safety violations, which are currently capped at $35 million.