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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.

Yearly auto recall record demolished in 6 months

With nearly 40 million vehicles under repair campaigns and counting, 2014 will almost certainly go down as the year of the automotive recall. At just past the halfway mark, we are already at record levels, and there aren't any signs that the epidemic is slowing. General Motors' latest 8.4 million vehicle recall in the US puts the industry over the top for the title of the most cars with fixes pending from automakers ever. That's a prize no one ever wants to receive. According to TheDetroitBureau.com, the US recall total has hit 39.85-million vehicles to surpass the previous record of 33.01 million in 2004. Perhaps more surprising, with over 26 million repairs pending, it's still quite possibly that GM could recall more vehicles by the end of the year than the 27.96-million unit total of the entire US auto industry last year. With over 40 campaigns under its belt in 2014, the roughly one million cars it would take would hardly come as a surprise at this point, especially with increased government scrutiny into the Detroit automaker's processes. The pace of recalls started off relatively normal this year, with just a smattering of campaigns. The most surprising early on was Aston Martin calling in about 75 percent of its output since 2007 due to counterfeit plastic, but with just a few thousand cars, it was relatively tiny in pure numbers. GM really kicked things off soon after, but we didn't know it at the time. It issued its first bulletin for 778,000 Cobalt compacts in early February. Things only ballooned from there as more models were added to its growing ignition switch problem. The onslaught of announcements from every major automaker hasn't abated since then. Some industry executives are trying to put a positive spin on the situation. "With what's transpired (in recent months), there's a higher level of scrutiny," said Joe Hinrichs, Ford president of the Americas, to TheDetroitBureau.com. He believes that automakers are looking at data much more thoroughly than before, and it means better customer safety. Still, many consumers probably wish these problems had been found before their car went on sale.

Lincoln 'not true luxury' yet, says Ford design chief

Lincoln is "not true luxury," according to Ford's design boss, J Mays. His statements come from a story in The Detroit News that saw candid language on the issues facing Ford's troubled premium brand. Notably, there's a need for a strong character, with Mays saying, "Every brand needs to have a DNA and a unique selling point and things in the vehicle that make you think, 'That's that particular brand.'"
With a range of rebadged Fords, it's not hard to see why that DNA is missing. Mays hinted that a full recovery for Lincoln will be a ten-year process, that's been kicked off with the MKZ sedan. While that car is still largely a Ford Fusion under its extremely pretty wrapper, it's the first Lincoln in some time to inject its own unique take both through the exterior styling and through interior features, such as the vertical, pushbutton gear selection.
Some analysts weren't so certain about Mays' 10-year estimate. Jim Hall of 2953 Analytics thinks it'll be more like 30 years before Lincoln can show a true return to form. The issue, as Hall explains it, is that, "luxury has a degree of exclusivity," that Lincoln just doesn't have. Michelle Krebs from Edmunds adds, "it's definitely a wanna-be luxury brand," comparing the troubled American brand with Infiniti and Acura, two other brands that have struggled to find their place in the luxury market.