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Ford Q1 profits dragged down by warranty costs

General Motors isn't the only Detroit automaker posting falling profits in the first quarter. Ford just released its Q1 2014 financial data, and it reported a net income of $989 million, down $622 million from Q1 2013. The drop is partially blamed on higher warranty and recall expenses than the company had anticipated.
Financially, Ford suffered a rough quarter almost across the board. Its pre-tax profit of $1.4 billion was also down $765 million from a year ago. Things were even worse in the North American market where operating profit fell significantly to $1.5 billion, down from $2.392 billion in Q1 2013. However, its global revenue ticked up slightly to $35.9 billion, from $35.6 billion in this period in 2013.
Ford admitted that it spent about $900 million on expenses that it hadn't planned for during this quarter. According to Reuters, the company paid about $400 million in additional warranty and recall costs in North America. The automaker didn't explain why the costs were so much higher than expected. However, in the last three months, Ford has had several recalls, including on the 2001-2004 Escape for rust, Explorer for its steering, Edge for its fuel line and others.

China takes lead as GM's No. 1 market

It's happened. General Motors' biggest vehicle market - at least in terms of new model sales - is China. According to TheDetroitBureau.com, GM and its various Chinese joint venture operations enjoyed a 10.6-percent sales increase in the first half of 2013, selling almost 1.6 million units in the market. That puts GM China about 200,000 units ahead of its US sales totals over the same period - this, despite indicators that the communist nation's economy is losing momentum.
TDB notes that like GM, rival Ford has also enjoyed a robust 2013 in China thus far, with its sales up a whopping 47 percent to 407,721 units sold - 75,254 of them in June alone. Between the two US automakers, passenger car sales for the first half of 2013 are up around 14 percent, well ahead of the rest of the industry's 10-percent growth estimates for the market. Some of the sales growth may come as a result of an overall anti-Japan sentiment in China, though the American brands have long outsold their Japanese counterparts in the country.
By The General's own predictions, China will only continue to grow in sales importance. The company has designs on selling over five million cars a year in the market before the end of the decade, a total that figures to dramatically widen the gap versus its US totals - even if America's auto market makes a full recovery to the the salad days of over 17-million units a year.

Entry-level F-150 now offers SuperCrew, Sport Package

Ford has made a few notable tweaks to the lower end of its F-150 lineup, giving customers a more affordable version of the four-door SuperCrew body style. The popular SuperCrew could previously only be had on XLT models and above, but Ford has announced that 2014 F-150s with the base STX trim can get the more versatile body.
The STX SuperCrew brings the price of a four-door F-150 down from $34,525 to $33,145. Like the XLT SuperCrew, the STX will be available with the choice of a 5.5- or 6.5-foot bed, while a 5.0-liter V8 can replace the base 3.7-liter V6 for $4,425. Ford has not released pricing on the different bed lengths yet, but opting for the 6.5-foot bed on the XLT raises the price $1,240 and forces buyers into the 5.0-liter V8. We'd expect a similar arrangement on the STX.
The other big news for fans of affordable pickups is the addition of an STX Sport Package on the base-level truck. It adds 20-inch wheels, black exterior accents, black-and-gray cloth seats and decals on the truck's box. The Sport Package is available on all three of the STX's body styles, with Ford listing the price as $980 with current discounts.