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Ford rakes in record $2.5b profit during Q1 of 2016

Fears that the auto industry is due for a downturn may be fading. Ford posted record profits in the first quarter of 2016, the company announced Thursday. Chief financial officer Bob Shanks said Ford enjoyed its best quarterly performance in history, generating operating profits of $3.8 billion and a record profit margin of 9.8 percent. Overall, the company's $2.5 billion profit in the quarter more than doubled from the 2015 quarterly results. "The first quarter was an absolutely terrific start to the year, an all-time record for the company, with very strong performance across the business," said chief executive officer Mark Fields. "We're excited about our future and confident in our ability to deliver long-term growth and profitability as we expand our business model to be both an auto and a mobility company." During the quarter, Ford announced the creation of Ford Smart Mobility, a new subsidiary that would vet future mobility projects in the realm of car-sharing, fractional ownership and autonomous deployment. The company also kicked off a billion-dollar makeover of its Dearborn, Michigan campus and headquarters. The company's after-tax earnings of $0.68 per share trumped Wall Street's expectations, and were significantly up from $0.39 per share a year ago. The results were buoyed by the company's fourth consecutive quarter of growth in Europe, which comes after a long period of stagnant sales. Ford's earnings results come amid reports that April car sales are on pace to jump 4 percent year over year, which would make it the best-selling April in history. Kelley Blue Book projects that car sales will reach 1.51 million this month, placing the industry on track for 17.5 million vehicles sold in 2016. Even as SUV and crossover sales drive the market, analysts say Nissan and Honda are positioned to benefit from renewed interest in mid-size cars. "Following a disappointing March, we expect sales to get back on track in April with SAAR in the mid-17 million range," said Tim Fleming, analyst for Kelley Blue Book. "Increased fleet sales and rising incentive spending among automakers remain the factors to watch, but the retail demand appears to be holding steady, signaling the industry's strong run isn't over quite yet." Related Video: Image Credit: Getty Earnings/Financials Ford Lincoln 5g Connectivity mobility auto industry financial

Why the 2015 Lincoln MKC is 'holding some powder'

Earlier this month in our first drive of the 2015 MKC, we told you that Lincoln finally had a new vehicle in its arsenal worth crowing about. So with the compact premium crossover now finding its way into dealers, why aren't you seeing its likeness plastered on billboards and barraging you on television? It's because Lincoln is "holding some powder."
Those are the words of Lincoln's global director, Matt VanDyke, who tells Autoblog that the company is holstering some of its marketing guns because it's keen to avoid repeating the ill-timed efforts that blighted its last rollout, the MKZ. That vehicle's launch early last year was beset by various delays related to manufacturing and quality. The cadence issue was so dire that by the time the model reached showrooms in volume, Lincoln had already blown most of its budget on things like Super Bowl ads that ran weeks or even months before customers could check one out in person. It was a particularly trying series of events for parent Ford because the MKZ and its oversized marketing spend were charged with relaunching the Lincoln brand to the public.
Keen to avoid repeating the same timing issue and mindful of consumers' habits at this time of year, Lincoln is taking a different strategy with the MKC. According to VanDyke, "What we don't want to do is try and fight the summertime - people using television being down, and other mass media when school's out. New television shows aren't on." Of course, that doesn't mean Lincoln is sitting idle. VanDyke says, "By no means are we quiet during the next 90 days. This year, we're going to really spend the next 60 to 90 days using digital and social media, in-theater advertising and the like, and once we have full availability at dealerships, we'll really ramp up the advertising later on in the summer." Part of that early media effort includes immersive digital marketing like Lincoln's clever Dream Rides web experience.

Lincoln Navigator facelift only has to last until 2016 replacement

The Navigator is not only Lincoln's longest-serving nameplate - dating back to 1998 when the final Town Car was introduced - but it's also the oldest model still in the brand's portfolio. The current Navigator arrived on the market in 2007, and underwent a refresh just a few months ago for the 2015 model year. The updates were subtle, but if you're waiting for an all-new model, it's just a couple of years down the road.
According to Automotive News, Lincoln is already working on an all-new replacement for the current, long-serving Navigator, which will be revealed two years from now in the middle of 2016 as a 2017 model. At that point, we're expecting it could switch (alongside the Expedition) to the new aluminum architecture introduced on the Ford F-150, seeing as how the current model is based on the old F-150.
In the meantime, the refreshed Navigator ditches the big 5.4-liter Triton V8 in favor of a more economical 3.5-liter EcoBoost V6, and wages war in two wheelbase lengths against the V8-powered competition in the form of the Cadillac Escalade (and Escalade ESV), the Land Cruiser-based Lexus LX and the Infiniti QX80, which is based on the overseas Nissan Patrol.