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Ford 2Q profit drops 86% as it restructures overseas

DEARBORN, Mich. (AP) — Ford's net profit tumbled 86% in the second quarter due largely to restructuring costs in Europe and South America. Net income for the April-through-June period dropped to $148 million, or 4 cents per share. Without the charges the company made 28 cents per share. Revenue was flat at $38.9 billion. On average, analysts surveyed by FactSet expected earnings 31 cents per share on revenue of $38.49 billion. Chief Financial Officer Tim Stone says the company had charges of $1.2 billion as it moved to close factories in Europe and South America. He says Ford already is seeing an impact from its global fitness measures that included a reduction of 7,000 white-collar workers. Ford, which released numbers after the markets closed Wednesday, says its results include a $181 million valuation loss on an investment in a software company, trimming 4 cents off adjusted earnings per share. Its stock fell 6.3% in after-hours trading to $9.68. Stone said Ford is in the early stages of its restructuring, but already is seeing improvement in some regions. Free cash flow also improved by 80% to $2.1 billion in the first half of the year, he said. "We're already starting to see some early benefits," he said. "A lot of work to do." The company expects improvement in the second half of the year as more new big SUVs hit dealerships and more of the restructuring takes hold. Ford on Wednesday forecast pretax adjusted earnings of $7 billion to $7.5 billion for all of 2019, compared with $7 billion last year. The company previously had only said that pretax earnings would improve. Full-year adjusted earnings per share are forecast to be $1.20 to $1.35, up from $1.30 in 2018. Previously it did not give per-share guidance. Ford's U.S. sales fell nearly 5% in the second quarter, according to the Edmunds.com auto pricing site, as the company exited most of its passenger car business. But Stone said sales of the new Ford Ranger small pickup offset much of that as its share of the small truck segment rose 14%. Edmunds, which provides content for The Associated Press, said Ford's average vehicle sale price rose 2.8% to $41,328 during the quarter. In North America, Ford's biggest profit center, pretax earnings fell 3% to just under $1.7 billion, which the company blamed on switching its Chicago factory to build new versions of midsize SUVs.

More than 800,000 Fords recalled for faulty Takata airbags

The Basics: Ford is recalling about 816,000 Ford, Lincoln, and Mercury vehicles built in the US for faulty passenger-side Takata airbags. The affected vehicles were all built in North America, with 654,695 recalled vehicles in the US and 161,174 vehicles in Canada. A wide variety of cars, trucks, and SUVs are affected. This is a planned expansion of an earlier recall. 2005-09 and 2012 Ford Mustang 2005-06 Ford GT 2006-09 and 2012 Ford Fusion 2007-09 Ford Ranger 2007-09 Ford Edge 2006-09 and 2012 Lincoln Zephyr and Lincoln MKZ 2007-09 Lincoln MKX 2006-09 Mercury Milan The Problem: Like every other Takata recall, the problem rests with faulty airbags that can potentially expel shrapnel, injuring or killing vehicle occupants. Millions of vehicles from dozens of automakers are affected, so don't think that Ford is alone on this one. Injuries/Deaths: Ford stated in a press release that there have been no injuries or death linked to the vehicles in this recall. All in all, 11 deaths and 180 injuries across a variety of automakers have been linked to these Takata airbags. The fix: Ford will contact owners soon, and the affected vehicles will have their airbags replaced by a dealer at no additional charge. If you own one: Wait for contact from Ford, then head to the dealer to get a replacement. If you're wondering if your vehicle is affected, go to this Ford website and enter their Vehicle Identification Number (VIN). The recall reference number is 17S01. Related Video: News Source: FordImage Credit: Associated Press Recalls Ford Lincoln Mercury Auto Repair Ownership Safety Truck Coupe Crossover SUV Sedan airbag Takata airbag recall

2020 Lincoln Aviator crossover is a hot rod with 400 horsepower standard

LOS ANGELES — The 2020 Lincoln Aviator has finally been revealed in production form following its "concept" debut at the New York Auto Show earlier this year. We add the quotes because the production model is identical to the New York model. Appearances aside, the big news is under the hood. At launch, the Lincoln Aviator will be available with two engines. They're both twin-turbocharged 3.0-liter V6s, and one of them is a plug-in hybrid. The standard engine makes an impressive 400 horsepower and 400 pound-feet of torque. To help put that into perspective, that's about 40 more horsepower than the top-rung six-cylinder Mercedes-Benz GLE 450 we just drove, and about 65 more horsepower than the entry-level six-cylinder BMW X5 xDrive40i. Moving to the hybrid powertrain brings Aviator output to 450 horsepower and a staggering 600 pound-feet of torque. That's just 6 ponies shy of the V8-powered BMW X5 xDrive50i, but 121 more pound-feet of torque. This plug-in hybrid powertrain will also be able to do the typical plug-in stuff. You can run the vehicle in pure electric mode or hold the charge to be deployed at a more advantageous time such as driving in town at the end of a highway drive. Lincoln did not give estimates for the pure electric range. Fuel economy hasn't been revealed yet, either. Other interesting hybrid notes: The battery fits entirely under the passenger side of the vehicle between the front and rear wheels. The motor is sandwiched between the engine and transmission. Lincoln also mentioned this is a modular hybrid system, so expect to see it appear in other Lincoln and Ford products in the future. This powertrain layout is part of what makes it possible for all versions of the Aviator to use the same 10-speed automatic transmission, which is gradually proliferating through the whole Ford family. From there, power either goes solely to the rear wheels, or through an optional all-wheel-drive system. All of this power can ride on an available adaptive air suspension the company calls Air Glide. It works like many adaptive suspensions, scanning the road with a camera to adjust damping for bumps ahead. It does have some other trick features, though. When the Aviator is parked, the suspension lowers to make the crossover look more attractive while sitting. And when the driver approaches, it lowers itself further for easier ingress. It also raises itself for snow or mild off-road driving, and it lowers down at highway speeds for better aerodynamics.