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Lincoln Continental death looms with changes at Flat Rock Plant

Ford's Flat Rock Assembly plant just south of Detroit produces the Ford Mustang and the Lincoln Continental. Automotive News reports that the automaker plans to produce two battery-electric crossovers at the facility, the EVs scheduled for sale in the 2023 model year. The EVs were previously meant to be built in Ford's Cuautitlan Stamping and Assembly plant in Mexico, which builds the Fiesta. According to the AN piece, moving the EVs to Michigan means the end of Lincoln Continental production in the U.S. Sunset is expected in "late 2021" for a sedan that is just three years old, and that never got the momentum to assert itself and reassert the Continental nameplate. The Continental has been on death watch since at least March 2018, when Ford Authority reported that the luxury sedan wouldn't get more than one generation. The changing of several guards in the top ranks scotched a plan to move the Continental onto the CD6 platform for rear- and all-wheel-drive vehicles. In September 2018, Jalopnik put more meat on those crossbones, saying Flat Rock workers alleged the big Lincoln could bid adieu as soon as this year, and automaker insiders had seen production merely scheduled — not approved — for 2020, with nothing beyond that. Then, as now, Ford appears to be leaving open the possibility for Continental production to continue in China, and just maybe be exported here. The two twinned midsized EVs, using the codenames CDX746 and CDX747, would come in Ford and Lincoln flavors. Said to be roughly the size of the Ford Edge/Lincoln Nautilus platform siblings, the automaker has requested suppliers gear up for annual production of up to 65,000 units between the two models. When they arrive, they'll form part of the 16 EVs Ford plans to have on the market worldwide by 2022. The others we know of so far are the crossover that will channel the Mustang, an electric F-150 pickup, and an EV project with Rivian.

Mixed sales results, but automaker stocks rise on need for cars in Houston

DETROIT — The Big Three Detroit automakers on Friday reported better-than-expected August sales and issued optimistic outlooks for demand as residents of the Houston area replace flood-damaged cars and trucks after Hurricane Harvey, sending their stocks higher. General Motors, Ford and Fiat Chrysler posted mixed August U.S. sales, with GM up 7.5 percent and Ford and Fiat Chrysler down. Japanese automaker Toyota improved sales by nearly 7 percent, while Honda fell 2.4 percent. Still, analysts focused on the potential for Detroit automakers to cut inventories and stabilize used vehicle prices as residents of Houston, the fourth largest city in the United States, are forced to replace tens of thousands, perhaps hundreds of thousands, of vehicles after the devastation from Hurricane Harvey. Mark LaNeve, Ford's U.S. sales chief, told analysts on Friday that following Hurricane Katrina in 2005 "we saw a very dramatic snapback" in demand. That said, Ford sales fell 2.1 percent in August. It sold 209,897 vehicles in the United States, compared with 214,482 a year earlier. Sales were down 1.9 percent in the Ford division and off 5.8 percent at Lincoln. Demand was down for cars, crossovers and SUVs. It was not clear how many vehicles in the Houston area will be scrapped, LaNeve said, saying he had seen estimates ranging from 200,000 to 400,000 to 1 million. Ford's Houston dealers may have lost fewer than 5,000 vehicles in inventory, he said. Ford is the No. 1 automaker in the Houston market, with 18 percent share, according to IHS Markit. The company plans to ship used vehicles to Houston dealers and has "every indication we would have to add some production" of new vehicles to meet demand, LaNeve said. Investor concerns about inventories of unsold vehicles and falling used car prices have weighed on Detroit automakers' shares most of this year. Now, automakers can anticipate a jolt of demand from a big market that is a stronghold for Detroit brand trucks and SUVs. "It's got to be a positive for the industry," LaNeve said. Investors appeared to agree. GM shares rose as much as 3.3 percent to their highest since early March. Ford increased 2.8 percent at $11.34, and Fiat Chrysler's U.S.-traded shares were up 5.2 percent $15.91, hitting their highest in more than five years. GM reported a 7.5 percent increase in U.S. auto sales in August, helped by robust sales of crossovers across its four brands.

Ford Q3 pretax profits drop to $1.18B

Following positive third quarter financial results recently from General Motors, rival Ford took a tumble in Q3. The automaker posted pre-tax profits of $1.18 billion, compared to about $2.59 billion in Q3 2013, a drop of around 54 percent. Net income also suffered with $835 million made in the quarter, versus $1.272 billion last year, a decline of about 34 percent. The Blue Oval blamed the gloomy figures on three reasons in its release: "lower volume, higher warranty costs and adverse balance sheet exchange effects."
There were problems of one kind or another in practically every region. North America experienced higher warranty costs than expected, partially due to recalls. The sales volume for the quarter was 665,000 units, versus 725,000 in Q3 2013, and pre-tax results amounted to $1.41 billion versus $2.296 billion last year.
South America and Europe both posted worse pre-tax results than last year. On the bright side, European volume was up slightly to 321,000 vehicles, from 303,000 in Q3 2013. The Middle East and Africa also lost $15 million, but that was an improvement compared to the $25 million loss previously experienced in this region.