Ford Profits Dive 39% Based On High Warranty Costs And Discounts

Ford Motor Co. today said its first-quarter net income fell 39 percent from the same period a year ago to $989 million on weaker pricing in the United States and higher warranty expenses.

It was Ford’s 19th consecutive profitable quarter.

Profit margins in North America declined 35 percent, due to higher incentives and a $410 million increase in warranty reserves related to previously announced recalls and other service campaigns involving vehicles from past model years. Ford also said “weather-related costs” cut North American earnings by about $100 million.

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mpls - 4/25/2014 4:25:41 PM

-1 Boost

Found On Road Driverless

MattDarringer - 4/26/2014 7:27:58 PM

+1 Boost

Some people (@meathelmet, mpls, BobM) should read the article. They pushed paying for previously done recalls into this quarter. Recalls are a good thing. It says a company is doing the right thing for consumers. Would you rather have GM that only does recalls when they fear the US Government is going to prosecute them?

USNA1999 - 4/26/2014 7:49:41 PM

0 Boost

"Recalls are a good thing. It says a company is doing the right thing for consumers." LoL The companies with all these major recalls are covering their behinds from the government for procuring a crappy unsafe product. Just look at the king of recalls, TOYOTA.

USNA1999 - 4/26/2014 7:51:47 PM

0 Boost

You are definitely a "used car salesmen".