Edstock Posted July 24, 2014 Share Posted July 24, 2014 From Detroit News: Ford's second-quarter earnings up 6.3% Dearborn— Ford Motor Co. beat analysts’ expectations as second-quarter profits rose 6.3 percent to $1.3 billion over the same period a year ago.The Dearborn automaker’s better-than-expected quarter was highlighted by a best-ever North American profit of $2.44 billion, and its first profit in Europe in three years. Meanwhile, Das Auto contemplates das "Oops" . . . As costs threaten profits, VW takes on a more modest view of the future Volkswagen, Europe’s biggest car maker, has suddenly switched from telling everyone within earshot the sky is not the limit, to a more modest, placatory tone which points out that maybe not all things are possible. • • • “The VW brand has problems, big problems,” said Professor Ferdinand Dudenhoeffer, director of the Center for Automotive Research (CAR) at the University of Duisburg-Essen.“CEO Winterkorn has talked about bringing down costs, but more important is the positioning of the VW brand. VW wants to become Mercedes, but BMW and Mercedes buyers don’t want to buy VWs. They put a lot of upmarket equipment in these cars and then find they can only sell them with big rebates and price cuts,” Dudenhoeffer said. Quote Link to comment Share on other sites More sharing options...
akirby Posted July 24, 2014 Share Posted July 24, 2014 best-ever North American profit of $2.44 billion, and its first profit in Europe in three years. Ok negatards - tell us again how Ford is totally making the wrong product decisions........ 1 Quote Link to comment Share on other sites More sharing options...
jpd80 Posted July 24, 2014 Share Posted July 24, 2014 (edited) This has got to be brutal for GM, what is it another $1.3 billion impairment thanks to recalls? Excellent news for Ford btw... VW needs to cut $6 billion recurring out of their costs... Good, couldn't happen to a nicer bunch of *****.. Edited July 24, 2014 by jpd80 Quote Link to comment Share on other sites More sharing options...
ZanatWork Posted July 24, 2014 Share Posted July 24, 2014 VW should be able to exploit their brand coverage very easily, but the constant desire to push the "people's car" brand into territory it already has covered with Audi is just...strange. They have a brand for every conceivable market niche, and their core brand was created from fairly humble origins...why they need to redefine a brand with decades of global identity, I can't imagine. Quote Link to comment Share on other sites More sharing options...
7Mary3 Posted July 24, 2014 Share Posted July 24, 2014 GM confounds me. Take away the recall charges and their profits would have been $2.6B and their revenues are up a point 2nd. quarter. Someone is still buying their cars, and they are not dumping them on fleets and rebates are not excessive at the moment. What gives? 1 Quote Link to comment Share on other sites More sharing options...
papilgee4evaeva Posted July 24, 2014 Share Posted July 24, 2014 VW should be able to exploit their brand coverage very easily, but the constant desire to push the "people's car" brand into territory it already has covered with Audi is just...strange. They have a brand for every conceivable market niche, and their core brand was created from fairly humble origins...why they need to redefine a brand with decades of global identity, I can't imagine. Put simply, they're the German GM in so many ways. Quote Link to comment Share on other sites More sharing options...
silvrsvt Posted July 24, 2014 Share Posted July 24, 2014 why they need to redefine a brand with decades of global identity, I can't imagine. Profit! Why do you think Hyundai and other lower tier makers are trying to come out with luxury cars? Because the more plebeian cars are more or less a dime a dozen that are so driven down in cost because of all the players in the market. Quote Link to comment Share on other sites More sharing options...
ZanatWork Posted July 24, 2014 Share Posted July 24, 2014 They have Audi, Bentley, Porsche, and Lamborghini to generate the big-dollar sales. Hell, they even have Bugatti, but the Veyron's a famous money-loser that's basically a high-visibility component test bed. Quote Link to comment Share on other sites More sharing options...
Edstock Posted July 24, 2014 Author Share Posted July 24, 2014 It's kinda like Ford's Vignale attempt in Europe. A lot of folks over there don't see the Ford brand as up-scale luxury. That's why, if the European economy doesn't tank, you might see Lincoln over there one day. Quote Link to comment Share on other sites More sharing options...
papilgee4evaeva Posted July 24, 2014 Share Posted July 24, 2014 Profit! Why do you think Hyundai and other lower tier makers are trying to come out with luxury cars? Because the more plebeian cars are more or less a dime a dozen that are so driven down in cost because of all the players in the market. OR... so South Korea can provide their own countrymen with luxury cars instead of letting other countries do so -- the few that they allow in. It's possible, anyway. Quote Link to comment Share on other sites More sharing options...
mackinaw Posted July 25, 2014 Share Posted July 25, 2014 GM confounds me. Take away the recall charges and their profits would have been $2.6B and their revenues are up a point 2nd. quarter. Someone is still buying their cars, and they are not dumping them on fleets and rebates are not excessive at the moment. What gives? Heard this on Autoline AfterHours. Apparently people bringing in older Saturn Ion’s and Chevy Cobalts (among others) for the ignition fix and are walking out of the dealership in a new Chevy Cruze (or some other GM product). Most analysts are surprised, even mystified, that such a devastating recall has had such a positive effect on GM sales. Quote Link to comment Share on other sites More sharing options...
jpd80 Posted July 25, 2014 Share Posted July 25, 2014 Heard this on Autoline AfterHours. Apparently people bringing in older Saturn Ion’s and Chevy Cobalts (among others) for the ignition fix and are walking out of the dealership in a new Chevy Cruze (or some other GM product). Most analysts are surprised, even mystified, that such a devastating recall has had such a positive effect on GM sales. Not me, I've been wondering about this for a long time, get GM owners into a showroom and go to work on them and don't let them walk out with anything less than a new car on an irresistible lease. While recalls are usually bad news, GM has had so many now that they simply lose the impact of one or two.. Dealers are seeing more benefit in sales as well as filed payments from GM .... GM dealers are the biggest winners. Quote Link to comment Share on other sites More sharing options...
silvrsvt Posted July 25, 2014 Share Posted July 25, 2014 They have Audi, Bentley, Porsche, and Lamborghini to generate the big-dollar sales. Hell, they even have Bugatti, but the Veyron's a famous money-loser that's basically a high-visibility component test bed. That is true, but you make a lot more money selling say 400K 35K Passats vs 100k at 50-60K Audi A6s or whatever equivalent size Audi offers in relationship to the Passat. Quote Link to comment Share on other sites More sharing options...
Edstock Posted July 25, 2014 Author Share Posted July 25, 2014 I don't think this is worth a whole new thread, but . . . Detroit News Listening devices found at Ford HQ; recently fired engineer investigated Detroit— The FBI searched Ford Motor Co.’s world headquarters while investigating one of the automaker’s engineers and seized listening devices, computers and financial records, according to search warrants obtained by The News on Thursday.A lawyer for the mechanical engineer said Ford’s security team feared she was stealing trade secrets by hiding secret recording devices in conference rooms at the Dearborn automaker’s headquarters, nicknamed the Glass House. Quote Link to comment Share on other sites More sharing options...
fordmantpw Posted July 25, 2014 Share Posted July 25, 2014 GM doing everything they can in an attempt to get an upper hand! Quote Link to comment Share on other sites More sharing options...
jasonj80 Posted July 25, 2014 Share Posted July 25, 2014 It's kinda like Ford's Vignale attempt in Europe. A lot of folks over there don't see the Ford brand as up-scale luxury. That's why, if the European economy doesn't tank, you might see Lincoln over there one day. I still think Ford should launch the line here -- A lot of small business owners that have a loaded Jeep / Suburban / Tahoe / Explorer / Taurus SHO and the reason they buy them is to their employees and customers they still drive a Ford/Chevy/Jeep. It keeps the perception that they are treating their employees well and not gouging their customers in pricing. They are loaded up models with tons of luxury features. When you show up in a Cadillac/Lincoln/BMW/MB it changes the perception people have of you. They wouldn't sell a lot of them, but with the right targeting marketing, limited option choices (basically they are loaded) They could sell 30K of them across the Edge/Fusion Market. There are luxury buyers out there, but there are also people that want luxury that don't want to flaunt it, can't flaunt it, or live in an area with no Lincoln dealer. It would be a very profitable niche market. Quote Link to comment Share on other sites More sharing options...
rmc523 Posted July 25, 2014 Share Posted July 25, 2014 GM doing everything they can in an attempt to get an upper hand! Trying to figure out how to have fewer recalls Quote Link to comment Share on other sites More sharing options...
Biker16 Posted July 27, 2014 Share Posted July 27, 2014 (edited) Ford Q1 Profit Down, Misses Estimates; Backs 2014 Pre-tax Profit Guidance4/25/2014 7:14 AM ET Ford Motor Co. (F: Quote) reported that net income attributable to the company for the first-quarter 2014 declined to $989 million, from last year's $1.611 billion, with earnings per share decreasing to $0.24 from $0.40 in the same quarter last year. Excludes special items and income or loss attributable to non-controlling interests, earnings per share was $0.25, down from $0.41 last year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.31 per share for the quarter. Analysts' estimates typically exclude special items. But, revenues for the quarter rose to $35.9 billion from $35.6 billion in the prior year quarter. Twelve analysts had consensus revenue estimate of $34.06 billion for the quarter. Ford’s Second-Quarter Surge May Be as Good as 2014 Gets Ford Motor Co. (F)’s surprisingly strong second-quarter profit may be as good as it gets this year for the automaker as it ramps up spending to introduce 23 new models and to restructure its European operations. Its first quarterly profit in Europe in three years, record earnings in North America and soaring sales in China powered Ford to net income of $1.3 billion, or 32 cents a share, compared with $1.23 billion, or 30 cents, a year earlier, according to a statement yesterday. Excluding one-time costs, second-quarter profit was 40 cents a share, beating the 36-cent average estimate of analysts surveyed by Bloomberg. A sharp focus on cost cutting helped propel Ford’s North American operations to a pretax profit of $2.44 billion, even as revenue in the region declined. Europe also benefited from reductions in costs for materials to produce cars as the region earned $14 million in the second quarter. There will be pressure on profits in the second half of the year, though, Ford said, as it overhauls factories to roll out new models. “Forty cents in the second quarter is as good as it’s going to get,” said Adam Jonas, an analyst with Morgan Stanley with an “overweight” rating on Ford. “Despite the volume being down, they had a great cost performance. But ultimately, revenue still drives the day.” VW profit jumps 22% in Q1, boosted by Audi, Porsche Staff and wire reportsApril 29, 2014 - 5:05 am ET BERLIN -- Volkswagen Group's first-quarter operating profit rose 22 percent from a year earlier, as earnings from the Porsche and Audi brands helped to offset falling profitability at the automaker's core VW brand. Earnings before interest and taxes increased to 2.86 billion euros ($3.97 billion) from 2.34 billion euros a year earlier, VW said in a statement today. First-quarter revenue was up nearly 3 percent to 47.8 billion euros ($66.25 billion). "The Volkswagen group has established a strong position in recent years," and "our good start to the current fiscal year is an additional proof of this," CEO Martin Winterkorn said in the statement. "We must now continue improving our position and maintain our successful cours." Rebounding demand in Europe helped Audi brand and Porsche to boost first-quarter deliveries by 12 percent and 5 percent to 413,000 and 38,700 units. In a given Quarter VW's revenue is almost double that of Ford's revenue. 66 billion vs 35 billion Profit Ford's 1.23 billion vs VW's 3.97 billion there is a difference Edited July 27, 2014 by Biker16 Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted July 27, 2014 Share Posted July 27, 2014 (edited) In a given Quarter VW's revenue is almost double that of Ford's revenue. 66 billion vs 35 billion Profit Ford's 1.23 billion vs VW's 3.97 billion there is a difference So you're going to use VW's EBIT number and Ford's GAAP number? And you're going to compare a first quarter number to a second quarter number? Edited July 28, 2014 by RichardJensen Quote Link to comment Share on other sites More sharing options...
jpd80 Posted July 27, 2014 Share Posted July 27, 2014 (edited) And all those profits are coming from brands other than VW, that is the worrying thing for Peitch, what is his legacy to be, a valueless VW brand that relies on acquired brands to sustain it? Ford NA's EBIT for Q2 was $2.44 Billion versus VW Group's $3.97 Billion VW groups EBIT and after tax profits are not that impressive.. Edited July 27, 2014 by jpd80 Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted July 28, 2014 Share Posted July 28, 2014 And I don't really trust VW's accounting. Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted July 28, 2014 Share Posted July 28, 2014 VW groups EBIT and after tax profits are not that impressive.. For Q1, VW's GAAP earnings were $1.457B using the March 31, 2014 exchange rate. Ford's GAAP earnings were $989M Net margin: 2.8% for Ford, 2.2% for VW. 1 Quote Link to comment Share on other sites More sharing options...
7Mary3 Posted July 29, 2014 Share Posted July 29, 2014 You all just wait and see what happens when VW buys FCA! Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted July 29, 2014 Share Posted July 29, 2014 Geez. They would, too, wouldn't they? Quote Link to comment Share on other sites More sharing options...
7Mary3 Posted July 29, 2014 Share Posted July 29, 2014 There are rumors, so you know VW is thinking about it. Just think, the 'Three Stooges' of the automotive industry........ Quote Link to comment Share on other sites More sharing options...
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