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Ford opens the doors on its Swedish rally skunkworks

It's always amazing to see how different kinds of racecars are made. Formula One racers are often constructed in modern architectural marvels that hint at some of the cutting-edge technology going into the racing. Conversely, rallying is all about sliding around on a varied course as fast as possible, but it often leaves a vehicle caked in mud. So it makes some sense Olsbergs MSE, or simply (OMSE) rally car shop in Nynashamn, Sweden, shows technological sophistication in a more down-to-earth setting. It builds Ford Fiesta ST racers for Global Rallycross there, and this new video gives viewers a tour through the work.
Former rally driver Andreas Eriksson runs OMSE. These days instead of racing, he and the company's 46 employees are building Ford racers from scratch. A ton of work goes into constructing each one, and according to Eriksson, it takes 400 hours to complete each body. At times, things are so busy that some of the technicians live in the shop in apartments that are on premises. There's even a restaurant to keep them fed. Sadly the dyno room is empty during this visit, though.
By the time OMSE is done, a rallycross car might resemble a Fiesta ST on the outside, but as you see in the video, it's a completely different beast underneath. Check out the work it takes to build one of them, and scroll down to read more about it in the official release.

Ford reports 58% drop in Q2 profits on European losses

Ford Motor Company announced Wednesday that it has posted a $1 billion profit for the second quarter of 2012. That sounds like good news for the Blue Oval, until you take into account that Ford posted a $2.4 billion profit for Q2 a year ago. That is a substantial 58 percent loss.
Ford also posted $465 million in international losses, with $404 million of those losses coming directly from Europe. The automaker also increased its European loss projections to $1 billion for 2012, due in large part to the economic crisis overseas, which has resulted in increased unemployment and decreased consumer confidence.

Ford recalling 850,000 cars and SUVs for airbag issues

Ford has announced a major recall of 850,000 vehicles from model years 2013 and 2014 due to a problem with the "restraints control module."
According to Ford, a short circuit could develop in the module, causing the airbag warning light to illuminate. In more severe cases, dependent on where the short develops, the airbags and seatbelt pre-tensioners may not work in the event of an accident. The problems can be more wide-ranging than that, too, as systems that rely on information from the control module, such as the stability control can be affected.
With 850,000 vehicles affected, it's no surprise that some of Ford's volume leaders are covered. That includes the Fusion and Lincoln MKZ sedans, as well as the incredibly recall-prone Escape and the C-Max MPV.