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Ford's Jim Farley hints at Lincoln sales rebound

If you're a fan of Lincoln, get ready for "a really great story" come May 1. That's how Ford marketing boss Jim Farley, in a call with analysts, characterized the coming April sales report for the MKZ. At the moment, there are probably few things that the executive VP could want more than a happy ending for the ballyhooed sedan that has made people cry boo-hoo for the past six months.
The massive glass roof of the MKZ is trying to support a burden that would make Atlas tap out, and it hasn't shattered, but it has shown a few cracks. The car we called "a big step in the right direction," the embodiment of the reinvention of the brand and a test of Lincoln's commitment to a new rear-wheel drive offering was given an $8-million dollar Super Bowl ad spend earlier this year, then quality control issues during its assembly scuttled deliveries. Lincoln got over that and kept up the ad blitz, now it just wants the good work to take hold.
If Farley's not leading us on, April could be the month. He said the results (so far) show "the product is being very well-received," inventory is finally where it should be and the MKZ Hybrid is doing better than expected. It bears noting that Lincoln is offering some aggressive incentive programs at the moment, including 0.9-percent APR and $1,000 off for conquest buyers stepping out of competitors' vehicles.

Next Lincoln Navigator to drop V8 in favor of V6, but Ford Expedition might get both

A great many buyers fled from full-size body-on-frame SUVs to car-based crossovers in large measure to save fuel. But that doesn't mean there's still not a buying audience for more traditional truck-based utility vehicles, and those consumers doubtlessly wouldn't mind saving some dollars at the pump, too. According to Motor Trend, those shoppers might be in luck.
That's because the magazine has confirmed that Ford isn't walking away from the full-size SUV segment, and it's poised to do something about its offerings' economy ratings, too. According to MT, global Lincoln director Matt VanDyke has hinted that the next Navigator may drop two cylinders and go with a V6 model - the current model gets just 14 miles per gallon in the city and 20 on the highway from its 5.4-liter V8. The obvious fitment would be Ford's 3.5-liter twin-turbo EcoBoost V6, an engine that has spread like kudzu throughout the rest of the Blue Oval's large vehicle lineup.
Downsized turbocharged engines like Ford's EcoBoost franchise have come under fire as of late for not delivering their EPA fuel economy ratings, but their benefits extend beyond consumption - the 3.5L offers superior power and a better torque curve than the naturally aspirated V8. MT also suggests that Ford's 3.7-liter V6 could form the base engine for the next Navi - it has similar horsepower but a lot less torque than the current 5.4L. That may be less of a problem with the next generation tipped to go on a diet, which could level the playing field somewhat.

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.