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Ford Q1 profits dragged down by warranty costs

General Motors isn't the only Detroit automaker posting falling profits in the first quarter. Ford just released its Q1 2014 financial data, and it reported a net income of $989 million, down $622 million from Q1 2013. The drop is partially blamed on higher warranty and recall expenses than the company had anticipated.
Financially, Ford suffered a rough quarter almost across the board. Its pre-tax profit of $1.4 billion was also down $765 million from a year ago. Things were even worse in the North American market where operating profit fell significantly to $1.5 billion, down from $2.392 billion in Q1 2013. However, its global revenue ticked up slightly to $35.9 billion, from $35.6 billion in this period in 2013.
Ford admitted that it spent about $900 million on expenses that it hadn't planned for during this quarter. According to Reuters, the company paid about $400 million in additional warranty and recall costs in North America. The automaker didn't explain why the costs were so much higher than expected. However, in the last three months, Ford has had several recalls, including on the 2001-2004 Escape for rust, Explorer for its steering, Edge for its fuel line and others.

Ford reflects on radical Mustang concept that never reached showrooms

The Ford Mustang that we all know and love made major waves in the auto industry way back in 1964 by offering style and reasonable pricing with optional V8 power. Its long hood and short rear deck, combined with a low-slung and sporty cockpit, made a lasting impression in the minds of consumers and car designers alike, and its basic shape has so endured the test of time that it's still in use today.
This being the case, you may be interested to know that the first Mustang of 1964.5 wasn't actually the first Mustang at all, being preceded by a concept car that made its public debut in 1962. This concept was nothing like the car that would eventually make it into production, with a radical wedge shape and a small V4 engine sitting behind the car's two occupants, driving the rear wheels. In other words, the conceptual Mustang was pretty much the complete opposite of the production Mustang besides the name.
Ford has kindly decided go through its massive archive to bring the original Mustang concept back into the public eye. The company goes so far as to pose this question to fans of the pony car: "Should we borrow a few of these style elements for the next iteration of the Mustang?" Check out our image gallery above and then let 'em know what you think in the Comments below.

Mysterious small Ford spied in Germany

Our spy photographers have just popped off a few shots of something curious. This little runabout was spotted in Germany out testing with a current-generation Ford Fiesta. We're fairly confident the machine is a Ford, but exactly which Ford model is up for debate. The hatchback could be the next-generation Ka, but we've also heard that the Blue Oval supermini might not get a replacement. Our shooter says the five-door is a bit smaller than the current Fiesta, though there is a chance that this rig is just an engineering mule for drivetrain development. Then again, it could be a model built specifically for the South African market or China, or not a Ford at all.
Whatever it is and wherever it's headed, you can check out in the gallery for a closer look before heading into Comments to weigh in with your best guess.