For the first quarter of 2014, Ford Motor reported a nearly 39% drop in its profit, reports The Detroit News.
The drop is mostly attributed to more than $400 million the company set aside for warranty reserves, an account used to cover future expenses of recalls, safety claims and customer service-related improvements, the newspaper said.
During the first three months of 2014, Ford posted a profit of $989 million, down from $1.6 billion during the same period last year. The company reported revenue of $35.9 billion, compared to $35.6 billion.
Source: The Detroit News
