Ford Motor's Chief Financial Officer Bob Shanks told CNBC on Friday that its earning miss had three distinct causes—currencies, weather and warranties.
In an interview with CNBC's "Squawk on the Street," Shanks said the automaker funneled $400 million into North American warranty reserves to keep them in line with historical data and increasing numbers of recalls, not because of specific problems or vehicle lines. The $400 million expense played a big role in the No. 2 U.S. automaker's earnings miss, Shanks said.
"We saw more recalls over the last several years," he said. "We follow a model that is purely driven by data and we had to increase the reserves based on what we've seen in our history. It's nothing specific about the future, no specific problem or vehicle lines. We're getting those reserves where history tells us they should be."
Shanks blamed weakening currencies in Venezuela and Argentina for affecting balance sheets there, costing hundreds of millions. Also, he added, the harsh North American winter disrupted operations and racked up premium costs that Ford needed to pay in order to keep production moving.